3 answers
Marell
Student
1
Question
Asked
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Hey my name is rell im a student from Orangeburg Wilkinson high school I'm in the 10th grade and i was wonder what type of education level i need to be a car dealership owner ?
i want to sell cars
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3 answers
Matthew Trull
Technical Writer
22
Answers
Thonotosassa, Florida
Updated
Matthew’s Answer
Hello Rell,
I'm not the owner of a car dealership and I've never worked at one. I am a Technical Writer, so I did a little research.
1. Focus on Education Early
* High School Courses: Focus on business-related courses, such as economics, finance, accounting, and marketing, if available. It would also be helpful to study courses that enhance communication and leadership skills.
* Join Clubs or Groups: Get involved in business clubs (like DECA or FBLA) or even a car-related club, to develop both business and leadership skills early.
2. Pursue a College Degree
* Bachelor’s Degree: A degree in Business Administration, Marketing, Automotive Management, or Entrepreneurship would be a good foundation. Some universities offer specialized programs in Automotive Dealership Management.
* Internships: During college, internships at car dealerships can provide hands-on experience in sales, finance, and operations, which are crucial for learning how dealerships work.
3. Gain Industry Experience
* Work at a Car Dealership: After (or even during) college, working in various roles at a dealership (sales, finance, service department) will help you understand the different aspects of the business. Many dealership owners start as salespeople or managers.
* Consider a Management Program: Some automotive manufacturers offer dealership management training programs that prepare you for ownership.
4. Build Management and Leadership Skills
* Obtain Management Experience: Becoming a general manager of a dealership is often a stepping stone to ownership. Managing a dealership will teach you how to run the business, handle finances, and lead a team.
* Develop Relationships: Networking with manufacturers, financiers, and other dealers will be key. Relationships are crucial in the auto industry, especially when it comes to securing a franchise license from manufacturers.
5. Learn the Financial Aspects
* Understand Dealership Finances: Learning how dealership finances work—inventory financing, working capital management, profit margins on car sales and services—is essential. A dealership is a capital-intensive business.
* Explore Franchise Opportunities: Once you've gathered experience and capital, you’ll need to apply for a dealership franchise, often with a specific car manufacturer. Each manufacturer has its own requirements, but they generally look for experienced candidates who can manage large inventories and have strong sales records.
6. Obtain Licensing and Legal Requirements
* Dealer’s License: Each state has specific requirements for getting a dealer’s license. Be sure to meet the legal obligations (like insurance, bonding, and taxes).
* Business Plan: Having a solid business plan will help you secure financing, whether through loans or private investors.
7. Secure Funding
* Gather Capital: You will need substantial capital to start or purchase a dealership. This includes inventory costs, real estate, and working capital for day-to-day operations. Explore financing options from banks, investors, or partnerships.
8. Become a Car Dealership Owner
After gaining experience, building networks, and securing funding, you can either start your own dealership from scratch or buy into an existing franchise.
I hope this is helpful,
Matthew Trull
I'm not the owner of a car dealership and I've never worked at one. I am a Technical Writer, so I did a little research.
1. Focus on Education Early
* High School Courses: Focus on business-related courses, such as economics, finance, accounting, and marketing, if available. It would also be helpful to study courses that enhance communication and leadership skills.
* Join Clubs or Groups: Get involved in business clubs (like DECA or FBLA) or even a car-related club, to develop both business and leadership skills early.
2. Pursue a College Degree
* Bachelor’s Degree: A degree in Business Administration, Marketing, Automotive Management, or Entrepreneurship would be a good foundation. Some universities offer specialized programs in Automotive Dealership Management.
* Internships: During college, internships at car dealerships can provide hands-on experience in sales, finance, and operations, which are crucial for learning how dealerships work.
3. Gain Industry Experience
* Work at a Car Dealership: After (or even during) college, working in various roles at a dealership (sales, finance, service department) will help you understand the different aspects of the business. Many dealership owners start as salespeople or managers.
* Consider a Management Program: Some automotive manufacturers offer dealership management training programs that prepare you for ownership.
4. Build Management and Leadership Skills
* Obtain Management Experience: Becoming a general manager of a dealership is often a stepping stone to ownership. Managing a dealership will teach you how to run the business, handle finances, and lead a team.
* Develop Relationships: Networking with manufacturers, financiers, and other dealers will be key. Relationships are crucial in the auto industry, especially when it comes to securing a franchise license from manufacturers.
5. Learn the Financial Aspects
* Understand Dealership Finances: Learning how dealership finances work—inventory financing, working capital management, profit margins on car sales and services—is essential. A dealership is a capital-intensive business.
* Explore Franchise Opportunities: Once you've gathered experience and capital, you’ll need to apply for a dealership franchise, often with a specific car manufacturer. Each manufacturer has its own requirements, but they generally look for experienced candidates who can manage large inventories and have strong sales records.
6. Obtain Licensing and Legal Requirements
* Dealer’s License: Each state has specific requirements for getting a dealer’s license. Be sure to meet the legal obligations (like insurance, bonding, and taxes).
* Business Plan: Having a solid business plan will help you secure financing, whether through loans or private investors.
7. Secure Funding
* Gather Capital: You will need substantial capital to start or purchase a dealership. This includes inventory costs, real estate, and working capital for day-to-day operations. Explore financing options from banks, investors, or partnerships.
8. Become a Car Dealership Owner
After gaining experience, building networks, and securing funding, you can either start your own dealership from scratch or buy into an existing franchise.
I hope this is helpful,
Matthew Trull
Angel S
UI/UX Design Aspirant
189
Answers
India
Updated
Angel’s Answer
Hey Rell! To become a car dealership owner, you don’t necessarily need a specific degree, but having a good educational background can really help. Here are some steps you can consider:
High School Diploma: Make sure to focus on your studies and consider taking business-related courses.
Associate’s or Bachelor’s Degree: While not required, a degree in business, finance, or marketing can be beneficial.
Experience: Gain experience in the automotive industry, such as working in sales or management at a dealership.
Business Skills: Learn about management, finance, and marketing to run a successful business.
Licensing: Research local regulations and obtain the necessary licenses to operate a dealership.
With the right experience and knowledge, you can definitely make it happen!
Regards,
Angel
High School Diploma: Make sure to focus on your studies and consider taking business-related courses.
Associate’s or Bachelor’s Degree: While not required, a degree in business, finance, or marketing can be beneficial.
Experience: Gain experience in the automotive industry, such as working in sales or management at a dealership.
Business Skills: Learn about management, finance, and marketing to run a successful business.
Licensing: Research local regulations and obtain the necessary licenses to operate a dealership.
With the right experience and knowledge, you can definitely make it happen!
Regards,
Angel
Hassan Al
Product Management Professional
398
Answers
Austin, Texas
Updated
Hassan’s Answer
I don't believe there are any specific education requirements to own a car dealership. However, in order to run one you'd likely want to have business background to understand how everything works. One way to get a finance, accounting, contracts law, Human Resources, etc knowledge would be to get a business degree. I would expect that such a degree would be an entry requirement for many management positions at a car dealer. Actual work experience in different departments would also be helpful to run a successful dealership.
So if you want to run a small independent used car dealership, you could simply start by getting a car dealer licenses and buy/sell cars from your house. As you earn money and learn the business, you could then buy or lease a small lot from where you sell. Maybe add a garage to repair etc. If you're successful over time then you could grow and expand to even buy a GM, Ford, etc. license to sell new cars. That would likely cost $100,000 - 300,000.
If you want to run a large dealership then you'd want to work your way up at one. Just to sell cars you likely wouldn't need a degree but it might be helpful to move up into a sales manager position and above. Some larger dealers will have management training programs where you learn different departments. You could check job ads for those type of positions to see what educational requirements are.
So if you want to run a small independent used car dealership, you could simply start by getting a car dealer licenses and buy/sell cars from your house. As you earn money and learn the business, you could then buy or lease a small lot from where you sell. Maybe add a garage to repair etc. If you're successful over time then you could grow and expand to even buy a GM, Ford, etc. license to sell new cars. That would likely cost $100,000 - 300,000.
If you want to run a large dealership then you'd want to work your way up at one. Just to sell cars you likely wouldn't need a degree but it might be helpful to move up into a sales manager position and above. Some larger dealers will have management training programs where you learn different departments. You could check job ads for those type of positions to see what educational requirements are.