Classic Car Dealer Business Plan, Marketing Plan, How To Guide, and Funding Directory
The Classic Car Dealer Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Classic Car Dealer business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.
Your Business Planning Package will be available for download after your purchase.
- Bank/Investor Ready!
- Complete Industry Research
- 3 Year Excel Financial Model
- Business Plan (26 to 30 pages)
- Loan Amortization and ROI Tools
- Three SWOT Analysis Templates
- Easy to Use Instructions
- All Documents Delivered in Word, Excel, and PDF Format
- Meets SBA Requirements
Classic car dealers operate within a very unique space within the overall automotive market. These businesses primarily are geared towards individuals that are wealthy are given the cost and ongoing expense associated with acquiring a classic car. As such, these businesses do have tend to have reductions in top line income during times of economic recession. However, the target market for most classic cars is relatively immune from negative changes in the economy – and individuals will continue to purchase classic cars in most economic climates. The startup costs associated with the new classic car dealer can vary substantially depending on the inventory that we acquired for whether or not the classical dealer walkway primarily bridge capacity. A new classic car dealership typically costs around anywhere from $100,000 to about $2 million in order to launch operations. A substantial factor in determining whether or not how much money is needed is whether or not the business is going to acquire substantial inventories that are sold on the balance sheets. The gross margins generated from a classic car dealer range anywhere from 30% to 60% of the total cost of the vehicle.
In most economic climates, a classic car dealer is a strong candidate for a working capital one credit business loan. Most financial institutions are willing to provide the necessary capital in order to launch operations, but they do require that a 20% down payment will be provided by the owner or entrepreneur looking to fund the business. Of course, a classic car dealer business plan is going to be required. This business plan should feature a three-year profit and loss statement, cash analysis, balance sheet, breakeven analysis, and business ratios page. Special attention should be paid to the marketing strategies that will be used in order to promote the inventories that are held by the business. This includes developing a large-scale marketing plan, which will discuss below. Also within the business plan, a demographic analysis should be developed in regards to the types of people that we purchasing classic cars from the business on an ongoing basis. This includes examining annual household income, annual family income, average net worth, location, and how much money they will spend on a classic car any given time. Typically, most classic cars have pricing point that ranges anywhere from $20,000 all the way to about $150,000 depending on the remedy of the car. Certain specialty cards can easily have a value in excess of $250,000.
A classic car dealer SWOT analysis should be produced as well. As it relates to strengths, most classic car dealers are generally able to remain profitable during most economic climates low sales to take a hit during economic recessions. The operating costs are very controllable unlike a traditional automotive dealership. The biggest expense outside of infantry acquisitions is typically maintaining a high scale facility while concurrently providing strong commissions for sales agents.
For weaknesses, again during times of economic recession classic car dealers to have a difficult time turning over their inventories. As such, it is imperative that this risk is ameliorated by maintaining an expansive marketing presence while concurrently developing relationships with automotive brokerages throughout the country.
The opportunities for classical dealer are extremely broad. This includes development of new locations sourcing unique and rare inventory that can be sold to the general public. Once profitable, most financial institutions are willing to provide a substantial amount of ongoing capital support in the form of a purchase money credit line or general working capital one credit.
Pertaining to threats, outside of a major shift in economic productivity is really nothing that is can impact the way that a classic car dealer conducts business. There may be some regulations as it relates to the energy output and emissions output of classic cars, but there are usually numerous exemptions for classic vehicles.
A classic car dealer marketing plan needs to be developed so that the entire inventory the business can be showcased at any given time to a third-party. A substantial online marketing campaign needs to be developed as many people search for specialty vehicles online before the even visited dealer. There are numerous platforms that allow these vehicle dealerships to easily reach millions of people that have an interest in classic cars. Online marketing should be the form of strategy that is used when developing this type of business. Additionally, there are numerous circulars that focus on classic cars but regular cars in general and many dealerships have taken to listing their inventories in the circulars given the fact that they boost visibility within a local and regional market. The cost associated with listing vehicles in a print circular is somewhat moderate but the return on investment can be very strong especially in areas that have a very large high net worth population. Again, most of these dealerships to maintain both online as well as print advertising campaigns.
There’s really nothing much is going to change regarding the owning and operating classic car dealerships. These businesses are going to thrive in most economic climates, and they will remain a mainstay staple of nostalgia car buying for the foreseeable future. This is especially true as people from the baby boomer generation enter their later years and want to own a car that they used to have many decades ago.