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September 9, 2021

Starting a business is always a costly effort, but it has the potential to provide solid financial stability. When it comes to automotive dealership construction, there is an assortment of factors you should keep in mind. Such things include zoning regulations, costs, and market value. Only by considering these can you officially commence the construction.

Location costs

One of the reasons why opening a car dealership is expensive is courtesy of the land your business will need. These costs usually vary because some locations demand that you have a physical office before you start selling. However, others don’t. You have two options: 1) buy property, or 2) seek out a suitable chunk of land that you can lease.

A property purchase typically requires more upfront costs, but in the long run, it will likely be a better investment. You can assemble the property to suit your needs and you won’t have to operate under another person’s conditions. With that said, you will have to pay property taxes and building insurance, assuming you financed the purchase. Additionally, you are responsible for maintenance.

On the other hand, leasing the land can be a viable route to take. This is especially true if you do not have the proper amount of cash to purchase land. Moreover, you have less responsibility on your shoulders. Generally speaking, lessors allow the installation of “trade fixtures” on their commercially rented property. This gives you the opportunity to create the facilities you need. Remember that after the lease, you might be responsible for trade fixture removal.

Materials for automotive dealership construction

Most car showrooms receive either concrete tilt-up or pre-engineered metal construction. Smaller car showrooms should consider the latter as it tends to be much cheaper and faster to build. Large car showrooms, meanwhile, will benefit from the concrete tilt-up method. As the total area increases, it becomes more cost-effective.

Additional costs

Understanding both interior and exterior retail construction costs is important. The cost of location and facility establishment along with the registration, bonding, licenses, and insurance costs will accumulate. However, these are only a portion of the amount you will need to launch your car dealership. Oftentimes, dealers accrue extra costs from employing accountants and lawyers. Among the most significant costs to automotive dealership construction and development is the cost of inventory. This takes up a large share of the millions you will need to launch your business.

Working with a contractor

Look for a construction contractor who has substantial experience in building car dealerships. After picking out the ones you like, compare their previous projects, prices, design ideas, and materials they frequently use. Choose the best of the bunch and discuss your design ideas with them.

Keep in mind that your design must cater to your market. Therefore, you need to do some research on the demographics and specifics of the area where you wish to build. After clearing these things up, finalize your design plans and have the blueprints created.

Outline your construction schedule in a comprehensive timeline to ensure that you remain on budget and are punctual. Additionally, this will help you make projections regarding when to start buying inventory. As soon as you and your contractor have completed the schedule and prepared the design, you can begin construction. For more information about contractors, consult with our Calgary construction services.

Automotive dealership design considerations

In a society that is driven by brands, cars and lifestyles tend to overlap. Furthermore, the sales environment is often reflective of the patron’s preferences. Put simply, commercial property remodelling or construction is a pivotal part in generating a profit. The range of a car dealership scheme is not restricted to sales. After-sales service is a component in the business model, hence a service reception and workshop facility usually residing on a showroom site.

There is an expectation for car showrooms to be present on highly visible sites with access to main transport routes. Plus, there should be an attractive frontage. Display of the variety of vehicles is extremely important. Likewise, the layout and orientation of sites and display areas will greatly influence sales.

Some automotive dealerships feature loudspeaker systems. Remote monitoring teams typically use them to watch for intruders and warn them that they are on camera. Discreet security measures like guard railing, forecourt bollards, and perimeter fencing are imperative to preventing unlawful vehicle entry and exit. However, they cannot interfere with the aesthetic of the dealership. Plus, they must not disrupt customer views of the cars on display.

If you want to learn more about the important facets of auto dealership design, check out our article, The Elements of Auto Dealership Design.