The UK population loves their cars; there’s no doubt about it. Millions of new vehicles are registered with the DVLA each year. And, while the market fluctuates in tandem with the economy, vehicle ownership for many in the UK is a lifeline and a necessity for both work and play.
Car dealership franchises provide valuable entry to this most profitable industry. Whether you’re looking to sell brand-new cars, second-hand vehicles, or offer associated services, there’s a car dealership franchise for you.
Many UK car dealerships offer a range of services to supplement the sales arm of their businesses, offering repairs, servicing, luxury valets and car washing, and the sale of parts and accessories.
Over the years, attitudes to vehicle ownership have shifted, especially among Millennials. Lease and Personal Contract Purchase (PCP) plans have made it more affordable for individuals to drive home in a brand new car, where consumers may have previously chosen to buy second-hand. This propensity towards brand new is lubricating the manufacture of vehicles in the UK, contributing significantly to the economy.
The purchase of a car is a high-ticket transaction for most people in the UK. Offer them trustworthy and impartial advice, and you could make a hefty sale, as well as build a relationship with a customer who comes back to buy or lease next time they choose to upgrade.
Franchising
Car manufacturers primarily rely on car dealership franchises to get their vehicles on the road. If you're looking to start-up in the brand-new car space, the big brands, such as Ford, Vauxhall, VW, Peugeot, and Nissan are keen to develop relationships with new dealers.
In return, you’ll receive support from the manufacturer for training, warranty work, repairs, and a range of bespoke services that you can, in turn, offer to your customers to boost the attractiveness of what you can provide.
Franchise dealerships usually focus on one (or perhaps) two specific brands. This helps focus your sales and service offering, giving your staff specialist knowledge that helps to reassure the customer that they’re in safe hands.
Car dealership franchises offer an array of benefits for new business owners, helping negate the inevitable instability of the early years of operation for independent companies.
Offer your customers various options when it comes to financing, with backing from the manufacturer's finance department. This means that you can provide special offers and favourable deals, making your dealership the one that consumers return to, time and time again.
The majority of car dealership franchises employ finance experts who can explain the available options to your customer - with some leeway for haggling that makes a client feel like they're getting the best deal possible.
Associate your new venture with the might of the prominent manufacturers, and gain access to an existing client base.
Car dealership franchise trends and factsEven though there’s a range of purchase options, including leasing and PCP, car ownership remains the majority choice in most UK regions. Northern Ireland has the highest percentage of vehicle ownership at 82%.
Ford is, by far, the majority holder of franchise networks in the UK, closely followed by brands such as Vauxhall and Volkswagen.
The most popular manufacturer brands in the UK are (in order of franchise dealerships) Ford, Vauxhall, Peugeot, Nissan, Volkswagen, Kia, Toyota, Citroen, Fiat, Suzuki, BMW, Mini, Hyundai, Mazda, Renault, Audi, and Seat.
Franchising Vs Independent
Banks favour franchises because their economic structure is built upon a proven, successful framework.
The first two years for independent companies are fraught with instability while they find their place in saturated markets. Franchising, on the other hand, offers stability for new ventures, with added support and guidance from the parent company.
Car Dealership Franchises
Explore our list of car dealerships today, and take your first step towards self-employment, right now.
Find your brand new start with Franchise Direct.