How to Start A Car Dealership in Dubai

15 Nov 2022 Helpful Tips

Are you looking to start a Car Dealership in Dubai?

EasyCars has put together a quick guide, outlining everything you need to do to start a Car Dealership in Dubai.

Let’s get started!

Create a Business Plan

The first thing that you need to do if you are looking to start any business is you need to create a business plan. A business plan is a detailed report that outlines why you are beginning this journey, what you are aiming to achieve and how you are going to go about achieving it.

These are some of the questions that you need to answer and plan for.

Why: Why are you starting this journey? what is your motivation?

What: What are you trying to achieve?

Who: Who are you planning to sell your cars to?

When: When are planning to open your dealership?

Where: Where are you planning to open a dealership? Where do you want your dealership to be in 1,3,5 years’ time?

The benefit of creating a business plan is it creates a reference for your dealership to base your future trading decisions around. You will have a tangible target to work towards and you will know exactly how you are going to go about achieving it.

Apply for a Commercial License

To sell cars in Dubai, you will need to apply for a Commercial License. A commercial license can be registered with the RTA. When applying for a Commercial License you need to outline your industry as an authorized car dealership. It is important that you understand exactly how you are going to sell cars because registration rules can differ.

To register for a Commercial License in Dubai click here.

Source Vehicles to Sell

To open a Car Dealership in Dubai you will need to source vehicles to sell. In the current environment, sourcing vehicles has proven to be a challenge for many dealerships due to used car prices and new car production delays. It is important that your dealership puts together a plan which outlines exactly how you are going to source vehicles to sell to customers.

A few your dealership can source vehicles to sell include:

  • Register/Attend Vehicle Auctions
  • Buy directly from private sellers
  • Use Car Advertising Websites to Purchase Vehicles
  • Buy from Vehicle Wholesalers
  • Source Vehicles Directly from the Manufacturer

Understand Dealership VAT

Before starting a dealership, it is important to understand VAT and how it applies to Motor Dealers. One of the biggest mistakes that so many current Motor Dealers in the UAE make is mixing up Dealership VAT with everyday VAT. Dealership VAT in the UAE differs greatly to the normal VAT. As such, you should familiarise yourself with the requirements and how you are going to go about completing VAT calculations and compliance.

Related Article: VAT Guide for Car Dealers in the UAE.

Implement a Dealer Management System to Automate Daily Tasks

Your dealership will only be as good as the systems that you use. To manage your dealership more efficiently, you should consider implementing a UAE Motor Industry Specific, Dealer Management System.

The benefits of implementing a Dealer Management System include:

  • Automates dealership operations, including, stock management, advertising, and reporting
  • Automatically Calculates complex dealership VAT and reporting
  • Helps you track and manage leads and sales
  • Stores your data securely without requiring heavy IT infrastructure or investment

And more…

Related Article: What Features Does a Dealer Management System Have?

Set up your dealership accounting

Your dealership will need an accounting package to manage all the financial aspects of your business. There are many accounting options available to businesses in the UAE, all of which have their own unique features and pricing.

Before you choose an accounting system to use at your dealership it is important that you ask your provider of choice if they cater for dealership trading.

Related Article: Why UAE Motor Dealers Should Integrate their Accounting Software with their Dealer Management System.

Create Your Online Profiles

95% of Car Buyers start their search online instead of visiting a dealership. To acquire customers, you need to create your own business profiles online.

Some of the essential online pages that your dealership should have includes:

  • Facebook page
  • Google My Business page
  • A Website
  • WhatApp Number
  • Instagram Page

The better your dealerships online presence is, the more leads you will generate!

Plan your Vehicle Advertising advertising

One of the key tasks of running a Motor Dealership is creating and sending vehicle advertisements to online classifieds to generate interested buyer leads. As such, your dealership should research and plan which advertisers you will send your vehicles to.

It is important to note that each advertiser has their own unique set of terms, conditions, and pricing setups. Before sending your vehicles to an advertiser it is important that you understand the requirements and conditions.

Some of the leading Vehicle Advertisers in the UAE include:

  • Dubi Cars
  • Yalla Motor
  • YOSR
  • Facebook

An added benefit of using a Dealer Management System is you can automate the advertising process. Using a DMS, you can create and send vehicle advertisements to all leading UAE advertisers in the click of a button without needing to manually duplicate and enter data time after time. A DMS will give you more time to focus on your primary role of buying and selling Motor Vehicles.

DISCLAIMER – The content within this blog does not constitute professional advice and is intended to be general in nature.

About EasyCars,

EasyCars by Jeal is a UAE Motor Industry Specific, Dealer Management Software that automates the daily tasks of running a motor dealership. Using the latest technologies, EasyCars removes frustrations experienced at the dealership - opening the doors to future growth.

EasyCars features include Simple Stock Management, Automated Advertising, Automatic VAT Calculations, Xero Accounting Integration, Facebook Automotive Inventory Ads, Dealer Websites and Business Reporting in the one central management software.

To learn more about EasyCars or to arrange a no-obligation free demo of the software, please submit the form below.

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