Starting a car company
Want to start your own car dealership, but not sure where to begin? From our own experience, we know exactly what every car trader needs.
Starting a car dealership: how to arrange everything step by step
Want to start your own car business but don't know where to begin? Then you've come to the right place. As a former car business ourselves, we know the unique needs and challenges of car dealers like no one else. With our years of experience in the automotive industry, we know exactly what it takes to successfully set up a car business. Whether you want to become a car dealer, garage owner, or salesperson: this step-by-step guide will help you get started.
As an accredited RDW provider, VWE now supports over 10,500 car dealerships and garages in the Netherlands. With our years of experience, we are happy to help you on your way to a successful start for your car business, whether you want to become a car dealer, garage owner or official dealer. This step-by-step plan will show you the way.
Step 1: Choose your business concept and target audience
Consider what type of car business you want to start:
- Used car dealership
- Universal garage (maintenance and repair)
- Specialised workshop (e.g. electric cars or classic cars)
- Sales and maintenance combination
Tip: Think carefully about your target audience: private individuals, business drivers, or leasing companies.
Step 2: Write a business plan
A good business plan helps you to plan realistically and to apply for financing. Work out at least:
- Market and Competition Analysis
- SWOT analysis
- Financial plan (investment (car business startup costs), fixed costs and margins)
Step 3: Arrange your registration and permits
Mandatory
- Registration with the Chamber of Commerce (KvK)
- Applying for RDW recognition for transfers, name changes, and MOT inspections
- Even if the RDW recognitions haven't been finalised, we're happy to advise you! Click here for an overview of RDW approvals and to apply for an approval directly. VWE is happy to assist (starting) car businesses.
Please note: Are you working with oil, batteries or car wrecks? Check with your local council which environmental permits are required. Do you want to start a business from home? Check the zoning plan.
Step 4: Choose a location and set up your business efficiently
Tip: Use digital systems to efficiently manage your stock and administration.
- Find a location with good visibility and ample parking.
- Invest in professional workshop equipment and stock management
- Organise your showroom or workshop practically
Step 5: Insure your business properly
Mandatory
- Bedrijfsaansprakelijkheidsverzekering
- Stock insurance (for business stock)
- Garage insurance (for damage during maintenance or test drives)
AdviceConsider legal assistance and transport insurance for added peace of mind.
Step 6: Find customers and become visible online
Tip: With our tools Place your offer on all the important automotive websites quickly.
- Provide professional website that is easily found on Google
- With a VWE website, you can present your offerings attractively and clearly so that visitors can easily view your used vehicles or services.
- Actively encourage your visitors to get in touch, which will generate valuable leads for you directly.
- Your website is fully built and maintained for you, so you have no technical worries and can focus on running your car business.
- Advertise occasions easily on multiple platforms
- Get your vehicles advertised quickly and easily on multiple websites, so you are immediately visible to potential customers.
- Think about offering guarantees and extra services to keep customers loyal and your workshop busy.
- Use social media and local marketing to increase your reach
Step 7: Automate your processes
- Use smart software for administration, stock and customer management
- Automate RDW notifications, invoicing, and advertisement placement
- More time for your customers and your business
Support to start your car business
Would you like personal and no-obligation advice on starting your car business? Our team is happy to think along with you about your plans, help you with applying for RDW approvals, and support you in efficiently organising your processes. We are ready to ensure a successful and carefree start together with you. Fill in the contact form below or call us directly. 088 – 893 7020.
Starting a used car dealership
Frequently asked questions
Do I need diplomas to start a car dealership?
For the trade in cars (buying and selling), no specific diploma is legally required. You can buy and sell cars with just a registration at the Chamber of Commerce. However, if you also wish to carry out technical work, such as maintenance, repairs, or MOT inspections, then there are requirements:
- For MOT recognition by the RDW, at least one employee must have a recognised inspector's diploma (for instance, a WFT or Innovam qualification, depending on the vehicle type).
- For garage work, professional competence is often required to meet insurance and warranty requirements, even though this is not always explicitly stipulated by law.
In short: pure trading is possible without a diploma, but as soon as you work on or inspect vehicles, you need recognised professional qualifications.
Which insurances are compulsory?
Two insurances are legally required as soon as you start a car dealership:
- Business Liability Insurance (AVB). Covers damage to third parties that occurs during your business operations, for example during a test drive.
- Insurance for your company vehicle stock, according to the Motor Vehicles Liability Insurance Act (WAM). Mandatory as soon as you make use of the RDW business vehicle stock recognition, as vehicles in your stock are often not individually insured (yet).
Furthermore, garage insurance is strongly recommended, but not legally required. It covers, among other things:
- Damage or theft during a test drive
- Transport damage to vehicles from your stock
- Unforeseen damage during repair or maintenance
Furthermore, for self-employed individuals, it is also advisable to consider occupational disability insurance and legal expenses insurance, given the financial risks associated with the car trade.
Is it possible to start a car dealership without RDW recognition?
No. For the sale and purchase of vehicles, you will almost always need RDW recognition for your business stock. This recognition allows you to temporarily register vehicles in your company's name instead of your personal name, which is essential for trading.
To be eligible, you must, among other things:
- Registered with the Chamber of Commerce (KvK), with the business description that you purchase or manufacture vehicles with the aim of selling them
- As a sole trader, be at least 18 years old and live in the Netherlands
- To have a physical location where your business's stock can be stored (not the public highway).
Depending on your activities, you may also require other authorisations, such as:
- Export Recognitionto drive vehicles from your stock
- Acknowledgement of MOT: if you yourself want to carry out inspections
- Appointment (TV)for re-registering licence plates
The RDW aims to process an application within 15 working days. For processing notifications (such as deregistration), you will subsequently need an accredited RDW provider.
Can I start a car dealership from home?
This can only happen if development plan whether your local authority permits home-based businesses. Car dealing often falls under a stricter category than a regular “home-based business” because it involves:
- Storage of vehicles (business stock) on your premises
- Potential nuisance for local residents (traffic, noise, visual impact)
- Sometimes a mandatory Environmental permit for the use of the land
Therefore, always contact the Spatial Planning department or Environmental Services of your municipality in advance. They will verify if your plans conform to the zoning plan and can indicate whether an exemption or permit is required. If you start without permission, you risk enforcement proceedings and a penalty payment.
What are the costs of starting a car business?
Start-up costs vary considerably. Expect a range of €25,000 to €250,000+, depending on your concept. The main cost items are:
| Cost item | Indications |
|---|---|
| Company stock (buying cars) | Largest variable, depending on number and segment |
| Location (rent/buy land or showroom) | Strongly location-dependent |
| Apply for RDW approvals | Fees + any accompanying costs |
| Insurances (Public Liability Insurance, stock, garage) | Annual recurring |
| Website and marketing | One-off + recurring |
| Clan versus Clan registration and administration | Limited, a few hundred euros |
A small trader working from home or a small site with little stock is at the lower end of this bandwidth. A car dealership with a showroom, workshop and larger stock will quickly be heading towards €100,000+.