HomeAutomobilesUsed car sales: what is needed to open a car dealership?

Used car sales: what is needed to open a car dealership?

What does it take to open a car dealership and sell used cars? Here are the bureaucratic steps and tips on how to make money buying and selling used vehicles

Opening a car dealership and selling used cars is one of the most lucrative jobs because it is based on one of the most reliable economic sectors. If you plan to open a showroom for the sale of vehicles, make yourself comfortable because here are some tips that could help you change. Here’s what you need to consider beyond the bureaucratic steps to make money selling used cars.

Updated December 27, 2023: Better readability and more useful and up-to-date content for readers


Work in a car dealership selling used cars It’s much easier than opening a new car dealership. Zero brand restrictions and investment and risk proportional to the turnover that can be achieved. However, before doing the calculations, it is good to be aware of the bureaucratic process of opening a used car dealership. The main steps include:

  • Opening a VAT number with Ateco code 45.11.01 (in the case of wholesale and retail of cars and light vehicles) or 45.11.02 (For selling used cars as an intermediary);
  • Opening one INPS and Inail position for employees;
  • Registration in the commercial register at the territorially competent Chamber of Commerce;
  • Request for exposure advertising sign to the municipality with the payment of related fees;
  • Communication from SCIA to the municipality;
  • Each necessary permit and certificate is on request from KNAV, HZS, and relevant authorities.

The above information is intended as a preventive guide and they mainly concern the resale activity of used cars. Since this can be accompanied by many other services that we discuss in the following paragraphs, we recommend that you contact a specialist advisor (for example, an accountant).

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Despite what you might think, investing in a showroom that sells used vehicles is not all about the bureaucratic process. The costs of opening a car dealership depend on how you want to orientate the store, the level of quality and customers you are targeting, and the size of the car dealership.

  • Opening a car dealership consisting mainly of outdoor square and with an attached prefabricated structure may require an investment in the order of units of tens of thousands of euros.
  • While if you point to a car showroom where you can display your cars making them visible from the outside may require a much larger and more expensive construction project.

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And we come to another key question: how much do you earn selling used cars like a pro? A lot or a little depends on several factors:

  • Channels delivery of used cars such as lot auctions, intermediaries, direct purchase from private individuals, etc.;
  • Auto show prestige. Based on the location, and the presence of competitors, choose whether to focus on a fleet with a quick turnover or a high profit;
  • PUSH customer loyalty plays a key role as word of mouth can bring new customers but also bad publicity;
  • The ability to reach as many customers as possible and invest not only in promotion through traditional channels but also through the web. The ability to also monitor social networks, web sales channels, and niche sites is a skill that has become the foundation of being able to use car sales online. This is a second job that requires a special number to add to the payroll;
  • Finally, the other services combine with the sale of used cars. For example, by offering favorable terms, you can create a customer base through on-site financing, insurance contracts, car practices, etc. Not forgetting the possibility of offering car service, and expanding the auto repair business. For all additional activities, the relevant Ateco code must be considered, and whether it is compatible with the main activity.


  • Geekay Dutta

    Welcome to my world! I'm Goutam Kumar Dutta, the brains behind this platform. As an author and the proud owner of this site, I'm on a mission to bring you the latest and most intriguing sports news from various genres. But it's not just about sports - entertainment in all its forms also captivates my interest. Whether it's analyzing the latest match or delving into the world of entertainment, I strive to provide comprehensive coverage and valuable insights.

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