Top Four Car Dealership Franchise Opportunities in the UK

Here’s one business idea you may not have thought of before: a car dealership franchise. If you’d like to help customers find the perfect car for an affordable price, look no further. In this article, we’ll look at the business model and the automotive sector as a whole.

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If you’re interested in joining the automotive sector, you may want to think about starting a car dealership franchise. It’s a popular business move, as showroom owners can enjoy the benefits of owning their own company in a thriving industry as well as the support of a senior franchise partner.

The automotive industry is a highly profitable one, in which over 800,000 workers generate more than £18 billion for our economy. In the UK, more than 40 million people hold a full driving licence and 32 million own a car or van. This means there is significant demand for most automotive businesses, whether they sell cars, vehicle repair services or even cleaning products.

Becoming a car dealership franchisee

Clearly, the automotive sector holds plenty of potential if you’ve got the ambition. But why start a business with a franchise? Well, in short, customers are looking for reliability, and a partnership with a major brand can give you a trustworthy reputation from day one.

Here are a few fantastic franchises that can give you that all-important credibility:

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• When to consider starting your own business
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1. Ford

Ford operates the largest franchise network of all car manufacturers in the UK. It has over 400 franchised car dealerships on British shores, spread across England, Scotland, Wales and Northern Ireland.

How do franchisees fit in? All franchisees have access to the largest UK vehicle park in the country. Ford offers six different franchise opportunities that are targeted at different market sectors. By completing the franchise application form on Ford’s website, you’ll have the chance to become a successful franchise partner.

2. Volkswagen

Volkswagen first emerged in the UK in 1952, with the sale of two models of its signature Beetle. But today, it’s the UK’s largest vehicle importer and employs more than 1,800 people across the country. Volkswagen dealerships are owned by a number of regional franchise groups that operate several dealerships in their local area.

How do franchisees fit in? The Volkswagen business is built on the shoulders of its hard-working franchisees. There are 250 of them across the country that are delivering high-quality German engineering to a large market. To get involved, write an application letter and send it to the address listed on Volkswagen’s retailer webpage. The automotive business should get back to you within two weeks.

3. Hyundai

Hyundai has been selling cars since 1967. It was founded in South Korea and has expanded globally over the years. In 2010 and 2011, it was labelled the fastest growing car brand in the world by Interbrand.

How do franchisees fit in? Hyundai offers a conventional car dealership franchise package that gives franchisees the opportunity to sell new and used Hyundai vehicles in a specific territory. Evans Halshaw is just one of Hyundai’s franchise groups. It’s an example of how franchisees can grow to capitalise on local demand, as it owns four different Hyundai dealerships based in Newcastle, Gateshead, Leeds and Harrogate.

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>> Read more:

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• Top 6 Automotive Franchises in the UK
• How much money can you make owning an auto repair shop?
• Automobile Franchise Businesses: An Opportunity to Take the Road to Success
• What qualifications do you need to start an automotive business?
• Automotive Product Businesses in the UK

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4. Green Motion Car and Van Rental

Across its 12-year franchise journey, Green Motion has expanded into 20 locations, including Leicester, London and Heathrow and Gatwick airports. The car leasing franchise is also expanding internationally; you can find Green Motion outlets in 40 countries worldwide.

How do franchisees fit in? Green Motion offers vehicle leases to businesses in the UK and individual entrepreneurs. If you want to join a car franchise with an international reach, the minimum investment for starting up a Green Motion outlet is £70,000. In return, your brand will be advertised over the automotive franchise’s 47 different distribution channels, which include Expedia, Rentalcars and Holiday Autos.

Alternative franchise opportunities in the automotive sector

Car dealership franchises can reward you with impressive returns if you can afford the initial investment. As you can imagine, the cost of launching a showroom can be substantial, as you’re buying and selling a product that costs at least several thousand pounds per unit. What’s more, most car dealers will expect you to commit to a long-term investment that involves opening a number of different outlets across the country. But what if you just can’t afford this?

Well, many investors look into other options. Opening up a car rental, repairs or parts franchise can save you a significant amount of cash and give you that break into the industry. Once you’re up and running, your car franchise should yield good results – and you’ll need to invest a smaller amount of capital than you would have done, giving you the opportunity to reach your break-even point sooner.

There are a whole host of different automotive franchises that you could get involved in. But here’s one example of the sort of business you could start if running a car dealership isn’t for you:

ChipsAway

The ChipsAway franchise specialises in SMART (small to medium area repair technology) processes. Having operated in the automotive sector for around 20 years, the franchise is now the most extensive network of car repair specialists in the UK.

• Becoming a ChipsAway franchisee: ChipsAway provides franchisees with a ‘ready-to-go’ turn-key business. As a result, this is an excellent investment opportunity if you’d like to join the automotive industry but have limited expertise. As a franchisee with this van-based business, you’ll take your mobile workshop wherever your customers are, but you can open a dedicated car care centre in the future. To learn more and sign up, click here.
• How much you need to invest: Franchisees need to raise an initial investment of £29,995, but this can be reduced to just £15,000 through various funding arrangements
• What you get for your investment: You’ll receive training in technical skills, business management, marketing and sales, as well as ongoing support and marketing materials. You’ll also be put in touch with a UK call centre that’s open 24/7 and directs business your way when you’re not able to get to the phone. What’s more, ChipsAway guarantees that all new franchisees will be given £80,000 worth of customer enquiries in their first year of trade.

Joining the automotive industry

ChipsAway is just one of the lucrative franchise opportunities you’ll find on our books. To browse our full directory, just click here. You’ll be able to find out more about each business, its investment requirements and franchisee criteria.