Choosing the Right Location for Your Used Car Dealership: More Than Just a Lot

Angela Roe

Choosing the Right Location for Your Used Car Dealership

Your lot isn’t just where cars sit — it’s your most powerful, organic advertising channel.

Lot Design Operations Customer Experience

1) Define the Kind of Dealer You Want to Be

Before you sign a lease, clarify your operating model. Your location, layout, and monthly overhead should match how you sell.

Low-Volume / Luxury

  • A few display spaces plus a private holding area for not-ready units
  • Broker-style operations possible with a modest office

Mid-Size (20–30 cars)

  • Dedicated customer parking and a defined wash/prep area (drains + water)
  • Organized display rows for easy vehicle movement
  • Reception/office with secure record storage

Large (100+ cars)

  • Expect ~40% of inventory in reconditioning at any time
  • Separate “backstage” work area from the customer-facing “show”

2) Design Your Lot Like a Stage Production

Think theater: the sales lot is the stage; mechanics and detailers are the crew; your sales team are the performers. Keep the show clean and the crew out of sight.

  • Front-facing row: Place a clean, eye-catching row along the street—free advertising, 24/7.
  • Row logic: Avoid burying vehicles. Every unit should be drivable out in one move.
  • Backstage: Hide reconditioning, mechanical work, and detailing from customer view.
Pro Tip: If moving a car requires shuffling multiple units, you’re losing momentum — and sometimes the sale.

3) Build Practical Office Space

  • Lockable storage for deal jackets and records
  • Comfortable seating and clear traffic flow
  • Quick access to compliance docs and the Buyer’s Guide archive

4) Plan for Parking (Customers & Staff)

  • Reserve ~6 customer spaces near the entrance
  • Employees park separately—never occupy customer-facing spots
  • Use clear, branded signage for parking zones

5) Adapt to Your Market

In dense urban areas, space and overhead are tight. Don’t compromise on layout and visibility—those are what drive walk-ins and trust.

Final Takeaway

Your location is a marketing tool, a sales accelerator, and your operations backbone. Organize for efficiency, separate the “show” from “backstage,” and make the customer journey effortless from curb to closing table.

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