Starting a car dealership is exciting but requires planning. Key costs include: Dealer License & Bond: $50–$500 application, $100–$500 annual fees, bond $10k–$50k (costing $250–$2,500/year). Insurance: Garage liability $400–$1,500, general liability $500–$2,000, workers’ comp $2,000–$6,000. Lot & Office: Lease $1k–$10k/month, signage $500–$5k, office $1k–$3k, security $500–$2k. Other Costs: Inventory $10k–$100k+, software $100–$500/month, marketing $500–$5k/month. Total Sta

Starting a car dealership is exciting, but many new dealers make costly mistakes, from skipping proper licensing and underestimating dealer bond requirements to neglecting garage liability insurance and poor lot setup. Other common pitfalls include inadequate inventory planning, ignoring state compliance, weak marketing, poor financial planning, not using a Dealer Management System (DMS), and failing to seek expert guidance.