The cost to open a Mercedes dealership varies according to the state rules and alternating registration and license fees. These are expensive vehicles and require luxurious showrooms for their appealing displays.
How much does it cost to open a Mercedes Benz dealership? It costs between $110000 to $220000 to open a Mercedes Benz dealership. You have to build the expensive showroom in an area of 8500 to 13000 square feet with a work area of 2100 to 2600 sq ft and a lounge of 1100 to 1600 sq ft. It includes consultation charges from $300 to $700, a license fee of $110 to $320, insurance of $351000, and inventory charges of $110000. Its registration charges include $760 to $780, a franchise fee of $36000 to $37000, and a location expense of $8100 to $21000. On average, it costs $140000 if you already own the land in a commercial location.
In addition, you can establish a standard-sized showroom with multiple facilities, funds, and sufficient staff. These units work with the manufacturing factories and sell their new and old variants at retail prices.
- 1 What is the dealership of Mercedes Benz?
- 2 What is the average cost to open a Mercedes Benz dealership?
- 3 How to open a Mercedes Benz dealership?
- 4 Why is the Mercedes Benz dealership so expensive?
- 5 Can you transfer the ownership of the Mercedes Benz dealership to another person?
- 6 What is the biggest Mercedes dealership in the world?
What is the dealership of Mercedes Benz?
It is a business that sells particular vehicles at retail costs and directly connects with the manufacturing companies. For example, a Mercedes dealership only sells the new and used variants at different price ranges.
These selling units have a contract with the automakers. Also, they can sell the vehicles without the middle agreement.
These units have spacious space to accommodate the certified cars in specific showrooms.
Moreover, the salesman represents vehicles to the customers according to their demands. A few units provide spare parts for Mercedes in moderate price ranges.
What is the average cost to open a Mercedes Benz dealership?
The average cost to open a Mercedes dealership is around $110000 to $130000 and varies according to states, variable policies, and confirmation fees.
The maximum cost to establish it is around $210000 to $220000. The expenses vary according to the scale of your establishment.
Moreover, these are luxurious selling units with extended floor plans and other parking facilities. People plan to build these units with a comprehensive budget.
However, you can minimize a few facilities according to your funds. But, these units do not fulfill the protocols of manufacturing authorities.
The minimum expense to make a new Mercedes showroom is around $110000 to $220000. Moreover, the hidden fees, security bonds, and other registration protocols make the procedure expensive.
A person needs appropriate planning with a specific land to construct these advanced and luxurious selling units.
How to open a Mercedes Benz dealership?
It is expensive and requires significant funds with specific land for construction.
However, you can lease or purchase the location according to your budget. It is a commercial building and requires legal registration.
You have to build a spacious unit with a particular parking space.
Then, you can open it in an average area of around 8500 to 13000 square feet according to the number of vehicles and internal facilities.
These units require a separate workspace of around 2100 to 2600 square feet.
It requires an area for a lounge for customers with an average size of 1100 to 1600 square feet.
In addition, leave a bike parking space of around 1600 to 2100 square feet.
However, you can adjust the trucks within the unit, and they need an accommodation area of 2100 to 3100 square feet.
The cost of one square foot of land is around $185 to $187 across the USA.
Also, a few people take these locations on a lease, and the additional amount adds to the total package.
You need to carry the identification card with an appropriate address during the procedure.
These documents are necessary for the registration procedure. Moreover, the authorities require contact numbers and email identification.
Before business registration, the local authorities check the documents of the available property, the pattern of lease payments, and other clauses.
You can apply online to register for a Mercedes Benz dealership. Moreover, access their website and fill out the available form.
Then, click the option submit and wait for a confirmation call for the registration of your selling unit.
It is better to hire a general manager to handle the accounts department and maintain a staff of salesman.
They have a weekly salary of around $1200 to $1300 according to the type of job and selling policies.
You can select them according to the number of vehicles in your selling unit.
They have fixed salaries with bonuses and other facilities. Before opening, consult a certified public accountant and pay a fee of around $300 to $700.
Also, the selling spot requires a legal license to sell the automobiles in a particular state. The license fee includes the charges of application and other procedures.
For Mercedes dealers, the license fee is around $110 to $320. Get an insurance policy for your unit and protect it from sudden accidental losses.
Moreover, the policies have variable costs, and you can get insurance for around $351000. In addition, inventory is an investment of $110000 and increases according to the budget and type of vehicle.
However, you can get a loan rather than initial investment. The furniture, consultations, advertisements, and a website are additional charges.
Why is the Mercedes Benz dealership so expensive?
Several factors increase the total cost of the opening procedure. However, I have explained four significant reasons for these expensive activities.
People register their dealerships as limited liability companies and limited partnerships. In this way, they can legally sell the vehicles with an agreement with the manufacturing company.
The registration cost varies from one state to the other due to variable policy. You can register this luxurious unit is around $75 to $80 in California.
In Texas, the procedure charges are around $760 to $780 with complex policies. The LLC registration adds around $120 to $130 to the overall procedure due to state policies.
It is the first investment to open an auto dealership, and the charges vary with state rules. However, you can pay around $36000 to $37000 for these extended selling units of luxurious vehicles.
You cannot open such units without paying these charges to the local authorities with authentic documents.
The location has an impact on the cost of the entire procedure.
However, you can lease a business location of an auto-selling unit for around $8100 to $21000. It is better to select it according to the condition of the land and surrounding.
Also, it varies with the type of property and available facilities. It has an annual renting fee of around $54000 to $55000.
Expensive surety bonds
Surety bonds are an essential component of a licensing procedure, and you cannot open it without a license.
The state rules determine these warranty bonds. Also, the charges vary according to the amount of these bonds with the compensation.
You can purchase these bonds is around $6000 to $8000. However, a few are expensive and have an average amount of $110000.
You cannot get them without explaining the bank statements and details of funds. The dealers with higher funds can get a bond with the maximum amount.
Can you transfer the ownership of the Mercedes Benz dealership to another person?
You can transfer the ownership of your dealership to a new dealer with authentic documents and sufficient funds. You have to give the license, registration, and legal identification of your land.
In this way, you can make money from a working unit, and the new dealer can customize it according to the state policies.
However, the procedure involves registration transfer fees and other expenses. These procedures are complex and may cost you around $10000 to $13000.
In such circumstances, the new dealer and old owner split the processing fee. It makes the agreement less expensive for both parties.
What is the biggest Mercedes dealership in the world?
Emirates Motor Company is the world’s largest dealership of Mercedes Benz, located in Abu Dhabi and launched in 1962.
It has an appealing infrastructure with multi-story parking and occupies an area of around 94000 square meters.
Also, it has spacious showrooms of around 47200 square feet. It has more than 260 work bays and a service center of 225000 square feet.
Moreover, it has separate housing for the spare parts and covers an area of around 78000 square feet. The company is a general distributor for a well-known Daimler and Levant group.