What We’ve Learned: Best Practices for Car Dealership Renovations

Exterior of a very modern Ferrari Dealership in Nashville.

The auto dealership landscape has undergone a significant shift in recent years. Manufacturers are placing a greater emphasis on brand image, reflected in stricter dealership design guidelines. Customer preferences have also evolved, demanding a more comfortable and tech-integrated experience. Additionally, the rise of electric and hybrid vehicles necessitates dedicated service areas with charging infrastructure.

However, dealerships face a unique challenge: balancing the need for a future-proofed facility with the reality of tighter margins compared to other retailers. With decades of experience in auto dealership construction, we understand this balancing act. We’ve built long-term, successful partnerships with dealerships, and we’re passionate about helping them navigate the evolving landscape. We’re currently working on exciting renovation and expansion projects for Wilson County Hyundai and Toyota of Cool Springs. In this article, we wanted to share some of the latest best practices we’ve learned for successful car dealership renovations.

7 Best Practices for Car Dealership Renovations

1. Demystifying Manufacturer Requirements

Factory representatives present image programs that outline “must-have” and “nice-to-have” upgrades. These discussions, particularly regarding areas unseen by customers, can become contentious. We advocate for open communication and collaboration, ensuring a balance is achieved between manufacturer requirements and your budget.

2. Prioritizing the Customer Experience

Modern car dealerships are more than just places to browse vehicles; they’re customer experience centers. We focus on creating a welcoming and comfortable environment, including spacious and well-lit showrooms and comfortable waiting areas with amenities like Wi-Fi, refreshments, and entertainment options for all ages.

3. Maximizing Outdoor Space

Don’t underestimate the importance of your dealership’s exterior. A well-designed outdoor space with ample parking and storage enhances curb appeal and attracts customers. Ensuring you have ample parking and storage is also a priority. As your inventory of new, used, commercial, rental, and trade-in vehicles fluctuates, ensure you have the space to park and protect them efficiently.

4. Phasing Construction

Partner with a contractor who excels at establishing clear start and end dates for each renovation phase. Share these timelines with everyone involved, including staff and subcontractors, to ensure everyone is on the same page. Over the years, we’ve worked with dealership owners to divide each project into manageable phases. Our plans keep critical areas like the showroom and service department operational throughout the renovation. This allows parts of the dealership to remain open for business while others undergo construction.

5. Navigating Temporary Facilities

Car dealership owners and contractors must work together to navigate temporary facility closures and minimize their impact on customer experience. This collaboration starts with thorough pre-construction planning. For areas requiring temporary closure, we schedule closures during slow periods and offer alternative solutions for customers. 

Clear communication is also key. Inform customers about the renovation schedule and any service location changes through emails, social media updates, and prominent in-store signage. Consider offering additional conveniences like valet parking, mobile service units, or extended service hours to maintain customer satisfaction during the renovation.

6. Integrating Technology 

Technology is a major driver in the modern dealership experience, but its integration can harbor hidden costs. Beyond the initial equipment purchase, ongoing expenses like software subscriptions, data migration fees, and staff training on new systems should also be considered. You may also need to factor in potential rewiring or network upgrades to support the increased technology load. Careful planning with your contractor and technology consultant can help you uncover these hidden costs and ensure your budget reflects the true investment required for a tech-enabled renovation.

7. Planning for Future Growth

While it’s important to address your current needs, consider future growth and expansion when planning your renovation. Design flexible spaces that can be easily adapted to accommodate future dealership growth. This foresight can save significant time and money down the road.

Partner with Crain for a Successful Dealership Renovation

At Crain Construction, we have the expertise and experience to guide you through every step of your auto dealership renovation. We’ll work closely with you to understand your specific needs, vision, and budget. We’ll create a plan that balances manufacturer requirements with your long-term goals, all while minimizing disruption to your business. Contact our team today to discuss how we can help you transform your dealership into a thriving success story.

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