Car Dealership in Germany in 2025: Requirements, Needed Experience and How to Obtain a Manufacturer Dealership
Opening a car dealership in Germany is considered a promising investment opportunity, thanks to the stability of the German economy, growing demand for both new and used vehicles, and the increasing spread of electric and hybrid cars. In this article, we discuss the main legal requirements and practical steps, the qualifications and experience needed, and how to obtain an official dealership agreement from manufacturers in Germany and abroad – with up-to-date information as of 2025.
Strength of the German economy:
Germany holds a leading global position in the automotive industry and is home to world-renowned brands such as Mercedes-Benz, Volkswagen, BMW, Audi and others.
Growth of the electric vehicle segment:
Demand for electric and hybrid cars has been rising continuously, especially after stricter environmental and emission regulations were introduced in various German cities.
Broad range of customer preferences:
German customers tend to prefer high-quality vehicles – whether new or used – which creates diverse investment and business opportunities across different market segments.
Experience in sales or the automotive sector:
German law does not require a specific academic degree to run a car dealership.
However, practical experience in car sales, automotive marketing or working in an existing dealership greatly improves your chances of success.
Attending training courses in business administration or marketing can further strengthen your management skills and help you understand the market in depth.
Understanding trade regulations (Gewerbeanmeldung):
Operating a car dealership is a commercial activity and must be registered with the local Gewerbeamt (trade office) in the city or municipality where you plan to operate.
In some cases – especially if you establish a limited liability company (GmbH) or a larger commercial entity – an entry in the Commercial Register (Handelsregister) is required.
Specific aspects for dealing in used cars:
If you plan to trade in used vehicles, the local authorities may require additional documentation, for example related to technical inspections (TÜV) and proof of your responsibility for the condition and roadworthiness of the cars you sell.
Clear documentation (service records, accident history, HU/AU inspection reports) is very important to build trust with customers.
Technical skills:
If you do not have a technical background in automotive mechanics, it is advisable to cooperate with a qualified mechanic, master technician or independent expert who can inspect cars and provide technical advice to customers.
Short courses in basic maintenance and electric vehicle (EV) technology are recommended, given the growing importance of this sector in Germany.
Note:
Unlike some craft professions (such as running a hair salon or a repair workshop), there is generally no strict requirement for a Meisterbrief (master craftsman’s certificate) just to operate a car dealership. However, if you add repair and maintenance services, having a master technician on staff may become necessary.
Direct contact with the manufacturer:
Visit the official websites of German car manufacturers (e.g. Volkswagen, Mercedes-Benz), where you will usually find a dedicated section for dealer networks or business partners.
You can fill out online forms or directly contact the sales or network development departments via email or phone to obtain detailed information about the required criteria.
Financial and performance requirements:
Most manufacturers require a certain level of capital or financial strength to ensure that you can purchase and display a sufficient number of new vehicles and operate a professional showroom.
You will be expected to have an appropriate showroom area, often combined with an on-site workshop or an official service partner.
Location, visibility, customer access and parking availability also play a major role in the selection process.
Contracts and training:
If your application is approved, you typically sign a franchise agreement or an authorized dealer contract (Vertragshändler).
The manufacturer usually requires you to:
Attend regular training sessions on new models, technology and sales techniques.
Follow strict brand guidelines regarding showroom design, signage, and corporate identity.
Comply with defined quality and customer satisfaction standards, including reporting and performance targets.
Contacting international brands:
If you are targeting manufacturers based outside Germany (for example US, Japanese or Korean brands), you should get in touch with their European or German regional offices or with the company headquarters.
They may require proven experience in automotive retail, a solid local distribution network and a clear business plan for the German market.
Import requirements:
When importing new or used vehicles, you must comply with German and EU regulations, especially concerning:
emission standards,
safety systems,
the European Certificate of Conformity (COC).
You will also need to handle logistics documents such as bills of lading, customs papers and insurance documentation.
Technical inspection in Germany:
Once the vehicles arrive in Germany, they must pass technical inspections by organizations such as TÜV or DEKRA to ensure compliance with German safety and emission standards.
It may be necessary to carry out modifications (for example, on headlights, indicators, emission control systems) to receive full approval and registration.
Property or rental costs:
Renting a suitable car showroom can cost between €1,500 and €5,000 per month, depending on city, location and size.
In major cities such as Berlin or Munich, rents are usually on the higher end of this range.
For a mid-sized dealership, an indoor area of about 200–300 m² is often appropriate, plus outdoor parking and display space.
Showroom equipment and fit-out:
This includes interior decoration, professional lighting, office furniture, a reception area, customer waiting space, signage and IT infrastructure.
Depending on quality standards and brand positioning, these initial fit-out costs may range from €10,000 to €30,000 or more.
Purchasing vehicles or arranging financing:
If you display new cars, you will need considerable capital or credit lines to purchase vehicles from the manufacturer or to work with consignments.
For used cars, you can start with a smaller inventory. An initial investment of about €50,000 – €150,000 is common, depending on the type, brand and condition of the vehicles.
Ongoing operating expenses:
Staff salaries, monthly utility bills (electricity, water, heating), insurance, accounting costs, marketing and advertising, and taxes.
Depending on the size of the business, these expenses can range roughly from €3,000 to €8,000 per month or more.
Insurance and taxes:
Insurance for the dealership premises and vehicle inventory (theft, fire, damage, liability) is essential.
Tax obligations – including income or corporate tax, 19% VAT on most vehicle sales, and possibly trade tax (Gewerbesteuer) – depend on your legal structure, sales volume and profit.
Choose the location carefully:
Areas with high traffic density and commercial or auto-centre zones tend to attract more spontaneous visitors.
Ample parking space is crucial so that customers can easily stop by and view the inventory.
Invest in marketing:
Create a professional website listing available vehicles, prices, financing options and clear contact information.
Use social media and online car marketplaces to reach a wider audience, present special offers and communicate directly with potential buyers.
Build a strong professional network:
Collaborate with banks and financing companies to provide attractive leasing and credit options to your customers.
Form partnerships with repair workshops and technical inspectors, ensuring that your vehicles are in top condition and thoroughly checked.
Maintain a high level of professionalism and transparency:
Train your staff in communication skills, customer service and negotiation.
Be transparent about vehicle history, previous damages, mileage and inspection results.
Offering warranties or extended guarantee packages can significantly increase customer trust.
Stay up to date with market trends:
Keep an eye on the development of the electric and hybrid vehicle market, as Germany is undergoing a major shift toward environmentally friendly mobility.
Follow new regulations on emissions, environmental taxes and incentives to adjust your product mix and marketing strategy accordingly.
Opening a car dealership in Germany in 2025 can be a highly rewarding opportunity, particularly given the strong growth in the electric and hybrid car segment. Although you are not strictly required to hold specialized certificates such as a Meisterbrief, experience in business management or car sales is a key factor for long-term success.
To obtain a dealership agreement with well-known manufacturers, whether domestic or international, you must meet their financial, technical and quality criteria and maintain a strong reputation. If you can choose a suitable location, target your audience with professional marketing, and deliver excellent customer service and transparency, you will have a strong chance of building a successful name in Germany’s competitive and dynamic automotive market.
Disclaimer:
The figures and information provided in this article are estimates and may vary depending on local laws and economic conditions in each region. It is strongly recommended to consult local authorities, chambers of commerce and professional advisors for up-to-date, binding information before making any major investment decisions.
* The editorial team of this website strives to provide accurate information based on thorough research and multiple sources. However, errors or incomplete details may occur. Therefore, please treat the information in this article as a preliminary reference and always consult the competent authorities for final, up-to-date guidance.
