Car Dealer Simulation

DESCRIPTION

In the competitive world of automotive retail, success depends on strategic thinking, innovation, and the ability to respond quickly to market changes. Our Car Dealer Management Simulation places participants in the role of a dealership executive responsible for shaping the company’s future. In an immersive and risk-free environment, they experience the challenges of managing operations, motivating teams, and ensuring sustainable growth — all while competing in a dynamic market.

Participants begin by defining a sustainable strategy for their dealership, ensuring that financial resources are used wisely to achieve long-term profitability. They must balance investment decisions between new and used car segments, as well as parts and accessories, to meet diverse customer needs and maintain a competitive edge.

Innovation plays a key role in the simulation. Participants learn to invest in new ideas and technologies that inspire existing customers while attracting new ones to the brand. Success also depends on strong human resource management — hiring the best managers, keeping them motivated, and ensuring they provide the best possible support for strategic decisions.

Market success is achieved through clever pricing strategies and targeted marketing actions tailored to a seasonal market environment. Throughout the simulation, participants must monitor performance closely, using specific key figures and KPIs to guide their decisions. Ultimately, their success is measured by their company’s overall score — a reflection of financial performance, customer satisfaction, and sustainable growth.

The Car Dealer Management Simulation provides a comprehensive, hands-on learning experience that develops decision-making skills across all areas of dealership management — from finance and HR to marketing and operations — making learning both practical and engaging.

Themes

• Strategy
• Sales & Marketing of new cars, used cars, parts & accessories and customer service
• Procurement
• Competitive Advantages
• HR Management - Recruiting & Talent Retention
• Capacity Planning
• Finance

Key Performance Indicators (KPIs)

• Inventory Turnover
• Net Income
• Sales Volume
• Return On Sales (ROS)
• Revenue

Learning Objectives

• Procurement, Sales & Marketing:
  • Understand the relationship between procurement, inventory levels, and sales performance across new cars, used cars, parts, and accessories.
  • Learn how to maintain optimal inventory levels (around 40–50 days) to balance availability, capital efficiency, and sales performance.
  • Recognize the risks of overstocking and understocking, and apply strategies such as adjusting purchase volumes or pricing policies based on market seasonality.
  • Understand how sales of new and used vehicles drive downstream demand for customer service and parts & accessories.
  • Learn to improve customer satisfaction to foster repeat business, trade-ins, and long-term loyalty.
• Investments:
  • Develop the ability to evaluate and prioritize investments that enhance capacity, increase demand, or support business growth.
  • Weigh investment decisions carefully against liquidity and profitability considerations.
  • Understand how expanding customer service capacity contributes to sustained business success, especially as vehicle sales grow.
  • Recognize the financial implications of investment timing and the impact on short- and long-term business performance.
• Human Resources:
  • Recruit and develop high-performing managers for new car, used car, parts & accessories, and after-sales departments.
  • Identify and close skill gaps in key areas such as engineering, creativity, marketing, and finance to strengthen overall company performance.
  • Understand how skill alignment across departments improves decision-making quality and frequency within the simulation.
  • Maintain high levels of manager motivation through balanced salary structures and appropriate incentives.
• Finance:
  • Monitor liquidity closely and make sound financial decisions within tight cash flow constraints.
  • Understand the cost differences between short-term overdrafts and long-term debt financing.
  • Apply refinancing strategies to reduce interest costs and improve capital efficiency.
  • Learn to balance investment opportunities with the company’s financial stability and borrowing capacity.