And What Services Can Push You Past $1M in Sales?

If you’re planning to launch or grow a used car dealership in Michigan (or anywhere in the U.S.), one of the first financial questions is: how many cars do I need to sell to break $1 million in annual sales? And beyond that, what services can I add to maximize profits and ensure long-term success?

Let’s break it down clearly.

How Many Cars Per Month to Hit $1M in Sales?

The number of vehicles you need to sell depends on your average price per unit:

• If your average used car sells for $15,000:
  You’ll need to move about 67 cars per year (that’s roughly 6 cars per month) to cross the $1 million mark.
• If your average used car sells for $20,000:
  You can hit $1 million by selling around 50 cars per year — about 4–5 cars per month.
• If your average used car sells for $10,000:
  You’ll need to sell about 100 cars per year, or about 8–9 cars per month.

⚠️ Important note: That’s gross revenue — not profit! To build a truly profitable business, it’s not just about how many cars you sell — it’s about what else you sell with them.

The Add-On Services That Can 2X or 5X Your Profit Per Car

To go beyond $1M in sales and build healthy net profits, consider adding these services:

1️⃣ Finance & Insurance (F&I) Products

This is where dealers make serious money beyond the car itself:

• Extended warranties
• GAP insurance
• Tire/wheel protection
• Credit and life insurance

F&I can add $1,000–$2,500 in profit per vehicle — sometimes more.

2️⃣ In-House Financing (Buy Here Pay Here)

Offer your own loans rather than relying solely on external lenders.
✅ You earn interest and fees
✅ You control repossession and resale if needed
✅ Higher risk — but higher reward

3️⃣ Service & Repair

Running a small service shop or partnering with one allows you to:

• Provide oil changes, brakes, tires, and light repairs
• Build loyalty and recurring income
• Add thousands in profit per customer over time

4️⃣ Detailing and Customization

Offer upsells like:

• Window tinting
• Ceramic coatings
• Custom wheels
• Vehicle wraps

These services not only drive profit but help you stand out in a crowded market.

5️⃣ Vehicle Sourcing & Brokering

Charge a fee to locate specific vehicles for clients. This creates income even if you don’t have inventory on hand.

6️⃣ Small Rental or Loaner Fleet

If you have spare inventory, short-term rentals can add an additional revenue stream.

Example: How to Build a $2M+ Dealership

Imagine this setup:

• Sell 10 cars a month @ $15,000 → $150,000 monthly = $1.8M annual gross
• Add F&I: average +$1,500 per unit → +$180,000 per year
• Add service & repairs → +$100,000 to $300,000 per year
• Offer in-house financing for some buyers → +$100,000 or more in interest & fees

Now you’re well beyond $2M in gross sales — with stronger margins and more stability.

The Bottom Line

✅ To hit $1M in gross sales:
You’ll likely need to sell 5–10 cars per month, depending on your price points.

✅ To build serious profit:
Pair your sales with F&I, service, in-house financing, and other add-ons.

✅ To cross $1M in net profit:
You’ll need to grow volume, master F&I and service, and control overhead.

A smartly run used car dealership with add-on services can do far more than $1M in gross revenue — and build real wealth. The key isn’t just volume, it’s profit per unit and recurring services.