The showroom is likely to accommodate up to 100 cars and employ around 20 staff. The company has not ruled out opening additional sites if its first is successful.
Chief executive Ian Lancaster said: “Virgin Cars does not sell over the internet but from a call centre as some franchised dealers do. We are close to having our own dealership too.”
He said the new development was the “next stepping stone” to providing customers with outstanding customer service, value and choice.
The Virgin Cars showroom will sell cars at the same price as models offered online – claimed to be up to 30% cheaper than at a franchised dealer.
Customers will only be able to inspect and select a car – they will not be able to drive away from the showroom. Virgin is expected to sell additional brand items at the outlet, including mobile phones and CDs.
* Rival operator Shwroom4Cars, which opened a dealership at its Chesterfield head office last year, is now looking to open a second site, possibly in the Midlands.