The 1.6 acre greenfield site in Elgin will house a two-storey building with showroom, administration and workshop facilities in addition to 142 parking spaces.
Moray architects The Ashley Bartlam Partnership designed the building in conjunction with Peugeot’s Scottish architects, McLeod, McLaren and Hamilton.
Managing director Stephen Milne expects the new premises to be ready by the end of March. The site will also be an approved repairer for Citroen.
Alan Milne has been in business in Elgin since 1985 and operated as main dealers for Volvo, Rover, SEAT and Peugeot over the years. The firm sell up to 750 used cars and 250 new Peugeots annually.
The company bought Elgin-based bodyshop C.A.R.S. which will continue to operate with a staff of eight from a separate site in the town.