Athol Garage is to move from its current base in Peel Road, Douglas after almost 70 years.
The company is due to relocate to brand new purpose-built premises in Balthane Road, Ballasalla early next year.
The one-acre site will see the Nissan franchise consolidate its business in one location with dealership facilities, a parts department, car hire and sales and a workshop.
Sales director David Quayle says moving to Ballasalla will allow the company to develop its airport-related services, especially the vehicle rental operation.
Work has begun on the site and the firm says it anticipates moving early in 2009.
(Picture: A computer generated image of the new Athol Garage premises, currently under construction in Ballasalla).