Info-Authority.com: Automobile Dealers

An automobile dealer is a business that sells cars, trucks, vans, sport utility vehicles (SUVs), and other vehicles to the general public. Auto dealers are often called car dealers; they may specialize in selling new cars, used cars, or both. New car dealers are usually franchises associated with a limited amount of manufacturers, usually only one or two. Used car dealerships may have a variety of makes and models from many different manufacturers.

Automobile dealers essentially provide a bridge between automobile manufacturers and the customer. Sales are tied to industry trends, such as the SUV popularity of the 1990s and the currently growing demand for hybrid vehicles. Car dealers are also especially sensitive to economic downturns, when many customers may choose to wait for another opportunity. Dealerships are quick to offer incentives and rebates during such times in order to boost their sales. The leasing of cars and trucks is another product offered to increase revenue.

The Automobile Showroom

The showroom provides one of the classic images of the automobile dealership. This is where new car dealer displays its inventory. While these are simply large rooms filled with a manufacturers' more expensive and exotic vehicles, the name refers to the fact that, under federal law, all new cars must display a sticker that reveals the price of the vehicle and a summary of its features.

Car Dealers

Salespeople at dealerships work on commission, and will barter and negotiate with buyers in order to reach a final sales price. This may or may not include the cost of a trade-in, where the dealer purchases the customers' used car and then resells it for profit.

New car dealers provide about 90 percent of industry employment, with over half of their revenue coming from new car sales. New car dealers also generate revenue by providing repairs and servicing, aftermarket customizations, selling replacement parts and accessories, and trading-in used vehicles. Dealerships specializing in used cars employ only ten percent of employees in the industry. Half of all workers in automobile dealerships have no formal education beyond high school.

Auto Financing and Warranty Packages

Automobile dealers offer financing and warranty packages. This allows a consumer to purchase, finance, and service vehicles at one location, if they so choose. While most financing is offered by a financial branch of an automobile dealer, contracts are often resold or assigned to local credit unions and banks.

Most car dealerships are regulated by legislation at the state level. Generally, the applicant must take preparation classes and exams, then submit applications, bonds, and photos to the appropriate state authority (usually the state Department of Motor Vehicles) before being subjected to an on-site inspection.

Selling Cars Online

In recent years, automobile dealers have made increasing use of the Internet to market, promote and sell new and used cars. This allows customers to compare models, features, prices in a virtual showroom. Through these Web sites and others, buyers can also get pre-approved financing and research the best financing products available to them. These changes in consumer behavior have led to buyers being better informed of their automotive and financing options, allowing them to spend less time talking to and negotiating with dealer salespersons.

By Doug Vanisky




	Automobile Dealers An automobile dealer is a business that sells cars, trucks, vans, sport utility vehicles (SUVs), and other vehicles to the general public. Auto dealers are often called car dealers; they may specialize in selling new cars, used cars, or both. New car dealers are usually franchises associated with a limited amount of manufacturers, usually only one or two. Used car dealerships may have a variety of makes and models from many different manufacturers. Automobile dealers essentially provide a bridge between automobile manufacturers and the customer. Sales are tied to industry trends, such as the SUV popularity of the 1990s and the currently growing demand for hybrid vehicles. Car dealers are also especially sensitive to economic downturns, when many customers may choose to wait for another opportunity. Dealerships are quick to offer incentives and rebates during such times in order to boost their sales. The leasing of cars and trucks is another product offered to increase revenue. The Automobile Showroom The showroom provides one of the classic images of the automobile dealership. This is where new car dealer displays its inventory. While these are simply large rooms filled with a manufacturers' more expensive and exotic vehicles, the name refers to the fact that, under federal law, all new cars must display a sticker that reveals the price of the vehicle and a summary of its features. Car Dealers Salespeople at dealerships work on commission, and will barter and negotiate with buyers in order to reach a final sales price. This may or may not include the cost of a trade-in, where the dealer purchases the customers' used car and then resells it for profit. New car dealers provide about 90 percent of industry employment, with over half of their revenue coming from new car sales. New car dealers also generate revenue by providing repairs and servicing, aftermarket customizations, selling replacement parts and accessories, and trading-in used vehicles. Dealerships specializing in used cars employ only ten percent of employees in the industry. Half of all workers in automobile dealerships have no formal education beyond high school. Auto Financing and Warranty Packages Automobile dealers offer financing and warranty packages. This allows a consumer to purchase, finance, and service vehicles at one location, if they so choose. While most financing is offered by a financial branch of an automobile dealer, contracts are often resold or assigned to local credit unions and banks. Most car dealerships are regulated by legislation at the state level. Generally, the applicant must take preparation classes and exams, then submit applications, bonds, and photos to the appropriate state authority (usually the state Department of Motor Vehicles) before being subjected to an on-site inspection. Selling Cars Online In recent years, automobile dealers have made increasing use of the Internet to market, promote and sell new and used cars. This allows customers to compare models, features, prices in a virtual showroom. Through these Web sites and others, buyers can also get pre-approved financing and research the best financing products available to them. These changes in consumer behavior have led to buyers being better informed of their automotive and financing options, allowing them to spend less time talking to and negotiating with dealer salespersons. By Doug Vanisky Related Links: Wikipedia - Car Dealership Wikipedia definition of car dealerships.