Car dealers are one of the most powerful economic and political forces in American culture. They are the reason why most Americans have cars, and they are the conduit by which they get to work or play. But are they ready to evolve in a world that is changing at breakneck speed?
Dealerships are responsible for many things: selling new and used vehicles, financing and providing insurance options, service and repairs, and even offering a variety of car parts. Many of these departments are run by different managers. Some may focus on a specific area such as sales, finance, or service. Dealerships also usually receive a percentage of profit from the manufacturer for each new vehicle sold. This is called the “hold-back.”
Many car buyers consider the dealership a key part of their purchase experience. However, car shoppers need to remember that the dealer is in business to make money. Dealerships rely on repeat business from current customers to maintain profitability. They do this by focusing on customer satisfaction surveys and providing incentives for loyal customers.
Another way that dealerships generate revenue is by buying and selling used cars. This requires careful appraisal of a vehicle’s value and the amount of reconditioning needed to make it marketable. A dealer will often hire a manager who regularly attends car auctions to acquire and sell vehicles. This person has a realistic view of the true cash value of a car and can evaluate a trade for body damage, engine noise or other factors that affect its value. car dealers