Car dealerships sell vehicles, often specializing in one or more brands. They also provide finance and insurance services and assist with title, registration and regulatory paperwork. They also conduct customer satisfaction surveys and provide warranties and other post-sale customer service.
Most dealerships rely on sales to earn the bulk of their revenue, but they have other income streams. For example, some dealerships offer service contracts to customers and generate additional profits by selling parts and accessories. Others offer financing and leasing options, which are gaining popularity among buyers who prefer the lower monthly payments. In addition, some dealers have a used car division that makes money by buying and selling cars at auction and then reconditioning them for resale.
Dealerships have to work hard to attract new customers and keep existing ones. They do this by offering competitive prices, streamlined vehicle research and purchase processes and exceptional customer service. They also try to stay on top of the latest developments in the industry, such as more transparency and changing consumer needs.
Those changes are creating some challenges for dealerships, including more competition and the rise of online car-buying sites that help people compare prices between car dealerships and direct manufacturers. Some of these sites have even led to lawsuits against dealerships accused of selling lemons – defective vehicles.
It’s important for car dealerships to have modern and inviting facilities. If the showroom, service area and other customer spaces look run-down, this can send a negative message to shoppers. They should also have fair prices, reasonable financing offers and hours that accommodate car shoppers’ busy schedules. car dealerships