Here’s how car dealers operate
Car dealers are just like retailers in a market. They are into the business of selling cars. These car dealers do not merely sell the cars they also provide additional services like car repair. These additional services are also a high source of revenue for them. There are different sorts of car dealers in the market. Some deal with new cars, whereas some deal in used cars. These used car dealers generally deal in cars of more than one manufacturing company.
There are more than thousand car dealers in the country. There are few car companies, which have a high share in the total sales of cars in the market. Car dealers have a better opportunity of earning money if the car company holds a higher share in the total sales in the market. It is not just buying or selling cars, car dealers are also required to advertise these cars in the market. These car dealers advertise these cars in their vicinity and offer an attractive discount to attract more customers. Higher the sale is, higher their profit is.
These car dealers have a team of experts to deal with customers. They explain specifications to the customers. These experts are trained by these car manufacturing companies. So that they can promote their cars in the market and convince confused customers to buy their car. So, if you are confused between two or more cars, then you should meet these experts. They will explain you specifications of their cars. You can then compare these specifications and make an informed decision.
These car dealers have an agreement with these car manufacturing companies. This dealership agreement generally determines highest and the lowest price of a car, at which a car dealer can sell them. So, it is the manufacturing company which is finalizing the price and not the dealer. This is one reason, why you will not notice much variation in the price of a car at different car dealers. Generally, these car companies also require the dealers to maintain a minimum stock of cars always, to prevent car dealers from running out of stock.