Car dealerships must work harder than ever to attract and retain customers, because new business has become more difficult – even in a growing economy – due to increased competition. It’s not just the number of new and used cars on the market that has increased, but also a crowded marketplace and a sluggish housing and construction industry (builders and tradesmen are big buyers of light trucks).
Salespeople work on commission, so their job is to sell as many vehicles as possible and meet their sales quotas. To do so, they must know about the car make and model they’re selling and its features and options, and be able to answer questions from prospective buyers.
In addition to making money on vehicle sales, car dealers also profit from add-ons such as extended warranties and maintenance packages, which they can sell to customers. Similarly, some dealerships have service contracts with a variety of companies, and they often earn money from these as well.
Street Directory notes that it’s important for consumers to shop around when buying a car, because prices can vary from dealership to dealership. The best way to do this is to visit multiple locations that carry the same brand of car, and to compare prices on the models you’re considering. Dealership facilities should be clean and comfortable; a run-down showroom or service area may reflect poorly on how the dealership treats its clients. It’s also a good idea to research the dealer’s reputation on review sites like Better Business Bureau and Edmunds. car dealerships