In business terms, a car dealer, or auto wholesaler, is a privately owned company that sells used or new automobiles in the wholesale or retail sector, usually under a dealer contract with the manufacturer or its distributor. It may also carry all kinds of Certified Pre-Owned cars. It employs car sales people to sell their cars. Some car dealers buy their own inventory from manufacturers; others go out and purchase it from dealers, who pay them a commission for the business.
The dealer pays the MIAA a fee for servicing and new vehicle sales services. The fee is included in the Manufacturer’s Sales Tax. Most states include the fee in the Manufacturer’s invoice of sales; some states require it as part of the Manufacturer’s statement of sales, and some require it to be added to the title or security of the car when selling it. However, many car dealers pay nothing for these services; they may get a slight benefit from the MIAA, but most do not.
A car dealer acquires and sells used cars, also known as “certified” or pre-owned vehicles. New cars come from the manufacturer, and are still under warranty. Used cars are generally bought from impound auctions, government seized auctions, or from owners who are unable to pay for their vehicle’s repair bills.
Dealers may also buy directly from manufacturers, but find that the market value of the vehicle is lower than what they paid for it. There are several different types of car dealers: national chains, regional chains, small specialty auto auctions, and Internet based dealers. Internet based dealers have been growing in popularity in the last few years, perhaps because of the convenience of online shopping.
When buying a new car, it is best to find out what kind of warranty the car company provides. Many car dealers offer at least a limited warranty on the cars they sell, but it is usually only for a specified period of time. It is wise for car buyers to inquire about extended warranties, which will cover the car buyer in the event that the vehicle develops problems after purchase. Some people buy their entire lives’s worth of used cars; others buy smaller cars to keep their financial situation stable.
Bay Area Chevrolet dealers, must convince the customer that he is the right vehicle choice. In order to do this, a car dealer must give him plenty of reasons to want his vehicle. The salesperson will often come up with their own list of perks, such as free roadside assistance or free oil changes, that can push the sale of a car lots. The salesperson needs to be careful not to give any false sales pitches, though. They need to remember that they are running a business, and if they are seen as being pushy with a customer, they will likely lose a sale.