What is a Car Dealership?

What is a Car Dealership?

The car dealership is where you purchase your new or used vehicle. It may be located in a warehouse, mall or at your home. It is a business that must register with the Department of Motor Vehicles (DMV).

Used Car Dealers and Traders

New and used vehicles sold to retail buyers must be inspected by the dealer. They must also be certified to meet certain safety and emission standards for the model year.

Car dealership may offer a limited number of add-ons to their customers, including gap insurance, Vehicle Identification Number (VIN) etching and rustproofing. These can be expensive and can be included in your car deal without your approval or knowledge.

Another way dealers make money is by slicing up the interest rate that you’ve been approved for by their partner bank. They can tell you that you’ve been approved for a loan at 6% interest when in reality, they mark up the lender’s rate by 2% and keep it for themselves.

Many dealers delegate different parts of the car buying process to specific employees. For example, a sales person demonstrates the car, while a finance manager works out the price and trade-in value. A third group ties up the loose ends and does the final paperwork.

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