|Added Sep 18, 2017 Views 24 Rating|
What are Car Dealerships? Car dealerships are getting popular this days as you always see Them on the roads as you drive through. This is also known as vehicle local distribution which sells cars that are brand new or second hand At retail prices This is closed off at a dealership contract. Car dealership works in two ways: Buy or sell consignment The owner of the horse or the vehicles is the consignor in which they allow the consignee to take possession of the cars in their establishments but the company will have a percentage from revenue sales, as this is how they profit. Now how do car dealerships profit from this? They will of course have to sell the car at a higher price. as any other business this have risks to both parties as the owner of the cars we’ll have to face the risk the cars not getting sold And dealership establishments at the same time faces the risk of damaged or stolen cars in which they are liable. the purchasing of cars and selling them at the higher price buy and sell works. Car dealerships we often buy one or two or more particular car model then use it for test driving. When the customer wants to purchase the car then the dealer will make an order same model of car the client wanted, dealer will make the order to manufacturer, then The car is sold to the customer with additional charges. At first glance it may be a loss to have to purchase test drive vehicles but this is actually is a good investment as a number of cars that were so we’ll make up for the lost even more especially if there is huge profit from the sales. Buying and selling the common option for car dealerships as it is less risky and a lot of car manufacturers for the same action as well. Used cars in this kind of business are often from private individuals bought by trade or by cash the vehicle is first checked thoroughly, Then a price is added depending on the upgrades being done by the dealer.