The Role of Dealerships in the Automotive Industry

There is no question that the automotive industry has become one of the most important commercial sectors in the world today.  However, many people fail to realize all the specific elements that make up this sector.  From manufacturing to consumers, there are many important steps a vehicle must travel through.  In fact, one of the most important, if often overlooked, components of the automotive industry are dealerships.Dealerships serve as the essential middleman between an automobile manufacturer and the consumer.  At a dealership, sales professionals are employed to explain vehicle options to potential buyers and ultimately facilitate the transfer of ownership.  Both used and new automotives can be purchased at a dealership, and the thousands such facilities worldwide make up the major source for vehicle sales.Automobile dealerships generally stock a wide range of vehicle options.  They are also able to customize products with special orders to suit a consumer’s specific needs.  In general, dealerships stock such vehicles as motorcycles, cars, light trucks, vans, and some water sport devices. 
Perhaps one of the most vital roles dealerships play is in determining the actual selling price of a vehicle.  Unlike other products, automobiles are fairly flexible in terms of the buyer’s power to influence how much he or she will pay.  Negotiating a “good deal” is an essential component of the vehicle purchasing process at a dealership.  Thus, the dealer must be aware of various market considerations to ensure a profit is made without losing consumers to competitors.  Dealerships may also offer leasing options.  This allows them to retain ownership of a vehicle and temporarily rent it out to a user for a period of several years.  This provides consumers with a more affordable option for accessing an automobile.  It also gives the industry access to people who otherwise would be unable to spend income on an automobile.Once a consumer decides to purchase an automobile from a dealer, he or she must also use the dealership to facilitate financing.  Most vehicle purchases are not made in cash.  Rather, they are paid on a set schedule for a number of years.  Instead of procuring a loan from a separate lending institution, most dealerships provide financing services through participating partners.  This can be done simply at the dealership without much pressure placed upon the consumer to investigate several banks.  Additionally, some dealerships help consumers procure automobile insurance and appropriate license plates.   Thus, dealerships become “one stop shops,” for automobile purchases.  This is not only a convenience for customers, but also helps increase automobile revenues.
In addition to facilitating sales, dealerships are a consumer’s primary resource for vehicle care.  Most dealerships offer mechanical services to vehicle buyers for years following the initial transaction.  This helps keep consumers active in the automotive economy even beyond the actual purchase of a vehicle.  This provides considerable numbers of jobs in the automobile industry for those who understand vehicle mechanics.  Subsequently, dealerships help expand the automotive sector in yet another way.Ultimately, dealerships are an integral part of the automotive business.  They play a number of important roles that are necessary to the survival of this industry.  Without dealerships, it is unlikely automobiles would be as accessible to the general consumer public.

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