The Advantages and Disadvantages of Car Dealerships

A car dealership is a type of business that sells new and used cars at the retail level. These dealerships typically have a dealership contract with an automaker or a sales subsidiary to provide vehicles for sale. Some car dealerships offer Certified Pre-Owned vehicles in addition to new cars. Salespeople are employed by car dealerships to sell the vehicles. Read on to learn more about car dealerships. Here are the benefits and disadvantages of this type of business.

Overview of car dealerships

An overview of car dealerships provides a basic understanding of the business. Most of these businesses are located in a single building, with several components, including the showroom, office space for sales and administrative functions, and a service area for automobiles. Sites are typically large relative to the improvements made. This allows for ample room for car displays and other related activities. An understanding of the automotive industry will be useful for valuing the property.


Before purchasing a new car, you’ll want to understand the costs of car dealerships. Typically, new cars are sold exclusively through franchised dealerships. As such, these dealerships require much more capital to open than pre-owned vehicles. There are many expenses associated with a new car dealership, including licensing fees, inventory, and equipment. These expenses vary widely depending on the brand of the new car, location, and type of vehicle.

Credit check

If you’re interested in buying a new car, the car dealership will probably do a credit check on you before you … READ MORE ...