Like retailers in a market place, car dealers also are retailers who are involved in the business of selling cars. The main difference of a car dealer’s job from that of regular retailer job is that a car dealer does not only sell cars but also provides additional services like repair and denting, selling scrap, purchasing used cars, fixing car parts, towing and repair services, engine checks, and parts replacement, etc.
The other services offered by car dealers are a significant part of the car dealership industry. Often, car dealers take up specializations in terms of the brands they offer, the kind of parts they repair or even the exact models of cars they sell and repair. These additional services are also a high source of revenue for them.
Alternatively, some car dealers may deal only with used cars, while others may deal only with new cars. Some car dealers also act as brokers between the exchange, sale, and purchase of new, old or second-hand cars. For versatility, most car dealers deal with cars of more than one manufacturing company, although they may offer specialized services for a certain brand or car type. Some dealers also deal with antique, hard to find car models and cater to a specific market.
Talking about the car market and industry in general, some car companies have a large number of shares in the total sales of cars in the overall market. Such companies, which hold a greater percentage of market shares, are more lucrative for car dealers. This is because car dealers can make a lot more money by dealing with cars that are popular in the market.
Apart from buying, selling, and repairing these cars, car dealers also act as a source of direct advertisers for these cars. To attract more customers and maintain the market competition, these car dealers popularize the car in the local market by offering attractive discounts and deals. In this way, car dealers become a part of the industry dynamics and can significantly influence the sales and popularity of a certain brand or car type.