Approaching an auto dealership can be as intimidating and confusing as arriving to pick up a date for the very first time. Why is shopping for a car or truck so intimidating? The main reason is people do not know what to expect when they step foot into a dealership. Through this series, we will explore all of the areas of a dealership and what to expect the next time you are in the market for a new or used car or truck. Who are these people at the dealership and what is their role? Who am I supposed to speak with? Will I be able to secure financing? We see dealerships everywhere, and most people eventually visit at least one. To give you better insight into how a dealership works, we have broken down the different areas that make up a dealership as we know it today.
A dealership is a model of division of labor: Each department within the dealership has its own distinct roles and responsibilities, as do each of the employees within those departments. Most dealerships, even the largest ones, are structured similarly, with either five or six different departments all working together.
The typical auto dealership departments include new car sales, used car sales, service, parts, accounting, titling and some of the larger ones include a body shop. According to the National Automobile Dealers Association, there are over 23,200 car dealerships in the U.S., employing over 1 million people. When we consider dealership employees, usually only salespeople and technicians come to mind. But there are a wide variety of jobs at a typical dealership including positions such as accountants, cashiers, detail shop, runners, drivers, sales professionals, finance managers, technicians and receptionists.
The highest profile activity at any franchisee dealership is sales (with service being a close second). New car sales are the gem for the whole operation, but the service department is usually where the dealers make a profit or lose money? But while sales might attract all the attention, the dealership needs all of the other departments to function profitably. Each of the departments functions alone but need the other departments to align themselves with in order for them to operate to their fullest potential.
You can read more about the car buying process and useful negotiation tips at OpenRoad Lending.
About the Author: Chris Goodman has been in the auto finance business for more than 20 years and has assisted thousands of consumers with their car loan needs. His articles are insightful and assist consumers in understanding the ins and outs of auto finance. OpenRoad Lending is an online lender with a consumer friendly website providing auto financing solutions to consumers in the process of purchasing a new or used vehicle or refinancing their existing auto. Visit the website at http://www.openroadlending.com for more information about how easy it is to get a car loan.