buy new cars

In the United States, a car dealership is a retailer that sells new and/or used cars. Used car dealerships carry cars from many different manufacturers, while new car dealerships are generally franchises associated with only one or two manufacturers. However, in some areas, dealerships have been consolidated and a single owner may control a chain of dealerships representing several different manufacturers. New car dealerships also sell used cars, as they take in trade-ins. Most dealerships also provide a series of additional services for car buyers and owners, which are sometimes more profitable than the core business of selling cars.

In 2006, there are approximately 26,700 new car dealerships in the United States, accounting for $684 billion, according to the 2006 U. S. Buy & Sell New Cars, Used Cars, Exotic Cars, Luxury Homes, Boats. Industry & Market Outlook by Barnes Reports.

Selling cars

Most car dealerships display their inventory in a showroom and on a car lot. Under federal law, all new cars must carry a sticker showing the offering price and summarizing the vehicle's features. Typically, salespersons working on commission negotiate with buyers to determine a final sales price. In many cases, this includes negotiating the price of a trade-in — the dealer's purchase of the buyer's current automobile.

Profit margins on automobile sales are surprisingly low.