New Car Dealers
March 13, 2006
Automobile dealers are the retail conduit for automobile manufacturers and perform the important function of representing the brand they sell to the consumer. Most dealers sell only one brand of vehicles as such limitations are typically in their dealership contract. Along with new vehicle sales, car dealers perform other activities, such as providing repair services, retailing used cars, and selling replacement parts and accessories. Dealers endeavor to offer all after sale services including repair, service, parts, and accessories.
According to the National Automobile Dealers Association, new car sales account for more than half of the entire sales revenue at franchised new car and new truck dealers. These sales generate additional revenue in other departments of new car dealers.
J.D.Power And Associates is reporting that more than 66% of the new car buyers used the Internet as part of their buying process. They also indicate that more than 50% were influenced by their research on the Internet in the car type they purchased and the price they paid for it. This is a changing environment for the new car dealers and many are rushing to create their own Internet sites as a critical way to keep market shares. Almost all new car dealers are also part of the online purchase networks where a consumer can purchase a car on the net and then walk into the dealership to do the paperwork and pick up their vehicle.
The dynamics of new car sales have changed so significantly that new car dealers are hiring a different kind of closer / sales person to represent the dealership. They are adjusting newspaper and offline media purchases to ensure that they don't get left out of the Internet sales channel.
Automobile dealership employees typically work long hours. Eighty-four percent of automobile dealer employees worked full time in 2004, and 38 percent of those worked more than 40 hours a week. To satisfy customer service needs, many dealers provide evening and weekend service.
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