Dealergroups

Dealergroups are companies that own and operate multiple automobile dealerships. These groups typically sell vehicles from one or more automotive brands and may also offer related services such as repair, maintenance, parts, and financing. The primary benefit of a dealergroups structure is the ability to leverage economies of scale in purchasing, marketing, and operational efficiency across multiple locations. They can negotiate better terms with manufacturers due to higher sales volumes and can centralize functions like advertising and management to reduce costs.

Dealergroups can vary significantly in size, from a few dealerships to hundreds, and may be privately held or publicly traded. Publicly traded dealergroups are subject to financial reporting requirements and investor scrutiny. The business model allows for specialization, with some groups focusing on specific brands or vehicle types, while others maintain a diverse portfolio.

The operation of a dealergroups involves managing a network of sales, service, and administrative teams. Dealerships within a group often share best practices and resources. The automotive industry has seen a trend towards consolidation, with larger dealergroups becoming more prevalent due to the financial advantages and market influence they command. Customers interacting with a dealergroups may experience a standardized level of service and branding across different locations owned by the same entity.