Dealership

Dealership is a retail business that sells vehicles to the public. In the automotive industry, a dealership can be franchised by a vehicle manufacturer or operate as an independent used-car dealer. Most new-car dealerships are authorized to sell and service a specific brand or brands within a defined territory. They may also sell certified pre-owned vehicles, which meet manufacturer-approved quality standards.

Operations typically include a showroom, a sales floor, and service and parts departments. Sales staff advise customers on models, features, pricing, financing, and trade-ins. Service departments perform maintenance and repairs, supported by OEM-trained technicians and official parts. Parts departments supply components to service and occasionally to independent repair shops. Dealerships may offer financing and insurance products through in-house finance offices or third-party lenders and brokers. They often provide vehicle warranties, maintenance plans, and after-sales support.

The relationship with manufacturers is governed by franchise agreements that specify sales targets, marketing, service standards, and geographic boundaries. Independent used-car lots focus on buying and selling pre-owned vehicles, often sourcing stock from auctions or trade-ins, with less emphasis on service and limited or no manufacturer support.

Regulation includes state licensing, consumer protection laws, lemon laws, and, for manufacturers and dealers, compliance with advertising and credit disclosures. In recent years, many dealerships have expanded online, offering digital catalogs, online financing applications, and at-home test drives, while maintaining local showrooms and service centers.

Economically, dealerships generate revenue from new- and used-vehicle sales, financing and insurance products, and service/parts operations, and they employ sales consultants, finance managers, technicians, and support staff.