A car dealer is a versatile private company that is affiliated with a specific vehicle manufacturer and sells services and auto and parts of this manufacturer. Car dealerships are divided into the following departments:
Services Department
A professional auto service dealer performs maintenance, service and warranty repairs on vehicles sold by a specific manufacturer. Dealer service technicians are factory trained to work on their particular brand of vehicle. In a report in 2013 detailing the finances of Penske Automotive Group, service and parts gross margin was 70 percent for Penske group services, against only 9 percent for sales of new vehicles. It is also important to mention that the dealer's service will generally set his work rate to make a profit of 80 percent.
Sales department (used cars for sale)
A department car dealers selling sells new and used vehicles. The sellers are the backbone of this department, and they usually work on commission. The sales department employs staff and car finance specialists retailer to oversee the sale process and Loan. The large profits can be made in the finance office and insurance. He sells extended service contracts, called "extended warranties", which can have a 300 percent markup. extra money is made on the dealer markup on loans and leases and other packages, which can average $ 1 400 per vehicle at the time of publication.
Parts Department (used cars for sale)
A dealer parts department sells auto parts factory built by a specific car maker. The parts department sells parts to local independent stores and the public and provides parts for service and body shop. In general, a dealership parts department will try to achieve a margin on parts allowing for a profit of 50 percent.
Body shop
A concession is a center of the body collision repair shop that performs repairs wrecks the vehicle manufacturer specific - and often all other damaged vehicles - to increase profits. Body Shop revenue primarily paid by auto insurance companies to their clients.
Office
The business office of dealer handles all normal business operations such as management, human resources, payroll, and other accounting operations.
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