A car dealership, or local auto dealer, is either a privately owned business that sells used or new cars in the local retail market, depending on an agreement with the automaker, or its distribution wing. It may also carry various ranges of Certified Preowned vehicles, such as Specialty Vehicles and New Automobiles. It employs professional auto salespeople to personally sell their automobiles. A large number of these types of establishments exist throughout most states. Dealers usually have one or two locations, though some larger firms may operate in several different local areas.
Many people are reluctant to buy a new car from a new-car dealerships. New-car dealers often sell vehicles with a manufacturer’s suggested retail price. This price is typically much higher than what a consumer can actually afford. Some new-car dealerships also overcharge for their vehicles, although this practice is becoming rarer since most consumers now prefer to buy a new car from a certified automobile dealer. New-car dealers often cater to affluent consumers, so it is not surprising that they purchase cars from established, reputable car manufacturers and sales corporations.
Dealership scams are common, and there are many ways in which a car dealership can commit insurance fraud. The first step that a prospective buyer should take is to research the dealer and make sure that it is a legitimate business. It is helpful to avoid going to a car dealership that operates out of a bar or warehouse as it may be conducting illegal activities. Many car dealership scams involve the use of fake credentials, fake insurance documents and even outright stolen cars.
Be sure that you will be able to obtain a warranty or insurance for your new vehicle when you purchase it. If the car dealership does not have these options available to you, it is best to find another automobile dealer. If the warranty and insurance are provided, ask to see proof of the validity of the coverage. You should also ask for copies of the policies, as well as the names of the agents who provided them. If possible, try calling the agent on the recorded phone message to verify that you received the actual written policy.
When buying a used car from a car dealership, it is important that you do not buy into exaggerated sales pitches. In fact, you should not trust any car dealership until you have been fully provided with clear, accurate information. Car dealerships often tell their prospective customers that their vehicle is worth the suggested price, or that their new vehicle is mechanically superior to used models on the market today. While these claims may be true, it is best to test drive a vehicle before you buy it, which can easily be accomplished by contacting various car dealerships.