What is Car Dealership?

What is Car Dealership?

car dealership or vehicle local distribution is a business that sells new or used cars at the retail level, based on a dealership contract with an automaker or its sales subsidiary. It employs automobile salespeople to sell their automotive vehicles. It may also provide maintenance services for cars.


  • You can test drive the cars.
  • Helpful with financing your car.
  • Protect your purchase, such as warranties.
  • A dealership might offer you a vehicle history report on used cars you’re interested in. (though not always completely reliable)
  • You might have the option to trade in your used car, helping you lower the price of the new car on sale or lease.


  • There might be hidden car dealership fees.
  • Not all, but some dealerships employ a “bait and switch” — that’s when you call to ask about a car, come in to look, and are told that it’s gone but there are other often more expensive cars to look at instead.
  • The process can be long.
  • Many warranties require you to get any work done on the car at the dealers