Industry Based Research Project (Buying and Selling Car)
Car dealership is very popular in every part of the globe. In fact, in the United States and Canada; franchised used car, new-car and truck-dealership are a booming business in both countries. Car industry employs trained automotive technicians, as well as it offers financing to the clients. While, in the United States, direct manufacturer auto sales are prohibited in almost every state by franchise laws requiring that new cars be sold only by dealers. Additionally, used car dealerships carry cars from many different manufacturers, while new car dealerships are generally franchises associated with only one manufacturer. Some new car dealerships may carry multiple brands from the same manufacturer. In some localities, dealerships have been consolidated and a single owner may control a chain of dealerships representing several different manufacturers. Aside from that, new car dealerships also sell used cars, and take in trade-ins and/or purchase used vehicles at auction. Most dealerships also provide a series of additional services for car buyers and owners, which are sometimes more profitable than the core business of selling cars. Various car dealerships normally display their inventory in a showroom and on a car lot. In this regards, US federal law has a provision that all new cars should have stickers to show the offered price plus the vehicle’s specifications of the car. Usually, there are numerous car salespersons who work on commission; their job is to negotiate with the clients or possible buyers in order to determine a final sales price and business deal with their customers. In most cases, they negotiate the price of a trade-in—the dealer’s purchase of the buyer’s current automobile. The negotiation from the dealership’s perspective is the actual to-and-fro that occurs when a salesman deals with the customer who is seriously considering the vehicle and makes an offer on the new vehicle; it often includes his current vehicle as part of the deal. In this connection, the salesperson then brings the offer, plus a sign of good faith from the customer, whether it’s a check with a deposit or a credit card to the sales manager where the monthly payment options and various pricing options are included in the closing of the deal. As a result, the sales manager enters the information received from the salesman into the Customer Relations Management Department for finalization.
(http://en.wikipedia.org/wiki/Car_dealerships_in_North_America)
Furthermore, the final step is the “desking” the deal. This means that the information generated during the desking includes the payment and pricing options and it requires the customer and the sales manager to sign off on the option selected by the customer. Thereafter, the down payment must be generated from the customer. Both the manager and the customer have to sign on the documents; and then the customer will be direct to the finance and insurance office where various add-ons are often sold that include special waxing, wheel protection or, often, extended warranty services. The final paperwork is also printed out at this stage. On the other hand, “desking”, also occurs once the salesman has a legitimate offer on the vehicle from the customer and is able to hand him or her to the sales manager as a token of good faith.
(http://en.wikipedia.org/wiki/Car_dealerships_in_North_America)
Moreover, in the United States, buying cars online is a part of the existing franchise laws that prevent the clients to buy from the manufacturers directly. The online car industry has heavy state-levelhttp://ivythesis.typepad.com/term_paper_topics/business-level-strategy/ government regulation. About 33 states bar anyone, including independent Web sites, from clinching the final sale. And most of those states also require the new owner to pick up the car at a dealership, Sandeep Junnarkar and Melanie Austria Farmer reported in November for CNET News. As a result of the law implementation, online consumers have no choice but to pay for a negotiator or middleman as part of the online car negotiation. Subsequently, the car regulation in the country has turned various vehicle sales sites as just referral services for dealerships. Nevertheless, the US consumers are prohibited from going to Canada to buy cars. The dealership control prevents Canadian dealers from selling to Americans even though Americans may find the selection better and the vehicle they want at a cheaper price because of the exchange rate. In other countries, dealership laws have not been as stifling price seems to be the biggest factor motivating consumers to buy their cars online. In the United Kingdom, internet car buyers are able to buy from dealers in mainland Europe where they can find cheaper car prices. And, the most amazing part is the number of purchases made outside the territory of Britain is expected to increase even more as consumers become more confident in buying cars through Internet.
(http://en.wikipedia.org/wiki/Car_dealerships_in_North_America)
References:
(http://en.wikipedia.org/wiki/Car_dealerships_in_North_America)
(http://en.wikipedia.org/wiki/Car_dealerships_in_North_America)
Credit:ivythesis.typepad.com
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