The Different Departments at a Car Dealership

Car dealerships simplify the process of buying a car, and they help customers get a better deal on their loan. They also handle warranty and safety issues.


At most dealerships, employees specialize in different parts of the job. They have one group that demonstrates cars, another that appraises trade-ins and calculates payments and still another that does the paperwork and ties up loose ends.


The sales department at a car d 방문운전연수 ealership is responsible for selling vehicles to the public. A car salesperson must have a good understanding of all the automobile models that are sold at the dealership to be able to answer questions from customers and assist them in finding the vehicle that meets their needs. Salespeople are typically paid on commission and may receive bonuses based on the number of cars they sell.

After a customer decides on a vehicle, the salesperson will take them out for a test drive to ensure that they are comfortable driving it. The salesperson will also explain financing options and warranties. If a customer has poor credit, a special finance manager will work with them to structure a deal that is in compliance with the dealership’s loan policies and with special financing lender guidelines.

Many dealers offer a “buy here, pay here” plan for customers with bad credit who cannot qualify for traditional loans. These are usually not as profitable as standard car loans, but they can help a dealership meet its revenue goals.

In the past, a dealer could simply put up prices without any restrictions, but the Federal Trade Commission has since introduced new rules that require the displ 방문운전연수 ay of recommended prices and detailed information about each vehicle. Dealerships that prioritize efficiency in both customer-facing and behind-the-scenes processes will win the future of automotive retailing.


In addition to sales, a car dealership’s service department generates substantial revenue. With consumer vehicle ownership extending to more than 12.1 years, many dealerships are refining their service department processes to boost customer satisfaction and loyalty – even with ongoing inventory shortages affecting new vehicle sales.

Dealership technicians are often manufacturer-trained specialists who work solely on the brand of car a dealer sells. They are typically given regular refresher training. This allows them to keep up with the latest vehicles and technology as well as maintain a professional demeanor while working on cars.

However, some dealership service departments are criticized for their lack of quality or value. They may recommend services or fluid flushes that aren’t called for by the owner’s manual in an effort to make a profit. And they can be more likely to charge for parts and supplies such as shop towels than other local, independent mechanics.

Increasingly, consumers are going elsewhere for service. The most common reason people do not return to their dealer of purchase for service is because the location is inconvenient. Using digital check-ins and other self-service technologies, dealerships can reduce wait times for service appointments, increase customer convenience, and make it easier for customers to schedule and pay for their maintenance needs. These practices also allow frontline employees to focus on more valuable work, like building trust and fostering good relationships with their customers.


Parts department performance has a direct impact on dealership profit. As a result, it’s important for parts managers to balance the need to stock fast-moving products with the cost of maintaining excessive inventory.

It’s important to offer competitive prices on common parts like oil filters, brake pads and tires. This can reduce the perception that OEM parts are more expensive than common alternatives. Parts departments should also work closely with service technicians to develop operational efficiency, such as ensuring that fast-moving parts are located where service techs can easily access them and providing walkie talkies for staff members to call each other for assistance.

While many car dealers sell their own brand of replacement parts, some choose to partner with distributors who can deliver higher gross profits and a better experience for customers. If you decide to carry your own parts brands, it’s a good idea to establish a strong online presence to drive sales and build customer loyalty. This can include an informative auto blog and social media posts.

It’s essential for parts department employees to be knowledgeable about their products and services. This includes being able to answer customer questions in a timely manner and provide detailed instructions on installation. It’s also a good idea to invest in training programs for parts department personnel. This can help them grow their career prospects and increase the quality of service they provide to customers.


The finance department is the place where you sign contracts, arrange payment and buy add-on products like extended warranties. It is also where the dealership makes money on its sales, financing and insurance business. The dealer can offer you financing through its own finance company or sell your contract to an outside lender. It may also have its own manufacturer-approved programs that help buyers with bad credit or no credit.

When the dealer offers its own financing, it can make a profit on each loan by adding a markup to the “buy rate” offered by the associated financial institution. This is a way for the dealership to compete with banks, credit unions and online lenders that provide auto loans.

Dealership-arranged financing is common in the automotive industry, although you can also find it at some appliance stores and some major home improvement retailers. This type of financing helps dealers attract car buyers who might not qualify for a loan at a bank or other lender. The dealership is usually able to offer a lower interest rate than the bank because it is less risk-averse.

The best strategy is to shop for a car with a preapproval from a lender in hand. This lets you compare vehicle prices and finance terms to see which lender offers the best deal.