Car dealerships are auto-related businesses that sell and repair cars. They also provide financing and leasing options. Some dealers specialize in different makes and models of cars.
Reviews about the dealer experience have a significant impact on sales and customer loyalty. Dealerships that focus on understanding their key demographics can create more personalized customer outreach and a seamless digital buying experience.
Sales
Car dealerships link car manufacturers with consumers by selling vehicles and providing additional services. They usually sell both new and used cars, finance them with loans and insurance and offer warranties and maintenance plans. The sales department handles vehicle sales, while the finance and insurance departments assist with securing loans and recommending additional protection products such as gap insurance and alarm systems. Other departments handle service and repairs, parts and accessories, and administrative tasks such as scheduling appointments.
Front-facing employees in a sales department are called car salespeople and must have the right mixture of knowledge, experience and personality to make customers feel comfortable and confident. They must be able to answer questions about all models on the lot, and can also take people out on test drives in whatever automobile they’re interested in. This is a demanding job that requires patience and perseverance. A good salesperson will not get discouraged if a customer isn’t ready to buy on the spot.
A dealer’s success is largely dependent on how well it manages its operations and its marketing campaigns. A successful car dealership will have a clear understanding of its customer base, and be able to capture data about its online and offline marketing channels. These insights will help craft future branded campaign efforts that are proven to resonate with potential buyers.
Finance
The finance department at a Car dealership is responsible for arranging vehicle financing and insurance for customers. It also handles customer disputes and paperwork. The financial department at a car dealership must be fully trained to ensure that the company complies with all state and federal regulations.
Many car dealerships offer in-house financing through a lender that is either owned by the dealer or a third party. This makes the financing process easier and faster, because the dealership can approve you for a loan in one visit. It can also help people with less-than-perfect credit. However, it is important to know that dealers profit from the financing they provide, which can be hidden in markup fees that they are not required to disclose.
When choosing in-house financing, be sure to compare the dealer’s rate with the rates offered by other lenders. Also be aware of extra fees, such as origination and documentation charges, that are often added to the finance amount. Finally, consider manufacturer-sponsored low-rate or incentive programs. These can be limited to specific cars or require a certain credit rating to qualify.
If you have good credit, it’s a better idea to get financing through a bank or credit union. This way, you can avoid the hassle of having to shop around for rates and deals.
Service
The service department at a car dealership plays a critical role in both retaining current customers and generating new business opportunities. With consumers waiting longer than ever between vehicle purchases, refining the dealership’s service drive process to generate more revenue and build customer loyalty can make a big difference in the bottom line.
Receptionist: The receptionist is responsible for greeting and assisting all customers, scheduling appointments, and responding to all questions promptly and professionally. The ideal receptionist will be able to handle multiple tasks in a fast-paced and high-volume environment. They must have excellent communication skills and be able to multitask effectively.
General Manager: The general manager oversees the entire dealership operation and is in charge of ensuring that sales goals are met, customer satisfaction levels are high, and staffing needs are fulfilled. The general manager also analyzes market data and trends to develop effective marketing strategies for the dealership.
Mechanics: The mechanics are responsible for repairing and maintaining vehicles at the dealership. They must be knowledgeable of all vehicle repairs and able to troubleshoot problems quickly and efficiently. The mechanics must also be able to work well under pressure and have excellent interpersonal skills.
Service Advisors: The service advisor is responsible for creating a positive customer experience in the service department. They must be able to explain complex repair issues in simple terms and be able to build trust with their customers. They must also be able to sell extended warranties and service agreements. They should also stay in touch with marketing vendors to ensure that they are receiving competitive prices and quick delivery on parts.
Parts
Industry organizations such as the National Auto Parts Dealer Association help dealers manage their parts departments. These groups offer training and resources to help dealerships improve profitability. They can also help with customer retention strategies, merchandising and inventory management. Parts and accessory sales can be a huge profit center for car dealerships. However, many dealerships have not tapped into their full potential because they fail to follow best practices. In addition, many parts departments are filled with experts in automotive repair, but not necessarily expert sales people.
Parts department employees should be trained to offer a more personalized connection with customers and encourage cross-selling opportunities. They should be able to answer questions about specific vehicle features, and explain the differences between OEM and aftermarket products. They should also work closely with service technicians to build incremental parts and accessories sales. Each dollar of service revenue generates 50 cents in parts sales, according to Dealer Marketing Magazine.
It is important that a dealer has accurate inventory records for its parts and accessories. These records should be updated frequently. To prevent theft, the dealership should limit access to parts bins and install cameras in the area. Additionally, a full annual inventory should be performed by an outside firm. The parts department should also perform perpetual counts on various bins weekly, with someone from the dealer office present to ensure accuracy.