Different Kinds of Car Dealers

There are different types of car dealers who can offer vehicles suitable for your lifestyle and budget.  If you are not buying a car from a private seller or from an auction, then you will have to go to a dealership to find a vehicle you want.  To get a basic understanding of the types of dealers who provide service for car buyers, here is a brief overview that could help you. 

Two Main Types of Car Dealers

Dealerships come in two main forms — new car dealership and those selling used cars. Most new car dealerships are backed by car manufacturers.  Some are exclusive franchises of a specific car maker.  Other dealerships however may offer different brands of various car makers.  These are consolidated dealerships and they usually operate separate branches in one locality. 

There are also new dealerships that may offer used vehicles.  However, the used cars in their inventories are those that have been traded-in by customers.  You can get these pre-owned and reconditioned vehicles with a heavy discount. 

Used car dealers on the other hand offer pre-owned cars.  Different brands and models from various car makers are available in the showroom or yard of a used car dealership.  Some operators maintain mega-plexes of high quality used vehicles.  They also provide generous warranties for their used vehicles. 

If you are looking for dirt cheap bargains, you may consider buying a vehicle from trailer based car yards.  You can buy cars from these dealerships on an as-is basis.  It means the dealer does not offer guarantees for you.

Special Types of Car Dealers

There are dealers who are permitted only to sell vehicles to wholesalers and other dealerships.  These are known as wholesale dealers and they can not sell cars to the general public.  If you are planning to establish a dealership in your area, then you will need the services offered by wholesale dealers. 

There are also dealers who specialize in auctions.  They have licenses to retail used cars and offer them in local or online auctions.  You can get a good deal from car auctions especially if you know how to bid correctly. 

Other car dealers concentrate on specialty cars.  For example, if you are a collector and you want a vintage car, then you have to find a dealer of old legacy vehicles.  There are also dealers who specialize on muscle cars or production cars.  Most of these dealers can be found online because they cater to a special market only. 

A dealer may offer a financing plan for you.  However, the car loan that you can obtain is provided by a third party bank or lending company.  Most new dealerships follow this kind of business model.  So if you buy a new car, the dealer will refer you to a financing institution.  Normally, the dealership gets a commission from successful financing transactions. (Do you know that the Danish term for car dealers is Bilforhandlere)

There are also Buy Here Pay Here car dealers.  These dealers offer in-house financing for customers.  Some dealerships that offer used cars also provide in-house financing.(If you are interested to buy car you can find more information here)