That didn’t happen in a joke; it did. According to market research company J.D. Power, the tech-savvy, marketing-averse generation known as millennials bought more than a quarter of the 16 million new car sales in the US last year. And almost all of those customers ended up completing the necessary paperwork and picking up the keys at a new automobile dealership.
Not at all useless
Franchised dealers still dominate the pipeline in this nation, despite a few attempts with direct selling that have mostly failed—with Tesla Motors’ factory sales model standing out as an important exception. It’s doubtful that their rule will end soon. Dealers are mainly immune to external challenges because of long-standing state franchise regulations that largely forbid direct sales by vehicle manufacturers. The concept behind the franchise system is that by promoting competition, outside companies may provide clients with better service. Theoretically, an independent vehicle dealer would guarantee a wide selection, Bay Area Cadillac dealership perform expert repairs, and become a respectable part of the neighborhood, treating neighbours decently and possibly sponsoring a kid’s soccer team or a beer league softball team. Additionally, clients may compare Chevy dealers more easily than they can Chevrolet directly.
Compared to the majority of transactions, both online and off, buying a new car is an expensive, difficult process that is more like buying real estate than a shirt. The dealer handles state registration, tax collection, and finance arrangements, and provides a chance to test drive and view a variety of vehicles before making a choice. It will accept your used automobile in exchange and is prepared to handle recalls and factory warranty service.
But it’s not always a terrible thing that there are fewer vendors now. The recession caused many marginal enterprises to fail, while manufacturers acquired smaller or less skilled ones. Currently, there are about 18,000 dealers across the country, down from 22,000 just ten years ago due to consolidation. The biggest dealer groups, such as AutoNation, Ford, and Group 1 Automotive, continue to open new facilities, increasing efficiency, and profit margins while mom-and-pop businesses disappear. Additionally, bigger might benefit customers. The dealer groups provide more options, with AutoNation advertising some 70,000 cars offered for sale across the country, all of which can be found online. When you locate the precise model you’re searching for, theBay Area Cadillac dealership then may have the automobile delivered to your neighborhood dealership.
