How Car Dealers Make Sales—a Typical Auto Sales Process

By Author: Erwin Calverley
Total Articles: 14
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Recent surveys show that the number of cars in the US almost equals the number of registered citizens. The automobile industry is catching up with population growth really fast, and in a few years, it might get far ahead. The other aspect of the automobile industry that grows just as fast is the car dealership sector. It stands between manufacturers and buyers and acts as the lifeblood of the automobile industry.

A car dealership is the second level in the automobile distribution process. After manufacture, cars are ordered by dealers directly from the manufacturer at a discount either for direct purchase or for whole sale. They are delivered to various car lots or showrooms to be retailed to consumers. However, there are consumers who buy vehicles directly from the manufacturers, which for some reason can be less expensive. Car dealerships are ideal when buying directly from the manufacturer is less advantageous, especially when considering distance and possible high delivery cost.

When buying a car through a car dealership, there is a typical step-by-step process to follow. Prior to the sales process, buyers ...
... often search for the car they want by inquiring directly from the dealer or by searching through the Internet. Either may lead them to a high-quality vehicle. Auto dealers start the sale by asking the buyer about the specific vehicle he wants. To make it easier to determine if the model is available for instant sale or for order, it is best if the buyer has a list of the specific features of the vehicle.

Depending on the buyer’s financial capability, he can pay for the car in cash or choose among the available purchase options offered by the dealer. Some of the common purchase options include installment and financed. If the buyer requests for financing, the dealer can provide him with one of their auto loan programs offered by a related finance company (RFC). Otherwise, the buyer can loan directly from a financial institution not affiliated with the Indianapolis Ford dealership.

The loan application undergoes lender selection and pre-approval process. The maximum amount that can be loaned depends on the buyer’s credit rating and on the separate car appraisal the financial institution will conduct. Indianapolis Ford dealerships then proceed to vehicle presentation basing from the loan value of the vehicle.

Signing of the contract follows vehicle inspection. This is one step away from closing the deal. The contract may vary depending on the buyer’s commitment with the Indianapolis Ford dealership. A different contract is provided for financed vehicles.