The car dealership market - Italy

Car dealerships are market participants who are engaged in the purchase and resale of automobiles and motor vehicles, as well as their individual components, with the aim of making a profit. Car dealers typically generate income from the following activities:

Sale of new vehicles: the dealer purchases vehicles from manufacturers and sells them to end customers, such as businesses or individuals Used vehicle sales: the dealer purchases used vehicles from individuals or rental companies and resells them on the market Mobility services: today, dealers are beginning to provide customers with a range of traditional sales products, including long-term and short-term rentals. In most cases they purchase cars from rental companies, and the 11 Corporate Analysis of the car dealership provides for these services (Rent to Rent Business). At the end of the rental period, the vehicles are offered for sale Service and spare parts: this business includes the maintenance of cars in the workshop. In addition, the dealer has spare parts in stock that he can also sell to other dealers: in particular, some parts are original OEM and unaffiliated dealers can only get them from an affiliated dealer. Therefore, the price of original parts is increased by the dealers who resell them Financial service: starting in the 1970s, car dealers began to cooperate with banks or automakers to offer loans to end customers for car purchases. This opened up a new source of income for dealers to have a specific line of credit from OEMs that dealers use to order new cars based on consumer and manufacturer requests