A car dealership or vehicle local distribution is a business that sells new or used cars at the retail level, based on a dealership contract with an automaker or its sales subsidiary. It employs automobile salespeople to sell their automotive vehicles.

Franchise Dealerships
Dealerships with names such as “Billy Bob Ford” or “John Doe Mazda” are franchise dealerships. These dealerships have a contract with an automobile manufacturer that allows them to sell its products.

Independent Dealerships
Dealerships with names such as “Jim’s Used Cars” or “Jack’s Auto World” are independent dealers. An independent dealership generally has one or more locations where it holds its inventory. These dealers have no affiliation or contract with any manufacturer.

 

---