essay2 - The automotive industry has long been, and...

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The automotive industry has long been, and continues to be, one of the most important part of the United State's economy. According to Kimberly Amadeo, the auto industry contributes 3.6%, or 500 billion to total U.S. GDP output (about.com). In the automotive industry, the role of automobile dealers is the connection between manufacturer of the automobile and the consumer. When it comes to who the automotive dealers are, the first thing that comes to people’s mind is the salesperson. That is because the salesperson is always upfront and deals with the customers. Even though different auto dealers offer various products and services, they share the same common goal to maximize their commission or the profit for the dealership. The automobile dealer industry is comprised of two business segments: new car franchise dealers and used car dealers. It is not easy to become a licensed auto dealer in the United States since it is a highly regulated business. Unlike many other countries and industries, the dealer application and approval process can be lengthy, and require a lot of investment. There are numerous new or used auto dealerships in the country which indicate auto dealer is a large paradigm that involves many people such as salesperson. People typically view car dealers are desperate for sales, and always trying to hook or entice you to get you to visit their dealership. I have heard many people saying car dealers are untrustworthy, unscrupulous and employ a whole suite of tactics to soak customer as much as possible. There is a simple reason behind that logic, s ince most people are not technically knowledgeable enough about car industry, they feel car buying is complicated and sometimes it may even be nerve-racking. In addition, for most people, a car is their biggest single purchase other than house; therefore, customers take trickery very serious than a brand of food failed to live up to its hype. As an auto wholesale dealer myself, I agree the public general perception of car dealers is accurate based on my analysis. We have had a few unpleasant experiences with other car dealers when we first started the business. In the ever changing and highly competitive automobile sales industry, in order to succeed or survive, many car dealers adopted to adjust tactics and strategies such as putting pressure on salesperson or being dishonest with customers.
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This note was uploaded on 01/24/2012 for the course ECON 101 taught by Professor Newman during the Spring '11 term at Mt. SAC.

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essay2 - The automotive industry has long been, and...

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