Actually, this applies throughout Illinois and most other states across the country. This is because most of the States have franchise laws that do not allow the general public to purchase cars directly from their manufacturers – these rules apply to both domestic and imported models. To be the first owner of any car; you have to get it from the franchised distributor. The manufacturer sets a “ticket” price (officially known as the MSRP (manufacturer’s suggested retail price) or the RRP (recommended retail price); but, the franchised distributor is not bound to sell at that price. MSRP or RRP is what you will see on the sticker attached to every never before owned car in the lot or showroom. Obviously, no one will pay more than this displayed price; but, the car salesmen employed by the franchisee are usually allowed to offer discounts as a sales inducement to prospective buyers.
Exclusive Or Not?
Under this franchise system, some distributors only contract themselves to one auto manufacturer and operate from a single location. However, it is common practice in the industry for one person (or company) to hold multiple franchises and conduct their car sales business at more than one location.
What Else Do They Offer?
Car sales are big business; first time sales in 2013 were valued at $715 billion and it is a highly competitive area of business. Not only do franchisees compete on their discounts and inventory; they also usually provide full servicing and replacement part sales above and beyond the minimum required under their principal’s warranty scheme. They will have state of the art diagnostic and repair facilities and only employ suitably qualified technicians and mechanics.
In addition, they often undertake general second hand car sales along with selling certified preowned vehicles. Some also arrange financing for their customers; both loans and leases.
Who To Choose?
There are no hard and fast rules since choices will be directly influenced by the make and model that you wish to buy cross referenced against your personal budget with possible side effects from the inventories held at the franchisees you are checking with. By the way, most of the leg work can be done on line through the maker’s website and on to the separate sites for their official dealers. For example, if you are interested in finding a New Mazda Dealer In Joliet, IL; the manufacturer’s website will lead you to Hawk Mazda and you can then search their inventory.
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