6 Business Relationships Every Car Dealer Should Have
There are different moving parts when running a car dealership. From sales and marketing to finance and operations, there are a lot of different areas that need to be managed for the business to be successful. However, one of the most important aspects of any car dealership is the relationships built with other companies. Here are six types of businesses that every car dealer should have a relationship with.
1. Auto Parts Suppliers
After all, they’re the ones who will be providing you with the parts you need to fix cars. By establishing a good relationship with them, you can ensure that you’ll always have the parts you need on hand and get them at a competitive price.
What to avoid when dealing with auto parts suppliers:
- Trying to get parts from multiple suppliers. This will only lead to confusion and could result in you overpaying for parts.
- Not having a clear understanding of what you need. Before you approach a supplier, make sure you know what parts you need and have the necessary information (e.g., make, model, and year of the car) to get them.
- Not maintaining a good relationship. Once you’ve found a supplier you’re happy with, make sure you nurture that relationship. This means being prompt with payments, placing orders promptly, and respecting their time.
2. Car Washes
A sparkling clean car is a happy car, and a happy car is a sellable car. By keeping your inventory clean, you’ll be able to get top dollar for your vehicles. Plus, it’s just good business practice to keep your cars looking their best.
What to avoid when dealing with car washes:
- Not doing your research. Not all car washes are created equal. Some use harsh chemicals that can damage your cars, while others don’t have the proper equipment to get the job done right. Do your homework to find a reputable car wash that will take good care of your inventory.
- Not having a plan. Before taking your car to a car wash, make sure you know what kind of service you want.
- Not being consistent. Once you’ve found a car wash you’re happy with, stick with them. Consistency is crucial when it keeping your cars looking their best.
3. Vehicle Financing Companies
If you’re in the business of selling cars, different vehicle financing companies are crucial partners. They help you offer your customers a variety of financing options and get them the best possible interest rate.
What to avoid when dealing with vehicle financing companies:
- Not shopping around. There are a lot of different vehicle financing companies out there, so it’s essential to shop around and find the one that offers the best terms for your dealership.
- Not understanding the process. Before working with a vehicle financing company, make sure you understand how the process works. This saves you time and headaches down the road.
- Not reading the fine print. It’s important to read all of the paperwork before you sign anything. This way, you’ll know what you agree to, and there won’t be any surprises later on.
4. Vehicle Transportation Companies
In order to keep your dealership/s fully stocked, you’ll want to develop a good relationship with a reputable vehicle transport company. A vehicle transporter will be able to bring you new inventory, relocate current assets, and provide delivery services for your company. Just like every other industry, bulk transportation of your vehicles can oftentimes save you money in the long run.
Especially if you own multiple dealerships across the country, a car transport company to various parts of Florida or other US states can help you relocate your vehicles, ensuring your dealerships remain optimally stocked with inventory at all times. You can take advantage of car shipping quotes to help you make proper budgeting.
Make sure you consider the following factors when hiring a transportation service:
- Do your vehicles require enclosed or open air transportation?
- Type and weight of each vehicle being transported.
- Whether you can save by shipping multiple vehicles at once.
- Insuring your assets during transport.
- Distance of the transportation.
5. Insurance Providers
Insurance is a necessary evil when owning and operating a car dealership. It would help if you insured your inventory, but you also need to make sure your employees are adequately covered.
What to avoid when dealing with insurance providers:
- Not having enough coverage. Make sure you have enough insurance to cover all of your bases.
- Not shopping around. There are a variety insurance providers out there, so it’s important to shop around and find the one that offers the best coverage at the best price.
- Not understanding your policy. Before signing for any insurance policy, make sure you understand what it covers and doesn’t cover. This way, you’ll know what you’re getting into.
6. Marketing Agencies
A good marketing agency can be a valuable asset to any business, but they’re significant for car dealerships. They can help you reach a wider audience and sell more cars.
What to avoid when dealing with marketing agencies:
- Not doing your research. There are a lot of different marketing agencies out there, so it’s essential to do your research and find the one that’s right for your dealership.
- Not having a budget. Marketing can be expensive, so it’s essential to have a budget in mind before you start working with an agency.
- Not being clear about your goals. Before working with a marketing agency, make sure you’re clear about your goals. This way, they can tailor their campaigns to your specific needs.
By establishing relationships with these six types of businesses, you’ll be well on your way to running a successful car dealership. Just remember to avoid the common mistakes listed above, and you’ll be sure to build solid and lasting relationships that will benefit your business for years to come.