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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. It may also provide maintenance services for cars, and employ automotive technicians to stock and sell spare automobile parts and process warranty claims.
Most manufacturers work dealer holdbacks into the sale of each car: it's usually 2 or 3 percent of the invoice price or MSRP that the dealer pays up front when the car is purchased, and then is given back to the dealer in the form of a quarterly rebate after the car's sold