In brief, a car dealership is a company that sells new cars of a particular make for which they will have a franchise deal with the manufacturer. The car dealership may also offer specialised servicing and have new cars of that make in a showroom. The car dealership will also have a parts department and it is the dealership that will deal with claims on warranty. However car dealerships are in no way restricted to selling only the dealership brand and their forecourts are usually full of second-hand cars of every make and model, usually from a part exchange car or cars to leased vehicles on expiration of the lease. Some car dealerships specialise in more than one make of car.

The advantage of buying a new car from a dealership garage is that the after sales care, that is servicing, warranty issues, spare parts etc. is usually first class as the dealership employs mechanics and fitters who are familiar with the type of cars in question. If the type of car is unusual or of luxury class then purchasing from new via the dealership is preferred as one can be sure genuine spare parts will be fitted.

If purchasing second-hand a full history of the vehicle should be readily available as well as finance and part exchange deals. Dealerships are just as open to negotiations as are independent garages and other vehicle outlets so it is as well to be armed with some alternative figures and comparisons.