Automobiles are known to be strictly regulated products which must have financing insurance and proper licensing. Besides, they are expected to satisfy a very many safety and environmental standards. Every one of the fifty states, through their respective legislatures, have passed statutes that are meant to govern automobile dealings, which is often carried out by new-car-and-truck agreements. The franchise legislation’s serve many purposes ranging from client protection to governing of relations between automobile producers and dealers. In simpler terms, the sale of new trucks and cars is done via franchised dealers owing to the fact that the venture model is beneficial to the customers, vehicle producers and local communities. Customers profit from franchise automobile dealership particularly on pricing. Whenever the localized franchises of one same brand engage in active competition for the client’s business, there will be a substantial drop in the prices.
Automobile franchises as well engage in financial competition in which case they can easily access many lenders countrywide who all have intentions of outbidding one another. This kind of rivalry is beneficial to the customers, who more often than not do not have enough time or easy accessibility to seek and work with such a variety of financial lenders. It should not be forgotten that franchises are in constant competition on automobile parts and service offering. This in turn gives the customers accessibility to certified and professional vehicle services practically any time and at any place. It is also significantly beneficial to the customers whenever franchises take on recall work and warranty. This is mainly due to the fact that automobile manufacturers reimburse franchises for carrying out recall and warranty repairs, making it possible for vehicle dealers to make recall and warranty repairs freely to their clients.
Domestic franchises tend to be the economic pillar of their respective communities. The moment huge firms get out and in the communities; automobile dealers are left with no option but to provide well-paying employment as well as chances for personal and professional growth. As at now in the United States, at least eight thousand automobile franchise companies control and run almost eighteen thousand franchises throughout the nation, and not less than fifty percent of those firms are in possession of just a single store. Another two thousand possess just two stores. In addition to the 1.1 million employment opportunities at their outlets, automobile dealers as well support an extra 1.18 million employment opportunities.