Because few customers who buy a new car have a wad of cash to pay for it in full, the sales department maintains a finance and insurance (F&I) staff to provide buyers financing on the spot. Of course, customers can arrange financing through their own bank or credit union, but the majority of buyers use the dealer's financing. This specially trained staff has to track interest rates and shop for markets for customers of differing credit ratings. Some lenders offer better rates for customers with good credit, and others may specialize in bad credit customers, so they have to know where to look. Although this department also can obtain insurance for customers, most buyers cover their cars through their own insurance agent or direct company.
Every new-car dealer needs a service department - for more reasons than you might think. Obviously, the service department fixes your new ride when something goes wrong; new-car dealers must be able to provide warranty service to keep their buyers happy. But the service department also serves an even more immediate role: preparing the new cars that arrive from the factory for sale. When cars roll out of the factory and travel across the country or halfway around the world to a dealership, they don't look much like the popular image of new cars. When they arrive at a dealership they may be dirty and partially wrapped in protective plastic. Cars that don't have alloy wheels may need to have their plastic hubcaps installed. Removing the plastic, washing and waxing the car, shining the tires and cleaning the windows all require considerable effort. This job falls to the "new-vehicle get-ready technician," who may also renovate and prepare used cars being offered for sale and detail service customers' cars. Dealer-installed options are also added by the service department before a vehicle leaves for its new home.
Eventually your new car will need maintenance. All vehicles require periodic replacement of oil, tires, brakes, belts and hoses over time. The service department performs this routine maintenance, affecting not only customer satisfaction but also generating a steady income to supplement that of the sales department.
Although new cars are increasingly reliable they still sometimes need repairs, and the manufacturer's warranty commits the company to providing these repairs at no cost to the buyer for a set period of time after the sale. Through its service department the dealership handles warranty claims by customers. The manufacturer pays the dealer for such repairs based on an agreed-to price list.
Making certain the service department has all the parts it needs to properly repair customers' vehicles is - you guessed it - the parts department. This department maintains an inventory of parts that customers are most likely to need, ensuring that service technicians can make repairs immediately when a car comes in for service. Customers don't like waiting for parts to be ordered, so this inventory is usually kept large. But parts cost money, and if the department stocks up on parts for unpopular models or on replacements for parts that rarely fail, it ties up more of the dealer's money than necessary. The parts manager must maintain the right inventory for the dealer's particular market. Texas dealers, for example, likely stock a lot more brake pads for pickup trucks than, say, Manhattan dealers, while those Big Apple dealers probably keep an abundant supply of touchup paint on hand.
One growth area in the parts department is sales of aftermarket-style parts and accessories with which owners customize their vehicles. Many dealers are also adding tires and wheels to their inventories, so customers don't need to look elsewhere for any part their car might need over its life.
