Do car dealerships purchase their cars from the manufacturers?

Yes, car dealerships purchase their cars from the manufacturers. The process typically involves a franchise agreement between the dealership and the manufacturer, which outlines the terms and conditions of the relationship. The dealership agrees to sell and service the manufacturer's vehicles, and the manufacturer agrees to supply the dealership with vehicles and provide support.

The specific terms of the franchise agreement vary depending on the manufacturer, but typically include:

* Vehicle allocation: The manufacturer agrees to allocate a certain number of vehicles to the dealership each year, based on the dealership's sales performance and market demand.

* Pricing: The manufacturer sets the prices for the vehicles it provides to dealerships, and dealerships are required to sell the vehicles at or above those prices.

* Warranties: The manufacturer provides warranties for its vehicles, and dealerships are responsible for handling warranty claims and repairs.

* Marketing and advertising: The manufacturer provides dealerships with marketing and advertising materials to help them sell vehicles.

In some cases, dealerships may also purchase used cars from other sources, such as auctions or trade-ins. However, the majority of cars sold by dealerships are purchased directly from the manufacturers.