A Dealership in an auto system, a “dealer” is a person who sells used cars or cars on behalf of a company to obtain financial benefits in return.
The car system is often used by large companies or enterprises that seek to extend their brand through the sale of franchises to third parties, so the parent company will give its products to the dealership for the “dealer” or owner of the car to resell them. This strategy is useful to extend the reach of a brand or product locally, regionally and globally saving costs. A typical example is that cars vary in terms of modality, characteristics and agreement between the parties, but usually include a dealership that is in charge of distributing the products to the final consumer. In some cases, the dealership buys the car at a certain cost, obtaining all the profits produced by it. In others, the car is a concession and the dealership gets a percentage of the profits and benefits.
There are dealerships for all types of cars. Some typical scenarios are, for example, the seller of old cars or classics, who receives them as a concession from their owners and focuses his efforts on reselling them with specialized businesses that have an interest in them. Another typical case is the car dealer. In this case, car manufacturers of different brands deliver vehicles to dealerships that promote and sell them to the general public all over the country or the world. There are also broker-dealers, those who are in charge of selling shares of a company or firm to shareholders or investors interested in the growth of the same. This often happens when companies are in their early stages and need investors to grow but already have a progress that allows them to attract interested parties.
The dealership, in this relationship, must seek to make a profit from the sale of the securities it has purchased. The dealership is very similar, as explained here, to a distributor, who buys products from the manufacturer to sell them to the retailer.