A car dealership, or car dealer, is a business that sells new or used cars, at the retail level, based on a dealership contract with an automaker or its sales subsidiary. Car dealerships also often sell spare parts and automotive maintenance services.
In the United States, car dealerships have historically been an important source of state and local sales taxes. They have considerable political influence and have lobbied for regulations that guarantee their survival and profitability. By 2010, all 50 states and DC had laws that prohibit manufacturers from side-stepping independent car dealerships and selling cars directly to consumers. By 2009, most states imposed restrictions on the creation of new dealerships to compete with incumbent dealerships.
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