Advocacy

As an industry, the new car and truck dealers of Kansas are dedicated to constantly improving their business practices and ethics to maintain fair competition in order to better serve consumers and prevent manufacturer monopolies. KADA recognizes that the motor vehicle dealers are the backbone of the American automobile industry and an essential part of the Kansas economy.

Kansas dealers are essential to the Kansas economy by generating good-paying local jobs, tax revenues and economic benefits; and simplifying the complex car purchasing and registration process.

PRICE COMPETITION

  • Franchised dealers compete fiercely (both intra & inter-brand) for vehicle sales and service, driving down costs and improving customer service.
  • Price transparency allows customers to benchmark pricing and negotiate.

CONSUMER SAFETY

  • Dealers ensure safety recalls and warranty work are addressed fairly and efficiently, because their economic interests are more aligned with consumers than manufacturers.
  • Having a dealer advocate on your side makes safety, warranty, and service solutions easier for consumers.

LOCAL ECONOMIC BENEFITS

  • Dealers generate good-paying, local jobs with benefits and opportunities for advancement and professional development.
  • New car dealerships in Kansas are a $5.9 Billion per year business and have a total payroll of nearly $552 Million, directly employing more than 21,460 people across the state, averaging 49 employees per dealership.
  • Franchised new car dealers generate $372 Million in state and local taxes.

ADDED VALUE

  • Dealers simplify the complex car-buying process and serve their customers for the entire ownership experience.
  • Consumers want a convenient purchasing process. Dealers offer a wide variety of financing options, which are frequently more affordable than bank loans. More than 60% of all new car purchases include a trade-in to cover a portion of the down payment, and dealers provide a hassle-free market for trade-ins. Dealers also assist with the complex system of titling, registration and reams of regulatory paperwork.
  • Consumers value personal service and local relationships, especially when making a purchase that is second largest to a house.

Things you might not know about your local dealership:

  • The average dealership requires an investment of $11.3 million, including physical facilities, land, inventory and working capital.
  • Most dealerships require several acres of land in addition to a retail store, service bays and storage areas. These original equipment manufacturer (OEM) requirements are fully funded by the individual dealers at an average perfranchise cost of just under $3.1 million.
  • Dealers also carry all of the inventory costs of the vehicles on their lots. Dealers pay immediately for their inventory at the railhead. The costs to carry this inventory are not born by manufacturer and amount to millions of dollars.
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