Car dealers play an important intermediary role in the promotion of brand equity and sale of a particular brand of cars. In the process, they build up the reputation and contribute towards the growth of the company's market share. In India, the role of car dealers was limited to a mere selling of cars that has undergone a substantial change in the recent times with dealers emerging as an important point of connect between the company and the customers for the cars.

Car dealers of to days are expected to act as a catalyst to promote the sales of a car. At the first instance, car dealers are to have a good collection of cars. Car dealership depends on availability of the brand new cars and the location of the showroom.

Depending upon the brand and type of cars, dealer location ensures that the potential customers get the best of strategic advantages.The ambiance and the customer service are equally important. The customer should feel welcome at the car dealers place and the more a car dealer is able to generate that sort of feelings among his potential customers, the likelihood of car sales is to increase.