C6112 - Used car lots with or without service

Industry code: C6112
Premium rate: 1.14

Classification Facts

Class: C - Commodity - Wholesale - Retail
Rate Code: C61 - Automotive, Implement Sales and Service
Subcode: 12

Description

Operational Details
Used car lots obtain their inventory by buying wholesale from dealers and private individuals. Some car lots refurbish cars for sale by replacing defective parts or improving the appearance of the vehicle by having the body repaired and painted. Minor repairs may be done in-house, body repairs as are sent out to unrelated body shops. Used car lots exist exclusively to sell used vehicles and are not bound by any agreement to sell only one brand or kind of vehicle.

Commissioned salesmen are hired to sell the vehicles and, when necessary, take in trades. Lot staff generally clean snow off the cars in winter and ensure the vehicles start, and in the summer, wash or hose down the cars to remove dust and dirt for marketing purposes.

What sets a used car lot apart from a car dealership is that the dealer usually deals with one manufacturer, selling only trade ins received, resulting from the sales of the new vehicles. Dealerships do not exist to sell used cars, but sell used as a supportive activity to the overall operations.

SIC Codes
000000279 - Used car lot
000000907 - Used car sales

Previous Codes

NAICS 2007
Code: 44112 - Used Car Dealers