Portal Forum General General Discussion Simple Pleasures… Reply To: Simple Pleasures…

#141808 Quote
  • GoldenHas donated $ to the upkeep of GPL

D2D wrote:

davescharf wrote:

Financing is 4.8% of revenue but 29% of gross profit for an average dealership

New car sales are 52.3% of revenue and 14.3% of gross profit

Source: Fightingchance.com

I would think a dealer’s Service Dept would account for a healthy percentage.

You would think it would have to. When most dealers seem to be charging around $160+/Hour for labor and charging book time vs actual time, and paying mechanics $25-35 an hour?

I know they take a hit on warranty work, because the brand pays them much less for warranty than what the customer would pay for the same job. Or so that’s what I was told.

Additionally billing for work that isn’t actually completed in the case of my wife’s car. Yeah, the rear spark plugs on a transverse V6 are a royal PITA to replace, that’s why we took it to you. You assumed I wouldn’t find out until well afterwards, and could likely claim something else was the problem.

They also tell customers to go 10,000 miles or more on a synthetic blend oil change, say things like Timing chains are a “lifetime” item without needing maintenance or replacement. Yes, it will last the lifetime of the warranty, then you get to pay for it or buy a brand new car from us. It is like dealers don’t want to sell routine maintenance, they want to sell major repairs and replacement vehicles after catastrophic failures.

I guess John Q Public is probably also culpable. When presented with 2 options, if one has less maintenance they are likely to pick that one.

I’ve moved to doing all my own maintenance, trouble-shooting, and repair. Fluids are cheap; oil, transmission fluid, etc. A new engine or transmission is not. What’s the saying; “An ounce of prevention is worth a pound of cure”?