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

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Kelly RedKelly Red
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    fightclub30 wrote:


    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”?

    I love that commercial where the girl is laughing because her dad said, “this is a dipstick”. :biggrin2: I was that girl! My dad made sure I could change a tire, change my oil, top off basic fluids and change an air filter. Believe me that was waaaay before that type of lesson was common for girls. I’ve thanked him many times for providing me the basic knowledge. Plus I just like to know how things work. I may not be able to repair something, but I have working know-how.