Do it yourself

Quote: kenarman

Did you pay them extra for the time they spent teaching you?

Nope, the service writer job to explain if I have a question. Took all of a minute. Seeing as how I got them at least $5000 in warranty work they owe me.

Quote: AZDuffman

Nope, the service writer job to explain if I have a question. Took all of a minute. Seeing as how I got them at least $5000 in warranty work they owe me.

The dealers always claim there is no profit in warranty work. No margin on parts and reduced labour rate. With the shortage of mechanics they need to put a mechanic on a job with a reduced margin rather than a full mark-up job.

Quote: kenarman

The dealers always claim there is no profit in warranty work. No margin on parts and reduced labour rate. With the shortage of mechanics they need to put a mechanic on a job with a reduced margin rather than a full mark-up job.

Don't tell me they did not do well replacing an engine. No new cars on the lot to do state inspections on so they have some labor available.

Quote: AZDuffman

Don't tell me they did not do well replacing an engine. No new cars on the lot to do state inspections on so they have some labor available.

If they have mechanics that are sitting around and doing nothing than a lower rate is still fine. They would make no mark-up on the engine because the manufacturer provides it at no cost to them. Since the engine is a major part of the $5K that job would have not been something they really wanted but need to do to retain their dealership.

Quote: kenarman

would have not been something they really wanted but need to do to retain their dealership.

That is something you never think that a dealership can be taken away from someone if they don't do what the car company wants. We have a Chevy dealership here that's been around since 1925. One of their sons went to my high school in the sixties and when he turned 16 he had a new Corvette to drive every year. I remember Jim Bakker the Evangelical minister drove a new Cadillac every year after he was 16 because his father owned the Cadillac dealership. Never seen anybody owning a car dealership that wasn't rich.

Quote: Evenbob

That is something you never think that a dealership can be taken away from someone if they don't do what the car company wants. We have a Chevy dealership here that's been around since 1925. One of their sons went to my high school in the sixties and when he turned 16 he had a new Corvette to drive every year. I remember Jim Bakker the Evangelical minister drove a new Cadillac every year after he was 16 because his father owned the Cadillac dealership. Never seen anybody owning a car dealership that wasn't rich.

They make it on parts, service, and used cars. All you need do is see how much fancier dealerships are than even in the 1980s.

I know a Lincoln dealership near my mother's house. Fronts one of the busiest sections of state highway in the state. In the 1950s Ford paid $1,000 per linear frontage foot. We are talking like 1/8 of a mile or more of frontage. The property tax alone today has to be a killer. Yet they easily make it back.

Quote: AZDuffman

They make it on parts, service, and used cars. All you need do is see how much fancier dealerships are than even in the 1980s.

I know a Lincoln dealership near my mother's house. Fronts one of the busiest sections of state highway in the state. In the 1950s Ford paid $1,000 per linear frontage foot. We are talking like 1/8 of a mile or more of frontage. The property tax alone today has to be a killer. Yet they easily make it back.

Most of the big dealerships for Ford Chrysler and General Motors we're owned by the same families when I was a kid in the 50s as they are now. There's a bunch of foreign car dealerships now, but they don't have nearly the prestige of the older ones. My wife bought her new Chevy Cruze from a woman she knows who works at the Chevy dealership that's been here since 1925. Because my wife has such a big family and they get jealous when one of them buys a new car three others in her family went to the same woman and bought a new Chevy Cruze. So that saleswoman got four sales in two weeks from the same family. That's one thing you never saw in the 1960s, ever, women selling cars in a dealership or anywhere else. Nobody would have bought one from them cuz they were considered totally ignorant about cars.

Quote: AZDuffman

They make it on parts, service, and used cars.

It is my understanding that the serious money is made via financing.

Usually the highest paid guy at a dealership, other than the owner, is the financing expert.

Lots of profit in that and in selling unnecessary products and services: this is presented to the prospective buyer by the finance guy, typically.

Just say "NO" to everything and pay cash.

Dealers don't like cash buyers, there's no spiff from financing.

Quote: missedhervee

It is my understanding that the serious money is made via financing.

Usually the highest paid guy at a dealership, other than the owner, is the financing expert.

Lots of profit in that and in selling unnecessary products and services: this is presented to the prospective buyer by the finance guy, typically.

Just say "NO" to everything and pay cash.

Dealers don't like cash buyers, there's no spiff from financing.

You can definitely get a better deal on the car if you are financing. I laugh at everyone that thinks the best deals are for cash. I would rather have the finance company pay the dealer a couple hundred dollars than me pay them that couple hundred dollars.

When I used to buy cars I would always accept the worst finance deal because I knew the dealer would get paid for it and I am paying off the car the first month. That way the dealer is happier with a lower amount on my side because the finance company will be writing them a check.

Quote: missedhervee

It is my understanding that the serious money is made via financing.

Usually the highest paid guy at a dealership, other than the owner, is the financing expert.

Lots of profit in that and in selling unnecessary products and services: this is presented to the prospective buyer by the finance guy, typically.

Just say "NO" to everything and pay cash.

Dealers don't like cash buyers, there's no spiff from financing.

You are confused on terms. The guy you are talking about is "F&I" or Finance and Insurance.

Even in the 1980s the guy who sold the car did all the closing paperwork. But salesmen hate paperwork and it got more complicated. Now after you ink a deal you go to "F&I" for closing the deal. Financing was probably offered before this, for sure they do not waste F&I time with a person who cannot get financing.

F&I tries to sell the extras. Extended warranty, service plans, everything. A smart person just keeps saying "no" to it all. A fish will get taken for thousands here. Dealers get a bonus for financing, but if a person has good credit there is not much bonus to pay as the margins are low.

Bad credit, OTOH, now there they can clean up.

Good credit you paid maybe 4-5% in my day depending on term and age of vehicle.