Quote:
Originally Posted by cockerpunk
every few years there is a new study on dealerships, and all of them that i have read cites that a typical car transaction, the dealership costs the consumer about 2 to 5 thousand dollars that they otherwise would not have to pay.
its almost like adding a third party profit motive to the supply chain adds cost to the consumer and adds no value for them! guess that ones free cause i didnt need to go to business school to know capitalism 101. its seriously a no-brainer.
here is one such example, but if you google there are many, giving out a range of of costs: https://consumerfed.org/press_release/anti-competitive-state-laws-cost-new-car-buyers-more-than-20-billion-per-year/ |
You have no idea what you’re talking about. One of the two of us has been a car dealer and I’m going to bet that it wasn’t you.
I know what car dealerships make and your numbers are just pie in the sky fantasy. We made far more money on used cars than we did new cars and we were happy to make a grand. Five grand? Never happened. There wasn’t five grand between suggested retail and our cost, and the days of making big money in the F and I department are essentially long gone.
That’s why you see dealerships raising their service department rates so high. That’s where they make whatever money they make. New car sales has a hard time breaking even after the overhead is factored in.