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by SulphurSmell
1407 days ago
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Here's a link https://www.edmunds.com/car-buying/where-does-the-car-dealer... FTA: "National Automobile Dealers Association (NADA), the new-vehicle department of a car dealership accounts for about 58% of a dealership's total sales but less than 26% of a dealership's total gross profit. " "So where does the majority of a dealership's profit come from? It's not from car sales, at least not directly. It's from the service and parts department, which accounts for the other 49.6% of the dealership's gross profits, according to NADA" My comment was based on what I have been told by people in the business. They all want to get cars out the door...and raw counts are more important than margins on each. I would say that any new car under warranty will absolutely be serviced at the dealer. After that? Agreed...people will find alternatives. Mind you, in my experience, only "car people" tend to find non-dealer service...many feel "safer" at the dealer. I am told that the manufacturers of the cars make the most profit on a new vehicle sale...not the dealer. This is also why the lease/used market is so attractive to dealers. |
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