McLovin157
Well-Known Member
- First Name
- shawn
- Joined
- Jan 27, 2022
- Threads
- 2
- Messages
- 273
- Reaction score
- 347
- Location
- Oklahoma City
- Car(s)
- 350Z Nismo
- Occupation
- Nissan Salesrep
- Thread starter
- #151
This is a super loaded questions but I'll do my best. Every dealer operates under it's own set of rules and as such has a multitude of avenues to generate revenue. There is the sales department, service, parts, body repair, detail, ect. that a dealer can make money on. For my dealer personally the bulk of income is generated from the sales and service departments. In Oklahoma the market dictates low costs on simple services with higher rates for big jobs. So our standard oil change is 49.99 but a transmission job that asks for 6 hours of labor may be charged 8-9 as an example. It really depends on what avenues the dealership has access to make money and how their local market or overall strategy dictates what means are used to overcome the lack of sales gross form vehicles.Hi Shaun,
So, with the lack of microchips reducing inventory, and overall sales opportunities to customers whom you make money on with:
Financing,
Rust Proofing,
Dealer Markups,
Fabric Sheild,
Extended Warranties,
Sound Shield,
Sales Floor Popcorn and Balloons Service Fees,
Free Bottled Water Service Fees,
Pinstripes,
VIN Etching,
LoJack,
Is it true that the Service Department is now needed to step up the Dealership's profits by:
Insisting unneeded work needs to be done,
Charging $99 for an Oil Change, then adding $50 for the Oil, and $25 to dispose of the Oil
Increasing Shop Fees to $49
Using scare tactics that Brakes will fail without 4 new rotors that are warped and beyond safety spec
Charging $15 for the Complimentary Car Wash with Service
Adding a Service Lounge Waiting Room TV watching Fee ?
I hope that didn't seem like a cop out answer but it really is heavily determined by area and size of the dealership. Some dealers are making a killing in sales of cars because of stupid mark ups. I say a dealer in California with a mark up of 10k on a base model Versa. A 20k ish car that ended with a final price of 31k.