Elessar78 Posted November 16, 2014 Share Posted November 16, 2014 Continuing on the car buying theme, I stumbled on This American Life's broadcast today. It gives great insight to life at a dealership. "We spend a month at a Jeep dealership on Long Island as they try to make their monthly sales goal: 129 cars. If they make it, they'll get a huge bonus from the manufacturer, possibly as high as $85,000 — enough to put them in the black for the month. If they don't make it, it'll be the second month in a row. So they pull out all the stops. " http://www.thisamericanlife.org/radio-archives/episode/513/129-cars Link to comment Share on other sites More sharing options...
Ellis Posted November 17, 2014 Share Posted November 17, 2014 That's a good snapshot of what it's like. I've met the aggressive type of salesman. I'm glad I don't have to deal with the pressure they have to deal with. We average about 80 a month with 6 salesmen. Link to comment Share on other sites More sharing options...
Elessar78 Posted November 17, 2014 Author Share Posted November 17, 2014 I was shocked at the low profit margins. I have a friend who owns a local used car dealership—he's done very well for himself but he's admitted to me that he tries to just make $500 per car and he hopes to make his money on volume. Anyway, new car profit margins seem very slim but dealerships have other revenue streams. To me, used cars would have a bigger profit margin. Link to comment Share on other sites More sharing options...
chipwhich Posted November 17, 2014 Share Posted November 17, 2014 The car dealer makes money on a combination of things in the deal. The price, the financing, and the up sell of add on's at financing to include all the stuff that is a waste of money undercoat, topcoat, stain resistant spray, tire protection, low jack, extended warranty. All pretty much waste of money items.Car dealers also rely on making money in their services departments. American car companies especially. Link to comment Share on other sites More sharing options...
Corcaigh Posted November 17, 2014 Share Posted November 17, 2014 It's become a low-margin business because in the age of the internet, many dealers don't add much value. Link to comment Share on other sites More sharing options...
Elessar78 Posted November 17, 2014 Author Share Posted November 17, 2014 Car dealers also rely on making money in their services departments. American car companies especially. All the above. One thing I learned recently too is that service consultants get a commission on parts and service they sell. That's pretty shady. Link to comment Share on other sites More sharing options...
chipwhich Posted November 17, 2014 Share Posted November 17, 2014 All the above. One thing I learned recently too is that service consultants get a commission on parts and service they sell. That's pretty shady. American car dealers try this on me a lot. But there are a ton of "service" departments like Pep Boys, Mr. Tire, etc that "up sell" you on services. I don't understand why anyone uses these services. You take your car in for an oil change, they give you a list of items that need fixed, then you pay for what you can. Makes no sense. But these places are always packed with customers. My neighbor took his jeep to the local dealer for a 30,000 mile service. They tried to up sell him in the tune of $2,300. Link to comment Share on other sites More sharing options...
Elessar78 Posted November 17, 2014 Author Share Posted November 17, 2014 yup. I'm done with the dealership for that reason. I've got my trusted mechanic/garage, but sometimes out of convenience I take my car to the dealership which is less than a mile from my office. But this is a Honda dealership so I don't believe it's limited to American cars. What pisses me off is when I'd go in for an oil change and some thing would be rattling—because they took **** apart to look for something to upsell me on—then didn't put it back well. Sometimes it's just a stupid heat shield that they need to tighten so it doesn't rattle. Bush league. Link to comment Share on other sites More sharing options...
pjfootballer Posted November 17, 2014 Share Posted November 17, 2014 I've never taken my cars to the dealer unless it was a part recall or free oil changes when I first buy the car. Link to comment Share on other sites More sharing options...
Zguy28 Posted November 17, 2014 Share Posted November 17, 2014 Dealers are good for regular maintenance like oil changes and tire rotations. That's about it. I usually even do that myself. However, I noticed on my wife's 2011 Toyota Sienna that the oil filter is a real pain. You have to have special tools to drain the oil out of it (its like a syringe because the filter is on its side) and to even remove the filter (special wrench which Toyota sells by the way; don't use an aftermarket one, because God help you when it strips it out). Otherwise, you can find most stuff on youtube if you don't know how to DIY. Just did the wife's brakes. They haven't changed (except for one little clip) since my '89 Camaro. Same design. Link to comment Share on other sites More sharing options...
TTViper Posted November 17, 2014 Share Posted November 17, 2014 Dealers are good for regular maintenance like oil changes and tire rotations. That's about it. I usually even do that myself. However, I noticed on my wife's 2011 Toyota Sienna that the oil filter is a real pain. You have to have special tools to drain the oil out of it (its like a syringe because the filter is on its side) and to even remove the filter (special wrench which Toyota sells by the way; don't use an aftermarket one, because God help you when it strips it out). Otherwise, you can find most stuff on youtube if you don't know how to DIY. Just did the wife's brakes. They haven't changed (except for one little clip) since my '89 Camaro. Same design. I'm pretty sure It's a similar design as the 3.4L 4Runners, and if it is the "Special" Toyota wrench is definitley NOT needed. Neither is the special syringe. A rough textured filter and only installing it hand tight is the key thing. Toyota has been doing those horizontal filters for years now, and i garuntee a shop doesn't waste any time using a syringe. Place some towels under the filter and manage the oil spill as best as you can. I do it quickly and oil spill is not an issue. Find a proper Toyota/Sienna forum and ask for some tips and tricks on your specific model. Edit: disregard the textured filter, you must have this style? https://www.youtube.com/watch?v=u0xW_zDGez4 definitley use the prong style instead of the kind that will round off the edges. The car dealer makes money on a combination of things in the deal. The price, the financing, and the up sell of add on's at financing to include all the stuff that is a waste of money undercoat, topcoat, stain resistant spray, tire protection, low jack, extended warranty. All pretty much waste of money items. Car dealers also rely on making money in their services departments. GERMAN car companies especially. I fixed this for you. Your post was out of warranty (3 minutes or 36 letters, whichever comes first) so here is what it's going to cost; 8 Hours of German Labor to un-engineer our orginal over-complicated **** up ($186 x 8)- $1,488 OEM Parts overnighted from Germany, made from unicorn horn-dust - $1,833.33 Mandatory oil change after this particular repair. Oil= Royal Purple Gold Flake edition (we only charged half of what it usually costs) - $300 15% shop fee (Rags, Cleaners, Good German Beer) Total = $4,164.57 I didn't include the appropriate State sales tax so it will cost even more when you come to pick your Car...I mean POST up, but you won't figure that out until you get here. You should also have your blinker fluid changed soon, we can hook you up. Link to comment Share on other sites More sharing options...
TheGoodBits Posted November 17, 2014 Share Posted November 17, 2014 TTViper that post is hilarious. Link to comment Share on other sites More sharing options...
DCSaints_fan Posted November 17, 2014 Share Posted November 17, 2014 I'm pretty sure It's a similar design as the 3.4L 4Runners, and if it is the "Special" Toyota wrench is definitley NOT needed. Neither is the special syringe. A rough textured filter and only installing it hand tight is the key thing. Toyota has been doing those horizontal filters for years now, and i garuntee a shop doesn't waste any time using a syringe. Place some towels under the filter and manage the oil spill as best as you can. I do it quickly and oil spill is not an issue. Find a proper Toyota/Sienna forum and ask for some tips and tricks on your specific model. Edit: disregard the textured filter, you must have this style? https://www.youtube.com/watch?v=u0xW_zDGez4 definitley use the prong style instead of the kind that will round off the edges. I fixed this for you. Your post was out of warranty (3 minutes or 36 letters, whichever comes first) so here is what it's going to cost; 8 Hours of German Labor to un-engineer our orginal over-complicated **** up ($186 x 8)- $1,488 OEM Parts overnighted from Germany, made from unicorn horn-dust - $1,833.33 Mandatory oil change after this particular repair. Oil= Royal Purple Gold Flake edition (we only charged half of what it usually costs) - $300 15% shop fee (Rags, Cleaners, Good German Beer) Total = $4,164.57 I didn't include the appropriate State sales tax so it will cost even more when you come to pick your Car...I mean POST up, but you won't figure that out until you get here. You should also have your blinker fluid changed soon, we can hook you up. Bring a Mighty Wallet Link to comment Share on other sites More sharing options...
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