Yes, and the dealer also has a service department generating a continuous revenue stream to pay for those things. You act like dealers are pinching pennies to get by. This is hardly the case. A smart manager will give good deals on cars and use that relationship to generate income through the service department. The money isn't in cars. It's in service.

In case you aren't aware, dealers frequently get a kickback from the interest on your loan, holdback from the manufacturer, and a number of other secondary income sources. Even if they sell you a car "at cost" - or even slightly below it - they'll turn a profit.

 

And that service department has expenses.. advisor, tech, porter, waiting room snacks, coffee, cashier, etc.

I'm sorry, but I think everyone deserves to be able to make a profit

 

I've been on both sides of the desk. Dealerships don't make squat on selling vehicles anymore so they have to make it on accessories, service, parts etc. the mark-ups you mentioned are too much. I marked up liners and such by $200 at the most when I sold vehicles because I thought that was a very fair cost for the customers convenience. As long as customers let the dealers know they understand the dealer needs to make money everything should be cake.

 

Sure honest businesses do. That doesn't mean we need to pay $20 a gallon for gas because the station needs to pay a tenant, rent, electric, and fuel bills. That doesn't mean we need to pay $10 for an apple because the grocer has to pay box boys, cashiers, and managers. Those costs are built into the base price of the goods. Don't be naive.

 

Since when did anyone think the dealership (any dealership) was a good place to buy aftermarket accessories? Or to buy anything but a new car? They have always had a markup, on everything, pretty much at any dealership of any brand car I have ever heard of.

I only patronize the dealership when my vehicle is under warranty, to utilize the warranty. After that, there is no reason to pay their prices if I don't have to.

Buy cars at a dealership
Parts at you local parts store
Gas at a gas station
etc...

 

Sorry but



There is no way that they gave you about 3000 in stuff. That would put the sale value of the vehicle below D plan, and no dealer will do that.

 

Dealer holdback on a new F150 starts at 1500. The A/D/X plan kickback is 2500.

They make chiatloads of cash. Dealers are con artists and they do not deserve our pitty.

The cost of manufacture is 60% of the MSRP....

 

my comment was more about how we "single out" car dealers and think they are thieves, make tons of money, sell overpriced trucks, etc... like they are the only biz running that way.

all you guys who have an Iphone 6S that cost mayybbbbeeee $50 to make, $300 in marketing, and is essentially a throwaway item if anything breaks, and sell for $800+, did you fight with the Apple guy to get it "at or below cost"? didnt think so. I'll venture to say that Ford is jealous of Apple's cash reserves.

sure, 10% of a $60k truck seems like a big number, but really we are getting ripped off EVERYWHERE, not just when buying / servicing a new car. I guess my only point is, why unleash it on the dealer when just about every other big company out there does the same thing (mom & pop shops are a different story).

/rant

 

do you know how far $1,500 gets you for a business? for a dealer with a big lot, many employees, inventory sitting around, etc... 1/2 day worth of running the biz, maybe?

what seems like a big number on your personal bank account, really means poo-poo for a biz (ask me how I know )

 

You can get the cost amortized in a 2 year contract. The $800 phone is a $200 phone and there are very few options with the same characteristics. The same cannot be said for cars. There are a variety of options available. It's not a monopoly.
That single car sale is not meant to cover the overhead of an entire dealership. The continuous sale of cars, parts, and service does. I don't know why a handful of people can't get past that. The car sales are NOT the bread and butter business of a properly run dealership. They're a gateway to the real money in parts and service. I'm not speculating or talking out of my ***. I worked at a dealership.