Silent Bob
Well-Known Member
- Joined
- Nov 20, 2020
- Messages
- 470
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- Age
- 57
Support your local dealer by letting him service your truck and take care of any warranty work. Dealers make most of their money from parts and service. Buy you truck from someone who works hard to earn your business. A rural dealer knows people will buy from him just because he is close and/or they are afraid to purchase from out of town.What happens when you need service work done or warranty repairs, a tow in because your truck broke down? Are you going to go the same dealer you bought it from or are you going to go the closest ram dealer to you and have them do it? Should they have the right to refuse warranty work? How long before this local dealer needs to close its doors because it just can’t support itself or employees anymore?
"According to the most recent data from the 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. In addition to car sales, that figure also reflects profits from finance and insurance (F&I) products sold on new cars. That means such things as gap insurance, alarm systems and extended warranties."
"The used-vehicle department represents only about 31% of a dealerships total sales, but profit is close to that of the new-car department: nearly 25%. of a dealership's gross profit, according to NADA. In addition to car sales, the figure also reflects profits from F&I products sold on used cars."
"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."
https://www.edmunds.com/car-buying/where-does-the-car-dealer-make-money.html