They are, but they also are paid hourly at least in California.Sales is mostly commission. Does not cost the dealer much to keep them on staff, even if they are not selling anything.
They are, but they also are paid hourly at least in California.Sales is mostly commission. Does not cost the dealer much to keep them on staff, even if they are not selling anything.
I'm thinking the main thing generating cash flow for them is the service department. No one ever makes money on warranty work, but non-warranty yes. People are willing to drop some major cash on big repairs where this wasn't necessarily the case pre 'rona. Shops are struggling to stay staffed with techs as well, so a few large jobs combined with less staff nets the same $.
Have you tried scheduling a service visit lately? My closest shop never even called me back for a state inspection appointment. The other struggled to get me in for a week, then had a small window to get me done.
I'd imagine the sales and office staff has either 'right sized' itself, or dealers have laid people off.
I hate to think about it, but this whole vehicle market is going to force me to change my ways, maybe forever. For 30yrs I've enjoyed buying/selling/trading every 2yrs or so. The process always being sparked by me finding a deal for a particular vehicle type I like at the time. With the supply, demand and pricing today? Forget about it. I'll only be in the market if I absolutely have to.
More money coming in on the service and repair side. Repairs that in the past would get an owner to just trade in and buy a new vehicle are getting done. Other aspect is that they’re likely getting some relief from their lenders/financial institutions whilst they wait for supply to match demand, of course dealer groups are hoping supply increases before the inevitable housing market crash. Car salesmen are a dime a dozen and straight commission so they cut that to the bone and probably peared back on administrative staff.Yesterday, I visited a rural Indiana Chevy dealer who had 2 (two) new Chevys. And neither of those vehicles was a vehicle that just anyone would buy. One was a 2500 HD LTZ pickup... crew cab, long box, diesel.... $72,500 sticker The other was a 6.2 liter Camaro... $55,000 sticker. They'll need the right person to sell either one of those. In addition, they had only 4 used vehicles.
Last time I was by here (pre-pandemic), their entire lot was full of vehicles. A lot that is one block deep by a half block wide.
I'm not sure how a number of these dealers are even keeping the lights on at this point. And I realize that this is happening everywhere.
DO WHAT? I wish GM would do this.We actually do pretty decent on Ford warranty. They upped what they reimburse us from cost+40% to cost +90.89%. We actually make more on the parts end on warranty than we do customer pay most of the time.
Some dealerships around here (DFW Metroplex) are refusing to sell their vehicles unless financing is done through their avenues.
You can show up with cash or a credit union check, and they’ll tell you to pound sand.
There is one I’ve heard that will allow outside financing options, but the final sale price goes up accordingly.
Yes-I have been looking to upgrade my 2018 Silverado-it's got 47,000 miles on it. However-it's at least 12 months (if then) out until the whole market stabilizes. That's they key to pickup truck buying. Getting $30,000 to $40,000 grand trade in-then a $60,000.00 purchase isn't bad.I'm thinking the main thing generating cash flow for them is the service department. No one ever makes money on warranty work, but non-warranty yes. People are willing to drop some major cash on big repairs where this wasn't necessarily the case pre 'rona. Shops are struggling to stay staffed with techs as well, so a few large jobs combined with less staff nets the same $.
Have you tried scheduling a service visit lately? My closest shop never even called me back for a state inspection appointment. The other struggled to get me in for a week, then had a small window to get me done.
I'd imagine the sales and office staff has either 'right sized' itself, or dealers have laid people off.
I hate to think about it, but this whole vehicle market is going to force me to change my ways, maybe forever. For 30yrs I've enjoyed buying/selling/trading every 2yrs or so. The process always being sparked by me finding a deal for a particular vehicle type I like at the time. With the supply, demand and pricing today? Forget about it. I'll only be in the market if I absolutely have to.
Yes-I have been looking to upgrade my 2018 Silverado-it's got 47,000 miles on it. However-it's at least 12 months (if then) out until the whole market stabilizes. That's they key to pickup truck buying. Getting $30,000 to $40,000 grand trade in-then a $60,000.00 purchase isn't bad.
I know you've been in the business a long time. Has it always been this way? I would hope these days given what the customer pays, so would the warranty. That's a good thing.We actually do pretty decent on Ford warranty. They upped what they reimburse us from cost+40% to cost +90.89%. We actually make more on the parts end on warranty than we do customer pay most of the time.
No it is pretty recent. Some states have a law where the manufaturer must pay MSRP. Ford took away MSRP on a lot of parts, we have to pay something like $500/mo to access MSRP on a bunch of parts now. In order to do it we had to do this whole involved application process. Obviously it was worth it. I think our warranty labor rate is around $110ish and our door rate is $140 which is on the lower end of dealerships here.I know you've been in the business a long time. Has it always been this way? I would hope these days given what the customer pays, so would the warranty. That's a good thing.
I would imagine a lot of them have moved on to other jobs . They got bills to pay .I don't see how the sales staff could make any sweet moola, since they work on straight commission.
Only if you have a smartphone that is on and active all the time. I use a Linux phone that is kept powered off unless there is a need to use it. (Battery can be removed as well.) Sometimes I don't turn the thing on for a week or more. I never see any targeted ads, hardly any ads at all for that matter.It’s a hell of a lot more invasive than that. Does your phone have GPS? Your location is being tracked and will also target you on where you go, and who you visit. Your phone is listening 24/7.