How are some of these dealerships even keeping the lights on?

[bdcardinal]

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.

 

[bdcardinal]

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.

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.

 

[nomas]

I talked to a Chevy salesman last week . He said they are pre selling everything on the delivery list . Customer comes in and gives them a $1000 deposit . Supposedly GM is going to reopen two truck plants this week . I asked him if all of this really was about the chips . He said he had his doubts at first but it's true .

 

[Delta]

Drove by a local Toyota/Nissan dealer (not the one I bought my Tacoma at) the other day and they had an OK supply of new vehicles. Heck they even had a new 2022 Frontier. They probably had 50+ used vehicles too. Now the last time I took my truck in for service in August the dealer I bought my truck at had slim pickings. Not sure why one would have more than the other. Just glad I bought my truck right before this madness. Paid around MSRP, but looking at it now I did decent...

 

[aquariuscsm]

I don't see how the sales staff could make any sweet moola, since they work on straight commission.

 

[Crash Bandicoot]

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.

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.

 

[01rangerxl]

We are basically only getting Suburbans and Silverados right now and they sell immediately at sticker, maybe above. No cheap Equinoxes, though we somehow got a bunch of identical white ones (cancelled fleet order?) a couple months ago and sold them all immediately.

Used cars sell immediately if they move under their own power.

We are selling Kia collision parts hand over fist. Kia is selling every car they can make, and it seems like an absurd number get wrecked before the first oil change.

Availability sucks, and I feel like Dr Lexus from Idiocracy when giving Kia part ETAs, but people buy EVERYTHING we can get, so whatever.

 

[01rangerxl]

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.

DO WHAT? I wish GM would do this.

 

[el Nuke]

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.

 

[dishdude]

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.

Take the loan and pay it off immediately. They'll get their payment from the bank charged back

 

[CKN]

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.

 

[JTK]

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.

Hopefully it gets back to more of a normal in ~12mo.

My 2019 Ram 1500 classic is at ~42K miles, but I love it and intend to keep it longer. If I had to be in the light truck market now for my usage, the only one that's just marginally insanely priced is a Ram classic quad cab, 4x4 w/ pentastar. The rest are full blown out to lunch insanity IMO.

Our 2019 Nissan Pathfinder is approaching 60K miles and we've had it 2yrs. This is the time I'd normally jump, but again no way. I paid ~$23K for it as a 1yr/old ex-rental with 23K miles on it. People are paying double that for a new 2022 Pathfinder now. For a Nissan? Yeah right.

 

[JTK]

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.

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.

 

[bdcardinal]

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.

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.

 

[nomas]

I don't see how the sales staff could make any sweet moola, since they work on straight commission.

I would imagine a lot of them have moved on to other jobs . They got bills to pay .

 

[Saabist]

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.

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.