dealerships suck!!!

Discussion in 'Generation 4 - General Discusson' started by johnnyrauder, Dec 20, 2018.

  1. johnnyrauder

    johnnyrauder SHO Member

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    food for thought thanks.was the ptu covered. how many mi.
     
  2. Juicybaka

    Juicybaka SHO Member

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    Sidewalk repair is illegal and never should have had plug there. Ask to speak with the General Manager of the dealership. Don’t waste your time with Ford. They Will Not get involved
     
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  3. Lostneye

    Lostneye SHO Member

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    I spoke with Ford corporate and made a complaint about the dealer. The dealer is not obligated to provide a loaner for original warranty or CPO. If under Ford ESP, Ford will provide for the loaner or reimburse up to $30 a day towards a rental while at the dealer for covered repairs.

    Yes, replaced under CPO warranty without issue, around 55k miles. It was leaking
     
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  4. sperold

    sperold Last to Know Supporting Member

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    On the topic of dealerships, I heard a story years ago that I am unable to confirm.

    A vehicle that costs the consumer $45,000.00 has the money split in 3 segments. The vehicle cost of production is $15,000.00, so that is returned to the company. Also they are entitled to a profit which is around $15,000.00.

    A third component is the dealership or sales allotment, which comes in at a whopping $15,000.00.
    So they make as much as the car company.

    The thing that further endorses this claim is the lavish dealerships, with acres of land, and all the costs to keep the lights on and the water running, and all the taxes to support this.

    And we all remember Elon Musk's reluctance to have any dealerships.

    Just saying, everyone should get royal treatment if the take is anywhere near what is suggested.
     
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  5. luigisho

    luigisho SHO Member

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    All of the service industry is much worse over the last few decades. The only ones who can expect outstanding treatment are usually premium brand customers.
    With all the issues we've seen over the years (GenIII cams to reference this board subject) I am really only surprised with actual responsive mfg and dealer behavior. Everybody, even some highly responsive Japanese manufacturers, are dragging their feet due to engineering defects these days.
     
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  6. rubydist

    rubydist SHO Master Staff Member Super Moderators

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    I can tell you for a fact that this story is nowhere near the truth.

    First, a $45k car costs way more than $15k to produce. Someone in a dream world came up with that story.

    The truth is that dealerships make very little money on new car sales. With the internet and the availability of virtually any consumer to look up the invoice cost and the holdback amount for any new vehicle, the fact is that most consumers come in expecting to pay invoice or even less for a vehicle, and knowing what that number is. This is made more difficult because some of the "expert" sites don't provide the correct invoice cost for a vehicle - for example a Subaru Outback Premium is available in 3 flavors, but if you look on TrueCar or one of those other similar sites, they will only provide you with the invoice cost for the lowest cost of those configurations. The same is true for the domestic makes, except worse because a Fusion is available in even more flavors depending on how the build sheet is constructed. So, often the consumer comes in expecting an invoice cost that is several thousand dollars lower than the actual invoice cost because they want the moonroof and navigation but the site they visited gave them the invoice cost for the car without those options.

    So, the fact is that most dealers make anywhere between -$500 to +$500 in front end gross profit on a new car sale. Now that doesn't tell the entire story, because the larger dealers get factory incentives based on hitting volume targets for the month, but those incentives work out to hundreds per vehicle, not thousands - and not all the dealerships get them because of actual volume v. the target volume. Keep in mind that front end gross profit is before the salesperson or the sales manager gets paid, before the cost of advertising, etc. is factored in. (The dealership I currently work at had a -$150 average front end gross last month on new cars.) By the time all the actual costs and incentives are figured in, most dealers are making less than $500 net per new car sale.

    On the used car side, there is more profit potential. The average right now in the industry is around $1500 profit per used car.

    Most dealerships sell new cars to generate the new stream of service customers, not because they are making money on the new car sales. If you ever have a chances to examine an income statement from a healthy new car dealer, you will find that the majority of the profit comes from the service department, and most of the rest of the profit comes from the used car department (body shops are also fairly profitable, but not all dealers have one.)

    Elon Musk is a control freak. The reason he doesn't want dealers is that with company stores he can have total control of how the client interaction goes and how the operation is run, which is not possible with dealers. Every manufacturer will tell you that there are a significant portion of their dealers they wish they could shut down or buy out because of how they run their business, but they are severely limited by how the courts interpret the contracts with their dealers.
     
  7. SHOdded

    SHOdded SHO Member Supporting Member

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    ^^^ sounds about right to me.
     
  8. Airborne

    Airborne SHO Member

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    Then you would think that service managers, body shop managers and general managers would make a real effort to get this right, the departments making money. All I hear about is bad experiences at the dealerships service departments. I have had my share of disagreements and arguments too. I agree that I am treated a little different at the Lincoln dealer. The way I am treated at my lincoln dealer contributed to my MKT purchase. I take my Ford's to the Lincoln Quicklane, they price match tires, even Discount Tire.
     
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  9. Juicybaka

    Juicybaka SHO Member

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    I take my Ford to GMC now. Much more organized and overall better customer experience
     
  10. Matt M PA

    Matt M PA SHO Member

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    rubydist is correct. My understanding is that fixed ops should "pay the bills" while cars sales make the profit.

    I agree that a service department, etc should be working hard to ensure that customers are thrilled, but we all know that isn't always the case.
     
  11. Rona

    Rona New Member

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    This is not rare, unfortunately. I have been to two different dealers in north MS and they stare and me dumbfounded. I've been letting the Ford dealer closes to the house change the oil (because I don't have time to do it and it's not really anymore expensive there than most other places honestly) and the last 2 times in I've asked them to inquire about the PTU and both times they respond with "The what?" - :/
     

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