[quote=bigdaddy;2175550]
Quote:
Originally Posted by DNieves
Dealers make alot in profit profit from new cars by high sales volume and when they charge you labor for accessory installations not to mention when the finance person tries to sell you extended warranties/paint protection/lojack -especially on a hot car and, of course, provided it's a brand people want unlike Kia (hehehehe -couldn't resist!).
QUOTE]
Dealers make profit period..obviously.. Salesman make bigger vouchers on selling used cars than new... I don't know why that's such a surprise that I'm saying that... and the finance person tries to sell warranties, paint protections...etc on used cars also... I was referring to front end profit...
The deal on the Mercedes...I believe it... that's because you went in educated and negotiated well... KUDOS...
But if an uninformed person goes in...pays "sticker" for the new car... and pays..."asking" for the used car... and there are people who pay asking for used cars... more than one would think...
I'm just trying to inform you guys on the inside knowledge... that's all... been doing this for 12 years... I thought you guys would appreciate it... sorry...
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Exactly... The dealer itself in the long run will make way more off of servicing the vehicle and doing maintenance work than they ever did off the sale. That is if they can keep the customer as a regular service customer which however isn't as easy as it sounds.
There a few different departments in a dealership which are considered different entities under the same roof:
Sales- New
Sales- Used (Combined as just Sales of new and used depending on the dealership)
Finance and Insurance
Parts
Service (sometimes combined with parts)