There are three ways a new car dealership makes money.
1. New car sales
2. Used car sales
3. Service
Service is what pays the bills. So anyone mentioning turning away any service is nuts. That dealership will go out of business.
Used car sales is where the dealership makes the annual profit. On average about $2,000 per used car profit. Give or take. Most new car dealerships stick to only used cars 3 years old or less and less then 50,000 miles. With some exceptions.
New car sales if almost profitless. Margins are thin. Some sell under invoice. Some even dig into the 3% holdback just to keep sales numbers up. Little profit there.
I do agree to shop locally and I do agree to purchase from as local a dealer as possible.
Each dealership has a personality. That is set by the owner or general manager. Some dealerships are very good and user friendly while others are lacking in everything. Some of these are big dealerships while others are small dealerships.
One added tip that may or may not work. Buy all the Sunday newspapers. Find the car you are looking for in any advertisement. Verify that there is a car in stock for that price. Then take the advertisement to your local new car dealership and ask them if they will match the printed newspaper advertisement price. Most will. You must verify that the advertisement is valid and real and includes all added costs. Be honest. Read the fine print in the newspaper advertisement. Most dealerships will match any advertised price.
|