They make it up in volume. That's why they like selling SUVs -- more volume!

They make it up in volume. That's why they like selling SUVs -- more volume!
Nonsense.
You do know that 80% of the dealer's profits come out of the service dept. If you catch them just right when they need to move just a couple more units to make an incentive quota or a sales minimum, you can get them down to actual cost although you'll hear the sales manager all across the floor and they'll make you pinky swear never to reveal the price to anyone. You need a high volume dealer to pull this off.
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.LeftieBiker wrote: ↑Mon Oct 07, 2019 4:27 amRight. No wonder one dealership tried to steal my snow tires.![]()
Car dealers have been slow to respond to the challenge that is the EV. Actually most customers are very loyal to their dealer unless they have a really bad experience. Salesmen are taught to introduce customers to the service manager when delivering a car. That's why you see things like brake flushes and cabin filter replacements.
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This implies that cars sold without a service package has *at best* a ~ 60% return rate for service -- and likely quite a bit less. My (admittedly fuzzy) impression is cars under warranty are serviced by dealerships, although I really do not know if the dealership providing the warranty service is the same one that sold the car.According to ICDP data, cars sold with service packages lead to 50% higher retained margin over the customer lifetime
Correct. But not for the reason you claim.