Originally posted by RacerX
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Originally posted by RacerX
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But the reality of the service business is that manufacturers buy the parts for their cars from 3rd party companies, the car manufacturer might get a bulk deal for parts. The dealerships do not and have to buy the part effectively at cost. They pass this cost on to the end customer (plus a markup of course - they have to pay bills as well). The parts stores sell these same parts cheap becuase they have the same bulk discount leverage that the manufacturer has. Plus they can take advantage of using repro parts from 4th party (if you like) manufacturers that are not allowed to be sold by the dealerships.
Add to that the cost of the specialised tools for every make and model of car and Small mechanics shops find it almost impossible to operate on those margins.
The dealerships have to charge stupid money for the simplest work if they want to make a profit, plus they use the ridiculous piece rate pay scale that dealer mechanics are on. It's no wonder they do terrible work.
Originally posted by RacerX
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Last car I bought I did the deal with the dealership, agreed a price, shook hands then handed him my cell phone with my bank manager on the other end asking him where to wire the money. It was of course much cheaper to get a loan with the bank, so I did that first then went and bought the car. The dealers face was a picture when he realised he wasn't going to get a finance deal.
Another previous car I did the same, but literally handed him a brief case with cash in it. Much cheaper car that time though...
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