On Thu, 11 Aug 2011 22:35:45 -0500, "HeyBub"
wrote:

Home Guy wrote:
HeyBub wrote:

The more cars a dealership "sells" the more business for their
service department.

That may have been true 20+ years ago, because it's my impression that
cars are much more reliable (or durable) than they used to be.

My 11-year-old '00 Chrysler 300m is still running with the original
factory battery fer christ sakes. Just about the only thing I do
beyond putting gas in the tank is give it an oil change twice a year.

Over the past decade new cars have become almost "maintainence free".

That's you. Many people take their car in to the dealership every 8,000
miles (or whatever) for the factory-recommended "maintenance" once-over
(check the oil in the differential, adjust the outside rear-view mirrors,
etc.).


See, the problem here is that once you get past the ridiculously-long
standard warranty (what - 5 years, 100k miles?) there's absolutely no
garantee that the owner of the car (which could be the second owner by
then) is going to have the car serviced at the same dealership that
sold the car. And by serviced, I mean the dinky stuff, like oil and
fluid changes, tire rotations, wiper blades, brake pads, emissions
tests, etc. You're not going to cover your payroll selling that
stuff.

Virtually ALL dealerships cover their payroll (plus rent, insurance,
utilities, maintenance, taxes, and everything else) from parts and service.

Used to be - but you can fire a cannon through many dealership service
departments today and not hit anything or anyone. 80% absorption today
is pretty darn good for an american car dealer.
Sadly (for them) you can pretty well fire a cannon through the
showroom without hitting anyone too.


But cars need service every day of the week.

Only once they become 5 to 10 years old. Unless they need collision
work - which isin't typically done at a dealership.

Even a lot of 10 or 15 year old cars only need service 3 times a year
these days - and very little even then.

The service department is much more predictable and stable.

And much more predictibly over-priced compared to independant or chain
service shops.

Many "chain" shops may post a lower rate - but STILL cost you more
over-all than a dealer shop.
Independent and chain shops cannot do everything a dealership can do. Cars
are more reliable than ever before and they have more proprietary parts than
ever before, parts and diagnostic equipment that are not readily available
to the neighborhood mechanic. I'll wager most independent shops say at least
once a day "You'll have to go to the dealership for that..."

And MANY independents can do just about everything the dealers can do
(and some even "sub" work for dealers).
I know an independent shop did all the alignments for 2 (large)
dealerships.

Yes, there are a lot of "dealer only" parts - and SOME diagnostic
equipment that independents can't get or afford to have - and SOME of
that cannot be worked around.. Some - but very little.