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Auto Dealerships Go To Great Lengths To Bring In Business

images-32.jpgCar dealerships are going to great lengths to bring in business for servicing.  This includes repainting, brightening lights, and adding new signs.  And in the waiting area customers are enjoying WiFi access, flat screen TVs, workstations and coffee bars.

Dealers rely on their parts and service departments for profit.  Typically half of their profits come from service, while the rest comes from sales of used and new cars.

But with the sales of new cars plummeting, most dealers lost money on new cars in 2007.  This is why dealers are renovating their body shops, adding quick oil change lanes, and trying to compete with independent service shops.  In a NADA survey in 2007, 29% of dealerships said they had upgraded their service shops recently.

Dealerships have also felt the squeeze because their auto warranty repairs have been cut way down and service appointments have been spaced further apart because of the improvements in car quality.

Posted on Tuesday, April 7th, 2009 at 6:25 am In Auto Warranty  

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