Why are some older auto dealers so happy? Some dealers in the US that are in business for 10, 20, 30 or more years have been facing many new challenges in this ever changing industry.  The older dealers however, have much lower operating expenses and quite a few even own their own land which keeps them generating modest profits even in this difficult market. 

Sales at some dealerships have not met expectations since moving into newer, larger facilities but they are still in the black.  Auto warranty service work is still a staple for dealerships even though vehicle quality keeps improving. Some vehicle’s like Land Rovers are some of the more costly for owners and profitable for dealers when it comes to auto warranty repair bills.

A dealership owner I recently spoke with at length said he thought that the aftermarket auto warranty programs offered on the internet were definitely becoming stiff competition to the programs he has so profitably offered in the past.  Regardless of lost warranty profits, the automotive aftermarket sales by his finance office were still very strong keeping his sales department very profitable.