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Those aftermarket warrantees and add ons are nearly pure profit. That's why they push them. They probably make more selling the warranty than they do selling th
by ams6110 8y ago
Those aftermarket warrantees and add ons are nearly pure profit. That's why they push them. They probably make more selling the warranty than they do selling the car itself.
- sytelus 8y agoThis doesn't happen with other franchises like McDonnalds or Subway or 7-11. These franchise owners are not allowed to load up snake oil on customers, they deeply care about brand experience and all goods+services are tightly controlled in exchange for monopoly over some territory. Many of these franchises don't even have huge margins or profits. Car manufacturers somehow aren't able to do this.
- slowmovintarget 8y agoMcDonalds is a real estate company that happens to also sell an occasional hamburger. The FDA requires that hamburgers not be cooked in snake oil.
- jjeaff 8y agoMcDonald's corporate makes a lot of money on real estate. But every franchise is making it purely on those "occasional" burgers. It is that revenue that pays for the real estate.
- alexanderwept 8y agoIt's really only an American problem. Car manufacturers sell directly to consumers in most countries. I have a hunch that dealer franchise laws generally make it tough for manufacturers to really make it competitive to be a car dealer. Generally the States mandate that car manufacturers have some good faith shown towards the dealers and dealers seem to play ball with the manufacturers - I'm pretty sure Nissan and Jeep dealers semi-routinely structure their vehicle purchases to help the manufacturer hit goals/benchmarks.
- __derek__ 8y agoCar manufacturers aren't able to do it because the car dealership lobby is a powerful one in state governments.