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Getting you to come in for service is just an excuse to get you to come in to look at cars. Service is usually a break-even business for dealerships, but it’s a
by bgribble 5y ago
Getting you to come in for service is just an excuse to get you to come in to look at cars. Service is usually a break-even business for dealerships, but it’s a good source of sales leads.
- mdorazio 5y agoThis is false. I've worked with many dealerships across different brands and the service department generally makes far more profit than the sales department. This is especially true outside of luxury brands where actual margins on new vehicle sales can be in the single digit percentages, while margins on basic recurring services are huge. See this Edmunds article for a pretty accurate breakdown [1]. [1] https://www.edmunds.com/car-buying/where-does-the-car-dealer-make-money.html https://www.edmunds.com/car-buying/where-does-the-car-dealer...