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Officially, to make sure customers have a dealership close by where they can have their cars properly serviced without delays or long trips. In practice, to pro
by rubinelli 13y ago
Officially, to make sure customers have a dealership close by where they can have their cars properly serviced without delays or long trips. In practice, to protect dealers with fat margins and terrible commercial practices.
- zalew 13y agodealers have fat margins in the US? I'd be suprised. around here they are capped by the manufacturers and raised only after achieving goals that are impossible for newcommers to meet. the money is made on service, without that you'd basically sink cash into a very expensive gallery. setting up a dealership is tough, very expensive and very risky.
- pavs 13y agoThis is now, I think the law itself is quite old. There was a time when dealership was very very profitable business.
- zerohm 13y agoI'm pretty sure licensed dealerships barely break even on new car sales. They make their money on maintenance and used car sales.
- fduran 13y agoFrom what I remember from a few years ago (quotation needed or the loan part may have changed), they make a few hundred dollars on new cars, bigger margins on second hand cars and about 40-50% of their income from car loans.