Quote:
Originally Posted by Glen e
Nobody is kidding anybody. However, the guys that make the huge money are not the guys that YOU deal with in a dealership. They are the owners, vice president’s department heads etc. A working sales manager makes between 60 and 90 and a salesman on the floor in a Chevy dealership makes between 30 and 70. You are left dealing with the guys that get paid for the biggest Chunk they can take out of you, (base+commission).…All the while , working 70 hours a week, and a tremendous amount of weekends. Also, Lousy benefit pkg. So nobody’s getting rich off this business model either. It has to change. The car business lost the pros off the floor a long time ago, when margins went from 15 % to 7 in the early 90’s..........
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Just to clarify, the owner of the dealership is making a killing, clearly not the employees.
I know from experience.
In the service end, the pay split was 50/50 with the technician/mechanic getting half the labor and the dealership getting the other half, and dealers thrived.
Now you are lucky if it's 80/20 with the tech getting 20% if the dealer is somewhat fair. Most of the time the labor split is closer to 90/10.
So when you pay $120/hr, chances are the guy working on your car is getting less than $20 while the dealer is collecting the other $100+.
Sales lost the margin when everybody found out the prices dealers get the cars for from the manufacture.
The internet killed car sales.
The shop just got swindled by the greedy dealers.
Now you know why there are no good tech left at stealerships.
I know this is not every dealership, but in this portion of the country, the Northeast, it is pretty much the standard business model.