[figgie]

Originally Posted by PhilT3

also… for any car dealership… their REAL profit center is the Service side of the house.
The profit margin on new car sales is single digits. I believe the Service side can get into double-digits.
Someone else here may have more insight…?

Fortune magazine does

enjoy

http://www.forbes.com/sites/jimhenry...ey-off-of-you/

as mentioned before...

Originally Posted by Fortune Magazine

F&I

"For extended-service contracts, the markup can be as high as 100 percent. Dealerships also make a profit on loans and leases negotiated at the dealership. In effect, the dealer gets a cut of the interest rate profit made by the lender."

"The Service and Parts Department is the real workhorse of dealership profits, representing both revenues and gross profit. For the Penske Automotive Group, which has operations in the United States and in the United Kingdom, service and parts represented 13 percent of annual revenues, but 44 percent of the gross profits.


The gross margin for service and parts was 57 percent for the Penske group, vs. just 8 percent for new-vehicle sales."