When I worked at a large Oldsmobile and Honda dealer (97-2001), the order of
the departments in terms of revenue/profit was
1. Service Department
2. Used cars
3. F
4. New cars
5. Body shop
Donald H. Snook
> On Jun 16, 2022, at 3:41 PM, Kaleb Striplin wrote:
>
> Warranties are a 3rd
All these games are why I only buy from private sellers now.
They aren't always honest either but the only thing they can trick you on is
the selling price.
On Thu, Jun 16, 2022, at 3:41 PM, Kaleb Striplin via Mercedes wrote:
> Warranties are a 3rd party product that the dealer sells. It’s a
I get those offers all the time and I never even had an extended warranty.
What a country!
On Thu, Jun 16, 2022 at 4:53 PM Bob Rentfro via Mercedes <
mercedes@okiebenz.com> wrote:
> Yeahbut now, in four years time, someone will call you telling you
> extended warranty is about to expire and they
Yeahbut now, in four years time, someone will call you telling you extended
warranty is about to expire and they won’t be making up a story.
AZBob
Sent from my iPad
> On Jun 16, 2022, at 1:41 PM, Kaleb Striplin via Mercedes
> wrote:
>
> Warranties are a 3rd party product that the dealer
Warranties are a 3rd party product that the dealer sells. It’s a huge profit
center for them. There are basically 2 sides of a dealership. The fixed ops
side which is parts and service, and the variable ops side which is sales. In a
car deal, it is a 3 legged stool basically the dealer makes
I forgot about all the shmoes who never file a claim...
On Thu, Jun 16, 2022 at 3:36 PM Donald Snook via Mercedes <
mercedes@okiebenz.com> wrote:
> Yep. The administrator works for an insurance company. In this case, the
> BMW made money selling it and the Lexus dealer made money getting the
>
Yep. The administrator works for an insurance company. In this case, the BMW
made money selling it and the Lexus dealer made money getting the work. I will
never feel bad for an insurance company. Some actuary has run the numbers and
on some they might lose and most others they make some.
On Thu, Jun 16, 2022, at 2:13 PM, dan penoff.com via Mercedes wrote:
> The dealer has no exposure. If anything, they profit from the warranty
> work, as they get paid for doing it.
They also get a commission for selling the warranties! They get paid on both
ends with zero risk. That's why they
Yes this is exactly right. Even though it worked out well for you, if were 5
other people who bought that warranty and never used it, that's $7,000 gross
profit for the warranty company (less whatever commission they had to pay to
the dealers who sold the warranties, and their other
Warranties are sold and serviced by third parties, not the dealerships. They’re
just one more “add on” that they purchase through a third party.
The dealer has no exposure. If anything, they profit from the warranty work, as
they get paid for doing it.
-D
> On Jun 16, 2022, at 11:58 AM,
Most dealers don't cover the extended warranty themselves - it's basically
an insurance policy. The insurance company is spreading the risk among many
customers, most of whom will not use it.
On Thu, Jun 16, 2022 at 1:59 PM Andrew Strasfogel via Mercedes <
mercedes@okiebenz.com> wrote:
> Great
The Lexus dealer (where I got the work done) or the BMW dealer where I bought
the warranty?
Unlikely for either. They are both the only dealers in the area for their
respective brands.
Donald H. Snook
> On Jun 16, 2022, at 1:58 PM, Andrew Strasfogel wrote:
>
>
> Great story, although
Great story, although I predict that dealer will be out of business by the
end of the year.
On Thu, Jun 16, 2022 at 2:53 PM Donald Snook via Mercedes <
mercedes@okiebenz.com> wrote:
> I imagine most people on here wouldn’t buy an extended warranty. And I
> have never bought one before. But,
It’s all about the numbers, and you made a good choice based on the numbers. I
would have taken that, especially if I was carrying paper and I could wrap it
into the price.
If I was paying cash I would have to give it more thought, but I still would
have done it.
-D
> On Jun 16, 2022, at
I imagine most people on here wouldn’t buy an extended warranty. And I have
never bought one before. But, back in September I decided I needed an SUV. We
went on a family vacation and taking the dog, kids, stuff, etc we didn’t have
much room in my car.
I bought a 2014 Lexus GX 460. It’s
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