[My5ABaby]

Originally Posted by BLKTOPTRVL

I can understand making money.

But do they truly need a 100+ % markup on parts?

I think this is the prime reason nobody does business with a delaer unless they absolutely haveto.

The tires on my BMW cost $1300 a set on the street; but if you go to the dealer, they will charge upward of $1600. So, nobody (in their right mind) buys from them. But if they had a reasonable markup, they could compete and the customers would be more likely to buy from them - not only the tires, but also other parts.

At this stage, the competition to dealers for sources of rare parts is not other stores; dealers do have a lock on these special parts. Instead, the competition is the boneyard. If the dealers didn't try to rape the customers everytime they came in for parts, they would probably get a lot more business and benefit from more good will.

I would assume dealers make a large part of their money off service and parts. When I bought my brand new Mazda 6 I paid invoice. They probably still made a little money somehow, but not a lot, and certainly not enough to keep a showroom/employees going. Yet, having to take it in for service and such is where they really get my money.