Topic: "thats our final offer" - is it?

[sterling]

Trying to claim that all dealers structure their business one way or another is pointlessly stupid.  Different dealers, in different markets, structure their business operations differently.  You can't claim that they all run the different departments as separate profit centers that must generate a profit, any more than you can claim none of them do.  Smart businessmen are able to decide what makes most sense from the "big picture" point of view.

I am basing my statements on my knowledge of how 20 dealerships across Canada organize their business. Your statement is based on what?

[tenpenny]

Trying to claim that all dealers structure their business one way or another is pointlessly stupid.  Different dealers, in different markets, structure their business operations differently.  You can't claim that they all run the different departments as separate profit centers that must generate a profit, any more than you can claim none of them do.  Smart businessmen are able to decide what makes most sense from the "big picture" point of view.

I am basing my statements on my knowledge of how 20 dealerships across Canada organize their business. Your statement is based on what?

Personal knowledge of dealership owners and accoutants, along with a healthy does of business knowlege.  I know, you believe you are the only one with a key to the world of knowledge, you have told me before that I'm wrong and don't understand how key fobs work, even though four Ford dealers have agreed that many work the way I said........have a nice day.  I'm glad everything is black and white in your world, and you are the sole keeper of the secrets of business and things automotive.

Enjoy yourself, it'll be a lonely place out there when you convince everyone else that you alone are THE SOURCE.  I defer to your obvious greatness and perfection.  I bow down and grovel at your feet.  Please, oh great master, continue to enlighten those of us who are not yet true believers.  Please, we beseech you.

[Snowman]

 ..........

[sterling]

tenpenney, as snowman would say, blow me.

[Snowman]

 

[No H2O]

DEALERS make a profit from PDI. To say they do not is a false statement.

They don't make a profit on PDI; they make a HUGE profit on PDI.

Not only is it a false statement, but their practice is fraudulent. They are charging me shop hours that they're not even spending on the car, not that a new car needs it in the first place.

[tenpenny]

DEALERS make a profit from PDI. To say they do not is a false statement.

They don't make a profit on PDI; they make a HUGE profit on PDI.

Not only is it a false statement, but their practice is fraudulent. They are charging me shop hours that they're not even spending on the car, not that a new car needs it in the first place.

That would only be fraudulent if they said "we'll do a three hour pdi inspection" and charged you by the hour, and didn't spend the time.  They aren't charging you shop ours, they're charging you a fee for a pdi.

[No H2O]

They aren't charging you shop ours, they're charging you a fee for a pdi.

And PDI is done by the "shop".

Better still, tell them not to do the PDI. Just tell them to have a mechanic spend an hour checking fluid levels, tire pressures, etc...which you shouldn't have to pay for in the first place.

Touche!

[toolatecrew]

This is the scenario that interests me the most:

You must pay PDI.You must have the car "inspected" and prepared before it is "safe" for you to drive.

OK fair enough give me the list of required functions and I'll take it to MY mechanic and have them done. After all nothing would make me feel "safer' about my car purchase than watching dsomeone I know and trust PDI my car.

Same thing with "admin fees".

$200 for admin. Fine gve me the papers and I'll fill them out myself tonight at home. I dodn't have anything better to do. At $20 and hour its still only 10 hours paperwork ..heck I just do 5 per night. I come pick the car up in 2 days! 

[No H2O]

This is the scenario that interests me the most:

You must pay PDI.You must have the car "inspected" and prepared before it is "safe" for you to drive.

I could never quite figure out why something I'm buying "new" needs to be inspected. Do the manufacturers not have their own quality control department? (sarcasm intended)

[articsteve]

Who OWNS the Sales department?
The dealer

Who owns thew Service Dept?
The dealer.

The sales dept and serivce dept are separate internal cost centers for ACCOUNTING purposes. That's it.

All the $ ends up in the same place in the end. the Dealer's BOTTOM LINE.

As I said I work with dealers and body shops every single day. over 150 of them  There is PROFIT for the DEALER in PDI. its that simple.

That's exactly how it is.

Honda dealers are charging approx. $490. for PDI.  for 2006s for example.  Mechanic or apprentice mechanic receives 1 hour book time to do his PDI bit which entails going out to the lot and getting the car if not already in detail bays, putting it up on the hoist, re-torquing the wheels with a torque stick, lowering the tire pressure and checking fluids.  The real cost to the dealer in low wage areas is about $40. for the mechanic which includes all employer costs plus maybe $20. in labour and materials for the detail guy (wash ).  That's it.  The rest is gravy and ppl can negotiate that if they got the b*lls.

For a medium sized car in a low wage area $75.00 net more than covers PDI.  So offer PDI at $75.00.  In the US they only charge $50. (USD) for "handling".  They have no "PDI".