The mechanics work for about $20 an hour and here, my local Toyota dealer charges $94.50 an hour. When you repair thousands of cars, you do not need a $60+ overhead to pay for repair equipment. I could understand if the parts were included with the labor, but they are separate and extra. There is no reason for such a premium. Given that dealerships supposedly repair more cars than they can handle, the larger ones should be able to pay for everything with no more than a $15 premium.
Exorbitant auto repair costs!
- Thread starter pacem
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The mechanics work for about $20 an hour and here, my local Toyota dealer charges $94.50 an hour. When you repair thousands of cars, you do not need a $60+ overhead to pay for repair equipment. I could understand if the parts were included with the labor, but they are separate and extra. There is no reason for such a premium. Given that dealerships supposedly repair more cars than they can handle, the larger ones should be able to pay for everything with no more than a $15 premium.
The dealer relies so heavily on service and parts because there is basically no bottom line profit in new vehicle sales, in domestics anyway.
I would guess the average new vehicle profit somewhere around the dealer holdback or less. Start subtracting salesperson pay, insurance, inventory interest, cleanup, ect. You could make more money putting your money in a CD.
I would guess the average new vehicle profit somewhere around the dealer holdback or less. Start subtracting salesperson pay, insurance, inventory interest, cleanup, ect. You could make more money putting your money in a CD.
If the dealerships repair more cars than they can handle, then they *can* charge a large premium, so there's your answer right there.
Besides, who says dealers or shops suppose to only charge a $15 mark up? Is there some sort of implicit moral or ethical code that says dealers cannot set their prices according to demand and supply? I'm not trying to defend dealers and shops, but I don't know of a business that does an arbitrary cost-plus mark-up unless it's for a preferred customer.
I heard that dealerships make more on service than on vehicle sales.
I never bought any vehicle at a dealership, but I did take it to a dealership to change all the fluids (tranny, oil, coolant, power steering and brake fluid.) Paid $400 for it. Almost $100 each.
I never bought any vehicle at a dealership, but I did take it to a dealership to change all the fluids (tranny, oil, coolant, power steering and brake fluid.) Paid $400 for it. Almost $100 each.
Dealerships do make their money from parts, service, and USED car sales.
The last place I'd ever take a car for service is a car dealer. There are good, honest, well priced repair shops around, it just takes a while to find them, and I've found, it's usually the hole in the wall rinkadink type places.
Before you get any service done, check shops in the phone book, look at their BBB reports online (that will tell you a ton just by the number of complaints), and get estimates for the service you need.
The last place I'd ever take a car for service is a car dealer. There are good, honest, well priced repair shops around, it just takes a while to find them, and I've found, it's usually the hole in the wall rinkadink type places.
Before you get any service done, check shops in the phone book, look at their BBB reports online (that will tell you a ton just by the number of complaints), and get estimates for the service you need.
We have several good indie shops in our area. They get almost the same training and tools as the dealerships. Unfortunately, this investment to service their customer's vehicles properly forces them to have basically the same hourly labor rate as the dealers.
The best VW indy shop in Columbus charges $100 more than the best dealership in Columbus for a timing belt change. So I hear what you're sayin.
OFF TOPIC: Congrats on your tigers. Thought Florida would own them at the end of the first half. Meanwhile, my Trojans collapsed hard against a cream puff.
OFF TOPIC: Congrats on your tigers. Thought Florida would own them at the end of the first half. Meanwhile, my Trojans collapsed hard against a cream puff.
Several months ago my wife called from work and told me the check engine light came on in her Ford superduty. It was just a little over warranty so I had her to bring it in and see if it would be warranty, no it wasn't but they wanted $950. to change 1 glow plug 1 valve cover gasket 1 wiring harness. I mail ordered 8 glow plugs 2 v/c gaskets and 2 wiring harnesses. I washed the engine and did all the work in 4 hours this was the first time I ever worked on a powerstroke engine . 1 glow plug and 1 wire harness and 1 v/c and not washing the engine would have taken me probably 2 hours .
Hope you have a 7.3, and not a 6.0. From what I understand, if you have a 6.0, you're gonna get really acquainted with working on it.
teh diesel tech at my dealer is always busy with 6.0s. EGR coolers, turbos, heads, rear main seals, bed plates. i type out all of his repair stories for him, so i see everything he does. luckily for the owners most are still in warranty, and he kinda overlooks the modified ones.
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