Keeping up your guard buying OEM parts at a new car dealership

[97prizm]

I went to buy some coolant at the Chevy dealer and they tried to charge me $30 when their own website showed “our price 16.99 MSRP 16.99” I brought that up and they acted like “oh that never happens, we’ll fix it this time” lol yeah right.

Had something Similar with the local Dodge dealership near me. I called for a quote for an oem atf filter. Their website price listed a price. I called the parts department and same thing o
"Oh we'll give it to you at that price but...."

 

[Hermann]

When the passenger side mirror just fell out of the housing for no reason, the online ford dealer quoted me 26.94 for the mirror, shipping and handling included. The local dealer was asking $34.xx + tax + me driving 30 miles to the dealer. Guess which one I bought. I think the dealer was MSRP + 20%

 

[The Critic]

As I've had to continually remind you, not every place is California.

And as I have also had to remind you, most major metropolitan areas are not much cheaper than “CA.”

I just spent 3 days with someone from a Dallas suburb. We compared some numbers and they were not much different.

 

[MattPersman]

Man I hate to see some of you shop for normal items. Complain at Walgreens and cvs that it’s more expensive than Walmart ?

What a hot take thread. THIS JUST IN : prices vary at different businesses. Some even charge over msrp

 

[The Critic]

Which BITOG member(s) posted that? I didn't see that posted by a single BITOG member in this thread, nor implied.

What’s an acceptable level of profit then?

Should Cost +20% be sufficient to keep the lights on at a dealership? Because dealerships have a very different cost structure than your typical auto parts store.

 

[Hermann]

The few times I go to Walgreens and CVS, I feel used on the way out

 

[GON]

What’s an acceptable level of profit then?

Should Cost +20% be sufficient to keep the lights on at a dealership? Because dealerships have a very different cost structure than your typical auto parts store.

The thread is centered on deceitful business practices, not profits and or losses.

Still looking forward to you posting invoices to manufacturers that show the oems are paying above MSRP for parts used during warranty work.

 

[The Critic]

The thread is centered on deceitful business practices, not profits and or losses.

Still looking forward to you posting invoices to manufacturers that show the oems are paying above MSRP for parts used during warranty work.

I think you’re in such disbelief that you refuse to acknowledge the evidence that has been presented to you.

Whatever is billed out on a warranty ticket is what the mfg pays, minus any backend incentives, which are fairly minimal.

There is nothing deceitful about charging above Msrp. Msrp is just arbitrary number. The “S” in MSRP stands for suggested. Some body parts no longer have msrp.

Matt already posted the prices at which the parts are being billed out. No one is going to post actual internal invoices on the public domain. Also, keep in mind that practices vary significantly between OEMs.

 

[dishdude]

No one is going to post actual internal invoices on the public domain.

Not if they like being employed!

 

[The Critic]

Although what you posted is not useable- need an actual invoice to Stellantis, what you posted shows a markup of under $100 over MSRP, cost is irrelevant in this discussion, which is centered on some new car dealers charging over MSRP for parts, and often charging a lot over MSRP.

Here is what you posted in real numbers- but again need multiple actual invoices to accredit that Manufacturers of automobiles are paying well above MSRP for parts used for warranty work........

MSRP: $2,045.00

$1530 dealer cost

$1530 x 1.4= $2142

https://www.moparpart.com/oem-parts/mopar-with-torque-converter-transmission-kit-r8453637ab

You misread his post.

His dealer is getting paid 1.80 or 80% over cost for warranty repairs.

For the reman transmission, the cost is $1530. MSRP is $2045. 1.8x cost equates to a sale cost of $2754, or 34.7% above MSRP.

Are they though? My favorite place to order OEM parts, East Coast Moparts aka Waldorf Dodge, will sell me the front rotors of my minivan for $65.80 under MSRP.

There are "fringe benefits" to volume. Some dealers do a small amount of internet sales at barely above cost in order to improve their return allowance or participation in other mfg specific incentives.

 

[GON]

You misread his post. View attachment 184700

His dealer is getting paid 1.80 or 80% over cost for warranty repairs.

For the reman transmission, the cost is $1530. MSRP is $2045. 1.8x cost equates to a sale cost of $2754, or 34.7% above MSRP.

There are "fringe benefits" to volume. Some dealers do a small amount of internet sales at barely above cost in order to improve their return allowance or participation in other mfg specific incentives.

Show me some invoices that you stated you have firm knowledge on----- that form is worth about as much as a new car salesman worksheet that he states he is bringing to the general sales manager for approval... LOL...

 

[GON]

You misread his post. View attachment 184700

His dealer is getting paid 1.80 or 80% over cost for warranty repairs.

For the reman transmission, the cost is $1530. MSRP is $2045. 1.8x cost equates to a sale cost of $2754, or 34.7% above MSRP.

There are "fringe benefits" to volume. Some dealers do a small amount of internet sales at barely above cost in order to improve their return allowance or participation in other mfg specific incentives.

Having lunch, I took a second look at this thread and wondered why do you care that I brought up the subject that some new car dealers are charging significant markups above MSRP for OEM parts.

So I have to ask... is part of your compensation a parts bonus or commission based on the price of the parts used?

 

[researcher]

I'm not sure why there is arguing about this. It's not like anyone said a dealership should give stuff away for free. Maybe it hit a nerve? Personally, I'm glad @GON posted about this topic. It's good to be aware that there are some dealers who (for whatever reason, but it did start more after the thing we can't talk about) have been raising prices more than just inflation. Nothing wrong with making a profit, but when it's excessive we call that greed. Free market economy goes both ways.. the dealer is free to charge what they want.. the consumer is free to not buy things there and let them price themselves out of the market.. which means out of business.

I'm rather tired of the argument that the consumer is supposed to "support your local business" when that business couldn't care less if I went bankrupt being financially drained after paying their ridiculously high prices. As a consumer, I have to protect my budget without regards for the local business keeping the lights on.. I feel for them, but high prices that cannot fit into a budget will never get my attention.

Yes I do buy Genuine OEM parts, but I do it where I can save the most money. Nothing wrong with that and if that makes a dealership go out of business because I got 10% discount.. They have more financial problems than just me buying some parts!

 

[CKN]

Last time I checked MSRP's are suggested prices. I worked for a distribution company where we had several products that we sold slightly about the manufacturers list prices-mostly to account for shipping costs.

Business/consumer class #101= A business can sell a product (or try to sell) it for whatever they wish to. You have a right to shop around and not buy it at the highest price.

Asking someone to post internal invoices is nonsensical.

 

[The Critic]

Show me some invoices that you stated you have firm knowledge on----- that form is worth about as much as a new car salesman worksheet that he states he is bringing to the general sales manager for approval... LOL...

Depending on the software, that is what P&A worksheets look like.

Having lunch, I took a second look at this thread and wondered why do you care that I brought up the subject that some new car dealers are charging significant markups above MSRP for OEM parts.

So I have to ask... is part of your compensation a parts bonus or commission based on the price of the parts used?

I care because you are refusing to accept the reality of how the industry works, and continue to argue using ridiculous and off-base comments, even after being shown documentation indicating otherwise.

 

[GON]

Depending on the software, that is what P&A worksheets look like.


I care because you are refusing to accept the reality of how the industry works, and continue to argue using ridiculous and off-base comments, even after being shown documentation indicating otherwise.

So, is it fair to assume you not answering the question if your compensation is partially based on a parts bonus and or commission on parts sold, based on the price of the parts, is the foundational motivation for your responses?

 

[The Critic]

So, is it fair to assume you not answering the question if your compensation is partially based on a parts bonus and or commission on parts sold, based on the price of the parts, is the foundational motivation for your responses?

Actually, I am not employed at a dealership.

 

[CKN]

Depending on the software, that is what P&A worksheets look like.


I care because you are refusing to accept the reality of how the industry works, and continue to argue using ridiculous and off-base comments, even after being shown documentation indicating otherwise.

GON needs to let this go and find another (branded titled) vehicle at a salvage yard.......

As a side note-I was in commissioned sales my entire career-it's not a sin to make a living being paid on part of the gross or net profits. To insinuate otherwise is an offense.

Salesmen fill semi trucks with goods that move across America-and that's a fact.

 

[brianl703]

And as I have also had to remind you, most major metropolitan areas are not much cheaper than “CA.”.

How much of this country is a "major metropolitan area"? In how much of this country does $1 million buy you a shack worthy of a date with a bulldozer?

Also, last time we had this conversation, you claimed that your company only offers a 12% salary differential between the highest and lowest cost of living areas...

...yet I found that the Federal locality pay adjustment was upwards of 30%. Links are in the reply I wrote to you.

The other difference is that one is a published set of verifiable facts, one is what someone claims.

 

[Carmudgeon]

No complaints from me- just think it is beneficial to share what I observed at numerous franchise new car dealers in metropolitan areas; these dealers are typically part of a so-called dealership group.

I think it is a reasonable expectation to pay MSRP for a part at a franchise dealer. Not illegal with charging above MSRP, but I suspect if their customers knew this, a hefty percent of customers would have a significant issue with it. The paperwork from the dealer suggests the price is MSRP, substituting MSRP with the word list. I suspect some State Attorney Generals might find this business practice to be in violation of certain state trade laws, but I have not and am not going to research that.

Maybe a new car dealer should remove the manufacturer sticker on a new vehicle, and print their own sticker, with whatever prices they want to display? I do in fact believe that practice is illegal in many states. Maybe it shouldn't be......

I find the practice of charging above MSRP for parts personally dirty, but not illegal. I don't appreciate the perception that the part is being sold at MSRP.

In closing, yes the dealers can do what they want. And consumers can share their experiences, and make recommendations to support some dealers, and to avoid some dealers. With the consolidation of both the automotive industry and dealer networks, consumers will likely have less choices to avoid what I think may be questionable business practices. I know some in this thread think very differently and think these type of business practices are simply good/ savvy business practices.

Like I said, caveat emptor. Look into how the sausage is made in business, and it would be distateful to many in way more than dealer parts prices.

A "Monroney for parts" is never going to happen in a climate where airlines, hotels, and cell providers tack on the junk fees to no end, and successfully fight tooth and nail to avoid truthful disclosure and protect their profit sources, as I'm sure you're well aware.

I, and the people here know how to do the work, do our homework, and fend for ourselves, but most people don't, and are either blissfully aware, or resigned to the situation despite having suspicions.

Was recently reminded of this after being consulted on a dealer estimate for a laundry list of jobs, simplest of which was some bulb replacements.

I didn't see the breakdown, but the estimate was over $200 to replace bulbs that I knocked out in about half hour total, which included some light disassembly work to remove fixtures on a job on a vehicle I wasn't familiar with. I figure that figure was for an hour or less book time, and some spendy bulbs.

Because I didn't have the bulbs on hand, and due to time sensitivity, had to run down to the chain parts store, and pay their premium prices. They, too, charge what their market will bear.

I understand that, but what really made me angry, and distrustful of dealers is the sloppy, careless work I found had been done before.

This car had been dealer-serviced all its life, and while one side was fine, I found some tech had substituted coarse-thread self-tapping fasteners, instead of the fine machine thread screws used to secure the fixtures to the body, on the other side, and destroyed the original threads. No easy explanation for that other than laziness, stupidity, and carelessness. Not on the level of leaving an oil pan full of detritus from unapproved cleaning efforts, but still, who wants to, or should pay a premium for that type of work?