Prisoners in the enemy camp - Page 4
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Thread: Prisoners in the enemy camp

  1. #31
    crv|oc Rank: Senior
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    Some auto manufacturers are offering 10%, 15%, even 20% rebates.

    Definition of a rebate: the refund of an over charge.
    2017 stripped EX-L - unmolested by the dealership
    Built July 2017, Indiana USA

    MAN LAW - raise your hood once a week and have a look

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  4. #32
    crv|oc Rank: Sophomore
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    Quote Originally Posted by crv383 View Post
    Some auto manufacturers are offering 10%, 15%, even 20% rebates.

    Definition of a rebate: the refund of an over charge.
    I see this often with the domestic pickup truck where they'll advertise $10K cash back sometimes. Wow.

  5. #33
    crv|oc Rank: Silver robbyg's Avatar
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    Quote Originally Posted by JB in AZ View Post
    Some posts here are only critical, of everyone and everything, and are intended to incite.

    I certainly have been sucked into responding to their baiting style in the past. I attempt to only write positive and helpful posts, and to not reply to overly critical posts, and posts that only intend to incite.

    With that said, I also have had a similar experience to Mike728's where a vehicle I traded in sat for months and months on a dealer's lot, and finally was priced below what they gave me for it. The manager who makes the decision to "buy" the trade-in is human, and considering how many there are through out the US and Canada, I'm sure there have been many "mistakes" like this made in appraisals.

    Most of us know the dealer's business model demands that they make money. Some of us accept that just as we know a restaurant charges many times more for a hamburger and a soda than we can make it ourselves at home. Some of us, who are able to do so, also prefer the newest safety features and economy that new cars offer, knowing that when we trade in after a few years, we have helped other working folks feed their families. (ok, that part may be a bit of a stretch)
    I can attest to seeing two Humvee's sitting at a dealers lot. It was just before the gas prices went up in early 2000's. The price on them dropped by about 30% within 6 months. Eventually they just disappeared. I stopped and asked what happened to them and they said that they had not been sold by the owner who had made some arrangements for them to go to an auction house.

    Rob
    2018 White Diamond Pearl 1.5T AWD Black Leather, Panoramic Sun Roof, All LED Lighting and Made in Thailand.

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  7. #34
    crv|oc Rank: Senior
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    Were they the original H1? It's my understanding things (some money must be spent) must be done to make an H1 street legal.
    2017 stripped EX-L - unmolested by the dealership
    Built July 2017, Indiana USA

    MAN LAW - raise your hood once a week and have a look

  8. #35
    crv|oc Rank: Member
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    I love my CRV...2018 Ex-L...no problems...was built in Nov 2018...I chose it over the RAV 4 which I had before...Molten Lava

  9. #36
    crv|oc Rank: Member
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    There are interesting reasons why a competitor's vehicle can be found in the used car section. When Ford introduced the Pinto (yes - ancient history), Ford dealers bought and parked brand new VW Beetles in their used section to imply VW owners were trading them in for Pintos. Similarly, VW dealers bought Pintos then parked them, hood raised, along major commuting routes during rush hour to imply poor reliability. Rental agencies turn in cars when they reach a certain number of miles and are readily available at auto auctions where many dealer get their used stock. Clearly, seeing a competitive model had an impact on you which is their intention. The local Toyota dealers claimed they could not deliver the RAV4 I wanted for 2 months, so I bought a CRV. I determined both CRV and RAV4 are good vehicles, so timing was a factor for me.

  10. #37
    crv|oc Rank: Junior
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    Quote Originally Posted by Mike728 View Post
    Dealers make their most money on service.

    Here's something interesting for those of you thinking car dealers are making huge profits on sales:
    https://www.autonews.com/nada/auto-d...ions-nada-says
    The gist of that article is this quote:

    Operating profit declined across the board with dealerships that focus on import or luxury brands falling to a loss. Stores selling domestic or mass-market brands remained operationally profitable, on average.
    IMO, the article is mostly hype/propaganda. That said, I would say that the dealers that are bringing the curve down the most are the ones selling GM, Chrysler, and other brands noted for poor reliability/quality these days. Those same dealers are stuck with trying to sell vehicles that are horrifically overpriced. The auto industry in general is pricing itself out of its own market.

    Luckily, Honda does not fit into any of these categories, though they are slipping in reliability ratings. Nonetheless, as the quote states, they remain "operationally profitable."

    If you believe what the article says, ask yourself why you are not seeing reports of these same dealers having to sell off their sports teams. If and when the conditions the article purports become true and real, you will see large numbers of abandoned/closed dealerships. Heck, around here, they keep building more and bigger ones! Based on that, I submit that the industry is not collapsing just yet.

    On any given day, a dealership can and does make more profit per new unit sold than the service dept. does, on average. If they didn't, they would fold, overnight. Service has much higher overhead than sales, is more labor intensive, and has to soak up warranty and recall work. One or two good new unit sales can easily top that.
    Larry


    Now that I've learned my lesson, I'm supremely confident that next time I'll make a different mistake.


    2007 CR-V EX-L AWD Green Tea Metallic
    1991 Ford F250 Lariat Supercab LWB 4X4, 460 AT

  11. #38
    crv|oc Rank: Senior
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    Quote Originally Posted by kloker View Post
    IMO, the article is mostly hype/propaganda. That said, I would say that the dealers that are bringing the curve down the most are the ones selling GM, Chrysler, and other brands noted for poor reliability/quality these days. Those same dealers are stuck with trying to sell vehicles that are horrifically overpriced. The auto industry in general is pricing itself out of its own market.
    Mostly hype and propaganda? No, it's based on FACTS. Facts that you personally don't agree with, but still, facts. https://www.nada.org/WorkArea/Downlo...id=21474857318

    Your added "opinions" are based on nothing more than your non qualified perceptions. If I'm wrong on this, please enlighten me with some actual reputable data.

    Quote Originally Posted by kloker View Post
    Luckily, Honda does not fit into any of these categories, though they are slipping in reliability ratings. Nonetheless, as the quote states, they remain "operationally profitable."
    Honda is a manufacturer, not an independent dealer, which is the focus of the report.

    Quote Originally Posted by kloker View Post
    If you believe what the article says, ask yourself why you are not seeing reports of these same dealers having to sell off their sports teams.
    Sports teams? I have no idea where you are going with that comment. Is this something that's common in TX? I've certainly never heard of it being a "thing".

    Quote Originally Posted by kloker View Post
    On any given day, a dealership can and does make more profit per new unit sold than the service dept. does, on average. If they didn't, they would fold, overnight. Service has much higher overhead than sales, is more labor intensive, and has to soak up warranty and recall work. One or two good new unit sales can easily top that.
    If you look in the link, above, you'll see that service profit was ~2x what sales profit was in 2018, across the board. That's actually lower than I thought. I'm sure you won't believe it, though.

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  13. #39
    crv|oc Rank: Senior
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    Quote Originally Posted by kloker View Post
    ...my posts are intended purely to dispel misconceptions ....

    Service has much higher overhead than sales, is more labor intensive, and has to soak up warranty and recall work. ....
    LOL! This is just so wrong! The dealer gets reimbursed by the manufacturer for the warranty work it does, and yes, recalls as well.
    Last edited by JB in AZ; 04-11-2019 at 09:42 AM.
    2019 Acura RDX Advance Pkg
    Previously owned Hondas:
    2018 CR-V Touring 2WD (Traded 1/22/19 for '19 RDX)
    2014 CR-V EX-L Navi
    2001 Civic EX 5 Spd

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  15. #40
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    Quote Originally Posted by crv383 View Post
    Were they the original H1? It's my understanding things (some money must be spent) must be done to make an H1 street legal.
    The Military HMMWV's that have been sold off recently are not street legal.

    The civilian Hummer that was built from 1992-99, and renamed H1 for 2000-06 (after GM's purchase) were 100% street legal

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