Why do dealerships charge more for service?
However, the labor costs of getting your car fixed at a dealership is higher because their technicians are specialists. In addition, dealerships pay higher salaries for manufacturer-trained and highly experienced technicians. It is therefore no surprise that you will pay a higher price for their services.
How much more expensive is dealer service?
The overhead at dealer service departments — the nice facilities, trained technician, additional personnel and so on — translates into a higher labor rate per hour — roughly $15-$20 per hour higher, and sometimes more — than that of independent facilities.
Why do dealerships charge more for service work?
A dealer won’t come right out and say it, but if you have your regular service work done at the dealer… (because warranty work pays the dealer a lot less than service work), your value to the dealership increases. Here’s an example: Suppose your vehicle goes out of warranty and a week later you have a catastrophic failure.
How do service advisors at car dealerships make money?
It may surprise you, but the majority of service advisors working for car dealerships are paid commission only. In other words, they only make money to pay their bills when you spend money on repairs and other services.
Are car dealerships loyal to their customers?
Yes. You need to know that dealers make very little on car sales. And warranty service doesn’t pay as much as regular maintenance. But if they see that record that you’ve been loyal to them, they’ll likely be loyal to you. What’s a sign that a dealership doesn’t value that relationship? Constant turnover at the service desk.
Do you take your car in for service at the dealer?
If you’ve ever felt you got a raw deal taking your car in for service at the dealer, our anonymous service manager says that may well be true. But he also cites a number of reasons to take your car to the dealer for work anyway—and tells how not to get the short end of the stick when you do.