In years gone by I suspect servicing and warranty was probably a way to get punters into the showroom to promote the brand and sell.
When I take the car in, the service reception usually leads you through the showroom. Comfy seats, free coffee, brochures while you inevitably wait. You never go into the oily bits!
But most private car purchases are now PCP or lease. With online comparison sites it becomes increasingly difficult for a dealer to always be competitive - so often they end up providing test drives (for those who actually test what they are purchasing) rather than selling cars.
It is therefore unsurprising that manufacturers would like to cut dealers out of the sales process and deal with customers directly via internet. Much the same has happened, albeit for lower ticket items. For white goods, IT, TVs etc Currys seems to be the only physical retailer of any size left - and locally they now share one store with PC World where once they were separate.
No idea what the typical dealer cost per sale is, but with fancy showrooms, cash tied up in stock, sales and admin staff, other overheads it is unlikely to be trivial - would guess 5-10% of the sales price.
Last edited by: Terry on Sat 5 Dec 20 at 02:25
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