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RE: E39 540i/Dealer Service

>From: Jerry Stadulis <[email protected]>
..............
>I read a newspaper article a few months back that noted the average U.S.
>dealership makes less than 10% of its total profit on new-car sales.  That
>means that the dealership is trying to make a large part of its margin through
>the service department, and it's in the best (short-term) financial interest
>of the dealership _and_ the mechanics to get _something_ done that they can
>charge you for..............

> Arlington, TX (21-Jul-96, 17:34) '95 540i-6 spd

What the article probably didn't say was that the majority of the
dealership's profit comes from the financing of the new and used cars they
do sell.  And this may not be true with BMW dealers.  More accurate for
those selling cars "$50 under invoice".  BMW audits warranty claims, don't
worry about them, they can charge the whole thing back to the dealer if
they don't like the smell of it, sometimes they do it even if the repair
was legit, due to lack of timely submission, etc.  You know, most dealers
are just trying to make a buck in a climate where the buyers would be just
as happy with WalMart-type sales help, but with very expensive requirements
for facilities and training that BMW forces upon them.  Of course you can
solve all these problems with your dealer by just buying your cars from
HottRod, or Circuit City, or Blockbuster Video.  They're all in the car
business now.  And USA Today says the average profit from used car sales
through the big dealers (the last two mentioned) are about $5/car.  Do you
believe that?
- -Phil Marx  BMWCCA #6021