More recent article but the numbers still hold up
Why Fixed Ops Is the Most Stable Profit Center in 2026 | Chameleon Blog
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When do you think you will buy a 100% pure electric vehicle?
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More recent article but the numbers still hold up
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With people holding on to their vehicles longer, it doesn't surprise me service side still plays a critical role in dealer profit.More recent article but the numbers still hold up
Why Fixed Ops Is the Most Stable Profit Center in 2026 | Chameleon Blog
Especially as new vehicle sales have face headwinds over last couple years.
If anything, the service department has become even more profitable recently. While BEVs require less service, manufacturers are adding expanded functionality that requires a subscription to make up for the loss of service opportunities. BEV manufacturers are becoming software companies.
Probably belongs in a different thread, but everyone and everything is going to a subscription / software model. You don't buy stuff anymore. You are just
I guess this explains last time I had an issue with my vehicle that made it practically undrivable I called the dealership I had bought the vehicle at and they said it would be six weeks. I just laughed at the guy and figured they obviously didn't want my business. When I bought the vehicle I did have a guy who tried to sell me oil changes tell me that vehicle sales didn't make them any money and regular vehicle maintenance was one of their big money makers. That was 2018 so things may have changed, but you also don't need a good mechanic to do routine maintenance on vehicles.
Over the last 10 years the repairs I’ve done to the 5 vehicles I have are cam phasers and spark plugs (oil changes but dealerships breakeven at best on those) that I know would not be involved in an EV. I’ve had 2 deer hits, a squirrel that chewed up the main wiring harness, an airbag recall, electronics work like electrical windows not working, front transmission seal and differential work. I run vehicles to the ground. I’m over 200k in the vehicle I’m in now. Am I to believe that those will all go away with an EV? The mechanics won’t be doing any of that?
Oh yeah, AC just went out in this pickup, do EVs have a different way of cooling the cabin air?
I’m not anti EV, I pull trailers a lot so it doesnt fit me. Im one who says, if you like and can afford it, go for it and enjoy it. I’m just making a rebuttal that dealerships service shops will shut down and their parts counters will be staring at the wall.
What are peoples experiences with EV at 150k plus miles?
Oh yeah, AC just went out in this pickup, do EVs have a different way of cooling the cabin air?
I’m not anti EV, I pull trailers a lot so it doesnt fit me. Im one who says, if you like and can afford it, go for it and enjoy it. I’m just making a rebuttal that dealerships service shops will shut down and their parts counters will be staring at the wall.
What are peoples experiences with EV at 150k plus miles?
Do the math on oil changes, ships lose money on those. They try to make it up with selling things you may or may not need. Some shops are on commission, you don’t really want to go to one of them.
A dealership saying they don’t make money on sales…….seems farmers say the same thing but yet still keep doing it. If they didn’t make money on sales, why not close that up and just be a service center?
My understanding is most dealers don't want to touch fleet vehicle 'sales' because they basically operate at a loss; the "pre delivery inspection" costs them more than they receive from the fleet vehicles.
Big guys like Pritchard & Karl are the exceptions here
Maybe they aren't making a ton off of oil changes, but it's pretty well accepted that profit margins off new car sales aren't that great and dealerships make most their money selling service, warranties, and financing. Used car sales may be a bit different. This recent article from motor trend says financing is the big money maker.
How a Car Dealership Really Makes Money From You
Most consumers have been taught to focus on price and price alone—but the real money is made in financing, otherwise known as the back end.
I don't understand how they lose money on them, they typically charge $70+ (for synthetic). I can do my own for ~$30-35. And it takes them what, 10-15 minutes?
If it takes them 10-15 minutes they aren’t doing what they are supposed to do. Routinely ours were roughly 45 minutes if done right. Take the car for a quick drive to warm it up some and get a feel of anything is off or sensors are lit up. Bring in, throw on the lift and drop the oil and filter and let it drain. While that happens pressure check the tires and look at brakes and drive assembly on bottom, quick look at the muffler. Replace the plug and put on a new filter (unless it’s easier from the top).
Lower the car and fill the oil, check all the fluids and add if needed, check belts, wipers, etc from the top. Many will vacuum the car and/or wash the windows. Now fill out the rest of the paperwork (forgot the first thing they do is notate any dings/sctatches/dents because Those only happen at the dealer per some customers). Fire it up, recheck the oil after shutting it off and then back it out.
There are a few others but that is what we expected. At shop rates of $120-$150 per hour. 45 minutes is 90-120 of labor that you should charge but jiffy lube will get some Slappys to do it in 15 minutes and pay them 15/hour.
Depends who does the inspection. We had sales do them but the shop for the 200 or so to pull the gift wrapping and pop the center hubs on (roughly 15 minutes of work by the low paid detailer).
That was for the ones that hit out lot, the nice ones were where you were paid and they were sent directly to the purchasing place and you just had a secretary spend 10 minutes on paperwork and collect the 300-400 bucks for the vehicle you never saw, but you gave up the 200 to unwrap and pop center hubs.
My current ride was delivered by a service. I was surprised the plastic was off the seats. I've had coworkers' show up basically straight off the truck.
I will throw in these fleet management companies are a model of dysfunction. Example: I currently enjoy 2 company vehicles, they did not and have not picked up my old one, going on 3 months. Another is Temporary tags for months.
Even Karl would just hand us the keys.
Unfortunately car dealerships don’t attract people with higher education quite often. Many times it’s people who kinda have a spastic life to start with and that’s the way their work translates also.
Ah, guess I've never been to a dealership like that before. It's never taken over 30 minutes - Karl, Shottenkirk, Ramsey, and a couple others years & years ago. Got to assume their bulk oil/filters cost next to nothing as well.
What I described is basically the norm here in North Iowa. One even washes the car on certain days for you.
By the looks of it, the ones you mentioned are more larger town dealers, I guess my experience is more of the ones situated outside the bigger towns. I know there’s a few bigger ones that have their own Jiffy Lube type oil change place.
What do you get back in inspection sheet that tells you about your tires brakes and all your other mechanical stuff?
The oil filters they get are gonna come directly from Ford Chevy Chrysler whoever their main company is
All I really remember getting for inspection sheet is tire depth, air filters, and wipers? But it's been a few years since I've been doing them myself.
Sounds like I was getting a whole lot more for my 68 bucks than you were
