quote:
Originally posted by Seaquam:
If replacement tire cost is a concern, why not put a clause in the purchase agreement that the dealer will include the first set of replacement tires, identical to factory originals, when they are required? You'll probably have to throw in a few more bucks, but only a fraction of what the tires would end up costing you later. Sales departments have some flexibility that service departments usually can't match.
Not really, Seaq. Typically when a sales department is asked to "throw in" something of this value, it's set up in advance in an "equipment due account." The sales department is charged for the tires
immediately, at whatever the dealer mandated markup from parts to sales is. The profit on the car deal is adjusted to account for the promised stuff. The normal markup on parts to a sales department (new or used) in a dealership is from 30-40% over dealer
net cost. Tires, because they are SUCH a price sensitive item, are often sold at or near dealer net at most stores just to retain that portion of the service business and not have customers wandering over to the 3rd party repair shops. Short story, you CAN get a deal, and probably secure a set at or close to dealer
cost, but there ain't no free lunch. Sales departments actually are a "profit center" to the parts and service departments at dealerships, so are give no special treatment. In fact at the better managed car stores, the sales departments actually pay the COD rate for labor in their own shops!!
PH