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POPSHow Car Companies Are Financed & What Obama Has Done To Them
The dealer has, in effect, bought 200 cars and the manufacturer keeps him supplied with another 100 cars per month. In a year the dealership has bought (paid for) 100 cars/month x 12 months + 100 cars = 1300 cars. Does the dealership get stuck with leftover cars? Yes, that’s why you can cut such good deals on last year’s model. Why would the dealership put up with such a lousy bit of financial shenanigans? Because the largest percentage of the dealership’s money comes from the sale of repair services. They also make a huge amount on used cars; which are a separate, yet dependant business. As Lonsberry pointed out, if GM and Chrysler wanted to improve business they would get more dealers not fewer. But, dealers are granted territories so they won’t be eating out of each other’s repair business. Also, there are specialized instruments and tools required to fix various cars. GM and Chrysler design, build and (in the case of software) maintain these tools.
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POPSAutomotive repair shop software Since the early 1990s, Winworks has been helping auto shops be more efficient by providing easy to use automotive repair shop software that proves its value time and again.
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