12-05-2018, 02:24 PM
(12-04-2018, 02:35 PM)Roper_imp Wrote: My father-in-law owned a small Ford dealership. The profit margins on vehicles was not nearly enough to pay salaries. They made all their money through extended warranties and financing costs.
When I bought my bike new from the dealer, I got the OTD price I wanted by purchasing a service contract for $600. It included all scheduled maintenance and discounts on other service for three years. In hindsight, it seems like that was a mistake, because we moved out of state the next year. Plus, scheduled maintenance isn't that hard to do yourself. Having read the comments on this thread, I realize that may have been most of the profit they made on that sale. And it was still less than 10%.
I just bought a late model Mini. Being familiar with BMW Minis, I was very interested in purchasing an extended warranty. Oddly, the dealer was hardly interested in the subject. The salesman gave me a print out offering an extended five warranty covering pretty much everything for 3.5K, and moved right on to something else.