PaulMys
Active member
- Jan 14, 2014
- 10,772
- 3
It's not that different here. The manufacturer reimburses the dealer for the warranty work. We've been through some ups and downs with that, at one time GM, for example, paid the dealer a fixed rate, regardless of what the dealer labor rate was. If the dealer labor rate was higher than what GM was paying, the dealers would tell customers things weren't covered by warranty. After a while GM started getting a bad rep and they started reimbursing at the dealer labor rate.
As far as the cars not sitting on the lot...it used to be like that here, you ordered a car from the factory if you were a car guy, to get just what you wanted. But when imported cars began to become really popular here in the late 70's and early 80's, it of course wasn't feasible to order a car from the factory, so those dealers began to stock large numbers of cars on their lots, so they would have a large selection of colors and options. After a while the US companies started to streamline the multiple options into just a few option groups, because customers had become used to the idea of whatever they needed "being on the lot", so even the dealers for US brands typically have very large inventories and it's less common to order a car. At least that's the way it looks from where I sit.
While I agree with you, I think this is beginning to change.
I took the lot/driver job for my small dealership on 6/11 of this year, and I have been on at least 50-60 swaps from New Hampshire, to Maryland and points closer.
I am also seeing more factory orders coming off of the trucks. 99% of these are top of the line vehicles. Just my experience at my job.