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The dealer selling aftermarket parts?

Gary A

By Gary A
in Automotive Parts & Suppliers

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Gary A Community Regular

Gary A

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I've seen this name a few times Magneti Marelli a division of Mopar. Never thought much of it and today I saw this piece of junk mail and never heard anybody comment on this before.

 

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ATLAuto Rising Star

ATLAuto

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Our local Toyota kills me on pricing in most cases, yet they have 10 more techs and a much higher overhead. Sure hope they sell a lot of cars!

 

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I'm actually curious on overall dealer overhead. I bet as a percentage of repair, it is actually less than ours. The dealers in Atlanta have huge 20+ bay warehouses and can really get some solid economies of scale going. With a shop that big they can specialize in a bunch of areas, have steady work flowing into each of them, and crank through a ton of low priced repairs, and still come out with a great profit in the bank.

 

Honestly, I'm not surprised they are lowering prices. With their structure, they could easily undercut most independents and still make a bunch of cash. It's Wal-Mart level scale vs. a small mom and pop grocery store.

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ncautoshop Proficient

ncautoshop

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I'm actually curious on overall dealer overhead.  I bet as a percentage of repair, it is actually less than ours.  The dealers in Atlanta have huge 20+ bay warehouses and can really get some solid economies of scale going.  With a shop that big they can specialize in a bunch of areas, have steady work flowing into each of them, and crank through a ton of low priced repairs, and still come out with a great profit in the bank.

 

Honestly, I'm not surprised they are lowering prices.  With their structure, they could easily undercut most independents and still make a bunch of cash.  It's Wal-Mart level scale vs. a small mom and pop grocery store.

That's an interesting concept. I've always felt our local dealers left a lot to be desired quality wise. I always assumed they had a higher overhead. Our local dealers are all single store setups except for imports which all seem to be chain stores.

If your thoughts are in fact the case a good portion of us may be working for a dealer when it's all said and done!

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