13 WAYS CAR DEALERS PROFIT OFF ONE CAR BUYER!

13 WAYS A CAR DEALER PROFITS OFF A CAR BUYER

A car dealer has multiple sales opportunities with a single car-buying customer, some during the initial sales process, and others spanning from the vehicle sale to various after-sale services and products. 

Hello everyone, welcome back to The Homework Guy Channel! Are you ready to dive deep into the world of car buying? Buckle up, because today we’re revealing the 13 ways dealers profit off just ONE car buyer – and trust me, it’s not JUST about selling the car!”

This report written by Kevin Hunter The Homework Guy, and the Amazing Elizabeth, The Homework Gal!

Do you think Dealer Profits are just about the price tag on the windshield? Think again! From the moment you step into the dealership to the moment you drive off, there’s a whole world of deals and add-ons that boost the dealer’s bottom line. In fact, you’ll encounter multiple sales people trying their best to sell you SOMETHING.

And this report is not just about cautionary tales! We’ll also give you insider tips on how to navigate these options, ensuring you make the best decisions for your wallet and your wheels.

So, if you’re planning to buy a car, considering an upgrade, or just love to know the ins and outs of the auto industry, this episode is for YOU!”

LIZ: “Don’t forget to visit our YouTube channel and become a subscriber! 

Here are 13 Key Car Dealer Profit Opportunities:

• 1. Initial Vehicle Sale: This is the primary opportunity, involving the sale of the car itself. The dealer can profit from the vehicle’s sale price minus its cost.
• LIZ: 2. Add-ons: Dealer Add-ons can include aesthetic enhancements (like pinstriping, spoilers, or custom rims), or more practical additions (like roof racks, cargo organizers, running boards, or all-weather floor mats). Add-ons are sometimes even scams like Window Etching and Nitrogen filled tires.
• 3. Trade-In Vehicle: If the customer trades in their old car, the dealer has the opportunity to make a profit by reselling the trade-in vehicle.
• 4. Financing: Dealers often offer financing options. They can earn income from interest and loan origination fees, especially if they mark up the interest rate provided by the lender (the buy rate). And Fake Fees: There are an unlimited number of fees a dealer can come up with (or just invent) to hit you with. 
• 5. Extended Warranties: Selling extended warranties or service contracts can be a significant source of profit, as these always have high markups.
• 6. GAP Insurance: If the customer is financing the vehicle, the dealer might offer GAP insurance, which covers the difference between the insurance payout and the remaining loan balance if the car is totaled. It also happens to be the most expensive GAP policy that money can buy!
• 7. Additional Insurance Products: Some dealerships offer other insurance products, such as credit life insurance, which pays off the car loan in certain scenarios like death or disability. There’s also Tire & Wheel, Paintless Dent Repair, Key Replacement, Paint & Fabric, Pre-Paid Maintenance, Theft, Combo programs, Windshield, and Total Term Protection to name a few. We say, don’t waste your time and money!
• 8. Vehicle Accessories: Dealers often profit from selling and installing accessories like roof racks, upgraded sound systems, or custom wheels, available in their accessories department.
• 9. Maintenance and Service Plans: Prepaid maintenance plans or service packages are another potential source of revenue.
• 10.Parts and Service Department: After the sale, the dealership can generate income through regular vehicle maintenance, repairs, and parts sales.
• 11. Customer Loyalty and Referrals: Establishing a good relationship can lead to repeat business, whether it’s servicing the current vehicle or purchasing future vehicles, and referrals to other potential customers.
• 12. Vehicle Buyback or Lease Return: At the end of a lease or when a customer is ready for a new vehicle, the dealer has an opportunity to sell or lease another vehicle.
• 13. Special Programs and Promotions: Dealers may also benefit from manufacturer incentives, bonuses for meeting sales targets, and promotional events.

Each of these opportunities represents one of 13 different ways for the dealer to generate revenue from a single customer, emphasizing the long-term value of each customer beyond just the initial vehicle sale. What’s interesting about this is that from the constant badgering and frequent mistreatment dealers give to their car buying customers, it’s apparent that they often don’t get this!

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