Just so everyone understands: 60% to as much as 80% of dealership revenues are generated from service and parts.
Most people assume they make their money on selling vehicles. Not so.
This is why they are pushing for ownership of property, which you purchased: To enhance revenue opportunities at the dealership level.
Which is fine, if they change the way vehicles are purchased.
For instance; in a lease, the manufacturer and its agents(dealerships) are responsible for maintenance of vehicles. You are responsible for gas and insurance.
In a purchase, cash or financed, you own the vehicle outright at the end but, ownership transfers from the vehicle manufacturer once it leaves the dealership and it co-owned by the finance company and the purchaser.
Doesn’t matter if you finance through “Ford Credit” either. They are a wholly separate company.
If auto manufacturers want to enhance revenue then they need to come up with unique leasing.
This would be the equivalent of saying you cannot alter your cell phone, even if you bought it outright.
Same with computers. You would not be allowed to modify them in anyway whatsoever...
All of which is fine, so long as the manufacturer sells the property as a service, maintains a service level and takes the POS back at the end of a contract.
Then again, expect lawyers to get involved, particularly tax lawyers because a capital purchase is treated several ways for the purpose of reducing obligations to various givernments, mostly the Fedzilla....
[ Just so everyone understands: 60% to as much as 80% of dealership revenues are generated from service and parts.
Most people assume they make their money on selling vehicles. Not so.
This is why they are pushing for ownership of property, which you purchased: To enhance revenue opportunities at the dealership level.
Which is fine, if they change the way vehicles are purchased.
For instance; in a lease, the manufacturer and its agents(dealerships) are responsible for maintenance of vehicles. You are responsible for gas and insurance.
In a purchase, cash or financed, you own the vehicle outright at the end but, ownership transfers from the vehicle manufacturer once it leaves the dealership and it co-owned by the finance company and the purchaser.
Doesn’t matter if you finance through “Ford Credit” either. They are a wholly separate company.
If auto manufacturers want to enhance revenue then they need to come up with unique leasing.
This would be the equivalent of saying you cannot alter your cell phone, even if you bought it outright.
Same with computers. You would not be allowed to modify them in anyway whatsoever...
All of which is fine, so long as the manufacturer sells the property as a service, maintains a service level and takes the POS back at the end of a contract.
Then again, expect lawyers to get involved, particularly tax lawyers because a capital purchase is treated several ways for the purpose of reducing obligations to various givernments, mostly the Fedzilla.... ]
SNl could make one heck of a killer Sketch based off an old west town with a wagon seller using the same “techniques” that cars are sold today and all.
Your Wagon is on lease, and you can;t fix your wagon if it break on your own or we will sue you.
You may recall a court ruling not that long ago.
The ruling may have set a precedent regarding this topic.
A court ruled that the owner of an X-box could not crack the thing open and modify it.
The ruling, IIRC, had nothing to do with “warranties” but with Microsoft’s ability to control what happens to their product after it was sold.
“F or instance; in a lease, the manufacturer and its agents(dealerships) are responsible for maintenance of vehicles. You are responsible for gas and insurance.”
Read a lease contract ...