Does a manufacturer really make much off of service?

General Discussion
1

It was probably a big mistake but I recently bought a new enough vehicle that now I am being courted by a Chevy Dealer to bring my 2020 Tahoe in for service.

Now this isn’t going to happen since their parts department was not interested in helping me with my 89 Caprice and told me if they had parts that old they would just throw them in the dumpster as if my money wasn’t green.

I am curious though, does the manufacturer really care if you bring your vehicle in for repair?

Do they get a cut of the money, or do they just really hope something newer and shiner will catch your eye while you are having repairs made to your vehicle.

Or more likely when you have a catastrophic failure on a major component on a late model vehicle which is extremely common on today’s new vehicles that you will throw in the towel when presented with a staggering cost of repair and just double down and buy a new vehicle?

I personally think Chevy only cares about selling new vehicles. Yes if they can make a buck or two off of service so be it, but I don’t believe it really effects their pocketbook. They want to sell new! New and shiny and better! and most importantly MORE PROFITABLE THAN VEHICLES HAVE EVER BEEN!

2

Are you meaning the Dealerships, because the manufacture does not work on vehicles, they manufacture them…And they have to pay the dealership for the warranty work done…

From what I understand from the couple times I worked at a dealership (not manufacture) as well as talking to a couple of brothers that formerly owned and ran a Mazda dealership that I worked for and new pretty well, but this was many year ago, the new vehicle sales side doesn’t make as much money as you think they do, it is the Service side that financially supports the dealership…

Nevada will be more up to date on this matter I am sure…

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3

Exactly wrong. And, like @davesmopar said, it’s my understanding that the service side makes a lot of money for the dealer, along with financing and the stuff sold at closing. The actual new car sales? Not so much.

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4

There is an old saying that applies in this instance:
You’re entitled to your own opinions, but you’re not entitled to your own facts.

+1

5

A new car dealer is not a restoration parts store, they need inventory turnover to support their high fixed costs. Something like Rock Auto would be my parts source for an ‘89 domestic.

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A kid I went to high school with was inherited a group of dealerships his father and grand-father built over 50+ years. The service side is the MOST profitable side of the business.