Post by
Larz »
https://forums.nicoclub.com/larz-u216291.html
Mon Sep 14, 2015 11:30 am
I could not agree more, Craig. The trouble with dealerships is that they have an hourly labor rate of about $100. At my dealership, the minimum time they charge is 30 minutes. Even if it takes them 5 minutes to do something, they still charge for 30 minutes ($50). The cheapest Infiniti OEM cabin filter on Ebay is about $45 from one of the online Dealership stores, and I am sure that the $20 filter is every bit as good. So, the over-priced OEM filter, plus a minimum labor charge of 30 minutes costs you $99.
Oil changes are another great example:
I bring my own Mobil-1 oil when I have them do my oil / filter change. They charge $8'.75 for the OEM filter, $1.90 for the new OEM drain plug washer, and a "special" rate to perform the service. I pay them $48 dollars with taxes. You can buy an OEM filter from the Ebay dealerships for about $6, and a pack of 10 OEM washers for $11.00 (about $1 each). My dealership keeps Mobil-1 in stock, but they charge $10 per quart when they use it. Nobody can convince me that $10 per quart reflects a "small' profit margin based on their purchase price per quart. My service guy has to charge me over $100 for an oil / filter change if they provide the Mobil-1 from their stock.
I defend the dealers to a degree, based on what I know about owning a business and paying for office space and equipment, employee salaries and benefits, and insurance coverage for liability for my company. I have to admit, though, dealerships go a little with far for mark-ups on parts and the labor rates are not flexible. Labor should be billed at $2.00 per minute based on $120/hr, not 30 minute increments. My post was not intended to justify their prices, just to remind us of the unseen costs for a huge enterprise like a dealership compared to a mechanic who rents a garage and does all the work him/herself using their own tools. I still don't consider dealerships as thieves. To me, it's like the difference we pay for a steak at a local Denny's compared to Ruth's Chris Steak House. You still get the same steak, but the quality, service, and prices vary depending on where you eat. Ruth is not a thief, just an expensive alternative. We choose to eat there, she doesn't make us do it. We choose to have a dealer use OEM parts and service our cars and we know before we drive in, the charge will be higher than most other places. The prices are 'on the menu' at both places and we know what we will pay if we don't get up and walk out. That's not thievery.
I always recommend doing your own work IF you know what you are doing and can do it safely.