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Parts Prices. Dealer vs Online
There are some websites that sell Chrysler OEM parts with a discount
compared to suggested retail prices. I have found that my dealer sells everything for suggested retail. How is it that these online places can offer discounts, when the local dealerships don't? Do online retailers charge more for shipping to more than make up for the discount? My local dealer has never charged for shipping, but does charge local sales tax, as expected. Are there any benefits to buying online? Thanks, Kirk M. |
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Parts Prices. Dealer vs Online
KirkM > writes:
> There are some websites that sell Chrysler OEM parts with a discount > compared to suggested retail prices. > > I have found that my dealer sells everything for suggested retail. > > How is it that these online places can offer discounts, when the local > dealerships don't? Do online retailers charge more for shipping to > more than make up for the discount? You're asking the question backwards: the question is how can a local dealer charge so much more for a part than on-line or NAPA? People shop NAPA and on-line to save money; they buy dealer for the security of a somebody with a Pentastar on the wall behind them to tell them it's the right part. The dealer *can* offer discounts, and typically does offer them to shops. I used to have a good enough relationship with the Chrysler dealer in town here that they sold to me at their "shop rate", which almost the same price as NAPA (this arrangement lasted through several parts managers and dealership changes of ownership; then there was a new manager at the same time as a new owner and it went away). > My local dealer has never charged for shipping, but does charge local > sales tax, as expected. > > Are there any benefits to buying online? You've already named it: price. |
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Parts Prices. Dealer vs Online
On Mar 9, 2:27*pm, Joe Pfeiffer > wrote:
> KirkM > writes: > > There are some websites that sell Chrysler OEM parts with a discount > > compared to suggested retail prices. > > > I have found that my dealer sells everything for suggested retail. > > > How is it that these online places can offer discounts, when the local > > dealerships don't? Do online retailers charge more for shipping to > > more than make up for the discount? > > You're asking the question backwards: *the question is how can a local > dealer charge so much more for a part than on-line or NAPA? *People > shop NAPA and on-line to save money; they buy dealer for the security > of a somebody with a Pentastar on the wall behind them to tell them > it's the right part. > > The dealer *can* offer discounts, and typically does offer them to > shops. *I used to have a good enough relationship with the Chrysler > dealer in town here that they sold to me at their "shop rate", which > almost the same price as NAPA (this arrangement lasted through several > parts managers and dealership changes of ownership; then there was a > new manager at the same time as a new owner and it went away). > > > My local dealer has never charged for shipping, but does charge local > > sales tax, as expected. > > > Are there any benefits to buying online? > > You've already named it: *price. From what I understand, only dealers can sell Chrysler OEM parts. Are these websites run by dealers? I don't believe that Chrysler sells parts direct, except through "Mopar Performance." -KM |
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Parts Prices. Dealer vs Online
KirkM > writes:
> > From what I understand, only dealers can sell Chrysler OEM parts. Are > these websites run by dealers? I don't believe that Chrysler sells > parts direct, except through "Mopar Performance." The ones I've dealt with have all been dealer parts departments. |
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Parts Prices. Dealer vs Online
KirkM wrote:
> There are some websites that sell Chrysler OEM parts with a discount > compared to suggested retail prices. > > I have found that my dealer sells everything for suggested retail. > > How is it that these online places can offer discounts, when the local > dealerships don't? Do online retailers charge more for shipping to > more than make up for the discount? > > My local dealer has never charged for shipping, but does charge local > sales tax, as expected. > > Are there any benefits to buying online? > > Thanks, > > Kirk M. I agree with Joe. The local dealer here - literally within sight of my house - sells for 10 to 20% over list price. I laugh when they have big banners on their windows saying "10% OFF ALL PARTS THIS WEEK ONLY!!". So that *almost* brings it down to list price. Wow! I'm so excited! The on-line dealer I deal with almost always ships the same day I order (only one part had to be shipped the next day because they had to pull it from another dealer), and I almost always have it the next day (3 states away) by ground shipping - I have a strong feeling they are a block away from a warehouse or else the warehouse drop ships direct with their invoice. Their prices are 30-33% off list (better than even other on-line dealers), and they charge actual shipping, which comes nowhere close to making up the difference in price, especially when the local dealer has the sales tax penalty (generally 1/2 to 2/3 of the shipping cost charged by the on-line dealer). -- Bill Putney (To reply by e-mail, replace the last letter of the alphabet in my address with the letter 'x') |
#6
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Parts Prices. Dealer vs Online
"KirkM" > wrote in message ... > There are some websites that sell Chrysler OEM parts with a discount > compared to suggested retail prices. > > I have found that my dealer sells everything for suggested retail. > > How is it that these online places can offer discounts, when the local > dealerships don't? Do online retailers charge more for shipping to > more than make up for the discount? > > My local dealer has never charged for shipping, but does charge local > sales tax, as expected. > > Are there any benefits to buying online? > > Thanks, > > Kirk M. Well, you have had a few interesting responses so I am not sure if my view will be helpful or not but, for what it is worth... Every business has its' costs and the owners have their own expectations of income from the business. From those factors they decide what they want their mark-up/prices to be. If the market can tolerate those prices they stick with them, if not they lower their expectations or go out of business. Sorry if that sounds condescending to state that....that is not my intent....just setting the scene so to speak.... My point is that you need check you are comparing apples to apples...i.e. are BOTH online sources and local dealer providing proper genuine OEM Chrysler parts? If so, then go with the cheapest because that is your advantage. Just as a warning...I recently priced a rear chrome bumper for a B2500 full size van...my local Chrysler dealer quoted about $775 for the bumper plus some guff about a change of spec. which necessitates the purchase of two brackets at $225 EACH (I kid you not!). Thinking this was a bit high and shopped around...a local wreckers claimed they could get "OEM Spec" bumpers for about $260....of course I fully suspected a lower quality part but I am selling the van anyway so this wasn't a big issue and it is not a safety or reliability part. So I went ahead and ordered. OMG, what a piece of junk it is. Very substandard chrome with imperfections, numerous rectangular holes in the metal for no reason I can fathom (too many for installing lights or a winch, etc.) and the hint of rust already starting in one place. As I say, in this case none of that is a problem but I only mention it to you as a warning that there is often a good reason why there is a difference in price betwen OEM and "other" parts. Sorry if all this is stating the obvious. One final thought...of course some dealers are crooks and money grabbers but, if you get to know your local dealer and ascertain that he is basically a fair operator maybe it is worth paying a little extra to help keep a local business viable...you never know when you might need them....and wouldn't it be a shame if, sometime in the not-too-distant future there were NO local sources of supply because we'd all helped to put them out of business by buying everything online? Just a thought...oh....and I'm not anti-internet....I operate an internet-based business but I deal in information and digital products so I don't compete with any local businesses. |
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Parts Prices. Dealer vs Online
>> > How is it that these online places can offer discounts, when the local >> > dealerships don't? Do online retailers charge more for shipping to >> > more than make up for the discount? >> >> > Are there any benefits to buying online? >> >> You've already named it: *price. > >From what I understand, only dealers can sell Chrysler OEM parts. Are >these websites run by dealers? I don't believe that Chrysler sells >parts direct, except through "Mopar Performance." > >-KM There are many genuine Chrysler Co dealers that are selling parts and warranties online. If you check thru the web site, it will probably say somewhere (deeply hidden) their dealers name. I have found most to be located in smaller towns. I suspect that they keep the actual info quiet so as not to detract from their own walk-in sales, finance, and parts departments. I think they are in the internet game to increase their bottom line. I personally purchased my "Genuine" Chrysler warranty online from a 5 Star Chrysler dealer at a substantial discount (55%) from what was quoted from my local dealers finance department. The only thing they needed was the VIN, vehicle mileage, and date of purchase. The warranty is the real deal, and not a 3rd party, and appears as a Chrysler warranty on my vehicle data printout at the dealer service departments computer where I get my car serviced. For example: www.chryslerservicecontracts.com = Champion Dodge, Barrington IL http://www.chrysler-warranty-online.com = Pearl Dodge, Peotone IL www.extended-warranty-pro.com = Siemans Dodge, Bridgman MI www.chryslerfactorywarranty.net = Sudbay Motors , Gloucester, MA www.chryslerwarrantys.com = Topor Dodge, Chicopee MA www.eservicecontracts.com = Wittrock Motors, Carroll IA etc. There are more and others that sell parts online. |
#8
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Parts Prices. Dealer vs Online
Simon wrote:
> Well, you have had a few interesting responses so I am not sure if my view > will be helpful or not but, for what it is worth... > > Every business has its' costs and the owners have their own expectations of > income from the business. From those factors they decide what they want > their mark-up/prices to be. If the market can tolerate those prices they > stick with them, if not they lower their expectations or go out of business. > > Sorry if that sounds condescending to state that....that is not my > intent....just setting the scene so to speak.... No problem - that's business 101. > My point is that you need check you are comparing apples to apples...i.e. > are BOTH online sources and local dealer providing proper genuine OEM > Chrysler parts? That seems to be what you are not getting - these are OEM dealers selling you OEM parts. So yes - apples to apples. > If so, then go with the cheapest because that is your advantage. Then you are saying go with the on-line dealer. > Just as a warning...I recently priced a rear chrome bumper for a B2500 full > size van...my local Chrysler dealer quoted about $775 for the bumper plus > some guff about a change of spec. which necessitates the purchase of two > brackets at $225 EACH (I kid you not!). > > Thinking this was a bit high and shopped around...a local wreckers claimed > they could get "OEM Spec" bumpers for about $260....of course I fully > suspected a lower quality part but I am selling the van anyway so this > wasn't a big issue and it is not a safety or reliability part. So I went > ahead and ordered. OMG, what a piece of junk it is. Very substandard chrome > with imperfections, numerous rectangular holes in the metal for no reason I > can fathom (too many for installing lights or a winch, etc.) and the hint of > rust already starting in one place. > > As I say, in this case none of that is a problem but I only mention it to > you as a warning that there is often a good reason why there is a difference > in price betwen OEM and "other" parts. Repeat: We are talking about OEM parts from these on-line dealer. *YOU* are not doing apples and apples. We are. > Sorry if all this is stating the obvious. No - it is debating something that we are not even talking about because we are talking about buying OEM parts. You are comparing OEM to aftermarket, which is known for absolute lowest common denominator for quality in the type of part you are talking about. > One final thought...of course some dealers are crooks and money grabbers > but, if you get to know your local dealer and ascertain that he is basically > a fair operator maybe it is worth paying a little extra to help keep a local > business viable...you never know when you might need them... With one exception (a firmware upgrade - and I took it to a dealer 30 miles away rather than the one I can see from my house - the one that charged my elderly mother for an oil and filter change on her brand new car, and did not perform the oil and filter change) I haven't taken my car to a dealer of any type in over 20 years. One of the Chryslers I own now I bought from a local used lot for $1000 (valued at that time for $5500) because the used car lot spent over $3000 on having the local dealer diagnose and replace good parts without success on an intermittent problem that prevented them being able to sell it to any "regular" customer. After getting it in my driveway, with 4 hours of troublehooting with *no* diagnostic equipment, I narrowed it down to a bad TCM. Replaced the TCM with a junk yard unit - been running fine for 3 years since. Same dealer that charges 10 to 20% over list for parts. Why *should* that dealer stay in business? ..and wouldn't it > be a shame if, sometime in the not-too-distant future there were NO local > sources of supply because we'd all helped to put them out of business by > buying everything online? Our President is doing all he can to see that that happens. And, though he and our "wonderful" Congress have gotten a good start, they haven't yet even passed cap-and-trade and some other things *designed* to wreck the economy. When he/they is/are done, all of the hypothesizing about supporting local business or internet business or any kind of business will have been nothing but mental masturbation because it won't matter for at least the next election cycle plus some years for un-doing and true recovery. That aside, there are certain types of product that I *DO* tell people to go local on - tires. People *think* tire pricing from on-line companies (one in particular) is cost effective without really looking at the numbers. They fail to do what you and I both call an apples-to-apples comparison. The on-line price looks good until you add on the cost of shipping and paying a local tire shop to mount the tires at a cost of $10 to $20 per tire - then *all* savings go away. Not to mention that if you have a problem, the on-line dealer tells you to go pound sand (because - "OH - your alignment must be off", or any number of bogus excuses - basically you have no leverage with them if problems develop). So you can't generalize in the buy-local vs. buy-on-line decision - you have to do an honest case-by-case analysis of all costs involved (plus risks), which you would agree with, except your analysis was flawed because you seem to be under the assumption that we are talking about buying OEM from a local dealer vs. buying inferior aftermarket parts from an on-line company that is calling themselves a dealer but is not. (BTW - it may very well be that, for your bumper, the shipping might eat up any savings from an on-line dealer - I don't know - I'd have to look at the numbers - parts prices plus shipping in one case and sales tax in the other. But for small parts, which is what I and most other people are buying probably 85+% of the time, there is *no* contest.) I tell you area where you about break even on buying on-line: Aftemarket car parts (and in this case, I am talking buying from the local auto parts store vs. buying from an internet aftermarket parts source. Even with a 5% discount, the one on line that most people rave about usually comes out either even or possibly with a few pennies advantage compared to the local parts store after you add shipping or sales tax as applicable. You do get more brand selection on line, so again, you have to take it on a case-by-case (part-by-part) basis. > Just a thought...oh....and I'm not anti-internet....I operate an > internet-based business but I deal in information and digital products so I > don't compete with any local businesses. But you've been discussing without knowing what you are talking about because we are talking about buying OEM parts in both (local vs. on-line) cases. -- Bill Putney (To reply by e-mail, replace the last letter of the alphabet in my address with the letter 'x') |
#9
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Parts Prices. Dealer vs Online
Simon,
You raise some excellent points, but I thought we were talking about genuine Chrysler dealers who are selling the exact same genuine Mopar parts. My experience using several different on-line dealers is that the typical savings are 30%-40%. When the need is not urgent and the maintenance work can be planned in advance, I order my parts from an out of state on-line dealer. Since I am usually not willing to pay for premium expedited shipment, I usually receive the parts via UPS ground delivery about a week to 10 days after I place the order. Another benefit is that I do not pay state sales tax, but I find that this savings here usually is roughly the cost of shipping so turns out to be "a wash". Here is a real life example. Last fall I ordered some specialized shocks and struts for my '91 Mitsubishi 3000GT (Same as the Dodge Stealth, so can be discussed in this forum). A dealer in Cherry Hill, NJ sold them to me at a 30% savings from the list price quoted at all of my local dealers. The savings for these parts to me was $210. The shipping and handling they charged me was $24. The local sales tax I would have paid was $53, so I saved an additional $29 (sales tax - shipping charge), bringing my total savings to $239 on a list price of just under $700. Bob "Simon" > wrote in message ... > My point is that you need check you are comparing apples to apples...i.e. > are BOTH online sources and local dealer providing proper genuine OEM > Chrysler parts? > > If so, then go with the cheapest because that is your advantage. > > Just as a warning...I recently priced a rear chrome bumper for a B2500 > full size van...my local Chrysler dealer quoted about $775 for the bumper > plus some guff about a change of spec. which necessitates the purchase of > two brackets at $225 EACH (I kid you not!). > > Thinking this was a bit high and shopped around...a local wreckers claimed > they could get "OEM Spec" bumpers for about $260....of course I fully > suspected a lower quality part but I am selling the van anyway so this > wasn't a big issue and it is not a safety or reliability part. So I went > ahead and ordered. OMG, what a piece of junk it is. Very substandard > chrome with imperfections, numerous rectangular holes in the metal for no > reason I can fathom (too many for installing lights or a winch, etc.) and > the hint of rust already starting in one place. > > As I say, in this case none of that is a problem but I only mention it to > you as a warning that there is often a good reason why there is a > difference in price betwen OEM and "other" parts. > > Sorry if all this is stating the obvious. > > One final thought...of course some dealers are crooks and money grabbers > but, if you get to know your local dealer and ascertain that he is > basically a fair operator maybe it is worth paying a little extra to help > keep a local business viable...you never know when you might need > them....and wouldn't it be a shame if, sometime in the not-too-distant > future there were NO local sources of supply because we'd all helped to > put them out of business by buying everything online? > > Just a thought...oh....and I'm not anti-internet....I operate an > internet-based business but I deal in information and digital products so > I don't compete with any local businesses. > |
#10
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Parts Prices. Dealer vs Online
Bob,
Yes, I am sorry. I was under a misapprehension about these "on-line dealers"...it hadn't occurred to me that they were actual franchised dealers because, to my understanding, that is the antithesis of the purpose of a franchise....which by my understanding is that a dealer buys the right to sell Chrysler products in a specific geographic area. I didn't think the manufacturer allowed a dealer to promote sales outside a certain radius of their base....am I wrong here? I know I would be pretty steamed if I spent a million dollars or more setting up a dealership only to find I was losing sales to someone two states away. To my mind that defeats the whole system. Anyway, from a consumer point of view, if the savings are there, go for it by all means. Personally I prefer to deal locally and support local business people as long as they are fair operators. Even though I sell over the internet there are certain sectors that I don't feel comfortable with buying online. The automotive world is known to be riddled with crooked operators, to my mind dealing with someone hundreds or thousands of miles away only increases the risk of getting ripped off. Each to his own, I guess. Simon. "Bob Shuman" > wrote in message ... > Simon, > > You raise some excellent points, but I thought we were talking about > genuine Chrysler dealers who are selling the exact same genuine Mopar > parts. My experience using several different on-line dealers is that the > typical savings are 30%-40%. When the need is not urgent and the > maintenance work can be planned in advance, I order my parts from an out > of state on-line dealer. Since I am usually not willing to pay for > premium expedited shipment, I usually receive the parts via UPS ground > delivery about a week to 10 days after I place the order. Another benefit > is that I do not pay state sales tax, but I find that this savings here > usually is roughly the cost of shipping so turns out to be "a wash". > > Here is a real life example. Last fall I ordered some specialized shocks > and struts for my '91 Mitsubishi 3000GT (Same as the Dodge Stealth, so > can be discussed in this forum). A dealer in Cherry Hill, NJ sold them to > me at a 30% savings from the list price quoted at all of my local dealers. > The savings for these parts to me was $210. The shipping and handling > they charged me was $24. The local sales tax I would have paid was $53, > so I saved an additional $29 (sales tax - shipping charge), bringing my > total savings to $239 on a list price of just under $700. > > Bob > > > "Simon" > wrote in message > ... >> My point is that you need check you are comparing apples to apples...i.e. >> are BOTH online sources and local dealer providing proper genuine OEM >> Chrysler parts? >> >> If so, then go with the cheapest because that is your advantage. >> >> Just as a warning...I recently priced a rear chrome bumper for a B2500 >> full size van...my local Chrysler dealer quoted about $775 for the bumper >> plus some guff about a change of spec. which necessitates the purchase of >> two brackets at $225 EACH (I kid you not!). >> >> Thinking this was a bit high and shopped around...a local wreckers >> claimed they could get "OEM Spec" bumpers for about $260....of course I >> fully suspected a lower quality part but I am selling the van anyway so >> this wasn't a big issue and it is not a safety or reliability part. So I >> went ahead and ordered. OMG, what a piece of junk it is. Very substandard >> chrome with imperfections, numerous rectangular holes in the metal for no >> reason I can fathom (too many for installing lights or a winch, etc.) and >> the hint of rust already starting in one place. >> >> As I say, in this case none of that is a problem but I only mention it to >> you as a warning that there is often a good reason why there is a >> difference in price betwen OEM and "other" parts. >> >> Sorry if all this is stating the obvious. >> >> One final thought...of course some dealers are crooks and money grabbers >> but, if you get to know your local dealer and ascertain that he is >> basically a fair operator maybe it is worth paying a little extra to help >> keep a local business viable...you never know when you might need >> them....and wouldn't it be a shame if, sometime in the not-too-distant >> future there were NO local sources of supply because we'd all helped to >> put them out of business by buying everything online? >> >> Just a thought...oh....and I'm not anti-internet....I operate an >> internet-based business but I deal in information and digital products so >> I don't compete with any local businesses. >> > > |
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