Parts Prices. Dealer vs Online

Simon wrote:

> Yes, I get it Bill.
>
> Maybe you hadn't noticed that I had mentioned I HAD been under the
> IMPRESSION that franchised dealers were restricted to only selling within a
> pre-described region and I asked if this is, in fact, the case.

But you seemed to be going back over the same stuff over and over again.

> If it IS the case then the online dealers may end up losing their franchise.

I don't know the answer to that. If it is a violation of their
franchise, then Chrysler is turning a blind eye, because there are many,
many dealers that have been doing it for a few years continuously - as
well as with Ford and GM.

> If it is OK by Chrysler to sell that way then of course, it is every man for
> himself. That said, the dealers in larger centres have an obvious advantage
> over those in smaller centres so I still think it is a bit hard on "local"
> dealers if their local customers buy elsewhere. It is a vicious cycle...the
> lower the sales the higher he has to mark them up to cover his costs...don't
> be surprised if you don't have a local dealer at all in the near future.

That would not affect me in the least. I know it would be a problem for
most car owners, but I avoid dealers like the plague because I think
*most* of them are unethical and take advantage of people who are
ignorant of alternatives or who otherwise lack knowledge or leverage to
be treated fairly (I'm talking about most women and the elderly and
anyone who generally doesn't know one end of a car from the other).

> Now, if you are saying that your local dealer is a crook who is making a
> fortune and ripping people off with his pricing then well, fair enough, take
> your business elsewhere.

Thanks for your permission. My first new car experience (over 25
years ago) was a nightmare because of a dealer (in a different location
than I am at now). Every few years my distaste for dealers is
revalidated by my testing the waters or because of something I
personally witness. I can count on two fingers anything close to a good
experience with a dealer in the 25+ years since that first one. I will
say that I do know of a very good and honest dealer somewhat close to
me, but they are not close enough to be convenient enough for me to
forego my DIY nature.

Have you ever had a conversation with him about his
> prices? It might be interesting to find out what his thinking actually is.

I've mentioned it to a couple of the parts guys - they just say flat out
'no' and don't discuss it. Like I said, even local companies in
repair business don't even get a discount from this dealer. That's how
much they *don't* want people's business and are willing to suffer under
what you are calling an unfair system (of competing with on-line dealers).

> So, what is the deal with Chrysler...is selling outside the franchised
> region OK or not?

I honestly don't know for sure. But like I said, either it's not a
violation or it is just not enforced. I doubt if Chrysler has enough
leverage with anyone right now to be enforcing much of anything other
than paying the bills that are owed them. It also is to their advantage
to *not* enforce it (if it is in fact a violation) because it means more
parts sales for them - they probably welcome that right about now.

--
Bill Putney
(To reply by e-mail, replace the last letter of the alphabet in my
address with the letter 'x')