Quote:
Originally Posted by Torgus
It is still a stupid move by the dealership given how much they lose because of the cc fees. I still find it hard to imagine...but I guess if you buy enough they made plenty of money off you in the past to deal with the % hit.
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Stupid? To keep a long-term customer happy who has a much higher value than a casual customer is stupid? On a $70,000 transaction they will pay less than a grand in charges. This keeps makes me happy and keeps me coming back, and more importantly, recommending them to any of my friends who are in the market for a car. I also bring my cars to the dealership for service and pay a little more for service because I get a loaner, have the 2 year/24K mileage warranty, and get to flirt with the cute blonde service porter. A win all around!
On the flip side there was what the Mercedes dealer did to my father 20 years ago. His E-Class was having some air con trouble and the first day they could take the car was a couple of weeks after he notified them. It turned out that the compressor was the issue and the repair cost was about $4,000. It also turned out that the car was one day out of warranty based on the delay and they took the hard-line and wouldn't cover the repair. He paid the cash and we haven't purchased a Benz in my family in 20 years and we grew up a Benz family.
The long-term value of a relationship is much more important than a single transaction. Transactional relationships are the lowest level relationship possible. Think hooker and john.
Cheers-mk