Parts Dept.

[Guest imported_PackardV8]

This is not exactly Packard related but i'd like to hear from Eric and BH.

What do the Dealers do with parts that have sat on the shelf for extended periods of time????? How long would be considered an extended period of time???

[Ron Green]

Years ago (50's / 60's) the dealers were stuck with the old parts as they really didn't have the return programs they do today, plus they stocked many more parts and didn't depend on ordering from the factory warehouses each day.

Though I like all old vehicles Pontiac's rise to the top for me. While on the hunt for a old neon Pontiac sign 6 years ago through a coworker, he knew of one here somewhat locally at a dealer that has been around quite a long time. Seems his brother wanted to rent one of their small storage buildings and they agreed. This building was used for storing all the obsolete leftover parts and was packed full. In order to rent out the building 3 large dumpsters were used to scrap all the parts of which were still in the original boxes. The lone item that survived was the neon sign which his brother did get and won't sell.

Though this may sound like a urban legend I missed this cache of parts by a few months. I am sure this sort of cleaning house happens a lot. The dealership did not want to put forth the effort at having a sale.

[Guest JT]

Ron, I have a friend here who ended up with the parts from a Packard dealer that closed in the late 60's. They almost paid him to haul them off when they sold the building as he told it <img src="http://forums.aaca.org/images/graemlins/wink.gif" alt="" />

He still has a lot of it in storage and no interest in selling. Quite a collection.

[Twitch]

Just curious, does this guys sell individual parts to folks? I understand not the entire inventory but he's not just sitting on all of it is he? <img src="http://forums.aaca.org/images/graemlins/confused.gif" alt="" />

[Guest JT]

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Just curious, does this guys sell individual parts to folks? I understand not the entire inventory but he's not just sitting on all of it is he? </div></div>

That's about right. He just doesn't want to part:) with any of it. I guess since he has a few Packards he figures he might need something, who knows. I haven't seen it all and couldn't tell you how much he has but it would be more than my garage would hold.

[Ron Green]

Quote; "They almost paid him to haul them off when they sold the building as he told it"

One has to wonder just how much booty might still be out there. I know of a few old timers that have collected a fair amount of NOS parts but are now getting to old to deal with or sell it. Unfortunately most will probably be thrown out by their families when most of these gents pass. Many family members are only interested in the properties and bank accounts.

[Guest imported_PackardV8]

Parts Jocky's: Give us a rough idea of mark up on Dealer parts. If the Dealer pays the factory $100 for a part then what does the dealer sell it for???

Any quarterly or yearly premiums received by the Dealer for volumn???

If the dealer has to order a package of 10 then does the sale of only ONE item out of the pack pay for the rest???

[Guest imported_PackardV8]

I won't go into details but in the late 70's i got involved with Chev/GM vans. The front fender (very small one) listed at the dealer for about $90. My cost was about $75. According to two different inside sources GM had about $15 in the fender.

The Buick dealer i worked for in early 70's was somekind of a Zone Associate. I never really understood the association but the dealer had somekind of special arrangements with Buick that other regional dealers did not have.

Anyway, we quite often set up show and homolagation units for places like the GM building downtown Detroit. Did anywhere from 10 - 25 units ata time on sporatic basis.

71 Buick Electra 225 ($5K):

There was transfer documentation with one of the cars (from factory to Dealer as well as other entities involved). A Sales tax was written in on several of the papers. We concluded that the Dealer got the car for about 60% MSRP. Later according to other reliable source the factory costed the Electra at about $1200 and skylark at $800. Strange, that the cars were still under MSO while a sales tax was issued. But those were the figures we had in hand.

One thing is for sure, the dealers must be taking some kind of death defying oath to secrecy about what the car actually cost them.

[Guest BigKev]

In general most car manufactures are in the business of selling parts, and not cars. The new cars they make are delivery mechanism for the sale of all the future parts. While they obviously make money on the sale of a new car, it is the replacement parts sold over the lifetime of that car that generates the most income for a manufacturer. I remeber reading somewhere that over the entire lifetime of a car (from new car to the crusher) a manufacturer on average will generate 5 times more profit from the replacement parts then on the profit derived from the sale of the car new.

Dealers generate the most money from the profit on the parts and the service on the vehicles. Thats why the most profitable dealers always have the biggest service and parts departments.

Maybe I am off the mark here, but this is always how I have understood it.

[Twitch]

"(Of course, the parts store guarantee doesn't cover labor.)" Guess what? neither does GM or any manufacturer. My 96 Eldo needed an alternator and it's a major labor pain. I took it to my independent who more or less specializes in GM cars. Well not very long after the replacement it went bad- this is a new GM part now. My mechanic winced at the thought of having to pull it out but did, of course. I asked him about the labor and he told me no one reimburses for labor.

I found an engine remanufacturer who does though <img src="http://forums.aaca.org/images/graemlins/smile.gif" alt="" /> www.powerpro2000.com/