Sorry if this has been discussed recently, but it seems from my recent buying experience in Indiana (one salesperson and a manager running the store) that there are changes coming to how/where Acuras are sold. There was talk some years ago about Acuras being sold at Honda dealerships, but nothing came of that. However, given the rapidly declining sales of Acura sedans, and the lower profit RDX being the top selling Acura now, how can the dealerships stay open? Any thoughts?

A good dealership makes its money to pay for overhead from the service department. Great experience at the service department and likewise through Used car sales and new car sales help to feed the service department.

Dealerships with empty bays in the service department could be a sign of a struggling business.

eggs ackly.

A crossover SUV can’t cost measurably more than the sedan upon which it is based, yet they can get far more for one. How much more does a $70K BMW cost to make as opposed to a $45K Acura or a $30K Honda? Even taking a look at the price delta between the Tech and the Advance. From a production cost aspect, it likely doesn’t even cost half of the price delta.

We really have no idea what the profit margins are, but it is clear that the capital cost of entry is very high, and people and consortiums that have that level of capital sure do want a return on that capital. I expect that they get it.

^^^

Yup, go to Amsterdam and Europe and the taxi are MB. Put a few extra features in, improve the touch materials and have a nice showroom, treat people better and people will pay more even if the real cost to make is not linear.

I got a thing from Hyundai to take a test drive and get a debit card, so I went to a dealership to take a test drive. There was a Genesis there, and I said I wanted to test drive it per the offer. The floor manager asked what I was driving, and I said ‘that blue 535 there.’ He sent me out with a floor salesman that looked about 14. I took the test drive, and went back with the salesman to his desk. The kid whips out a ‘four square’ and starts trying to remember how to use it. The floor manager sees my face watching the kid and comes over. He asks me what I thought of the car, and I said I was favorably impressed by several things, more than I expected to be, but the car feels like it weighs 500lbs too much. You guys are getting there, I said. He said, yes, he thinks so, and that there are new models coming out. We shook hands and I left.

I don’t get how that kid has any chance of moving Genesis cars. The dealership experience of that grade of car must be much higher to compete. It has also been said that Stinger sales are hurting because of the Kia dealership experience.

Honda dealerships have gone upscale in my area, very close to matching the Acura experience. Coffee bar, internet lounge, salepersons don’t bother you. I could imagine Acuras being sold in the same building although they recently completely renovated the Acura dealership in my area. There are 3 Honda dealerships and 1 Acura in Brampton, all within about 20 minutes. I could see Acuras being sold in in the Honda shops where Acura dealerships are distant though.

Both my local Honda and Acura dealerships are owned by the same family (who also own many other brands). The stores are not near each other, and, so far, this family does not move locations. Their Honda dealership moved maybe 200 yards when they outgrew the old space 15 years ago, and the Acura dealership has never moved at all. This family’s dealerships are neighborhood fixtures. I live near the Honda dealership and have had at least one of their Honda’s in my driveway for the past 30 years. You virtually never see a Honda driving around that is not from them.

Acuras I have gotten were from them too, and that is where I went to check it out, even though they are not the closest. That dealership is a class operation, and I think that is because they have been in the car selling business for 100 years as of 2019, and the family seems to take the long view.

One area Acura dealership was bought by some type of conglomerate. It’s no longer ‘independent’ but it remains ‘stand alone’ and I’m sure most people don’t know it’s not independent of family owned now.

Both Acura dealers in my city have had money dumped into them. One dealership moved into a new building, maybe 3 years ago. The other had extensive renovations done, maybe two years ago. I doubt they're disappearing.