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Add-on Services Emerge As Auto Dealers’ Profit Generator

By Adrienne Roberts - April 7, 2019

Car shoppers headed to a dealership are in store for a hard sell on something other than a vehicle.

As dealers’ profit margins on new-car sales shrink, they are relying more on selling extended warranties, paint-protection plans and other add-on services such as personal lines insurance pushed by salespeople in the finance office or through partnership programs.

“Where dealers really keep their head up is boosting interest rates from the bank and throwing in products like insurance and extended warranties,” said Earl Stewart, owner of Earl Stewart Toyota in North Palm Beach, Fla.

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