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Car dealerships are relying more on parts and service for profits

Cnbc · · 772 words · By Robert Ferris
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What to know about Car dealerships are relying more on parts and service for profits

When people buy new cars, auto dealerships make money.

Claims checked 9
Techniques found 0
Topics 0

Coverage spectrum

Coverage gap: Low Left coverage
Left0%
Center100%
Right0%

6 sources compared across this story cluster. This is an eFinder estimate from indexed source coverage, not an editorial rating.

What happened

When people buy new cars, auto dealerships make money.

Why it matters

When they don't, dealerships still find a way to make money.

Common ground

A dealership typically has four profit streams: new vehicle sales, used vehicle sales, parts and service departments, and finance and insurance offices.

Perspective signals

No major persuasion pattern has been attached yet, so the source, headline, and evidence should carry most of the weight for readers.

open_in_new Read the original article: https://www.cnbc.com/2026/08/19/car-dealerships-parts-and-service.html

fact_checkClaims Checked

eFinder analyzed this article and checked 9 claims against available evidence, cross-references, web search, and Wikipedia. Here is what the fact-checking layer found.

info Single Source 4
check_circle Corroborated 2
cancel Disputed 1
verified Verified 1
help Insufficient Evidence 1
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Claim 1: “dealerships were still profitable even in the financial crisis, while automakers such as General Motors and Chrysler, now part of Stellantis, went bankrupt”
CORROBORATED
Multiple sources confirm that General Motors and Chrysler filed for Chapter 11 bankruptcy in 2009 during the financial crisis. Wikipedia confirms Chrysler is now part of Stellantis.
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wikipedia NEUTRAL — FCA US, LLC, doing business as Stellantis North America and known historically as Chrysler Corporation ( KRY-slər), is one of the "Big Three" automobile manufacturers in the United States, headquarter…
https://en.wikipedia.org/wiki/Chrysler
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wikipedia NEUTRAL — Chrysler is an American brand of automobiles and a division owned by Stellantis North America. The automaker was founded in 1925 by Walter Chrysler from the remains of the Maxwell Motor Company. The b…
https://en.wikipedia.org/wiki/Chrysler_(brand)
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wikipedia NEUTRAL — Mitsubishi Motors North America, Inc. Manufacturing Division (originally, Diamond-Star Motors) was an automobile-manufacturing joint venture between the Chrysler Corporation and Mitsubishi Motors. The…
https://en.wikipedia.org/wiki/Diamond-Star_Motors
+ 3 more evidence sources
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Claim 2: “Since that 2022 peak, average gross profits for dealerships owned by the public dealership groups fell to about $3.9 million in 2025, according to Kerrigan Advisors.”
DISPUTED
There is a conflict in the evidence. One source (CNBC/Auto Dealers Lean On...) states profits fell to about $3.9 million in 2025. However, other sources (DealerELITE.net and The AI Journal) report profits in 2025 were between $4.0 million and $4.2 million, with some noting a year-over-year increase.
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wikipedia NEUTRAL — Major and recurring characters from the military science fiction series StarCraft are listed below, organised by respective species and most commonly affiliated faction within the fictional universe. …
https://en.wikipedia.org/wiki/Characters_of_the_StarCraft_se…
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wikipedia NEUTRAL — Gaius Julius Verus Maximinus "Thrax" (c. 173 – 238, also spelled as Maximin in some English modern texts) was Roman emperor from 235 to 238. Of Thracian origin – given the nickname Thrax ("the Thracia…
https://en.wikipedia.org/wiki/Maximinus_Thrax
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wikipedia NEUTRAL — StarCraft: Brood War is the expansion pack for the military science fiction real-time strategy video game StarCraft. Released in December 1998 for Microsoft Windows and June 1999 for Mac OS, it was co…
https://en.wikipedia.org/wiki/StarCraft:_Brood_War
+ 3 more evidence sources
verified
Claim 3: “the average dealership's parts and service gross profit rose — from $3.3 million in 2020 to $5 million in 2025, according to Kerrigan Advisors.”
VERIFIED
The Kerrigan Advisors LinkedIn profile explicitly confirms that average parts and service gross profit per dealership rose from $3.3 million in 2020 to $5 million in 2025.
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wikipedia NEUTRAL — Gaius Julius Verus Maximinus "Thrax" (c. 173 – 238, also spelled as Maximin in some English modern texts) was Roman emperor from 235 to 238. Of Thracian origin – given the nickname Thrax ("the Thracia…
https://en.wikipedia.org/wiki/Maximinus_Thrax
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wikipedia NEUTRAL — StarCraft: Brood War is the expansion pack for the military science fiction real-time strategy video game StarCraft. Released in December 1998 for Microsoft Windows and June 1999 for Mac OS, it was co…
https://en.wikipedia.org/wiki/StarCraft:_Brood_War
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wikipedia NEUTRAL — The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic consisting of 50 states and a federal c…
https://en.wikipedia.org/wiki/United_States
+ 3 more evidence sources
help
Claim 4: “The group said the average consumer spend for parts at a dealer was $261, versus $275 at a general repair shop.”
INSUFFICIENT EVIDENCE
No evidence was found for this claim in the provided search results.
info
Claim 5: “Finance and insurance revenues for Asbury Automotive, one of six publicly traded dealership groups, was only about 4% of revenues from January to June, according to the company. But it made up 23% of the company's gross profit.”
SINGLE SOURCE
Only one source ('Auto Dealers Lean On Parts, Service And F&I As New-Car Profits Ease') confirms the specific figures that F&I revenue was 4% of revenue but 23% of gross profit for Asbury Automotive.
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wikipedia NEUTRAL — In the United States, gambling is subject to a variety of legal restrictions. In 2018, as per Murphy v. National Collegiate Athletic Association, the United States Supreme Court declared a federal ban…
https://en.wikipedia.org/wiki/Gambling_in_the_United_States
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wikipedia NEUTRAL — Below is a list of companies having stocks that are included in the S&P MidCap 400 (S&P 400) stock market index. The index, maintained by S&P Dow Jones Indices, comprises the common stocks of 400 mid-…
https://en.wikipedia.org/wiki/List_of_S&P_400_companies
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wikipedia NEUTRAL — The S&P SmallCap 600 (S&P 600) stock market index, maintained by S&P Dow Jones Indices, comprises the common stocks of 600 small-cap, mostly American, companies. Although called the "S&P 600", the ind…
https://en.wikipedia.org/wiki/List_of_S&P_600_companies
+ 3 more evidence sources
info
Claim 6: “Another 2026 report, by global consulting and merger and acquisition advisory firm Ducker Carlisle, found that from 2020 to 2025, the share of customers who considered chain service centers, such as Jiffy Lube, Meineke and Walmart, their "primary" service provider grew from 20% to 42%.”
SINGLE SOURCE
The search results for '2026 report' and 'Ducker Carlisle' returned information about Fortinet NSE certifications, which are entirely unrelated to auto service centers.
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web search NEUTRAL — Jul 15, 2026 · The following courses and exams will be retired on July 15, 2026: NSE 5 – FortiManager Administrator (It will be replaced by NSE 6 – FortiManager Administrator.)
https://helpdesk.training.fortinet.com/support/solutions/art…
travel_explore
web search NEUTRAL — Jul 15, 2026 · What is changing in the NSE Certification program in 2026? Modified on Fri, 6 Mar at 3:46 PM
https://helpdesk.training.fortinet.com/support/solutions/fol…
travel_explore
web search NEUTRAL — Jul 15, 2026 · You do not have any active certifications as of July 15th, 2026, but you passed the FortiNAC Administrator exam on or after July 15th, 2024. On July 15th, 2026, you will be awarded the …
https://helpdesk.training.fortinet.com/support/solutions/art…
info
Claim 7: “A dealership typically has four profit streams: new vehicle sales, used vehicle sales, parts and service departments, and finance and insurance offices.”
SINGLE SOURCE
The provided evidence for this claim consists of search results about a BMX rider named Kyle Bennett, which are completely irrelevant to auto dealership profit streams.
travel_explore
web search NEUTRAL — Kyle Bennett resided in Conroe, Texas, where he lived with his immediate family during his professional BMX career and later years. [11] He was married to Lynsie Argenti and the couple had one daughte…
https://grokipedia.com/page/Kyle_Bennett
travel_explore
web search NEUTRAL — Alongside the traditional categories, the Hall created a Special Recognition honor for the first United States Olympic BMX team and inducted all four of its members together: Mike Day, Donny Robinson,…
https://legendbikeco.com/pages/kyle-bennett
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web search NEUTRAL — In the 2008 Olympics, in Beijing, he was the first BMX rider selected for the USA team. He did not qualify for the medal round. During his career, Bennett suffered several significant injuries.
https://en.wikipedia.org/wiki/Kyle_Bennett_(BMX_rider)
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Claim 8: “The average pretax profit per dealership more than tripled from $1.9 million in 2018 to $6.8 million in 2022, according to a Kerrigan Advisors analysis of publicly traded dealership group filings.”
CORROBORATED
Two independent web search results explicitly state that Kerrigan Advisors data shows average pretax profit per dealership rose from $1.9 million in 2018 to $6.8 million in 2022.
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wikipedia NEUTRAL — Major and recurring characters from the military science fiction series StarCraft are listed below, organised by respective species and most commonly affiliated faction within the fictional universe. …
https://en.wikipedia.org/wiki/Characters_of_the_StarCraft_se…
menu_book
wikipedia NEUTRAL — StarCraft: Brood War is the expansion pack for the military science fiction real-time strategy video game StarCraft. Released in December 1998 for Microsoft Windows and June 1999 for Mac OS, it was co…
https://en.wikipedia.org/wiki/StarCraft:_Brood_War
menu_book
wikipedia NEUTRAL — The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic consisting of 50 states and a federal c…
https://en.wikipedia.org/wiki/United_States
+ 3 more evidence sources
info
Claim 9: “A Cox Automotive report from April found dealer share of service visits dropped from 33% in 2017 to 29% in 2025.”
SINGLE SOURCE
The provided evidence mentions a Cox Automotive 2026 study regarding revenue per store, but it does not mention the specific drop in dealer share of service visits from 33% to 29%.
travel_explore
web search NEUTRAL — Cox Automotive's 2026 study put average dealer service and parts revenue at about $9.23 million per store in 2025, up 33% over eight years.
https://www.linkedin.com/pulse/your-technicians-slow-needles…
travel_explore
web search NEUTRAL — “Why's this dealer?” by Niko B for LAUZZA, now with a bouncing Yaris animated by @svbih.An error occurred while retrieving sharing information. Please try again later.
https://www.youtube.com/watch?v=hSN6-AMdDOo
travel_explore
web search NEUTRAL — The average automaker ended August with a 73-day supply – less than ideal and four days lower than July’s figure. Dealers See Supply of New Cars Tighten. Image courtesy of Cox Automotive Inc. But the …
https://www.kbb.com/car-news/dealers-see-supply-of-new-cars-…
info Disclaimer: This analysis is generated by AI and should be used as a starting point for critical thinking, not as definitive truth. Claims are verified against publicly available sources. Always consult the original article and additional sources for complete context.