Re: Edward Lapham's Aug 2 column, "Why can't Toyota dealers match Lexus?"
The average Toyota dealer makes $1,200 to $1,600 on a vehicle, whereas the average Lexus dealer makes $3,500 to $4,300.
The average Toyota service department will gross 65 percent to 72 percent on a repair, while a Lexus service department will gross 70 percent to 80 percent.
For example, on a Camry V-6, oil and filter service at a Toyota dealer will run approximately $21.95; it will be $29.95 on a Lexus ES 300 at a Lexus dealership. It's the same oil and the same filter.
With the higher profit, the most logical reason that a Lexus dealer has better CSI scores than a Toyota dealer is that Lexus dealers can pay their employees much better.
They also hire more staff to ensure a much better customer-to-employee ratio and customer-to-sales-staff ratio.