Why is my dealer charging $900 for a $500 part?

I have a 2018 Expedition with a failed catalytic converter. The replacement part (JL7Z-5E212-R) has a Ford MSRP of $670, but I can find it online for just over $500.

I got quotes from four dealers, and all of them were close to each other, so I chose one at random. When I saw the detailed quote, I noticed they’re charging over $900 for just the part. What’s confusing is the same dealer sells the exact part online for 5% under MSRP.

Why is there such a big difference in price?

Just bypass it.

Rin said:
Just bypass it.

I’m more curious why the price changes so much depending on where it’s being sold.

Dealers often have different prices at the parts counter versus online. Online, they know people are price shopping, so they keep it competitive. At the counter, they figure you’re already there and willing to pay more. As for price differences between dealers, some just have better supplier deals or focus on selling more parts at lower margins.

@Tan
Thanks for explaining. I’m still surprised they mark up the price so much just because they’re installing it. And all four dealers are doing it.

Davis said:
@Tan
Thanks for explaining. I’m still surprised they mark up the price so much just because they’re installing it. And all four dealers are doing it.

You could save a lot by ordering the part yourself and having an independent shop do the install. Probably save close to $1,000.

@Tan
Feels like I’m being ripped off here.

Davis said:
@Tan
Feels like I’m being ripped off here.

That’s why people call them stealerships. :wink:

@Tan
It’s not always a rip-off. Running a dealership costs way more than running an independent shop. If you think all that extra cost is pure profit, it’s not. I’ve managed both for over 20 years. Independent shops often have higher margins, but they can’t match the training and expertise of dealership techs.

@Harlan
I’d still go with a mechanic over a dealership technician any day. But hey, to each their own. I don’t let a dealership near my car once the warranty’s expired.