Research On The Mechanism And Countermeasures Of "Extended Warranty" To Improve The Profitability Of Automobile Dealers

China’s automobile market has always been an important part of the development of the global automobile economy.Since 2009,the production and sales volume of China’s automobile has been the world’s first.Although China’s automobile sales have far behind the United States,there are still many gaps in the profitability of automobile dealers.Through the analysis,it is found that the profitability level of dealers themselves is different.Dealers in the United States make more use of the platforms provided by automobile manufacturers to carry out horizontal business closely related to vehicle sales and after-sales to achieve profitability;while automobile dealers in China rely more on new vehicle sales to obtain rebate from automobile manufacturers to achieve profitability,which are 2 very different profit models Such profit model leads to the difference in operating brand and location,the difference in market and year,and the great fluctuation in profit of automobile dealers.In view of the lack of domestic micro research and specific case studies,this project focuses on the actual cases,and uses the structural equation model to study the mechanism of extended warranty to improve the profitability of automobile dealers.(1)Firstly,according to the relevant theory and practice of automobile extended warranty,the impact mechanism of potential variables related to extended warranty on improving profitability is discussed,and research topics are proposed accordingly;(2)then,the measurement formula and structural formula of structural equation model(SEM)are constructed by using some variables and indicators that can be directly observed;(3)with the assistance of GH company,the measurement formula and structural formula of seme are provided nationwide Dealers carry out a questionnaire survey to obtain reliable first-hand survey data;(4)finally,on the basis of analyzing the reliability of the questionnaire,the data of the questionnaire are analyzed by the description statistical analysis and structural equation model analysis,combined with the relevant data of GH company dealers as samples,to verify the impact of the extension of warranty on the profitability of dealers,and finally come to the conclusion of this paper.It is found that the extended warranty plays the most significant role in promoting the profitability of new car sales,promoting customer return to the factory,increasing the sales volume of second-hand cars,increasing the cash flow of sales stores and other aspects of dealer operations.Finally,based on the "extended warranty" as the starting point,this paper proposes reasonable and effective profit measures for dealers in line with the characteristics of China’s automobile market and provides decision-making reference for automobile dealers to improve their profitability.