Quote:
Originally Posted by xlover
you might have an arguement if franchise laws did not fiercely protect dealer territory and even dealer existence.
Show me a market where a legacy dealer has to compete with a corporate store down the street and if I think they both are doing a crappy job selling to the customer I can open my own between the two and try to put them out of business. That is the only real free market competition.
I always find it hilarious when dealers are gouging the customer they point to “free market” but in reality car buying is one of the most regulated government protected markets for the seller.
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Franchise laws do protect dealers, no doubt. That’s why OEMs haven’t already gone full direct.
But those same laws are also the only reason you and I get any leverage as buyers. Dealers still have to compete with each other on price inside their territories. That’s what creates the discounts off MSRP.
Direct to consumer sales doesn’t create more competition, it kills it. You don’t get to “open your own store” or pit a corporate location against another. You get one checkout button on the manufacturer’s site at full MSRP, welcome to nirvana.
Dealers might be protected, but at least they fight for your business. OEMs never will.