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A Legislative Battle Is Brewing Between Car Dealers and Automakers in the U.S.


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Dealers are basically fighting for their perceived right to stand between auto manufacturers and customers, and this has also made dealers unlikely allies for buyers who are pushing back against subscription services.

 

https://www.msn.com/en-us/autos/news/a-legislative-battle-is-brewing-between-car-dealers-and-automakers-in-the-us/ar-AA18c2hl?ocid=mailsignout&li=BBnbfcL

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This reminds me of what the oil companies did in the 1970's, with the introduction of big, shiny Self Serve gas stations.  

 

They eventually pushed the independent garages out of retailing gasoline, who were actually resellers of the product.

 

Craig

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We are getting nickled and dimed at ever turn.  Subscription services are getting overwhelmingly ridiculous.  TV is nothing but subscription services to stream content.  Now cars.  As far as selling direct, how is the car delivered to my home?  Can I test drive my new car being dropped at my home before signing for it?  For service do I have to go to a specific shop?  I still think dealers serve a purpose. 

 

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14 minutes ago, joe_padavano said:

Why would an automaker want to sell a car to a dealer at wholesale when they can sell it directly to the consumer at retail?  Follow the money.

Of course that is idea.  However, it leaves the consumer left to do what when a warranty repair is needed?   Where can I test drive a car? Or, even look at one other than the super market parking lot?    

 

Edited by avgwarhawk (see edit history)
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  • 2 months later...

This is an old story...Porsche tried to get rid of dealers about 1980.  Somehow they were surprised by the backlash and backed off. Several states have since passed laws that protect the dealer's position, I don't know how Tesla gets around them, but they do.
I got a couple of customer surveys from Chevrolet a few months ago asking how much I'd be willing to pay as a subscription for things like heated seats. Terrible idea!   

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Those dealers that have been marking up the price of their vehicles by obscene amounts of money are only bolstering the automakers case for eliminating the dealers from the selling equation. For those dealers I would not shed a single tear if that happened.

 

Keep in mind that having manufacturers sell directly to consumers is not perfect by any means either. If a manufacturer decides to reduce the price of their vehicles by 1000s of dollars you can bet that buyers of those vehicles before the price cut will suffer and not be happy about it.

 

 

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