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Wall Street historically has preferred manufacturers to concentrate on R&D and manufacturing. Manufacturers with large offline presence would have inflated sta
by prostoalex 8y ago
Wall Street historically has preferred manufacturers to concentrate on R&D and manufacturing.
Manufacturers with large offline presence would have inflated staff numbers, higher labor costs, massive real estate presence and are harder to operate in case of a downturn.
Having some well-resourced locals willing to take up those risks seemed like a win-win at the time.
- craftyguy 8y agoI can understand why we got here, but I don't understand why there are any reasons why we must stay, other than to keep dealers in business. You don't need a real estate agent to buy a home. Do they make it easier for some folks? Yes, but you definitely pay for that convenience. You always have the option of doing it yourself (again, which saves a lot of money). Buying a car should be the same way. If you need help selecting a car (or whatever it is that dealers do), pay extra for the service. For everyone else, buying direct from the manufacturer makes more sense.
- prostoalex 8y agoI'd imagine the "selling" operation of the dealership is insignificant, at least the new cars department. Trade-ins, used cars, service and maintenance are the margin drivers. If you go through TrueCar, or any of their white-labeled sites (Costco Auto, Amex Cars, Overstock Cars), you're more or less buying direct.