4 ms·
It's a shame that more dealerships aren't like this. The traditional car dealership needs to go away. While companies like Carvana are great, the vast majority
by amyjess 8y ago
It's a shame that more dealerships aren't like this.
The traditional car dealership needs to go away. While companies like Carvana are great, the vast majority of car dealers are just engaging in rent-seeking behavior. These dealers exist solely so they can inject their own markup into the supply chain. They only continue to exist because their lobbyists have bribed state legislatures into passing laws that prohibit automakers from selling cars directly and blue laws that prohibit dealerships from being open on Sundays. Yes, most of the blue laws that are still on the books are the direct result of lobbying by car dealerships: small businesses are terrified that they're going to be replaced by corporate-owned dealerships that can afford to hire employees to staff their dealerships seven days a week, so they bribe lawmakers to pass anti-consumer laws that make it illegal for dealerships to be open seven days a week. Can't compete with a company that offers better service? Outlaw them! They are actively trying to drag the standard of living for the entire state all the way down to the lowest common denominator. Small businesses cause more externalities than they're worth.
We really need an aggressive push at the state level to overturn laws forbidding automakers selling cars and to overturn blue laws.
And while we're at it, let's get rid of the archaic third-world practice of haggling over car prices. We don't haggle over anything else, and it's an emotionally draining process that discriminates against people who don't have natural tendencies towards aggression. Honestly, I'm really disappointed Saturn and Scion went away, because they were the best hopes for dealership reform. And if we are going to have dealers lobbying state legislatures for laws, then let's actually have them do something beneficial and make it illegal to buy or sell a new car for anything other than MSRP.
Carvana is great, but ideally the automakers should be selling cars directly and adopting every single one of Carvana's innovations for themselves. We'd all benefit if every automaker in the country moved to the Apple Store model.
No more blue laws. No more dealers extracting markup from an unnecessary step in the supply chain. No more haggling. No more lying to and hiding information from buyers. Online sales as a first-class citizen of the omnichannel.
- ralph84 8y ago> We don't haggle over anything else On the contrary, almost all big ticket items are negotiated. It's just cars are the most frequently encountered big ticket item for the average person.
- sokoloff 8y agoExactly right. I negotiated hard on both houses I bought and pretty regularly (as a percentage of transactions) negotiate on Craigslist or Ebay type purchases. I've negotiated salary at every job I've taken after my first one. Many (perhaps more than half) of my business contracts are also negotiated as well. You don't have to negotiate these things if you're willing to take the other side's initial offer; it's probably financially materially in your favor to not do that though...
- kaybe 8y agoThe next time you buy something over 100-200 dollars, try saying 'Can you give me a discount please?' with a smile. Be relaxed and expect to get a no from them (just a small confirmation, right?) and continue as usual. It's not even haggling, it's just asking nicely. You'd be surprised how often that works. (Sometimes you get a choice of an additional small item free instead.)