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I wonder if the thinking was that dealers have more buying power since they’re purchasing multiple cars from the manufacturer at once, so they are on more equal
by fiddlerwoaroof 6y ago
I wonder if the thinking was that dealers have more buying power since they’re purchasing multiple cars from the manufacturer at once, so they are on more equal footing when it comes to negotiating with GM and Ford. Then, since there are multiple dealerships selling the same cars, they can compete with each other on price. Thus, in theory, allowing customers to purchase cars at a price closer to the “wholesale” price.
Of course, once the systems exist, the dealers will lobby for their continued existence.
- wongarsu 6y agoIf dealers really have that negotiation edge they should be able to stay relevant with market dynamics alone, instead of lobbying to prevent direct sales.
- thirtyseven 6y agoUnless the manufacturers undercut the dealers until they're out of business, then raise prices.
- ngcc_hk 6y agoApple still has dealer network with direct sell. But there are so many can’t imagine just manufactures.