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What do you mean? Car sales have very low margins. If the manufacturer swoops in and under-prices you after you setup a dealership to prove the market, you’re
by yunohn 5y ago
What do you mean? Car sales have very low margins. If the manufacturer swoops in and under-prices you after you setup a dealership to prove the market, you’re going to get screwed.
- Nbox9 5y agoIf someone underprices a dealership the general driving population (90% of Americans) would benefit while people that own dealerships (1% of Americans) would suffer.
- yunohn 5y agoI fully agree with your viewpoint. But it’s also important for someone to take the risk, otherwise that market might not even be served by anyone (dealer or manufacturer).
- HelixEndeavor 5y agoWhich would discourage manufacturers from developing a reputation for undercutting their own dealers. It's almost like the interests of the market lead it to self-regulate or something...
- HelixEndeavor 5y agoYeah you sure would be screwed if that did happen. But did it ever actually happen before those laws were put into place? Or was it simply the justification of the richest man in town creating a monopoly for himself?