3 ms·

But it sounds like the local middleman is getting rich at the expense of fellow-locals

taeric 4y ago
There is little reason to think moving to direct sales will help anyone local, is there? I'm now convinced it is a bad idea. But I don't see it being good for local at all.
- Someone1234 4y ago
  The manufacturer can set the invoice price at whatever they want already. Dealerships are only negotiating their piece of the pie, they aren't actually able to alter the core price of the vehicle. The market/competition determines what a manufacturer charges, the dealerships just obfuscate the exact figure. So I agree with the other commentor, they exist to extract local money, to make a few locals rich, the manufacturer's piece of the pie is whatever they think they can charge either way. If you cut out dealerships you make prices less obscure and force manufacturers to compete more closely with one another, and also save the middleman rent-seeking.
  - taeric 4y ago
    Sorta. Most of the big names already make more with financing than they do from the car. Cars are odd. Shipping is not cheap on them. And will never be cheap. If there is not some contractual obligation to ship inventory closer to consumers, I see little reason to think prices won't go up in a market that is dominated by direct sales.
  - dijonman2 4y ago
    Sales margins are low. Service is the big money maker, and if you buy a new car you don’t want to void the warranty. Making money on the back through financing or upsells is normal.
- jethro_tell 4y ago
  Well, we've recently seen dealers marking up cars insane prices, so maybe direct sales at MSRP do help keep money local.
grogenaut 4y ago
I'm glad if I'm going to pay someone for not doing anything it's a local person so I can see how much my money is helping them at the country club I can't get into.
- walrus01 4y ago
  Perhaps you can gaze wistfully at their yacht you can't hope to afford in the local marina you can't afford moorage at too! Fun times for all.
- taeric 4y ago
  I mean, I'm not really trying to defend them. Just saying that having the wealth local gives a better chance of taxing it locally. I'm game for how this week help local folks, though. My gut is it will just be fewer rich people at the very top of these companies.

There is little reason to think moving to direct sales will help anyone local, is there? I'm now convinced it is a bad idea. But I don't see it being good for local at all.

Someone1234 4y ago
The manufacturer can set the invoice price at whatever they want already. Dealerships are only negotiating their piece of the pie, they aren't actually able to alter the core price of the vehicle. The market/competition determines what a manufacturer charges, the dealerships just obfuscate the exact figure. So I agree with the other commentor, they exist to extract local money, to make a few locals rich, the manufacturer's piece of the pie is whatever they think they can charge either way. If you cut out dealerships you make prices less obscure and force manufacturers to compete more closely with one another, and also save the middleman rent-seeking.
- taeric 4y ago
  Sorta. Most of the big names already make more with financing than they do from the car. Cars are odd. Shipping is not cheap on them. And will never be cheap. If there is not some contractual obligation to ship inventory closer to consumers, I see little reason to think prices won't go up in a market that is dominated by direct sales.
- dijonman2 4y ago
  Sales margins are low. Service is the big money maker, and if you buy a new car you don’t want to void the warranty. Making money on the back through financing or upsells is normal.
jethro_tell 4y ago
Well, we've recently seen dealers marking up cars insane prices, so maybe direct sales at MSRP do help keep money local.

grogenaut 4y ago

I'm glad if I'm going to pay someone for not doing anything it's a local person so I can see how much my money is helping them at the country club I can't get into.

walrus01 4y ago
Perhaps you can gaze wistfully at their yacht you can't hope to afford in the local marina you can't afford moorage at too! Fun times for all.
taeric 4y ago
I mean, I'm not really trying to defend them. Just saying that having the wealth local gives a better chance of taxing it locally. I'm game for how this week help local folks, though. My gut is it will just be fewer rich people at the very top of these companies.