3 ms·

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

• 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.