4 ms·
There's very little difference between a dealership, and a scalper. Both capture all the items in the market, then work together to inflate the value, artificia
by nomel 4y ago
There's very little difference between a dealership, and a scalper. Both capture all the items in the market, then work together to inflate the value, artificially. The difference is that many places have laws preventing scalpers, and many places have laws requiring that you buy a car through a dealerships.
- Gigachad 4y agoDealers and scalpers provide liquidity. Sellers want the item off their hands now, buyers want something without waiting months for a seller. Dealers link these two needs together and take a cut for the service. There is no monopoly or requirement to sell a car through a dealer. It’s just that people find the service worth the cost.
- zeroonetwothree 4y agoActually dealers have monopoly protected by law in most states.
- Ekaros 4y agoMonopoly as in there is only one dealer?
- nomel 4y ago> monopoly: the exclusive possession or control of the supply of or trade in a commodity or service. Dealers have a legislatively enforced [1] monopoly on new car sales. 1. https://en.wikipedia.org/wiki/Car_dealerships_in_the_United_States https://en.wikipedia.org/wiki/Car_dealerships_in_the_United_...
- kortilla 4y agoWe’re talking about new cars though. There are laws in some states (see everywhere Tesla doesn’t have stores) requiring dealers to be used instead of going direct to manufacturers.
- slaw 4y agoIn WA if you trade in to a dealer you pay tax on cars difference. When you sell privately, buyer pays full 10% tax on used car.
- sneak 4y ago> There is no monopoly or requirement to sell a car through a dealer. This is false. In most states, direct sales are illegal.
- nomel 4y ago> There is no monopoly or requirement to sell a car through a dealer. This is incorrect. It's required, by law, in most states: > In the United States, direct manufacturer auto sales are prohibited in almost every state by franchise laws requiring that new cars be sold only by dealers. 1. https://en.wikipedia.org/wiki/Car_dealerships_in_the_United_States https://en.wikipedia.org/wiki/Car_dealerships_in_the_United_...