4 ms·

Most states in the US have laws banning the direct sale of cars without dealers.

by ramraj07 4y ago

slrd7z88 4y ago
For states like California where it is legal, can you only buy Teslas directly?
- telcal 4y ago
  Tesla's can only be bought new directly from Tesla. They are the manufacturer and "dealer". The sales people work on salary, no commission. Here's the list of states where you can't buy a Tesla directly but there are workarounds for those people https://en.wikipedia.org/wiki/Tesla_US_dealership_disputes https://en.wikipedia.org/wiki/Tesla_US_dealership_disputes
kenniskrag 4y ago
why?
- deleted 4y ago
  [deleted]
- Bayart 4y ago
  Regulatory capture.
- oconnor663 4y ago
  https://www.npr.org/sections/money/2013/02/12/171814201/episode-435-why-buying-a-car-is-so-awful https://www.npr.org/sections/money/2013/02/12/171814201/epis...
- spoonjim 4y ago
  The auto manufacturers themselves lobbied for these laws ~100 years ago. Cars were very new and they wanted to encourage the construction of single-brand dealerships all over the country. They knew that local businessmen would not invest in dealerships if they could have the rug pulled out from them so they lobbied for much of the legal framework that governs franchisor-franchisee operations today.
  - yellowapple 4y ago
    > They knew that local businessmen would not invest in dealerships if they could have the rug pulled out from them If only they realized that sometimes those local businessmen deserve to have the rug pulled out from them.
- CPLX 4y ago
  Historical reasons why it happened are one thing but it’s worth noting that consolidation of corporate power is bad and breaking it up a little is a good thing.
- thrown_22 4y ago
  No business wants to sell to consumers, they are irrational and a huge liability. Much better to have some poor schmuck deal with that and be universally hated.
  - robertlagrant 4y ago
    But why do they need regulations to do that? Can't they just... not sell to consumers?
    - deleted 4y ago
      [deleted]
- csomar 4y ago
  It's a racket protected by law.

Most states in the US have laws banning the direct sale of cars without dealers.

slrd7z88 4y ago

For states like California where it is legal, can you only buy Teslas directly?

telcal 4y ago
Tesla's can only be bought new directly from Tesla. They are the manufacturer and "dealer". The sales people work on salary, no commission. Here's the list of states where you can't buy a Tesla directly but there are workarounds for those people https://en.wikipedia.org/wiki/Tesla_US_dealership_disputes https://en.wikipedia.org/wiki/Tesla_US_dealership_disputes

kenniskrag 4y ago

why?

deleted 4y ago
[deleted]
Bayart 4y ago
Regulatory capture.
oconnor663 4y ago
https://www.npr.org/sections/money/2013/02/12/171814201/episode-435-why-buying-a-car-is-so-awful https://www.npr.org/sections/money/2013/02/12/171814201/epis...
spoonjim 4y ago
The auto manufacturers themselves lobbied for these laws ~100 years ago. Cars were very new and they wanted to encourage the construction of single-brand dealerships all over the country. They knew that local businessmen would not invest in dealerships if they could have the rug pulled out from them so they lobbied for much of the legal framework that governs franchisor-franchisee operations today.
- yellowapple 4y ago
  > They knew that local businessmen would not invest in dealerships if they could have the rug pulled out from them If only they realized that sometimes those local businessmen deserve to have the rug pulled out from them.
CPLX 4y ago
Historical reasons why it happened are one thing but it’s worth noting that consolidation of corporate power is bad and breaking it up a little is a good thing.
thrown_22 4y ago
No business wants to sell to consumers, they are irrational and a huge liability. Much better to have some poor schmuck deal with that and be universally hated.
- robertlagrant 4y ago
  But why do they need regulations to do that? Can't they just... not sell to consumers?
  - deleted 4y ago
    [deleted]
csomar 4y ago
It's a racket protected by law.