4 ms·

Whether they provide value is kind of irrelevant, because one (at least in the US) _has_ to go through them. Is their markup equal to the value they provide? We

Whether they provide value is kind of irrelevant, because one (at least in the US) _has_ to go through them. Is their markup equal to the value they provide? We'll never know, because we can't choose to not go through them. If I want to place an order for a vehicle (not buy one off their lot), the dealer does nothing but still makes a cut. Not to mention, the majority of folks selling cars (even new cars) are some of the slimiest you'll meet. They are masters of manipulation. This short NPR piece provides more information: https://www.npr.org/2022/11/09/1135633742/economists-hate-car-dealerships-too https://www.npr.org/2022/11/09/1135633742/economists-hate-ca... P.s. example of manipulation: some years back I bought a used Honda Civic. The 4th person I got passed to made sure to tell me "the civic is the most stolen car in the US", while trying to sell me on some aftermarket alarm system. I of course knew this was an intentionally misleading statistic, but I'm sure many folks could fall for it.

vladvasiliu 4y ago
> Whether they provide value is kind of irrelevant, because one (at least in the US) _has_ to go through them. Is their markup equal to the value they provide? We'll never know, because we can't choose to not go through them. > If I want to place an order for a vehicle (not buy one off their lot), the dealer does nothing but still makes a cut. I'm pretty sure this is the same in Europe, or at least in France. Even if I wanted to buy a local make, say a Renault, I don't know how I'd go about getting in touch with the manufacturer directly instead of going through a dealership. Now I've never actually bought a new car, only motorcycles. And even though it's the same process (I don't think I can order a Honda nor a BMW "direct"), the dealerships didn't try to make me buy useless options.
- ilyt 4y ago
  >I'm pretty sure this is the same in Europe, or at least in France. Even if I wanted to buy a local make, say a Renault, I don't know how I'd go about getting in touch with the manufacturer directly instead of going through a dealership. The difference is that manufacturer-owner dealership is basically not an option in US. My local Toyota dealership is owned by Toyota. Some other ones are just "licensed" to be their official dealerships, so not owned by Toyota. In US the "licensed" one can decide "well, the car is rare" (and in pandemic that was every car), here is extra 10-20% dealer markup just because we can. In EU, customer would just go to official Toyota one that doesn't do shit like that
- wongarsu 4y ago
  I'm pretty sure you can buy both Volkswagen and BMW direct if you go through their website. Honda meanwhile seems to refer you to a dealership. Volkswagen even offers you the option to fetch your vehicle from their factory in Wolfsburg (tour included, drinks cost extra) instead of having it delivered.
natch 4y ago
> _has_ to go through them Strong wording for something that is not true. You can bypass them by getting a Tesla.
darkwater 4y ago
> Whether they provide value is kind of irrelevant, because one (at least in the US) _has_ to go through them. Is their markup equal to the value they provide? We'll never know, because we can't choose to not go through them. To me this is a bogus argument because with Tesla you don't have the other option. Well, you kind have it but Tesla showrooms/service centers are usually a shitty experience in terms of "a salesman caring for you". Anyway, I'm from Europe and I guess that the car dealership experience is pretty different (I know the US ones just by movies and Monkey Island)
- elromulous 4y ago
  Sure, you don't have any other option, but it's their product anyway. You're already saying you want something from them. Also, my experience at Tesla dealerships has been the best of any dealership (and keep in mind I'm not a musk apologist (quite the opposite), nor own or plan to own a Tesla). They literally give you the keys and let you drive around by yourself, no questions asked. The experience is lower stress than buying a pair of shoes.

vladvasiliu 4y ago

> Whether they provide value is kind of irrelevant, because one (at least in the US) _has_ to go through them. Is their markup equal to the value they provide? We'll never know, because we can't choose to not go through them. > If I want to place an order for a vehicle (not buy one off their lot), the dealer does nothing but still makes a cut. I'm pretty sure this is the same in Europe, or at least in France. Even if I wanted to buy a local make, say a Renault, I don't know how I'd go about getting in touch with the manufacturer directly instead of going through a dealership. Now I've never actually bought a new car, only motorcycles. And even though it's the same process (I don't think I can order a Honda nor a BMW "direct"), the dealerships didn't try to make me buy useless options.

ilyt 4y ago
>I'm pretty sure this is the same in Europe, or at least in France. Even if I wanted to buy a local make, say a Renault, I don't know how I'd go about getting in touch with the manufacturer directly instead of going through a dealership. The difference is that manufacturer-owner dealership is basically not an option in US. My local Toyota dealership is owned by Toyota. Some other ones are just "licensed" to be their official dealerships, so not owned by Toyota. In US the "licensed" one can decide "well, the car is rare" (and in pandemic that was every car), here is extra 10-20% dealer markup just because we can. In EU, customer would just go to official Toyota one that doesn't do shit like that
wongarsu 4y ago
I'm pretty sure you can buy both Volkswagen and BMW direct if you go through their website. Honda meanwhile seems to refer you to a dealership. Volkswagen even offers you the option to fetch your vehicle from their factory in Wolfsburg (tour included, drinks cost extra) instead of having it delivered.

natch 4y ago

> _has_ to go through them Strong wording for something that is not true. You can bypass them by getting a Tesla.

darkwater 4y ago

> Whether they provide value is kind of irrelevant, because one (at least in the US) _has_ to go through them. Is their markup equal to the value they provide? We'll never know, because we can't choose to not go through them. To me this is a bogus argument because with Tesla you don't have the other option. Well, you kind have it but Tesla showrooms/service centers are usually a shitty experience in terms of "a salesman caring for you". Anyway, I'm from Europe and I guess that the car dealership experience is pretty different (I know the US ones just by movies and Monkey Island)

elromulous 4y ago
Sure, you don't have any other option, but it's their product anyway. You're already saying you want something from them. Also, my experience at Tesla dealerships has been the best of any dealership (and keep in mind I'm not a musk apologist (quite the opposite), nor own or plan to own a Tesla). They literally give you the keys and let you drive around by yourself, no questions asked. The experience is lower stress than buying a pair of shoes.