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Hmm; no, I really disagree with this. The opaque car market does tend to increase revenues for dealers, but no one has explained how it incentivizes them to pr
by ruggeri 15y ago
Hmm; no, I really disagree with this.
The opaque car market does tend to increase revenues for dealers, but no one has explained how it incentivizes them to provide a better product. How could it? Car purchasing may well be a multi-dimensional problem, and price only the most visible dimension; innovation could explain those other dimensions better (like TrueCar is doing for price). But why should opacity remain a part of this process? Every car may be a unique snowflake (really?), but the price should be a function not of the buyer's bargaining power, but the car options.
The wrong incentives are unlikely to produce the right result; we know this from ECON101, why should markets for cars be exceptional?
Did not like the self-promotion here.
Finally: this article was not nearly opinionated enough. The article explains that the cars industry doesn't like TrueCar; but then it doesn't explain the argument against TrueCar. This is a common journalistic mistake; I'm happy to disagree civilly, but don't sacrifice the discussion to civility. If side X doesn't have a point, then just say so. In a debate, I'd rather have my points demolished than politely dropped. And readers are confused; I reread this article because I thought I had missed something...