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Car buying is going to be a challenging market: * There are a number of entrenched vendors in the space already for both new and used cars. * Car companies an
by kelthan 3y ago
Car buying is going to be a challenging market:
* There are a number of entrenched vendors in the space already for both new and used cars.
* Car companies and dealerships are working to eliminate the "invoice vs MSRP" price gap that was people used to negotiate a car purchase. That doesn't mean that gap no longer exists, only that car companies and dealerships are just unwilling to negotiate below MSRP. They are only willing to negotiate the markup over MSRP, which in many cases is ludicrously high.
* Some states have taken to legislating away the possibility of selling cars outside of dealer networks. Most with the intent to block Tesla, specifically, but they may also limit opportunities like what you are proposing.
There may be pockets of underserved consumers, but they are likely to have structural issues (low volume, high touch requirement, poor credit, legal concerns, etc.) that make them poor/undesirable targets for the established vendors. That usually translates to small market opportunity, limited upside availability, or both.
If you can figure out a way to completely disrupt the current model, you may be onto something. Tesla did that successfully with direct sales, and it worked until they started running into legal and legislative roadblocks precisely because of their success.