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> They're rent-seekers, pure and simple, with no value add at all. Half the time they don't even have stock! That's a major oversimplification. Car dealers can
by fjk 13y ago
> They're rent-seekers, pure and simple, with no value add at all. Half the time they don't even have stock!
That's a major oversimplification. Car dealers can provide a lot of value to individuals looking to purchase a vehicle, both at the time of purchase and after the fact via test drives, financing, and discounts for future maintenance at their service centers. There are plenty of shady car salesmen that take advantage of vulnerable people, but that should not negate the benefits that many dealerships provide.
The stock issue is tricky, as many local dealers can't afford to carry a wide range of models and configurations. Stopping by the local dealership looking to buy a specific model vehicle same-day may result in disappointment. However, dealerships are very good about acquiring a vehicle that you are interested in purchasing. All you need to do is ask.
That being said, I agree with you that buying a car should be more similar to buying an iPad than it currently is. There are ludicrous laws that stifle innovation in the vehicle purchasing process, such as the Massachusetts Franchise law 93B[1] that prohibits manufacturers from owning dealerships. I think Tesla's vision[2] for first party dealerships and vehicle distribution is a step in the right direction.
[1] http://www.malegislature.gov/Laws/GeneralLaws/PartI/TitleXV/Chapter93B http://www.malegislature.gov/Laws/GeneralLaws/PartI/TitleXV/...
[2] http://www.teslamotors.com/nl_NL/blog/tesla-approach-distributing-and-servicing-cars http://www.teslamotors.com/nl_NL/blog/tesla-approach-distrib...
- notatoad 13y ago"Car dealers can provide a lot of value to individuals looking to purchase a vehicle, both at the time of purchase and after the fact via test drives, financing, and discounts for future maintenance at their service center." none of those things are exclusive to dealers for any reason other than the law requires it. a manufacturer-owned store could provide the same (or better) service in all cases. they add no value above and beyond what a first-party dealership would provide.
- revelation 13y agoIf you think they create value, then why not have the market validate that? It's the same issue over and over. Just because you did work does not mean it is worth anything.