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You don't, the dealer does. I sold cars for a short while. The dealer makes money by introducing a spread between what he paid for it (minus bonuses) and what y
by ryanmarsh 12y ago
You don't, the dealer does. I sold cars for a short while. The dealer makes money by introducing a spread between what he paid for it (minus bonuses) and what you'll pay (plus financing). They are middlemen pure and simple, something information technology is exceptional at deprecating. The reason the major brands don't have company stores like Tesla is manufacturers don't have to hold as much of a risk with inventory and dealers are well lobbied.
- Agustus 12y agoThe main issue here is the lobbying component of the dealerships. A lot of states have mandatory purchase the car from the car dealer mandates, thereby requiring a system in which the dealer makes enough money to continue their efforts.
- justincormack 12y agoThe rest of the world has car dealerships too, and as far as I know has no mandatory purchase rules. As far as I can make out car dealers make so little money in Europe that it is not worth disintermediating them, but I may be wrong.