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Given there was a time when cars were (proportionately) more expensive, much less reliable, and mergers of companies were more common, requiring a dealer networ
by rodgerd 12y ago
Given there was a time when cars were (proportionately) more expensive, much less reliable, and mergers of companies were more common, requiring a dealer network to avoid you getting a very expensive dud probably seemed an attractive idea to the public.
- dylanjermiah 12y agoAnd now vehicles cost almost 10% more [1] due to the banning of direct sales. [1] http://www.justice.gov/atr/public/eag/246374.htm http://www.justice.gov/atr/public/eag/246374.htm
- ghaff 12y agoMore precisely though, those potential cost savings are primarily attributed to shifting from a build-to-stock to a build-to-order model, which at least in principle could be done with existing franchised dealerships. That paper also found that dealerships didn't consistently make money on new car sales. They make a lot more from service and parts.
- yuhong 12y agoI am talking about the pricing model in particular though.