Maybe dealerships served a purpose at one point, but today they are totally unnecessary. They are needless middlemen who exist only to jack up the price of vehicles.
Edit: this is the bullshit that needs to be undone. Dealerships should not be protected by unnecessary laws that force consumers and producers to use them.
Autoblog reports that the California New Car Dealers Association claims the direct sales strategy violates a 2023 amendment to California’s State Vehicle Code which prevents automakers and their affiliates from bypassing their franchise dealerships.
the american system with car dealers, and how they fuck people, is intrinsically connected to how the financing for them works.
I cant tell you what the numbers are because Im a non-american car dealer person, but the system in the US is built around the fact that the dealers can ruthlessly mark up the price. depending on the manufacture company too.
(for context Im a Canadian Toyota dealer that is strictly MSRP and no haggle , although I admittedly work for a very good dealership. 95% of the time the only complaint or drama we ever get is people just complaining that its taking too long for their order to arrive or get fulfilled
I dont think I’d stay in the industry if I had to work at another one though. The bar is very very low for the field. constantly being pulled down by people exactly like you describe, in my town there is I think 8 car dealerships (new ones at least), and 4 of them are owned by one man. and he’s a total sleazebag. he tried to poach me once, fuck that
The original purpose was so the dealership wouldn’t put all the money into their business only to have the OEM pull the rug out from under them. And that seems like a totally legit reason.
A lot of the laws because of this are, if you enter into a dealership agreement, you can’t exit.
So Tesla and Rivian are in the clear in a lot of places. Where things get bat shit fucked is where the dealerships then step in to get the laws changed to say all OEMs must use a dealership. Now it’s not about protecting their investment it’s just mafia type shit.
That being said, I think VW spinning off a new company scout to bypass the rules they signed up for as VW is breaking the spirit of the agreement and I wouldn’t be surprised if it was a legal violation as well. Otherwise the dealerships could have put all this money in, then they spin up VW2.0 and transfer all assets to the new Corp and the dealerships get fucked.
Fuck 'em.
Maybe dealerships served a purpose at one point, but today they are totally unnecessary. They are needless middlemen who exist only to jack up the price of vehicles.
Edit: this is the bullshit that needs to be undone. Dealerships should not be protected by unnecessary laws that force consumers and producers to use them.
the american system with car dealers, and how they fuck people, is intrinsically connected to how the financing for them works.
I cant tell you what the numbers are because Im a non-american car dealer person, but the system in the US is built around the fact that the dealers can ruthlessly mark up the price. depending on the manufacture company too.
(for context Im a Canadian Toyota dealer that is strictly MSRP and no haggle , although I admittedly work for a very good dealership. 95% of the time the only complaint or drama we ever get is people just complaining that its taking too long for their order to arrive or get fulfilled
I dont think I’d stay in the industry if I had to work at another one though. The bar is very very low for the field. constantly being pulled down by people exactly like you describe, in my town there is I think 8 car dealerships (new ones at least), and 4 of them are owned by one man. and he’s a total sleazebag. he tried to poach me once, fuck that
The original purpose was so the dealership wouldn’t put all the money into their business only to have the OEM pull the rug out from under them. And that seems like a totally legit reason.
A lot of the laws because of this are, if you enter into a dealership agreement, you can’t exit.
So Tesla and Rivian are in the clear in a lot of places. Where things get bat shit fucked is where the dealerships then step in to get the laws changed to say all OEMs must use a dealership. Now it’s not about protecting their investment it’s just mafia type shit.
That being said, I think VW spinning off a new company scout to bypass the rules they signed up for as VW is breaking the spirit of the agreement and I wouldn’t be surprised if it was a legal violation as well. Otherwise the dealerships could have put all this money in, then they spin up VW2.0 and transfer all assets to the new Corp and the dealerships get fucked.
Solid points, but we want the dealerships to get fucked. Slimy parasitic middlemen.