Car Dealership Franchise Agreements are Government Sponsored Monopolies. Oh please. Stop that 2k tax per car per family. Yes, I said it. For that matter so is the NFL, the NBA, the NHL, etc…. so let’s just call a Spade a Spade. (And speaking of “Spades“, while not a gambler myself, the last time I checked the casino industry was more open to competition than car dealerships. Go figure.)
If you want to save about 2k per car purchase – check the link on car dealership monopolies … It’s about time the monopoly of dealerships was seriously threatened with…. um….. CAPITALISM. FREEDOM. APPLE PIE. THE AMERICAN WAY. So why do we have socialized / monopoly car franchises? History and cronyism my friends. No. Other. Reason.
Free Enterprise is a good thing folks. I recognize the need for regulation (the tragedy of the commons) to protect our commons (no Benzene in the rivers for example – that’s a good regulation.)
But can’t we let competition keep up with technology? Why can’t I buy a car direct from the manufacturer? Name one rational reason besides protectionist laws from the stone age? (with apologies to my friends who might still be at UCS or ReyRey).
I work on the Internet. The speed of innovation is so radically fast and the threats to your business model are constant. And our business is 17 years old because WE ADAPT. Yes, people who can’t adapt that fast leave the company, but…. you know, it’s called competition for a reason. Adapt or die unfortunately.
So it will be interesting to see which manufacturer invalidates all of it’s franchise agreements with the dealerships first by allowing direct sales. Because whoever does it first, those dealerships will sell the MOST cars.
Yes, at first the dealers will be upset, and then, it’ll be alright. Everythings gonna be alright. And dealers know they make most of their profit from Parts and Service anyway. (OK, and Used Cars & F&I but we can’t fix it all at once I guess.)