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Old 11-12-2012, 09:29 PM   #14
NFRs2000nyc
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Join Date: Feb 2004
Location: NYC/NJ
Posts: 904
My Ride: 2003 FormulaRedS2000
Quote:
Originally Posted by Xcelratr View Post
I lean toward your last statement. I'm not sure the major car mfgs actually want to be in the retail store business.

Could they make more money if they internalized (sorry, guess the term is "vertically integrated") the dealer network? I think so. Or could they make the same amount of money and just pass the savings to the customers? Maybe.

But the mfgs might actually like having the private dealers out there owning the lots, dealing with the haggling, the service, the local environmental and employment regs, the community involvement, area-specific advertising, . And the customers in metro areas probably like having several dealerships they can play against each other for price and service.



You're just shifting the regulation. Either open it up and let the mfgs compete for your business across the entire spectrum of price, service, convenience, product, availability and so on, or leave it alone.
Regulation is inevitable. There are many laws protecting consumers in regards to cars, and having a brick and mortar dealership is necessary. Allowing makers to sell at a mall kiosk from a brochure without an actual dealer network could cause problems in terms of service, breakdowns, etc etc.
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