View Full Version : Franchise Laws

10-25-05, 11:36 AM
No offense to the dealers but I believe it's high time (well past due) that the auto industry DROP its "protectionalism" mindset and do away with auto franchise laws that PRECLUDE direct factory purchasing by we consumers. We would no longer have to deal with inexperienced sales people, destination charges, and all the bickering/antics that go on in many a show rooms. The network of auto dealers would still handle the profitable revenue stream recognized from repair/warranty work. If one feels more comfortable going the dealer route then so be it. I for one, do not think the dealers on whole would lose much business anyway because most in this country are too lazy to inform themselves and/or actually drive to the respective plant and commsumate the deal on their own. But for we "others" if I could save another $1,500 buying right from the plant that made these vehicles, I would do so in a New York minute, and this option ought to be available to us. If America wants to truly compete in this new "globalization" era then doing away with these "protectionist" franchise laws is step # 1 that must be enacted.

10-25-05, 12:27 PM
this will get more interest in this forum

10-25-05, 02:01 PM
Dealers are counted on to help promote products and in theory, build customer understanding of the product line.

10-25-05, 02:15 PM
Not to mention provide the most knowledgeable brand-trained technicians to service your vehicles. Bit of a stretch, but millions still pay the stealership.

10-25-05, 08:36 PM
Automobiles really do seem to be one of the last vestages of the "dealer" era. Most all appliances and electronics for example, that 20 years ago you would go to the local authorized dealer to purchase, are now available directly from the factory via website or telephone/mail-order channels. This does not mean a necessarily greater price advantage however. Sony for example has been running its SonyStyle direct store for several years now but the prices are nearly MSRP all the time, where alot of small wholesalers and dealers can still offer the product for substantially less money with a full warranty.

This would probably be the best scenario, instead of a dealership in the traditional sense, the better alternative might be a "broker" as it were, that could deal with the factory or other dealers in the area and locate the car for you closest to the price you are wiling to pay for it, like priceline, including a reasonable but still much smaller commission than a dealership might usually take.