

He'll either lobby Congress for legislation or file a federal lawsuit















Source: Automotive News

Comments     Threshold


RE: Pretty pathetic
By 91TTZ on 4/16/2013 4:10:58 PM , Rating: 3
Cars are something you purchase once every 5-10 years, right? By the time you want to buy a new one, all the models and prices and a fair amount of the technology have changed. Consequently, it's difficult for any individual buyer to accurately gauge the actual value of a car. On top of that, people tend to "fall in love" with one particular make or model. That type of situation is vulnerable to the manufacturer artificially inflating prices. If all Fords are sold directly to individuals, and Ford is in charge of direct pricing, and the individuals don't really know the value of the cars, it's pretty easy for them to ratchet up the price without the individuals figuring out they're being ripped off.

How would this differ from any other product? You would comparison shop like you do with anything else. TVs, computers, used cars, food, furniture, etc. Why are all these products not marked up to insane prices? Because nobody would buy them.

With just about any product you're going to have competition and each manufacturer needs to find ways to undercut their competition. Having a middleman that also needs to make money can only serve to raise the price.

Also, nobody is proposing that we abolish all car dealers. They could still exist, they just won't be required to exist by law. If you want to buy a car at a marked-up price from a dealer go ahead. Look at the used car market. There are dealers for used cars but you don't have to go through a dealer. You can buy a used car from anyone. I could sell you my used car.

RE: Pretty pathetic
By Mint on 4/17/2013 12:19:45 AM , Rating: 2
The problem is that they keep disappearing as soon as manufacturers start selling direct. A person goes to a dealership to test drive a couple cars, then makes his purchase direct, and the dealerships go out of business.

Then people who already bought cars from that manufacturer have few places left to bring their car for repair. New buyers lose a mechanism for comparison shopping, which is absolutely fundamental for a competitive and efficient market.

Direct selling for computers or clothes or whatnot is a little different than for cars.

RE: Pretty pathetic
By Dr of crap on 4/17/2013 1:08:37 PM , Rating: 2
No it's not. Might be for some, and works for a lot of others.

A lot of people search online, find what they want and prices that they should pay and THEN go into the dealership - ummm sounds like electronics and Best Buy doesn't it?

RE: Pretty pathetic
By Mint on 4/20/2013 12:04:05 PM , Rating: 1
You just proved my point with electronics. Retail is getting hammered by online sales (which are just a thin layer away from direct sales). Circuit City went bankrupt, BestBuy is on its way.

