Why can’t we buy new cars directly from the manufacturer?
Thursday, April 27th, 2006Reggie asked:
I’ve always wondered about this. Manufacturers charge a certain price to dealerships. The dealerships then sell it to the end consumer for a higher price. Why can’t the end consumer simply buy direct from the manufacturer? Even if the price to the end consumer was higher than what is charged to a dealership (to account for the increased cost to the manufacturer for selling directly to end consumers), it would still be way lower than what a dealership would charge to the end consumer. Therefore, the end consumer wins because they’re paying a much lower price. The manufacturer wins because they’d be getting the same or better price for each car anyway, and consumers would be much happier. The only losers would be dealerships, who deserve it, because of all the dishonesty, tricks, and games they use. So, why can’t we buy direct from the manufacturer?
RASHIDA
I’ve always wondered about this. Manufacturers charge a certain price to dealerships. The dealerships then sell it to the end consumer for a higher price. Why can’t the end consumer simply buy direct from the manufacturer? Even if the price to the end consumer was higher than what is charged to a dealership (to account for the increased cost to the manufacturer for selling directly to end consumers), it would still be way lower than what a dealership would charge to the end consumer. Therefore, the end consumer wins because they’re paying a much lower price. The manufacturer wins because they’d be getting the same or better price for each car anyway, and consumers would be much happier. The only losers would be dealerships, who deserve it, because of all the dishonesty, tricks, and games they use. So, why can’t we buy direct from the manufacturer?
RASHIDA





