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Can anybody explain to me why you cant buy cars directly from the manufacturer and why dont the car companies own the dealerships? It seems like an old outdated model that needs to change. Ive recently heard of the car company Telsa doing this and it was pretty interesting. What are your thoughts?
You can buy cars directly from the manufacturer. Go on their website, build the car you want with the options you want, and then take delivery at the factory or have it shipped to your local dealership.
Can anybody explain to me why you cant buy cars directly from the manufacturer and why dont the car companies own the dealerships? It seems like an old outdated model that needs to change. Ive recently heard of the car company Telsa doing this and it was pretty interesting. What are your thoughts?
Simple answer: it's against the law. An outdated law, yes, but it's still a law nonetheless.
Quote:
Originally Posted by MckinneyOwnr
You can buy cars directly from the manufacturer. Go on their website, build the car you want with the options you want, and then take delivery at the factory or have it shipped to your local dealership.
Please show me a website where you can buy a car from a manufacturer and take delivery on American soil. You can build your car to spec and have it shipped to your local dealership, but you are still writing the check to the dealer.
Simple answer: it's against the law. An outdated law, yes, but it's still a law nonetheless.
Please show me a website where you can buy a car from a manufacturer and take delivery on American soil. You can build your car to spec and have it shipped to your local dealership, but you are still writing the check to the dealer.
My point exactly. I never heard of anyone going online to purchase a car. Usually when you do that it'll show the local dealerships that you can visit. Its not like buying a TV where you can pick the car, the options, color and then pay by credit card to finalize the purchase.
In most states it is not possible to buy a car directly from the manufacturer. In these same states they require independently owned dealers to sell new cars. It is simply a protectionist scheme to preserve the car dealer business. It is a non-free market practice but almost the standard still. The car dealer "industry" is powerful at the state level. Many of the dealer owners are wealthy and the politicians are their friends.
Tesla is challenging many of these laws - because they do not want to sell their cars through dealers they don't own.
I know that you could do that years ago. My uncle bought his 55 Chevy from the manufacturer, he only lived 60 miles from Detroit and picked it up at the factory.
Since the late 1990s, car dealers have used their considerable political clout to pass or better enforce state franchise laws that in many cases make it a criminal offense for an auto manufacturer to sell a new car to anyone but a state-licensed car dealer. The laws governing who can sell new cars are among the most anti-competitive of any domestic industry. By creating local monopolies for dealerships and prohibiting online sales for new cars, they constitute a major restraint on interstate commerce.
Since the late 1990s, car dealers have used their considerable political clout to pass or better enforce state franchise laws that in many cases make it a criminal offense for an auto manufacturer to sell a new car to anyone but a state-licensed car dealer. The laws governing who can sell new cars are among the most anti-competitive of any domestic industry. By creating local monopolies for dealerships and prohibiting online sales for new cars, they constitute a major restraint on interstate commerce.
Thanks for that link. I always thought you could but i guess not. Doesnt BMW let buy a car from the factory in Germany?
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