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Of Course They SHOULD (archive)

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Posted by Josh on September 03, 2000 at 01:15:58:

In Reply to: Dealers RRRR posted by PB on September 02, 2000 at 23:23:25:


Anybody think BMW should cut off dealers and sell cars (and X5's RRRRR) direct to consumers?

Of course they SHOULD, every manufacturer of every type of automobile SHOULD. The problem is they CAN'T. Independent dealers suck. They are a tax on the customer and the automaker. They no longer make any sense and they should be abandoned. The problem is there are laws forbiding autos from being sold directly to the public. A problem that is compounded by the fact that no manufacturer has the balls to try and kill off their dealers.

Of course there will always be a need for a local manufacturer representative to provide a showroom, garage, advice, etc. But in an perfect world these services would be provided by employees of the manufacturer (or employees of a sub-contractor to the manufacturer), not independant capitalists intent on getting rich. Ideally these shops would be paid to provide these services, not paid through the sale of cars.

I could forsee a couple companies who would provide "showroom services" for manufacturers. Essentially they would be paid to setup, staff, and run a showroom and garage. Note that they wouldn't get credit for sales, and they would have no power to set or alter prices. The use of these specialist subcontractors would dramatically lower car prices over the long run due to the inherent efficiency of this system over the current model.


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