>But instead we ended up with a system where car dealerships basically own local lawmakers and got laws passed that not only prevent the manufacturer from competing with them, but make it really hard for people to start new dealerships to compete with them.
There are practical reasons for this. People buy expensive items and expect to be able to get those items maintained and serviced. If the business was cutthroat, that could be more difficult. I don't want my dealer going bankrupt, frankly.
But the idea that dealerships aren't out there competing with each other is insane. Have you ever actually bought a new car?
>And the experience shopping for cars at a dealership is absolutely terrible, which shows you that they don't feel any pressure to compete.
Just the complete opposite experience I've had in my lifetime of buying new vehicles. And the idea that they don't compete is an outright fabrication. You have an incredible amount of leverage buying a car, and you can shop quotes around.
And the idea that they don't compete is an outright fabrication.
Not when almost all the dealerships in given region are own by the same family. Here the same group own the Genesis, Infiniti, Kia, Hyundai, Mazda, Mercedes, Mitsubishi, Nissan and Volvo dealerships in a 100km radius.
If I want a Mazda I can get a quote from Joe Cardealar or I can drive 50km and get a quote from his brother Steve Cardealar.
Yes, I've bought cars a couple times, and also had to trade-in cars. Every dealership experience I had was drawn-out misery where they tried to scam me. Maybe it depends on where you live?
Carmax was fairly OK in comparison to my experience with dealers but still took like 8 hours.
Exactly. And once they know you are interested, you have all the leverage, because there are so many great cars out there. You can negotiate ferociously.
I once had the salesman turn his terminal around and say to me, "Have a look. By the time we pay the guys to detail and prep the car, we will make $700 off this sale. I have no more room."
Which was a negotiation tactic and a lie, since dealers make a lot of their money from volume bonuses and not just the price difference of a car. "Invoice price" is also often not the actual price dealerships pay for a vehicle.
> People buy expensive items and expect to be able to get those items maintained and serviced. If the business was cutthroat, that could be more difficult. I don't want my dealer going bankrupt, frankly.
There are practical reasons for this. People buy expensive items and expect to be able to get those items maintained and serviced. If the business was cutthroat, that could be more difficult. I don't want my dealer going bankrupt, frankly.
But the idea that dealerships aren't out there competing with each other is insane. Have you ever actually bought a new car?
>And the experience shopping for cars at a dealership is absolutely terrible, which shows you that they don't feel any pressure to compete.
Just the complete opposite experience I've had in my lifetime of buying new vehicles. And the idea that they don't compete is an outright fabrication. You have an incredible amount of leverage buying a car, and you can shop quotes around.