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Should auto manufacturers be forced to sell through dealers?

Discussion in 'Sports and News' started by YankeeFan, Oct 19, 2014.

  1. YankeeFan

    YankeeFan Well-Known Member

    Several states have laws on the books that prevent manufacturers from selling their product direct to consumers.

    Tesla wants to sell direct, and fighting these laws, with Michigan being the latest battleground:

    Aside from protecting the established system, what's the benefit of such laws? They don't appear to be consumer friendly?
  2. Dick Whitman

    Dick Whitman Well-Known Member

    No. It's a total racket. I was talking to someone at work about this the other day.
  3. bigpern23

    bigpern23 Well-Known Member

    I'm not arguing for or against such laws, but there are a lot of jobs on the line. I suspect that has a lot to do with it.
  4. The Big Ragu

    The Big Ragu Moderator Staff Member

    It's sad that things like this have even become a question.

    You "should" be able to sell anything to anyone else, as long as you aren't committing any kind of fraud.

    How you conduct your business is up to you, and it shouldn't involve anyone else. As long as you have a buyer and a seller and they want to transact, it isn't something that anyone else should be allowed to stand in the way of.

    The only reason these things become questions in the first place is that we every interest in the world that wants to keep competition away been able to buy legislation that creates barriers to entry. It's corruption.

    Tesla should be able to sell any anything it wants to anyone else, as long as it there is a market for what it is doing, and the business it does is freely transacted. And everyone else should be minding their own business and ENCOURAGING that kind of economic activity. It's good for the country.
  5. JimmyHoward33

    JimmyHoward33 Well-Known Member

    Is there any precedent that such a law would be upheld on appeal? I realize they've been on the books for a while in different states, but have they ever been challenged before?
  6. Baron Scicluna

    Baron Scicluna Well-Known Member

    Kinda puts Snyder in a bit of a bind. He approves it, and he can say that he's opening things up for entrepreneurs. Yet, approval might also cost jobs.
  7. doctorquant

    doctorquant Well-Known Member

    Car sales taxes are a huge source of revenue to many/most states. Given that, dealerships tend to be pretty cozy politically. Thus, we wind up with legislatively (notice I didn't use the word legally) erected barriers to manufacturer-direct sales that enrich two classes of incumbents -- dealers and politicians -- at the expense of the public they ostensibly serve.

  8. Dick Whitman

    Dick Whitman Well-Known Member

    I hate that reason. They are fake jobs. Why not create a new law that then says the dealers have to sell to ANOTHER dealer, who only THEN can sell the cars to consumers?

    Lots of jobs!
  9. ColdCat

    ColdCat Well-Known Member

    One issue in Michigan's case is the Lemon law

    If you have a Michigan-based dealership, obviously Michigan law applies, but in the case of a California-based maker selling to a Michigan resident, would Michigan law apply?


  10. doctorquant

    doctorquant Well-Known Member

    I find it very hard to believe that a Michigan dealer is necessary to ensure that Michigan's Lemon Law is upheld.
  11. JayFarrar

    JayFarrar Well-Known Member

    With fake paychecks and people who hold those fake jobs, and get those fake paychecks, pay fake taxes and everything else fake.

    Why couldn't a person buy a car from a broker, who bought the car from Tesla and then call it a day?

    That's a pretty common thing in rural places that don't luxury car dealerships but have rich people who want Jaguars and Land Rovers and such. A broker buys the car at a dealership and then turns around and sells it to an individual buyer.

    Also, a dealer matters because, in theory, you have a relationship with that business and it becomes a place where you can have maintenance work done. A place where a technician can download the newest software for the car and and it also provides legal framework in case something breaks bad.

    And while I'm well outside that income bracket that deals with custom built vehicles. I thought it was always possible to buy a custom built sports car directly from the manufacturer or can the 6-7, 350 pound defensive tackle get the Ferrari of his dreams from a dealer?
  12. bigpern23

    bigpern23 Well-Known Member

    Personally, I lean toward letting them sell directly, but this argument is invalid. The jobs were already there and the laws enacted to protect them. The laws were not enacted to create the jobs. These are not fake jobs. They're very real jobs held by very real people with very real families.
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