As with most things, “free market” is what they demand when they don’t get have access to the market or can’t command the whole market.
Once they have access or enough of a percentage to set the prices, suddenly the best thing is high barriers to entry and whatever else will help them maintain inelastic demand.
Many of the laws blocking direct to consumer sales of automobiles are old; literally dating back to when automobiles themselves were new. In many places those laws have been updated but that means we need to add nuance.
I live in Wyoming so that’s the first example I’ll use. Our law was updated in 2017 to allow direct to consumer sales -IF- the manufacturer hasn’t previously sold new vehicles in the state using dealerships. So a company like Tesla or Rivian can sell directly to a consumer while the more traditional brands such as GM or Ford can’t EXCEPT…
“A direct sale manufacturer shall not include an affiliate or wholly owned subsidiary of a manufacturer’s line make that is presently sold or has previously been sold in this state through a new vehicle dealer.”
So for example Ford can’t direct sell any of its regular products here but they could direct sell things from their Troller brand. GMC can’t direct sell you a Terrain but they could direct sell you a Baojun.
So here in Wyoming it can be done by nearly any new auto manufacturer and the existing ones can also do it IF they’re willing to use a Brand that has never seen sold here new by a dealership.
In other States, like Colorado, they allow DtC sales but ONLY "…if the manufacturer makes only electric motor
vehicles and has no franchised dealers of the same line-make. " So the normal auto manufacturers can’t do DtC at all UNLESS they get rid of all their In-State dealers but companies like Tesla and Rivian can do it no problem.
You can look at this pdf, last updated in 2019, for a state by state breakdown.
A ton of dealership money comes in due to their service side. For all electrics there’s no oil change. Brakes last ages. Fewer parts to break down. Etc. Dealerships will lose a ton of money on service work, including missing out on selling a new vehicle to a current customer that comes in for an oil change.
Also, almost no one should buy a Ford lightning. Only people that use it like a car and not a truck, but want to look like a truck owner.
Fact is that a dealership shouldn’t be a REQUIREMENT to sell a car.
I thought these are the ‘Free Market Capitalism’ sort of people. What are they afraid of?
As with most things, “free market” is what they demand when they don’t get have access to the market or can’t command the whole market.
Once they have access or enough of a percentage to set the prices, suddenly the best thing is high barriers to entry and whatever else will help them maintain inelastic demand.
Many of the laws blocking direct to consumer sales of automobiles are old; literally dating back to when automobiles themselves were new. In many places those laws have been updated but that means we need to add nuance.
I live in Wyoming so that’s the first example I’ll use. Our law was updated in 2017 to allow direct to consumer sales -IF- the manufacturer hasn’t previously sold new vehicles in the state using dealerships. So a company like Tesla or Rivian can sell directly to a consumer while the more traditional brands such as GM or Ford can’t EXCEPT…
“A direct sale manufacturer shall not include an affiliate or wholly owned subsidiary of a manufacturer’s line make that is presently sold or has previously been sold in this state through a new vehicle dealer.”
So for example Ford can’t direct sell any of its regular products here but they could direct sell things from their Troller brand. GMC can’t direct sell you a Terrain but they could direct sell you a Baojun.
So here in Wyoming it can be done by nearly any new auto manufacturer and the existing ones can also do it IF they’re willing to use a Brand that has never seen sold here new by a dealership.
In other States, like Colorado, they allow DtC sales but ONLY "…if the manufacturer makes only electric motor vehicles and has no franchised dealers of the same line-make. " So the normal auto manufacturers can’t do DtC at all UNLESS they get rid of all their In-State dealers but companies like Tesla and Rivian can do it no problem.
You can look at this pdf, last updated in 2019, for a state by state breakdown.
A ton of dealership money comes in due to their service side. For all electrics there’s no oil change. Brakes last ages. Fewer parts to break down. Etc. Dealerships will lose a ton of money on service work, including missing out on selling a new vehicle to a current customer that comes in for an oil change.
Also, almost no one should buy a Ford lightning. Only people that use it like a car and not a truck, but want to look like a truck owner.
Being forced to sell less profitable product. Somebody has to do it. But they’ll be damned if it’s going to be them.