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What it tells us is that dealers see the vehicles they sell as inferior. If they had the best product we wouldn't hear a word out of them. They can't compete and they have enough money to buy NC's political process to thwart the free enterprise system.
Thee dealer association stated, "the whole point of the retail system is to protect the consumer"
I can't believe that a representative of the Dealers says this with a straight face. These are the people who won't give you a real price on their products, sell consumers unneeded add-lines like ultra-expensive life insurance and whose repair facilities charge substantially more than those of independent shops.
If there's any evidence that the current system is harming consumers, it's in the palatial showrooms that the dealers are building for themselves -- the money to build those showrooms comes because the state franchising laws restrict competition.
If passed this legislation could be deemed unconstitutional based on the Dormant Commerce Clause. States engaging in blatant economic protectionism against out-of-state business is frowned upon by the law. Either way, further proof that government is for sale in Raleigh these days.
So buy it in another state and have THEM enjoy the sale tax revenue and commission!!!
I thought these guys were supposed to be "free-market" kind of guys....this exposes them for what they really are....big business corporate lackeys......they say we educators can "use a little competition"....guess that doesn't work SOME businesses.
Yet another instance of big business exerting a stronger influence over state legislation than its own citizens.
This is a move that protects the dealer franchise model of car-slinging, not a move that protects consumers... no matter how the lobby tries to dress it up.
What it tells us is that dealers see the vehicles they sell as inferior. If they had the best product we wouldn't hear a word out of them. They can't compete and they have enough money to buy NC's political process to thwart the free enterprise system.
It's not so much inferior product (though in the case of the Big 3 that's definitely true) but that their jobs are rendered unnecessary if buyers can purchase a car directly without the middle man. Dealers rely on information asymmetry for their competitive advantage, the internet has largely taken that away, so they've resorted to legal means like franchise laws to keep their advantages in place. Remove that, and they'll be out of business, since the free market has determined they're no longer needed.
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Thee dealer association stated, "the whole point of the retail system is to protect the consumer"
I can't believe that a representative of the Dealers says this with a straight face.
They've had a lot of practice. What I have learned over the years is that if you want the truth without any bias, your car dealer is the place to go. Sometimes, I ask for sage advise on things not related to cars. Should I get married? Should I have kids? I find the car dealerships are so wise and honest that I drop by often and make major life decisions based on their answers.
It's not what the legislature is smoking. It's who is paying for their re-election campaigns. In this case, the NC Automobile Dealers Association.
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What's our legislature smoking?
