On the radio I heard a car exec say that in most states it’s against the law for a manufacturer to sell directly to consumers.
Why come?
These bans on direct manufacturer sales are part of a broad array of state laws that bar manufacturer ownership of dealers and regulate entry and exit of dealers through territorial restrictions and provisions on dealer termination. Dealers provide local service options and competition, consumer advantages that could be wiped out if dealers are driven out of business by manufacturers with lower overhead. The argument may not be correct, but I believe that’s what it is.
I don’t believe this was always the case.
Before General Motors purchased the marketing rights to Hummer (and getting H2 and H3 models, which were simply rebodied Chevy Tahoes and Trailblazers) the only way to get a street legal H1/Humvee was to show up at the factory yourself.
I wonder if low-volume auto manufacturers like the electric Tesla operate the same way…perhaps via a factory outlet dealership on-site?
Apparently Checker used to.
Scroll down for some photos of cars in the showroom.
Google Street View shows the cars are still in the showroom! I wonder what a mint, untitled Checker Marathon is worth…
I heard on the news (NPR) that GM is partnering with Ebay to sell cars directly to the public. How will this fit in with these state laws?
Here’s an interesting article that can explain it pretty well