Real Reason Dealerships Are Crying.

[Craig]

The real reason dealerships do not want direct sales.

http://www.hoopdi.com/guide/index.php/Anatomy-of-a-Car-Dealer/Front-Back-End.html

 

[goofyone]

The real reason dealerships do not want direct sales.
http://www.hoopdi.com/guide/index.php/Anatomy-of-a-Car-Dealer/Front-Back-End.html

Financing along with service and parts are actually where dealerships make most of their profit. Dealerships are expensive to run so what they make selling cars really just pays for their overhead costs and everything else is where the profit is.

The compromise solution that I have heard and could live with is that in some states manufactures are not allowed to compete with their franchises however if you are a manufacturer without franchise dealerships you are free to operate your own stores.