Allow consumers to buy directly from auto companies?

6,125 Views | 79 Replies | Last: 10 days ago by BonfireNerd04
Over_ed
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Like other states, Washington has long had a law stating auto companies had to sell through dealers. An exception was made for Tesla about 12 years ago.

2 new EV companies, Rivian and Lucid asked for a similar exception, and state lawmakers refused. So Rivian began funding a $4.6 M public initiative to allow all auto manufacturers to sell directly to consumers. Polling said 70% of voters supported. So the dealers just caved and the state just passed a law to allow these 2 companies to sell directly to consumers.

Generally, auto dealers are the scum of the earth. They buy off any meaningful reform, force consumers to pay unwarranted markups, and use sleazy tactics to take advantage of buyers.

Texas has one of the strictest laws in the country regarding how you buy a new car. Under the Texas Occupations Code ( 2301.476), it is illegal for a vehicle manufacturer to sell a new car directly to a consumer.

Eff the dealers and our lawmakers that sell out to them year after year.

WSJ article was paywalled. alternative: https://electrek.co/2026/03/18/washington-rivian-lucid-direct-ev-sales-tesla-loophole/
rocky the dog
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Quote:

Generally, auto dealers are the scum of the earth. They buy off any meaningful reform, force consumers to pay unwarranted markups, and use sleazy tactics to take advantage of buyers.




Local car dealer commercials are some of the worst ever. Every week, it's the same tune..."Now is the time to buy..." Well, I thought that was last week, and the week before that, and the week before...
Elections are when people find out what politicians stand for, and politicians find out what people will fall for.
Claude!
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Other than protectionism for dealers, what's the justification today for not allowing manufacturers to sell directly to consumers?
ts5641
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Clay Cooley ain't gonna stand for this!
Over_ed
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Claude! said:

Other than protectionism for dealers, what's the justification today for not allowing manufacturers to sell directly to consumers?

Dealers say that they protect consumers, lower costs, provide service, etc... :-)

But dealers can survive only because laws give consumers no alternative.
No Spin Ag
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Over_ed said:

Claude! said:

Other than protectionism for dealers, what's the justification today for not allowing manufacturers to sell directly to consumers?

Dealers say that they protect consumers, lower costs, provide service, etc... :-)

But dealers can survive only because laws give consumers no alternative.


Or government governs the way we live in too many ways, this, like forcing us to buy auto insurance, is one of them.

But our politicians work for us, they say.
There are in fact two things, science and opinion; the former begets knowledge, the later ignorance. Hippocrates
Over_ed
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No Spin Ag said:

Over_ed said:

Claude! said:

Other than protectionism for dealers, what's the justification today for not allowing manufacturers to sell directly to consumers?

Dealers say that they protect consumers, lower costs, provide service, etc... :-)

But dealers can survive only because laws give consumers no alternative.


Or government governs the way we live in too many ways, this, like forcing us law abiding citizens to buy auto insurance, is one of them.

But our politicians work for us, they say.

I agree, but clarified a bit. If you have an accident nowadays, a whole lot of drivers don't have insurance.
MouthBQ98
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Dealers are like unions: if they are a value add, they wouldn't require special legal protections to remain in existence. They represent institutional corruption as they operate today. They should be required to compete.

I understand the original idea was to support warranty actions but that's not how it seems to work.
Sq4fish83
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ts5641 said:

Clay Cooley ain't gonna stand for this!

I worked for that guy for a short time. I have stories…
FriendlyAg
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So true of the auto industry. Also true of the alcohol industry, it's totally archaic.
Cowboy Curtis
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Quote:

Eff the dealers and our lawmakers

Roger Williams
TheCurl84
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Sq4fish83 said:

ts5641 said:

Clay Cooley ain't gonna stand for this!

I worked for that guy for a short time. I have stories…


As Frasier Crane would say, "I'm listening."

TheCurl84
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Over_ed said:

No Spin Ag said:

Over_ed said:

Claude! said:

Other than protectionism for dealers, what's the justification today for not allowing manufacturers to sell directly to consumers?

Dealers say that they protect consumers, lower costs, provide service, etc... :-)

But dealers can survive only because laws give consumers no alternative.


Or government governs the way we live in too many ways, this, like forcing us law abiding citizens to buy auto insurance, is one of them.

But our politicians work for us, they say.

I agree, but clarified a bit. If you have an accident nowadays, a whole lot of drivers don't have insurance.


Not one illegal immigrant has insurance.
Jeeper79
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No Spin Ag said:

Over_ed said:

Claude! said:

Other than protectionism for dealers, what's the justification today for not allowing manufacturers to sell directly to consumers?

Dealers say that they protect consumers, lower costs, provide service, etc... :-)

But dealers can survive only because laws give consumers no alternative.


Or government governs the way we live in too many ways, this, like forcing us to buy auto insurance, is one of them.

But our politicians work for us, they say.
Forcing us to buy insurance is protection for whoever we hit. Having been hit by an uninsured motorist before, I appreciate it.
oldag00
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Jeeper79 said:

No Spin Ag said:

Over_ed said:

Claude! said:

Other than protectionism for dealers, what's the justification today for not allowing manufacturers to sell directly to consumers?

Dealers say that they protect consumers, lower costs, provide service, etc... :-)

But dealers can survive only because laws give consumers no alternative.


Or government governs the way we live in too many ways, this, like forcing us to buy auto insurance, is one of them.

But our politicians work for us, they say.

Forcing us to buy insurance is protection for whoever we hit. Having been hit by an uninsured motorist before, I appreciate it.

Does not compute.

Responsible people buy insurance. Irresponsible drivers, like the uninsured motorist that hit you, won't despite a law saying they must.
J.P. 03
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Good. With all those pesky dealerships and their marketing gimmicks out of the way, maybe now we can finally agree on which of the 12 is actually truck month.
YouBet
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I wonder if we were able to bypass dealers what that would look like. Seems like the manufacturers may not actually want that because it's one more thing they have to manage, but maybe I'm wrong on that.

I would assume many existing dealers would simply just convert over and it wouldn't look all that much different going there. You are still going to need many of them for maintenance and repairs. A lot of independent auto shops can't / won't touch newer vehicles in some cases. We have a local transmission shop and the guy won't touch anything newer than about 2015.
No Spin Ag
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Over_ed said:

No Spin Ag said:

Over_ed said:

Claude! said:

Other than protectionism for dealers, what's the justification today for not allowing manufacturers to sell directly to consumers?

Dealers say that they protect consumers, lower costs, provide service, etc... :-)

But dealers can survive only because laws give consumers no alternative.


Or government governs the way we live in too many ways, this, like forcing us law abiding citizens to buy auto insurance, is one of them.

But our politicians work for us, they say.

I agree, but clarified a bit. If you have an accident nowadays, a whole lot of drivers don't have insurance.


True, but that should be our decision to buy, not forced because private companies and their Lobbyists bought politicians to get this law created and passed.

There's plenty of uninsured Americans, illegals, etc, and I am glad I have insurance. No one should make it illegal for me to choose not to protect myself.

Rant over. Carry on.
There are in fact two things, science and opinion; the former begets knowledge, the later ignorance. Hippocrates
No Spin Ag
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Jeeper79 said:

No Spin Ag said:

Over_ed said:

Claude! said:

Other than protectionism for dealers, what's the justification today for not allowing manufacturers to sell directly to consumers?

Dealers say that they protect consumers, lower costs, provide service, etc... :-)

But dealers can survive only because laws give consumers no alternative.


Or government governs the way we live in too many ways, this, like forcing us to buy auto insurance, is one of them.

But our politicians work for us, they say.
Forcing us to buy insurance is protection for whoever we hit. Having been hit by an uninsured motorist before, I appreciate it.


It's the forcing part. Otherwise, I have no problem with it existing. I've had it my entire life as well.
There are in fact two things, science and opinion; the former begets knowledge, the later ignorance. Hippocrates
Hoyt Ag
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Well I would hope it would take less time to buy a car than my last experience. Took 5 hours to get everything done.
YouBet
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Hoyt Ag said:

Well I would hope it would take less time to buy a car than my last experience. Took 5 hours to get everything done.


It's all very tiresome. Bought a vehicle for wife recently. Sales guy flat out told us he had zero authority or real function. Just there to run screens for the finance guy.

We all know that but at least he was honest about it.
coolerguy12
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No Spin Ag said:

Jeeper79 said:

No Spin Ag said:

Over_ed said:

Claude! said:

Other than protectionism for dealers, what's the justification today for not allowing manufacturers to sell directly to consumers?

Dealers say that they protect consumers, lower costs, provide service, etc... :-)

But dealers can survive only because laws give consumers no alternative.


Or government governs the way we live in too many ways, this, like forcing us to buy auto insurance, is one of them.

But our politicians work for us, they say.
Forcing us to buy insurance is protection for whoever we hit. Having been hit by an uninsured motorist before, I appreciate it.


It's the forcing part. Otherwise, I have no problem with it existing. I've had it my entire life as well.


No one is forcing anyone to buy insurance. You can operate a vehicle on your private property all day without insurance. But I have no issue with saying that when you choose to drive on a public road you need to provide some protection for the drivers around you if you were to hit them. Wish this was one that they could enforce more.
ABATTBQ11
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Claude! said:

Other than protectionism for dealers, what's the justification today for not allowing manufacturers to sell directly to consumers?


The rationale is that is dealers give you a physical location to go to for warranty and other issues that is locally accountable. Otherwise you're a small fish in a large pond with manufacturers that were mostly states away when the laws were written.
cecil77
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coolerguy12 said:

No Spin Ag said:

Jeeper79 said:

No Spin Ag said:

Over_ed said:

Claude! said:

Other than protectionism for dealers, what's the justification today for not allowing manufacturers to sell directly to consumers?

Dealers say that they protect consumers, lower costs, provide service, etc... :-)

But dealers can survive only because laws give consumers no alternative.


Or government governs the way we live in too many ways, this, like forcing us to buy auto insurance, is one of them.

But our politicians work for us, they say.

Forcing us to buy insurance is protection for whoever we hit. Having been hit by an uninsured motorist before, I appreciate it.


It's the forcing part. Otherwise, I have no problem with it existing. I've had it my entire life as well.


No one is forcing anyone to buy insurance. You can operate a vehicle on your private property all day without insurance. But I have no issue with saying that when you choose to drive on a public road you need to provide some protection for the drivers around you if you were to hit them. Wish this was one that they could enforce more

And roads shouldn't be a governmental monopoly either.
ABATTBQ11
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No Spin Ag said:

Over_ed said:

No Spin Ag said:

Over_ed said:

Claude! said:

Other than protectionism for dealers, what's the justification today for not allowing manufacturers to sell directly to consumers?

Dealers say that they protect consumers, lower costs, provide service, etc... :-)

But dealers can survive only because laws give consumers no alternative.


Or government governs the way we live in too many ways, this, like forcing us law abiding citizens to buy auto insurance, is one of them.

But our politicians work for us, they say.

I agree, but clarified a bit. If you have an accident nowadays, a whole lot of drivers don't have insurance.


True, but that should be our decision to buy, not forced because private companies and their Lobbyists bought politicians to get this law created and passed.

There's plenty of uninsured Americans, illegals, etc, and I am glad I have insurance. No one should make it illegal for me to choose not to protect myself.

Rant over. Carry on.


Liability insurance doesn't protect you, it protects who you hit. It's easy to be uninsured and simply not pay, in which case the other person is screwed. Either we require insurance, and vigorously enforce it, or we change asset protection and homesteading laws to allow for the seizure of personal property to satisfy a judgement.
doubledog
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Dealers do provide mechanical service of your auto at a premium price. That is worth something.
Burdizzo
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doubledog said:

Dealers do provide mechanical service of your auto at a premium price. That is worth something.


For the price you pay, it should be better. Most of them don't stock parts, and you are at the mercy of parts availability from a distribution center when it comes to repair timelines. Warranty repairs are also a huge PITA.
IIIHorn
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Yeah, and …

When is it not truck month?
nai06
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Sq4fish83 said:

ts5641 said:

Clay Cooley ain't gonna stand for this!

I worked for that guy for a short time. I have stories…

Like how he used take a limo to drive him around to his different dealerships?
Kansas Kid
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ABATTBQ11 said:

No Spin Ag said:

Over_ed said:

No Spin Ag said:

Over_ed said:

Claude! said:

Other than protectionism for dealers, what's the justification today for not allowing manufacturers to sell directly to consumers?

Dealers say that they protect consumers, lower costs, provide service, etc... :-)

But dealers can survive only because laws give consumers no alternative.


Or government governs the way we live in too many ways, this, like forcing us law abiding citizens to buy auto insurance, is one of them.

But our politicians work for us, they say.

I agree, but clarified a bit. If you have an accident nowadays, a whole lot of drivers don't have insurance.


True, but that should be our decision to buy, not forced because private companies and their Lobbyists bought politicians to get this law created and passed.

There's plenty of uninsured Americans, illegals, etc, and I am glad I have insurance. No one should make it illegal for me to choose not to protect myself.

Rant over. Carry on.


Liability insurance doesn't protect you, it protects who you hit. It's easy to be uninsured and simply not pay, in which case the other person is screwed. Either we require insurance, and vigorously enforce it, or we change asset protection and homesteading laws to allow for the seizure of personal property to satisfy a judgement.

You could change the laws but for most uninsured drivers, it doesn't matter because they have no assets. This is one place I agree with government requiring a purchase despite being a libertarian on economic matters for the reasons you raise.
YouBet
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doubledog said:

Dealers do provide mechanical service of your auto at a premium price. That is worth something.


Get two cars from same dealer. Why have one when you can have two for twice the price.
Maroon Elephant
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I agree that the current model, which exists because the law literally requires it, needs to be changed. It's a total s-show right now. But I've got some bad news for you. Berkshire Hathaway is in the auto dealership business. Therefore, it's not going anywhere. Ever. Crest, Reliable and Vandergrif among many other massive dealerships are all Berkshire companies.

And it's not just that Berkshire is in the dealership business, it's that they have total vertical integration within that sphere. Every finance offer is from a Berkshire owned company. The extended warranties and all the other items the Finance guy tries to sell you, all Berkshire.
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BigRobSA
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ABATTBQ11 said:

Claude! said:

Other than protectionism for dealers, what's the justification today for not allowing manufacturers to sell directly to consumers?


The rationale is that is dealers give you a physical location to go to for warranty and other issues that is locally accountable. Otherwise you're a small fish in a large pond with manufacturers that were mostly states away when the laws were written.

Take the sales side of things away and just have a stealership repair center.
techno-ag
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coolerguy12 said:

No Spin Ag said:

Jeeper79 said:

No Spin Ag said:

Over_ed said:

Claude! said:

Other than protectionism for dealers, what's the justification today for not allowing manufacturers to sell directly to consumers?

Dealers say that they protect consumers, lower costs, provide service, etc... :-)

But dealers can survive only because laws give consumers no alternative.


Or government governs the way we live in too many ways, this, like forcing us to buy auto insurance, is one of them.

But our politicians work for us, they say.
Forcing us to buy insurance is protection for whoever we hit. Having been hit by an uninsured motorist before, I appreciate it.


It's the forcing part. Otherwise, I have no problem with it existing. I've had it my entire life as well.


No one is forcing anyone to buy insurance. You can operate a vehicle on your private property all day without insurance. But I have no issue with saying that when you choose to drive on a public road you need to provide some protection for the drivers around you if you were to hit them. Wish this was one that they could enforce more.

Your first sentence is extremely misleading without the ton of nuance and conditionality following it. Drivers pulled over by law enforcement will quickly find out they are indeed forced to buy insurance under threat of fines and penalties.
The left cannot kill the Spirit of Charlie Kirk.
aggiedent
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In Texas, It's not just automobiles that have strict rules on how they are sold.
RV's (drivable or trailered). The engineer from NASA who developed the Cricket trailer found out the hard way when he attempted direct web sales.
Alcohol………how the big boys like Anheiser Busch attempted for years to keep craft beer out of restaurants and grocery stores………until they simply couldn't.
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