A lot has been said about the dealership model in the last few years, and the almost universal consensus is that it is an unnecessary and predatory industry and all auto makers should just sell cars directly like Tesla does. That being said, is there any counterpoint to this view? Are there any benefits that dealerships offer today over direct sales? What would we lose if we got rid of every dealership? If there is t…
Dealerships are very good for "try before you buy", "easy returns", "fast delivery", and "easy upkeep and repair".
They don't change anything for warranty, and they don't necessarily provide the biggest selection.
So I think best price is the only dimension that dealers could be worse at, but at the same time, you can often negotiate paying below MSRP with a dealer. I guess we're assuming most of the time they take a premium, but it's hard to predict what the prices would be if dealers didn't exist, would they be lower? By how much? Maybe they'd be higher?
The only thing about online orders that is pretty sure is convenience, you can buy a car in your bed and pyjamas, no need to talk to anyone, browse online and purchase, car arrives at your door.