Went looking at new Corolla's with/for a buddy. Nope, not happening.

I never understood why manufactures even allowed dealers to do this. IMO it damages the brand reputation.
State laws limit what manufacturers can do.

However, you're assuming that the OEMs would do a better job or act more ethically. I doubt it. When the chip shortage and supply chain issues limited supply the OEMs were all too happy to hike their prices.

Also good luck on getting a known defect repaired after the warranty expires. Manufacturers regularly sell vehicles with known defects and play the legal game to minimize their losses.

The study I co-developed, the Long-Term Quality Index, has furnished a lot of data to legal firms thanks to this legalized level of public deception.
 
Last edited:
^^My questions are,
1) When you buy a car online, where do you take it ,say, during the warranty period?
2) When you show up at this dealership for said service, aren't they going to deeply resent you and screw you and your car over?
 
1) When you buy a car online, where do you take it ,say, during the warranty period?

For warranty work? A dealer. It's no different than if you buy a car, move, and need service.

2) When you show up at this dealership for said service, aren't they going to deeply resent you and screw you and your car over?

There's no 'dishonest dealer handbook' to consult. I suspect a dishonset service department is going to screw over everyone, equally.
 
State laws limit what manufacturers can do.

However, you're assuming that the OEMs wouldn't a better job or act more ethically. I doubt it. When the chip shortage and supply chain issues limited supply the OEMs were all too happy to hike their prices.

Also good luck on getting a known defect repaired after the warranty expires. Manufacturers regularly sell vehicles with known defects and play the legal game to minimize their losses.

The study I co-developed, the Long-Term Quality Index, has furnished a lot of data to legal firms thanks to this legalized level of public deception.

I don't think I've made that assumption at all. I have no idea how manufactures would handle direct sales or if the customer would be better off with or without a dealership network. This is not an area I've studied or even thought much about. I don't have a strong opinion on it, either.

My comment was more general in that, the way the system works now, dealers can drag brand image through the mud with games like we're seeing in the OP. From a normal, everyday person, seems it gives the manufacture a black eye while gaining absolutely nothing. I also realized that the manufactures could have their hands tied - I'm just not familiar with how that works legally and contractually.

Regarding the price increases due to chip shortages, I hear ya, but in fairness what didn't increase in price during that same time period? I'm not so quick to paint the manufactures as the bad guys there.
 
Do you think direct sales will be tempted to play the same games?

“Meet the new boss, same as the old boss” type situation perhaps.
It already exists at Tesla. You see the price online. Buy or don’t buy. Your choice.

CarMax and Carvana also. They continue to become more and more popular.

If they raise there price on a macro basis everyone will see it and again - can choose to buy or not buy.

I guarantee if I look that original Corolla up on Toyota’s inventory tool it won’t show the market adjustment.
 
It already exists at Tesla. You see the price online. Buy or don’t buy. Your choice.

CarMax and Carvana also. They continue to become more and more popular.

If they raise there price on a macro basis everyone will see it and again - can choose to buy or not buy.
I bought my Civic from a no haggle used car dealer in my area and the price I paid was $11,400 CDN (in 2021). That was actually the lowest price for any 2016 Civic coupe advertised in Auto Trader in the entire province of Ontario at the time. The second cheapest one was $1000 more and had 180,000 km on it (mine had 130,000). Plus mine still had a bumper to bumper extended warranty from Honda that was in effect for the first 18 months that I owned it.

The no haggle business model can easily work as long as the dealer has competitive pricing such as this one.
 
It already exists at Tesla. You see the price online. Buy or don’t buy. Your choice.

CarMax and Carvana also. They continue to become more and more popular.

If they raise there price on a macro basis everyone will see it and again - can choose to buy or not buy.

I guarantee if I look that original Corolla up on Toyota’s inventory tool it won’t show the market adjustment.

That's their competitive advantage vs the typical dealership model. "Shop with us, we offer direct sales without all of the dealership games." It works because of what they are competing against.

Now imagine all vehicle sales are direct. The competitive advantage is eliminated and the games commence.

In other words, the way direct sales work now could change once it's the primary method of vehicle purchases.

Remember when streaming services were basically ad free? Once the companies acquired enough market share vs cable, the ads have increased over time and will continue to do so.
 
That's their competitive advantage vs the typical dealership model. "Shop with us, we offer direct sales without all of the dealership games." It works because of what they are competing against.

Now imagine all vehicle sales are direct. The competitive advantage is eliminated and the games commence.

In other words, the way direct sales work now could change once it's the primary method of vehicle purchases.

Remember when streaming services were basically ad free? Once the companies acquired enough market share vs cable, the ads have increased over time and will continue to do so.
Your speculating.

More competition generally is better for consumers.

You can buy streaming with adds or without for more dollars. Your choice. Poor example- there is no deception there. You know exactly what your getting when you buy.
 
Your speculating.

More competition generally is better for consumers.

You can buy streaming with adds or without for more dollars. Your choice. Poor example- there is no deception there. You know exactly what your getting when you buy.

Of course it's speculation - food for thought. Neither one of us knows what a direct-sales model would look like as the primary, industry-wide method of car sales.. It has yet to happen in the US.

Never said anything about deception with streaming services. My point was - the model changed over time as market share was acquired. This is typical across many industries.
 
Last edited:
It already exists at Tesla. You see the price online. Buy or don’t buy. Your choice.

CarMax and Carvana also. They continue to become more and more popular.

If they raise there price on a macro basis everyone will see it and again - can choose to buy or not buy.

I guarantee if I look that original Corolla up on Toyota’s inventory tool it won’t show the market adjustment.
It doesn’t even show it on the dealer’s website. It shows a discount from MSRP.
 
That's their competitive advantage vs the typical dealership model. "Shop with us, we offer direct sales without all of the dealership games." It works because of what they are competing against.

Now imagine all vehicle sales are direct. The competitive advantage is eliminated and the games commence.
I buy my auto insurance directly through the company. But if I needed my hand held there's an agent down in the mini-mall who will take a cut and sell me (more expensive) insurance and tell me what I need.

Direct auto sales can co-exist with dealers. Dealer service departments make plenty of money, having that golden ticket of being "factory trained" and able to do warranty work. Manufacturers would still want dealers with inventory because there are people out there who make impulse buys... especially when they get towed in with a several thousand dollar potential repair bill.
 
I was able to get a much better deal in a semi rural area out of state when l purchased my Toyota in 2021.
I negotiated an "out the door" price via email and never visited a dealership until the day the car was delivered.
That markup is insane.
 
Back
Top Bottom