Politicians should start running on legalizing direct to consumer car sales. Put dealerships out of business. That whole business model is basically a government jobs program and big fat private "tax" gets levied on every vehicle sale to pay for it
I don't understand how you relate the business model as a government jobs program and a big fat tax that's levied on every sale. Not saying you're wrong. I just don't understand.
Most dealerships (stealerships) do in fact suck.
If dealerships go bye-bye:
Where would warranty work be performed?
Random auto repair shops generally do not have the equipment that is required by the manufactures. Very expensive.
Dealers pay a hefty sum to train their technicians and are usually required to attain ASE and other certifications.
I will assume most people want to see and test drive their vehicles prior to purchase. Will factories permit this? Will they use salespeople?
Dealers offer financing through many banks, credit unions, etc.
Dealers have a tendency to contribute large sums of funds and offer chartable events in their communities. Are they truly benevolent or just wanting to make more sales? Either way the community benefits. Dealers have many employees who earn a living and pay income taxes.
However, the dealership model as it currently stands is miserable. Not many people rave positively about their dealership experience. And some that do don't realize that they have been misled. One friend stated that he was at the dealership for 6 hours and was so worn out he wasn't sure he got a good deal.
I thought Carmax has an interesting business model. No haggling. You were not "turned over" to the finance manager or the sales manager. The sales person handled the entire transaction. The salespeople were paid a flat amount (it used to be $150 many years ago). This was good because it did not behoove the salesperson to try to move you to a more expensive vehicle because they were paid they same either way. At one time I audited and consulted with auto dealers and as I result I had to be knowledgeable about the trends and such.
Maybe big box stores like Costco, Walmarts, etc. could make it work. It seems that under the current conditions a lot of folk would rather have dental work than visit a dealer.