Traditional car dealerships continue to exist almost entirely because of archaic state franchise laws that legally prohibit auto manufacturers from selling their vehicles directly to consumers.

A closer look

Traditional car dealerships continue to exist almost entirely because of archaic state franchise laws that legally prohibit auto manufacturers from selling their vehicles directly to consumers. These incredibly powerful local lobbying groups effectively bribe state legislatures to mandate their own existence as completely useless middlemen in the supply chain, ensuring they always get their unnecessary cut of the profits. When you walk onto a lot and get harassed by a guy in a cheap suit trying to upsell you on useless undercoating and mysterious administrative fees, you are experiencing government-protected rent-seeking in its purest form. The modern economy prides itself on incredible efficiency and direct digital commerce, yet buying a simple sedan still forces you to endure a hostage negotiation straight out of the nineteen eighties