Friday, May 22, 2009

Does Anyone Like Car Dealerships?

GM and Chrysler are closing many of their dealerships. So I'll use it as an excuse to post this from The Atlantic: Driving a Hard Bargain
...the high-pressure tactics of the modern American dealer originated in a single Memphis franchise after World War Two, when new vehicles were scarce and buyers could be browbean into signing a deal that assured fat commissions for salesmen and profit margins for their employers. It started with "unhorsing" (getting the keys of the prospect's own car), proceeded through "detention" (stalling, allegedly for trade-in value inspection), and if successful for the dealer, ended with "release" (a signed contract).

And I once wondered why I couldn't buy a car online, direct from the factory, as it seemed the most efficient way to do it so you could get all the options you want. I found out it was because the car dealership political lobby kept it from happening.

See MotherJones: Why You Can't Buy a New Car Online

Wish I could say it was shocking...

This is from Intellichoice: Behind the Scenes - How does a dealership work?