FTC to Host Public Workshop Examining the U.S. Auto Distribution System Workshop Will Explore Competition, State Regulations, and Emerging Trends in the Industry, Project No. P131202
Laws requiring that cars be sold only through dealerships are throwback protectionist ideas that only benefit the dealers. There isn't a business in existence that wouldn't like similar treatment to tilt the field in their favor. From a consumer viewpoint, there is nothing specific to automobiles that suggest state legislatures should restrict who can sell a car. Imagine how preposterous it would be to disallow all of the outlet malls in the state of Michigan because the Nike Factory stores want to sell their shoes directly to the consumer. Consumers are best served when they can buy their cars (or shoes) where ever they want.