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
Direct auto sales from manufacturers should be allowed. Current dealers say they help protect the customer. I have seen many times where a model comes out that is very popular and these dealers that are protecting the customer will attach a second price sticker with an item called ADP of thousands of dollars above the manufacturers retail price. This stands for Added Dealer Profit. How is charging more for a popular vehicle protecting the customer? I have never seen a direct sales price from a manufacturer increased by thousands on a popular vehicle. Although independent dealers may help the consumer at times, they also help themselves at other times. Therefore, there is no advantage to independent dealers versus direct sales from manufacturers. Based on this, Manufacturers that do not currently have independent dealerships should be allowed direct sales.