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
The forced dealership model is archaic and of little benefit to consumers. Service departments and F&I are what pays the overhead at a dealership. Sales departments routinely engage in hostile and deceptive practices to trick the consumer into paying more for a vehicle by raising the price above MSRP if they think there will be a limited supply, hiding the total and loan rates by asking the consumer "Where do you want your payment to be?", and intimidation by bringing out the sales manager and finance manager to gang up on the customer. Allowing direct sales will at the least force these bullying dealerships to either engage in fair business practices or risk losing business.