Source: Automotive News
quote: Cars are something you purchase once every 5-10 years, right? By the time you want to buy a new one, all the models and prices and a fair amount of the technology have changed. Consequently, it's difficult for any individual buyer to accurately gauge the actual value of a car. On top of that, people tend to "fall in love" with one particular make or model. That type of situation is vulnerable to the manufacturer artificially inflating prices. If all Fords are sold directly to individuals, and Ford is in charge of direct pricing, and the individuals don't really know the value of the cars, it's pretty easy for them to ratchet up the price without the individuals figuring out they're being ripped off.
quote: Also, nobody is proposing that we abolish all car dealers. They could still exist, they just won't be required to exist by law.