Egret
Active Member
- Joined
- Oct 30, 2023
- Messages
- 59
- Reaction score
- 115
- Points
- 33
- Age
- 44
- Location
- Dallas/Fort Worth, Texas
Sounds brutal! Yeah, there are pockets of anti-competitive trade practices all over. If the parent company owns dealerships across different manufacturers, such as Ford and Ram, this allows some ability to fix prices and discounts, and lets them keep their prices higher than they otherwise could.Here in the Motor City, we have the mafia, that goes by the Detroit Auto Dealers Association. Back in the 70s, they demanded all dealers be closed on Saturdays. One dealer ignored that, and opened on a Saturday. By Monday, every window in the building was smashed, and new cars damaged. No dealer opened on Saturdays again, for 30 years, until DADA changed, and said they can open Saturdays. They limit the deals, so all dealers around, give about the same lame discounts. We don't even have independent dealers here anymore. All the dealerships are owned by conglomerates, that own at least 20 dealerships. Even if they run under different names, they have the same parent company. I went into one Ford dealer here, and they had a sign on the wall, about their company. They own over 50 dealerships in 6 states. They all have set prices. I found it amazing, that living 10 miles from the plant, I could go 1,400 miles away, and ordinary people can walk in off the street, and buy a truck, for thousands less than an employee can, in Michigan.
The big advantage in this situation goes to dealerships that are 1400 miles away! These smart dealerships can start eating the lunch of the dealer conglomerates in MI. The dealer further away will have lower prices and likely lower profit margins, but they will get lots of sales that they otherwise wouldn't get in their local market, and they'll be able to build a strong book of business. And the consumer wins with lower prices. So the competition is good all around - except for the conglomerate. The real hurdle is for consumers to be well informed and know they can shop elsewhere - but that isn't a problem for the buyers on this forum!