The American Car Dealership Is for Sale

wsj.com

8 pointszachshefska5 comments

TIL there are laws in some states that prohibit auto manufacturers from directly selling to the customer.

Have these laws ever been challenged in court ? Is it really allowed for states to mandate the sale of something only through intermediaries ?

Totally legal. Porsche tried hard in the 70s and 80s to push back on this as they had dealers (and salesman) heavily involved in the drug trade. They fought to buyout their dealers and go direct. Lost hard as all dealerships understood what was at stake.

If you poke around forums like Pelican Parts and what not, you’ll see the stories.

In most counties in the US that have one, a car dealer is the single largest local business.

Interesting. I guess I never really imagined such trade restrictions were possible in the US.

Some states have similar restrictions for the sale of mobile and modular homes.

https://archive.is/k5EX8

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