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Comment by profquail | Hacker News Reader

I really, really don't understand why car makers don't sell cars online like Dell (for example) sells computers. Have some small dealerships with a few pre-made cars for people to test drive (or for impulsive folks to buy), and then let people custom-order their cars online.

This would solve the over-supply problem and also keep people from having to 'settle' on a particular car because it's the only one the dealer has in stock.

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Because car dealerships have successfully lobbied for state laws that make it illegal for car manufacturers to sell directly to consumers.

Back in 2000, Ford (IIRC) have tried to fight the cartel and sell directly through ford.com but lost in courts.

Is it actually illegal or just a violation of their contact with dealerships?

I understand that legacy agreements with dealerships are a contributor to The Failure as are (we keep hearing) legacy agreements with unions. But overall I think that people are very quick to believe a "they lobbied dumb politicians" story over "they signed dumb agreements stories."

If you had bought a license to sell Ford cars, you might want an agreement not to go around you at a later date.

That's how it works in Israel. You go to a dealership to see which car to buy, test drive, etc. After you pay, your car is ordered and shipped via ocean freight. When it arrives, you pick up your car. The problem is, you forfeit the beloved concept of instant gratification.

Simple really, the factories pump out the cars whether the people want them or not and they force the dealers to take at least a few of the ones no one wants. If it was on demand the less popular car factories would be idle.

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