Water Cooler: Should states ban direct sales of autos?

Around the Water Cooler

Panelists answered the following: Should a government ban direct sales of automobiles?
Ruth Erickson: “No! Why have middlemen adding further costs to each sale, when manufacturers have all the expertise, advice and knowledge about their own vehicles? Boeing sells the planes they build so auto manufacturers should be able to sell their own cars. As long as their vehicles could be purchased and repaired in various communities, the manufacturers would be the best companies to deal with their own cars.”
Mary Zanger: “Yes because large volume automakers need the dealerships for the many services they provide like showrooms, variety, information, education and for parts of the warrant services. However an exemption should be made for the small volume electric car manufacturers who wish to sell their cars without dealers. Electric carmakers should be encouraged by an exemption. Showing climate change will be a huge effort. This might be a good start. ”
Bill Mifsud: “I believe in a fair playing field. Tesla Motors should not be allowed to sell new cars direct to the consumer. What makes Tesla exempt?”
Marty Richman: “Well, of course, because government knows so much about running private business (sarcasm alert!). It’s all political. New Jersey’s justification, that they are banning direct car sales to ensure “consumer protection”, is a blatant lie  Adding mandatory layers between the consumer and manufacturer in the highly regulated areas of automobile service and safety actually does the opposite. The real reason is political – it’s a backdoor way of requiring the public to pay more for the commodity, unneeded middlemen, and employees and especially in layered taxes. Next election cycle Christie will be claiming he “did not raise the taxes on automobile sale” – technically, it will be true, but effectively it won’t.”
Nants Foley: “Let them sell how they want. The government should stay out of sales of cars and Girl Scout cookies!”
Jim West: “Yes. Without car dealers who’s going to sell me the undercoating, extended warranty, paint/upholstery protection and all the other things that make my new car cost way more than what I first thought.” 
Richard Place: “What would Henry Ford say about this? This is about protecting union jobs instead of the consumer.”

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