We’re all familiar with new car dealerships. Ever more sleek and glitzy, they’re constantly evolving to reflect the image of their brand, often leaving the franchisee to bend to the will of the manufacturer or risk losing exclusive distribution rights.

Some vehicle producers have tried to balk this model over the years, though doing so has resulted in most states enacting laws requiring new vehicles be sold through franchised dealers. The reasons are complex but ostensibly written to the benefit of the consumer. Local new car dealers are better able to cater to the car buyer than a large conglomerate, and individual dealerships foster competition that would be lost on a large corporation serving a world market. Additionally, each state has specific taxation and registration requirements that are handled through the dealership along with warranty claims and service work. Used car volume could become logistically unwieldy if handled on a national rather than local level as well.

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