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A comment on Nonprofit markups.org is exposing the most egregious new car prices. Parent comment

Re:Nonprofit markups.org is exposing the most egregious new ... by nomel on Tuesday August 02, 2022 @11:57PM (#32327496)
There's very little difference between a dealership, and a scalper. Both capture all the items in the market, then work together to inflate the value, artificially. The difference is that many places have laws preventing scalpers, and many places have laws requiring that you buy a car through a dealerships.
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Re:Nonprofit markups.org is exposing the most egregious new ... by Gigachad on Wednesday August 03, 2022 @12:27AM (#32327662)
Dealers and scalpers provide liquidity. Sellers want the item off their hands now, buyers want something without waiting months for a seller.

Dealers link these two needs together and take a cut for the service. There is no monopoly or requirement to sell a car through a dealer. It’s just that people find the service worth the cost.

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Re:Nonprofit markups.org is exposing the most egregious new ... by kortilla on Wednesday August 03, 2022 @12:50AM (#32327780)
We’re talking about new cars though. There are laws in some states (see everywhere Tesla doesn’t have stores) requiring dealers to be used instead of going direct to manufacturers.
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Re:Nonprofit markups.org is exposing the most egregious new ... by sneak on Wednesday August 03, 2022 @06:42AM (#32329954)
> There is no monopoly or requirement to sell a car through a dealer.

This is false. In most states, direct sales are illegal.

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Re:Nonprofit markups.org is exposing the most egregious new ... by zeroonetwothree on Wednesday August 03, 2022 @12:41AM (#32327725)
Actually dealers have monopoly protected by law in most states.
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Re:Nonprofit markups.org is exposing the most egregious new ... by Ekaros on Wednesday August 03, 2022 @01:46AM (#32328074)
Monopoly as in there is only one dealer?
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Re:Nonprofit markups.org is exposing the most egregious new ... by nomel on Wednesday August 03, 2022 @01:29PM (#32334599)
> monopoly: the exclusive possession or control of the supply of or trade in a commodity or service.

Dealers have a legislatively enforced [1] monopoly on new car sales.

1. https://en.wikipedia.org/wiki/Car_dealerships_in_the_United_...

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Re:Nonprofit markups.org is exposing the most egregious new ... by nomel on Wednesday August 03, 2022 @01:23PM (#32334519)
> There is no monopoly or requirement to sell a car through a dealer.

This is incorrect. It's required, by law, in most states:

> In the United States, direct manufacturer auto sales are prohibited in almost every state by franchise laws requiring that new cars be sold only by dealers.

1. https://en.wikipedia.org/wiki/Car_dealerships_in_the_United_...

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Re:Nonprofit markups.org is exposing the most egregious new ... by slaw on Wednesday August 03, 2022 @01:43AM (#32328050)
In WA if you trade in to a dealer you pay tax on cars difference. When you sell privately, buyer pays full 10% tax on used car.
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