NPR: Why Buying A Car Is So Awful

[gaswalla]

Interesting stuff on the broken system of buying cars. Quite incomplete reporting, though, since the innovative Tesla approach is not mentioned.

Episode 435: Why Buying A Car Is So Awful : Planet Money : NPR

Liked the reference too: http://faculty.som.yale.edu/FionaScottMorton/documents/StateFranchiseLawsDealerTerminationsandtheAutoCrisis.pdf

 

[SCW-Greg]

Great synopsis of the "system." Just makes you never want to buy that way again.

 

[Robert.Boston]

Liked the reference too: http://faculty.som.yale.edu/FionaSc...iseLawsDealerTerminationsandtheAutoCrisis.pdf

One of the authors, Fiona Scott Morton, is a Senior Consultant with my firm. She just returned to Yale after stepping down as Deputy Assistant Attorney General for Economic Analysis with the Antitrust Division of the US Department of Justice (DOJ). Great quote:

States earn about 20 percent of all state sales taxesfrom auto dealers, and auto dealerships easily can account for 7–8 percent of all from auto dealers, and auto dealerships easily can account for 7–8 percent of all retail employment (Canis and Platzer, 2009, pp. 5, 12, table 1). The bulk of these taxes (89 percent) are generated by new car dealerships, those with whom manufacturers deal directly. As a result, car dealerships, and especially local or state car dealership associations, have been able to exert influence over local legislatures. This has resulted in a set of state laws that almost guarantee dealership profitability and survival—albeit at the expense of manufacturer profits.

 

[joe12pack]

Interesting stuff on the broken system of buying cars. Quite incomplete reporting, though, since the innovative Tesla approach is not mentioned.

Episode 435: Why Buying A Car Is So Awful : Planet Money : NPR

Liked the reference too: http://faculty.som.yale.edu/FionaSc...iseLawsDealerTerminationsandtheAutoCrisis.pdf

That's ironic it is coming from the National Petroleum Radio that is funded by the big oil companies and also the big foundations (the Ultra-Wealthy families). But I digress....

 

[neroden]

In NY, the state is still getting its share of sales taxes from Tesla. Whoo boy is it! For the first time, I'm going to deduct sales taxes rather than state income taxes on my federal tax return.