My kids borrowed my cellphone recently to record themselves jumping into leaf piles. This led to the thought of making a slow-motion video by dropping my phone into the pile from the top of our tree. A good idea in theory, except for the tree branches.
So, I had to buy a new phone (with the kids, ages 12 and 10, each paying half). And I had a lot of options. Just in my town, I could go to Walmart, Target, Costco or one of a half-dozen smaller shops. I could also go to a store owned by one of the network providers, such as AT&T, Verizon or Boost Mobile.
But I had a pretty good idea of what I wanted, so I bought my new phone online, directly from the manufacturer. It arrived at my house the next day.
Yet because of an arcane state law, you cannot buy a car that way. Michigan’s Motor Vehicle Franchise Act prohibits vehicle manufacturers — GM, Ford, Stellantis, Tesla, Honda, Toyota, etc. — from running their own showrooms and service centers. They can’t sell their cars and trucks directly to consumers. Instead, they must sell their products through dealers, who act as middlemen.
This law is absurd. There may have been some basis for it decades ago, new technology has wiped away any rationale. There is no longer any valid reason to prevent manufacturers from directly selling to consumers. Customers are used to purchasing products directly from the manufacturer. Why should cars be any different?
The only reason the law still exists is to protect car dealers from new competition. They used to be mom-and-pop businesses, and the law was intended to protect them from the huge car companies. Today, car dealerships are huge corporations themselves, often operating multiple locations in multiple states. These dealerships make sure state lawmakers keep this law in place. While this is a good deal for car dealers, the rest of us lose.
Most states allow at least some direct sales of vehicles, with 21 states allowing them without restrictions. Direct sales are also allowed in Europe, where GM is taking advantage of a slumping and chaotic market to gain a larger foothold.
Even as GM uses direct sales in Europe and across the U.S., Michigan law forbids it.
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