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The Stealership Trap - Why We Need the Dealership "Rip Off"

FortNine · explainer · Watch on YouTube

Cars, EVs & motorcyclesBusiness & economics (other)Microeconomics & behavioral economics

What it is

FortNine explains the economics of the dealership model, arguing that dealers absorb inventory risk and help manufacturers' finances. It looks at whether cars and motorcycles could be sold more cheaply without them.

Why Hacker News recommends it

Offered as a well-researched counterpoint in threads complaining about car dealerships and direct sales.

  • 3 people recommended it
  • 3 different months
  • 1 strong recommendations
  • first 2022, last 2024

What HN commenters said

  1. “Here is a well researched youtube video on the subject.”

    Well researched video on dealership model.

    somat, 2022-11 · Strong recommendation · in “Tesla finds a loophole in states where dealerships are forbidden: Tribal lands”

  2. “This recent video on motorcycle dealerships argues that dealerships are beneficial”

    Argues dealerships help manufacturers' finances and manage risk.

    dharmab, 2022-06 · Recommendation · in “Ford CEO says EVs will be sold 100% online with nonnegotiable price”

  3. “Just as a look at the other side”

    Other side of the dealership model, from motorcycle industry.

    somerandomqaguy, 2022-08 · Recommendation · in “Ford CEO Had Enough: Dealers Raising Prices Need to Stop or Else [video]”

Excerpts from Hacker News comments, linked to the originals. Summaries and labels were written by a language model from those comments.

Topics: car dealerships, supply chain, direct sales, motorcycles, retail economics

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