Excess Dealers Costing Big 3 Billions

Funny how so many talk about dealerships ripping people off when that is not the case so much of the time. Rebates only happen because the dealerships are already lowering their prices as far as they can go, and they need room to move the price lower later in the year or to compete with other cars. The former is caused by competition within the brand, and the latter is competition outside the brand. In the end, I have never seen a person get hosed on the purchase of a new car. If all of those Boston dealers had fixed prices on the cars, they could compete on the actual customer experience and service. Then they could just worry with all of the outside competition instead of worrying about friendly fire. That will never happen, though.

The whole auto retailing system sucks. Cars should be sold directly to the consumer over the Internet with the consumer specifying a "servicing dealer" who would be paid a small and fully disclosed commission. At the present, dealers are not making enough money and customers are made angry because of rip-off tactics and ignorant car salesmen who have no product knowledge.

Yes as a x car dealer i can tell you the profits are getting less and less and the sales people are taught nothing about how to sell, knowing their product,or the oppositions product. The sales managers want numbers at the end of the month, the sales staff see such a confusing paycheck with little money left for bell to bell days they walk out.
Professional dealerships like MBZ or Porsche to a lesser degree BMW where the dealer and consultants can make money are few and far between. The industry is overloaded with to many dealers, poor profit dealers, and a sales base of very poorly paid and trained staff, which only leads to poor CSI and lost sales.