Study Shows Federal Regulations Are Costing Dealerships $3.2 Billion A Year

Franchised new-car dealers in the United States spent a combined $3.2 billion in 2012 to meet federal regulations, a report released today said.

Dealers spent the money to comply with 61 major federal rules, the report said. As a result, consumers paid more and the U.S. economy paid in the form of 10,550 fewer dealership jobs, the research found.

“The additional costs for new-car dealerships to comply with federal regulations are passed along to our customers in the form of higher prices, which results in lower vehicle sales and reduced employment at dealerships,” said Forrest McConnell, chairman of the National Automobile Dealers Association and a Honda and Acura dealer in Montgomery, Ala.

ParadoX - 5/30/2014 7:12:09 PM

+2 Boost

So, a study done by the dealer industry finds that they are too regulated. Surprise. I am sure if there were no regulations, they would shake your hand and take your fingers. There is a good reason for a lot of those regulations, to make sure dealers aren't screwing people out of a lot of money.

reaganeatbrains - 5/30/2014 10:02:48 PM

+2 Boost

Maybe we could be more like Somalia and let industries self-regulate. Seems to be working pretty well there.

MattDarringer - 5/31/2014 9:42:17 AM

0 Boost

And the chatter by Liberal noobs has begun I see. The simple fact is that ALL BUSINESSES are over-regulated and the cost of that stupid level of over-regulation is most decidedly passed on to consumers and the regulations--most of them--do not make consumers' lives better.

kysrsoze1 - 6/3/2014 1:53:34 AM

+1 Boost

Including the over-regulated banks which nearly destroyed the world economy? Yeah, tell that to the people of Love Canal, Fukushima, West, TX, Eden, N.C., Bhopal, Louisiana shrimp industry, BP Deep Water Horizon cleanup workers, etc. Try again.