What Do Car Dealers Do? Gerard Magliocca, Concurring Opinions, March 17, 2014
What is the public purpose behind a statute or regulation that says that you can only buy new cars through a dealer? I’ll grant that the dealership model has been around for a long time, and dealers are a powerful lobby, but is there anything else to this regulation? For example, can you say that car dealers do a better job at protecting consumer safety or welfare than a store owned by the manufacturer? I find that hard to believe. I’m not sure these dealership statutes are constitutionally irrational, but they are ridiculous.