Tesla Could Change How Cars Are Sold

Tesla Model S

The dealer franchise system has worked for selling cars in the United States for nearly as long as there have been cars in the United States.

By requiring new vehicles to be sold through private dealers not associated with the automakers, the market has been able to determine fair prices based on the MSRP. That’s been mostly good for consumers, at least the ones educated enough to research and negotiate a fair price.

It’s also allowed dealers to make gobs of money by acting as the middlemen between automakers and consumers.

Tesla thinks that model should change.

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