Quite a read on car dealers vs Edmunds/Truecar

[Junkie49]

The link is here http://www.dealerrefresh.com/edmunds-tmv-vs-truecar-dealers-wake-up/

The article itself isn't that great but the discussion below that was quite interesting. They make it sound like they don't even profit from selling cars via internet pricing. Even though I don't believe them, it is always good to know of other's point of view on things. Interesting read I say.

 

[trotti]

Very interesting - the dealers definitely have the victim mentality on that side too.

 

[Junkie49]

Yeah, but consumer always loses at the end (Hello! depreciation and trade-ins)

 

[BacktoHyundaibychoice]

Very interesting comments. Thx for the link.

 

[Mark_888]

Here is an interesting comment from "Patrick" which is a blatant criminal offense according to US anti-trust laws:

The best way to fix the problem if you are going to stick with Zag is to collude with the other dealers on the program in your area and agree with the GMs or ISMs not to price below invoice. Unfortunately, in my area, one stubborn (and stupid) manager at another dealership wouldn't jump on board and so a race to the bottom began.

 

[trotti]

Here is an interesting comment from "Patrick" which is a blatant criminal offense according to US anti-trust laws:

Wow...it's as if he read the statute to see how to word that message intending to implicate himself.

 

[Mark_888]

Wow...it's as if he read the statute to see how to word that message intending to implicate himself.

Apparently collusion among dealers on pricing is so widespread in the auto business that he feels pretty safe in saying those things, probably on the assumption that no one that he knows has ever been prosecuted. I also didn't see any of the other dealers mention in that forum that collusion on pricing is highly illegal and is Federal crime under section 1 of the Sherman Antitrust Act. Price fixing is also subject to civil actions by the FTC. Some states also have anti-trust laws.