New
Jersey recently joined Texas, Arizona, Maryland and Virginia in banning direct
auto sales to consumers. That touched off an uproar on the left and right, and
many consumers remain confused. They can be grateful for one clear statement of
what the ban is really about. “If
you allow someone to come into the market with no overhead, that’s an unfair
advantage,” says Deborah Dorman, president of the Eastern New York Coalition of
Auto Dealers. She represents traditional automakers who use a dealer network to
distribute their cars.
They
don’t like competition and want the government to forcibly prevent companies
from selling directly to consumers in order to protect old and potentially
inefficient distribution networks from being displaced. Such bans impede
consumers from finding the best deal through the market’s discovery process. Some
on the left claim that the ban unfairly targets manufacturers of electric cars.
It primarily involves Tesla, but consumers should shed no tears for
that company because Tesla is a welfare queen……To Read More….
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