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Wednesday, October 22, 2014

Michigan - Requiring Sales Through Dealerships...

What gives our legislature the right to require manufacturers to sell through dealerships instead of directly to the customer - a model that would have the effect of significantly lowering the prices of new automobiles? I though we believed in free enterprise in this country.
And yes, I understand that the law prohibiting a manufacturer from selling directly to customers went into effect in 1981 with Act 118 of 1981:
"445.1574 Prohibited conduct by manufacturer.
Sec. 14.
(1) A manufacturer shall not do any of the following: […] (i) Sell any new motor vehicle directly to a retail customer other than through its franchised dealers, unless the retail customer is a nonprofit organization or a federal, state, or local government or agency. This subdivision does not prohibit a manufacturer from providing information to a consumer for the purpose of marketing or facilitating the sale of new motor vehicles or from establishing a program to sell or offer to sell new motor vehicles through the manufacturer's new motor vehicle dealers."
So, once again, we see the government setting up conditions under which IT may make purchases at greatly reduced prices, while REQUIRING its citizens to pay inflated prices.

If the ability of the government to make purchases at greatly reduce prices is a good thing, and government supposedly exists for the benefit of THE PEOPLE, then it stands to reason that THE PEOPLE would ALSO benefit from a reduction in the price of automobiles.

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