What is the purpose of this law

Discussion in 'The Okie Corral' started by SC Tiger, Mar 12, 2014.

  1. SC Tiger

    SC Tiger As God as my witness, I thought turkeys could fly.

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  2. John Rambo

    John Rambo Raven

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    'Bout 50% of the human race is middlemen, and they don't take kindly to being eliminated.' -Malcolm Reynolds
     

  3. hunter 111

    hunter 111

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  4. JohnBT

    JohnBT NRA Benefactor

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    You can't pump your own gas in NJ. The first time I drove to AC I had 3 guys screaming at me when I touched the pump.


    I thought they were bums hanging out at the station, but no, they worked there.
     
  5. HerrGlock

    HerrGlock Scouts Out CLM

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    The people working at dealerships would be unnecessary if Tesla were allowed to sell straight to the citizens.
     
  6. SC Tiger

    SC Tiger As God as my witness, I thought turkeys could fly.

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    This explains it better than anything else.

    Remind me to never go to New Jersey.
     
  7. Cashgap

    Cashgap

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    Protectionism, restraint of trade, government interference in private contracts.

    But.

    Ted Thomas of Ted Thomas Tesla, Home of the Joltin' Deal, just past Ted Thomas Toyota off I-919 Willow Run exit off the frontage road, look for the big lightning bolt, will always have personal relationships with legislators. Ted will donate to their campaigns, and more importantly run enough ads to keep the local newspaper from going under. So you will ONLY hear about the "evils" of a manufacturer selling a car, and you'll read editorials that the good people of New Jersey need to protected from evil car manufacturers.

    It's early 20th century protectionism in the form of state franchise laws, and it may never go away, because these particular middlemen are too close the legislators and the editorialists.

    Allowing consumers to chose would MASSIVELY rationalize the automotive supply chain, with tremendous national efficiencies. But there would be winners and losers. The winners would be diffuse (millions would pay less for a better experience when buying a car every several years) and the losers would be concentrated (hundreds of dealers would be removed as a non-value adding layer).
     
    Last edited: Mar 12, 2014
  8. Cybercowboy

    Cybercowboy Support the 2nd

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    Yup. If the dealerships were simply replaced with service centers, and they concentrated solely on servicing vehicles rather than sales and service, there would be plenty of opportunity. Service centers wouldn't be hit as hard during economic downturns one would think, and a fairly steady business stream would be almost assured. Buying a vehicle direct from the manufacturer, for those who wanted such a thing, would be fantastic.

    I remember not long ago talking to people about buying a TV online (like from Amazon) and them saying they would never do that. They would only buy from a store where they could check it out. Thing is, the reviews I've read of such things are always more helpful than anything a salesman would show me, and often the models they have at various stores are not the best ones available in that category. I know the last TV I bought, Sam's Club did not carry it but did carry several lesser models and if you didn't know better, you'd end up getting a bit screwed. I paid essentially the same price for the best model in the category as Sam's was getting for one two notches down. TV arrived, I hung it on the wall, and all is well.
     
  9. SC Tiger

    SC Tiger As God as my witness, I thought turkeys could fly.

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    A while back there was a discussion on American vs Foreign cars. The contention was that an American-made Toyota contributes more to the US Economy than a Mexican (or Canadian) made Chevrolet. As a result I did a little research on car prices vs costs. I was shocked to learn how much of the cost of a car is markup, both manufacturer-to-dealer and dealer-to-buyer. I can't remember the percentages (and may have misunderstood the meaning of the numbers) but I did not expect such a big difference.

    I wonder how much of that goes away if independent dealerships were removed from the equation.

    Oh - and what's the over/under on how many posts before this turns into a debate on unions?
     
    Last edited: Mar 12, 2014
  10. Cybercowboy

    Cybercowboy Support the 2nd

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    I remember when I bought my 2010 Acura MDX the percentage of American-made parts was 71% and that was exactly the same percentage as the 2010 Corvette.
     
  11. Dennis in MA

    Dennis in MA Get off my lawn

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    I have to say, of my 3 trips down south, the cheapest gas I found anywhere was on the Jersey turnpike. AND they pumped it for me.
     
  12. crazymoose

    crazymoose Nonentity

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    Not surprised that this comes from NJ. What really surprises me is that no one is talking about how the "free" states of Texas and Arizona already have such prohibitions on the books.
     
  13. Dennis in MA

    Dennis in MA Get off my lawn

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    NO! Those are free states, tho. The people there TELL us they are free. LOL

    And the reason is to protect other interests within the state. It's a tariff, plain and simple.
     
  14. SC Tiger

    SC Tiger As God as my witness, I thought turkeys could fly.

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    The article mentioned five other states have similar laws but did not say which ones, and I was too lazy to look it up.

    I guess the real question isn't "what is the purpose of the law" but "what are the law's proponents claiming the purpose is." In other words, how on earth do you sell this law to the general populace?

    But then I remember how dumb the general populace is.
     
    Last edited: Mar 12, 2014
  15. RaleighTacticalSuppl

    RaleighTacticalSuppl

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    Final nail in Christie's chance for President. Guy is a bum.
     
  16. elsolo

    elsolo

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    Similar laws exist for alcohol sales, a mandated three tier system: manufacturers, distributors, retail sales.
     
  17. Bruce M

    Bruce M

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    Seems like it is that way for some guns also.
     
  18. RagnarDanneskjold

    RagnarDanneskjold Senior Pirate

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    :goodpost:





    "That's... That's a dumb planet. Somebody tries to kill you, you try and kill 'em right back!"
     
    Last edited: Mar 12, 2014
  19. czsmithGT

    czsmithGT

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    Reason: Car dealership associations buy votes.

    Other states (from Bloomberg):

    "Tesla is battling dealers state by state to secure or protect the right to sell its cars directly to consumers. Auto dealers in Ohio, New York, Minnesota, Georgia and elsewhere in the past year have sought to block Tesla from directly retailing its models, arguing that independent retailers are better for shoppers and owners of vehicles. Texas dealers successfully backed a law setting the nation’s toughest restrictions on Tesla. Arizona, Colorado and Virginia also imposed limits."
     
  20. gommer

    gommer

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    The only general sell I've seen is that the dealerships are there to protect the consumer, but even that falls flat so it's said lightly.

    It's a laughable law and shows just how absurd the process of law making in this country is. Like we needed an example...