A Look Behind The Curtain Of What Led To The Rise Of The 'Stealership' | Carscoops carscoops
, such as hidden fees, overpriced add-ons, and questionable advertising practices. And although there are some attempts to curb this behavior, there are decades of political protections allowing “stealerships” to continue.
As NPR points out, the very thing that makes dealerships valuable – their size, reach, and their manpower – also makes them effective political lobbyists. And as dealerships conglomerate increasingly, they become even more effective at lobbying local, state, and even federal governments., such as those espoused by Tesla and Rivian, from operating.
“As auto prices surge, the Commission is seeking to eliminate the tricks and traps that make it hard or impossible to comparison shop or leave consumers saddled with thousands of dollars in unwanted junk charges,” the FTC wrote at the time. It’s more than just the FTC, though, who want to prevent these sales strategies. Automakers also want to prevent the huge markups, tricks, and traps. We recently reported on a study which found thatDuplicitous sales tactics and outright lies, meanwhile, may harm consumer perception even worse. And when customers have a bad experience at a dealership, they tend to avoid the brand entirely. Since dealerships are independent franchisees, though, there’s only so much automakers can do.
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