“the dealer model of selling cars is outdated and needs to go.”
It’s a means of financing the car company and of ensuring vehicles “move” to dealer lots. A dealer may be floating a 10 million dollar inventory. He sells 10 cars, he gets 10 more. Mostly, the dealer has no control over what models they get. In LA a Chevy dealer could probably prosper with just Corvettes, but he has to take x number of low end cars he can never sell. He’ll end up losing money on them.
The dealer usually makes little on a new car. They make all their money on repairs, service and used cars.
Yes, you’re right. The dealer model is bad for everybody except the manufacturer.
The dealer makes money on holdbacks and factory incentives.