1. United States
  2. Ill.
  3. Letter

Let Consumers Vote with Their Wallets: The Case for Direct Auto Sales

To: Sen. Durbin, Rep. Schneider, Sen. Duckworth

From: A constituent in Gurnee, IL

May 15

A majority of the United States is reasonably inaccessible without a vehicle. Cars are the preferred choice for Americans, as our infrastructure is designed to accommodate them more so than anything else. Its long been accepted that the dealership is a necessary misery when buying a vehicle in America. Distrust in dealerships is so high that the average consumer understands it is expected if not likely to be cut an unfair deal on a car purchase. Not only is this the case for new car sales, but it is even more so prominent in used car sales. Most Americans who cannot afford a new vehicle are likely to buy a used one, and most Americans will have to purchase a vehicle in order to fulfill employment in the United States. Laws in the United States make dealerships a required part of purchasing a new vehicle. This is an anti-competitive legal barrier that prevents automakers from bypassing the dealer middleman. The dealership experience is often marred with dishonesty for the sake of profitability, so their requirement means there's no escaping this non-consensual tax. Entire business models have started where consumers can hire companies to negotiate with rude and disrespectful salesmen. Tomi Mikula, 33, is the founder and CEO of Delivrd, a remote business that negotiates car deals. Mikula worked at a car dealership for 6 years before starting his business in 2023, because he recognized how terrible the experience is for consumers. My proposal is simple: if an automaker wishes to sell a vehicle directly to a consumer, they should be legally allowed to roll out their own showrooms and service centers directly. Dealerships should be allowed to continue operations. If dealer networks are unable to compete with automotive brands who choose to sell vehicles directly to consumers, then the people have spoken and voted with their wallets. This is a fundamental tenet of capitalism, which the current conservative administration would argue is so important. I believe that the universally dissatisfying nature of the car buying process is a threat to dealerships, and is the only reason dealers have lobbied for their necessity in the process. As always, I'm grateful for your time and consideration.

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