Should states ban the direct sales of cars?
NC republican legislators, with the backing of automobile dealerships, have passed a proposal that would ban the direct sale of cars from manufacturers to private citizens. Should this bill pass? Does this contradict the principles of the free market?
Without knowing the details of the bill, and being a small government, Constitutionalist, I would say that this is not a good bill. I see no logical reason to limit the sale of automobile direct to the consumer. This sounds like corporatism on the level of the car dealers. I don't think the State should mandate this transaction either way. If the manufacturers want to sell direct then that should be their choice, as it should be their choice to utilize a dealership type business model as well. More choices, not less should be the way things are done.
I'm never comfortable when laws are created to provide a monopolization for any business or corporate entity. In my city one company has held a monopoly on the cable industry for decades. If any resident here wants cable they are thereby obliged to sign up for this company's service. As the company is shielded from competition, customers are therefore enslaved to their fees. In the situation you describe the auto dealerships appear to want that exact same kind of monopoly. So, I hope for the residents of NC such a law is never passed.
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