About Dealers
For most people, buying a car still means visiting a dealer, and the relationship between automakers, dealers and customers is one of the most contested in retail. In the United States, state franchise laws generally require new cars to be sold through independent dealers rather than by the manufacturers themselves, a system that dealers defend as protecting consumers and competition and critics call a costly middleman. The arrangement has shaped the car business for decades.
The dealer world has seen dramatic swings. During the pandemic-era shortages, lots emptied, buyers paid markups over sticker price and dealers enjoyed record profits. As inventory recovered, discounts and incentives returned and the balance of power shifted back toward shoppers. Tesla's direct-sales model sparked legal battles in many states, and other electric newcomers followed its lead. In Europe, several brands experimented with agency models, in which dealers act as agents for fixed-price sales, with mixed results and some retreats.
This page follows the dealer side of the industry: inventory levels and days' supply, prices, markups and incentives, consolidation among big dealer groups, franchise law disputes, online sales, service departments and the dealer reaction to electric vehicles. It also covers the relationships between dealers and the brands they sell, which can turn tense when strategy, margins or showroom requirements change. For shoppers, it is also the clearest signal of whether this is a good moment to negotiate or a time to wait for the market to turn.