Table of Contents
Why are some cars banned in the US?
Whether due to lack of market interest, inability to comply with American safety regulations and emissions standards, or the simple inability to fund the import process, thousands of cars are produced every year that will never get the chance to burn rubber on Highway 52 or down US-1.
Why are direct manufacturer auto sales illegal?
Because state laws prohibit that. The purpose of the law is to shift money from the middle class to auto franchise dealers, who tend to be far richer. Most states require car manufacturers to sell through dealers. Even if you order directly from the factory, the order must go through the car dealer.
Why do manufacturers not sell directly to customers?
A second reason that manufacturers may not sell direct to retail customers is that selling in the lot sizes that consumers would like takes much more handling and cost than selling a wholesale lot size. Third, many, of not most, manufacturers sell to other businesses who do take large lot sizes.
Can I buy a new car straight from the manufacturer?
Car shoppers often wonder if it’s possible to order a car directly from the factory. The answer is yes – in fact about 15\% of all buyers special order their vehicles. But the truth is, you can’t actually order a vehicle yourself, you still need to do it through a dealer.
Why don’t more American automakers make cars in the US?
The U.S. market has some of the strictest automotive regulations in the world, including safety standards and emissions rules. As a result, some automakers find the cost of entering the U.S. market and complying with its regulations to simply be too high — so they don’t bother selling their vehicles here.
Can car manufacturers sell their cars through retail stores?
“Most state laws expressly prohibit manufacturers and distributors from operating retail outlets,” said Carl Compton, Executive Director at OMVIC, the auto sales industry regulator in Ontario. “They must by law sell their vehicles through independent franchise retail distribution network.”
Can automakers sell cars sold abroad to the US?
Automakers would be lucky to sell dozens of copies to a few fevered fanatics. But that isn’t to say there aren’t cars sold abroad that would be natural fits for the American market.
What’s stopping automakers from entering the US market?
The biggest issue stopping some automakers from entering the U.S. market is regulations. The U.S. market has some of the strictest automotive regulations in the world, including safety standards and emissions rules.