The Rising Influence of Rising Affluence

[DewDiligence]

Re: Dealership model for passenger autos

When all is said and done, COVID-19 will likely mark the end of the anachronistic dealership model for passenger autos, IMO.

Selling cars per se is a low-margin business, and arranging auto financing is a commodity service. The other service that the front offices of existing dealerships provide — test-driving — can be taken over by the establishment of independent test-driving centers not affiliated with any particular brand.

Branded dealerships for parts and maintenance service will remain , because this business is high-margin and less commoditized than selling and financing.