NADA Chairman's Commentary: YES! State Franchise Laws Lower Prices and Benefit Consumers

A new economic report from the Phoenix Center for Advanced Legal and Economic Public Policy Studies makes one overriding conclusion: state auto franchise laws lower retail prices of new cars, which benefits consumers.  The study, "State Automobile Franchise Laws: Public or Private Interests?" was released in July after years of debate and speculation about the benefits of the dealer franchise network.  Professor T. Randolph Beard and Dr. George S. Ford, authors of the study, found that franchise laws do not limit competition or lead to higher prices.  Quite the opposite, they found that "all evidence suggests there is intense competition leading to very low margins on new car sales."  This, in turn, demonstrably lowers prices for consumers and alters the way they buy cars and service in a very positive way. CLICK HERE for the full commentary.  

Visit www.nada.org/getthefacts to learn more about the benefits of the dealer franchise system.

By: Jeff Carlson, 2016 NADA Chairman 

Source: NADA News