Economic Effects of State Bans on Direct Manufacturer Sales to Car Buyers

Gerald R. Bodisch, EAG 09-1 CA, May 2009

State franchise laws prohibit auto manufacturers from making sales directly to consumers. This paper advocates eliminating state bans on direct manufacturer sales in order to provide automakers with an opportunity to reduce inventories and distribution costs by better matching production with consumer preferences.

Updated September 10, 2015

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