ElI5 why do we have car dealerships?
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Very eli5: when car manufacturers first started, they couldn’t raise enough money to build, stock, and staff dealerships all over the country (and the world). So, they let local investors raise and risk their own money and decide if their local cities were worth opening a dealership in.
As years went on, manufacturers became able to raise the funding on their own. Since dealership owners didn’t want to be squeezed out of their investments, they got states to pass laws that would prevent manufacturers from opening their own showrooms and selling directly to the public.
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