ElI5 why do we have car dealerships?
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Let’s try an actual ELI5 answer.
A car dealership is a store where people can buy cars. People like these stores because they can look at cars before they buy them. Then they can see if they like them. They can even drive them a little bit.
The companies that make cars sometimes don’t want to build stores. So they sell cars to other people who have stores. Then those stores sell the cars to people who want to buy them.
Some car companies have their own stores. Tesla is one of those companies.
People who make laws are called politicians. In some places, the people who own stores give some of their money to politicians. The politicians like money a lot. They like it when people give them money. The politicians will do favors for people who give them money. The people who own stores ask the politicians to prevent car companies from opening their own stores. The politicians like the money, so they do whatever the store owners want. The politicians are bad people.
When a company makes a car, it sets a price for the car that lets it make money.
At Tesla stores, that price is what people pay when they buy a car.
At other stores, the store pays that price to buy the car from the company that made it. Then the store raises the price so they can keep some money. Then the store raises the price so they can give some of it to the politicians. That higher price is what people pay when they buy a car.
People who own these other stores say that they save customers money. They’re lying. The politicians who take money from those store people are also lying.
Any car company can make their prices as high as they want. When they sell the car to a store, the owner of the store always raises the price even higher so they can keep some money too. So selling the car twice costs more money than selling it once. The only people who say it makes cars cheaper are the people who are taking extra money.
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