Why Its Illegal to Buy a Car from a Manufacturer

Avaldati 16 aug 2021
Thanks to Omaze for sponsoring today’s video! For your chance to win a 1988 BMW E30 M3 and support a great cause, enter at omaze.com/donutmedia

New to the Channel?
►Watch this: www.youtube.com/playlist?list...

We upload almost every day, subscribe so you don't miss out!
►Subscribe here: bit.ly/1JQ3qvO

Click here for more info on joining the Donut Underground!
► eepush.info/dash/L6J...

Shop Donut Merch:
► donut.media

Donut Media is at the center of digital media for the next generation of automotive and motorsports enthusiasts. We are drivers, drifters, and car enthusiasts who love to tell stories.


  • Um fuck dealerships and any form of middle man retail. Fuck Walmart fuck target fuck em all. I should be able to buy every damn thing I want from manufacturers at cost with a small markup rather than paying double or triple cost at a retail or whole sale or dealership. And any laws protecting these companies should be over turned.

  • The only way for dealers to get rid of cars fast is to have sales like department stores. Every holiday, have 50% to 90% off. I would buy new car every holiday.

  • Hey Nolan, just wanna say I think you are badass bro.

  • BS , Leno does it all the time !

  • Can we use vpn while being in Texas for registration ?? 😅

  • The "middle man" is the reason why prices are so high. If consumers could eliminate the middle man and buy direct the world would be a better place. These guys go out and buy from the manufacturers and turn around and charge at least two or three times what they paid. C'mon, talk about crooked businessman!!!!!

  • Yup, just about everyone has had a bad experience buying cars. The car salesman is notorious for not telling buyers the truth, the whole truth, and nothing but the truth!!!!

  • Next time wash your t-shirt with only whites.

  • So the law protects local businesses from dominance by large corporations sort of like how we protect local shops from WalMart or local hardware stores from Lowes and Home Depot - oh wait - we don't.

  • When I needed to buy a new car, I emailed the various dealerships in the area with the car that I wanted and asked for their out-the-door price. (It was actually fun-like a reverse eBay.) About half the dealerships-eight of them-responded. There was a $5000 spread between the lowest and highest price. Even so, I asked for, and got, an additional $500 off the lowest price. (I knew what the lowest price _could be_ because I had checked TrueCar for the prices that car had gone for in my area in the previous week.) The finance guy (who I saw even though I paid cash) seemed genuinely impressed by the price I paid. He showed me on his computer that the difference between the price I paid and the dealer’s cost, i.e., the dealer’s profit, was $491.70. Part of what is going on here is that there are manufacturer-to-dealer incentives. If the dealership sells, say, 100 cars in a month, it might get $1000 _per car_ as an incentive, which means that the sale of your car might be worth _a whole lot more_ to the dealership than the profit made off of the individual sale. It pays to buy your car at the end of the month (I was buying my car on the 27th of the month), or better yet, at the end of the year, when the dealer has a very clear idea of what numbers have to be made.

  • Dealership franchise laws were passed so that you have no choice to buy a new car from a dealership.

  • They could charge ANY price, the whole market. THAT WOULD BE HORRIBLE!!! 😭

  • I bought a new Subaru Forester S in April this year. I had to wait four weeks for it to come from Japan because the dealers in my state have mostly stopped having stock in the yard except a single demo of each model. Cheaper for them or covid supply shortages the cause?

  • With any law that prohibits certain types of trade, you always just have to follow the money to discover why it exists. Usually the law is there to serve certain interests. Franchise laws are the tip of the iceberg. Look at US agricultural policies (e.g. cotton, sugar, corn, beef etc) that prop up big business farmers while increasing prices for customers. Look at protectionist trade barriers that prop up domestic manufacturers ...and increase prices. Look at unnecessary licensing laws like those for hairdressing... that result in higher prices and less competition. Look at the Jones Act, which may be the worst commerce law on the books. In all cases, business interests have successfully lobbied government to protect their interests so that they can make more money and avoid competition. Who ends up paying, always? Consumers in higher prices and taxpayers in wasteful spending.

  • "Fee market" instead of "free market"

  • I am playing the waiting game with no car right now. Too much power on the dealership side

  • car dealerships are a pain in the a** I buy private party.

  • Well these are the products of Capitalism. Whatever sells is what's made, not whatever is best necessarily. Capitalism evolves as its seams show but the seams always burst open again rather quickly with recessions and depressions. It's insanely unstainable and causes hostile experiences and environments with profits being prioritized over people. We're not seeing anything weird or crazy here. These are the regular results of multiple Capitalism-caused faucets of disaster cascading across every product, industry, and even basic human services.

    • As for why it's illegal to buy direct from the manufacturer, the short and sweet answer is the same as why there are mega-corporations that control the vast majority of every industry (agriculture, commercial transportation, and energy come to mind). Lobbyists work. Bribes work. The corporate coup d'état has been going on for some time and the government doesn't serve the people who enable its existence. They serve as an intermediary to prop up Capitalists and patch up a broken system to keep it rolling for the super wealthy. Social democracy is a great example and it is swayed closer to serving people than capitalism however it is also a patch, just a better one that will last longer than the American system where there is virtually no safety net.

  • Idk what this guy is talking about I’ve brought a car online and my brother has brought a car from the manufacturer before

  • This channel blows my mind! How are we so okay with getting fucked over……..

  • It’s a bad law. Many would choose dealers without the law anyway. Cronyism.

  • I'd be OK with a dealership if I did not feel like I needed to take a shower after talking to a salesman on their lots. Get rid of the slimly business practices employed by them and they would be looked on in a better light than a coiled turd.

  • Amerika is F@kt up unless you're already rich. I would migrate to a better part of the world if I was unfortunate enough to be born there.

  • Honestly fuck car dealerships. Basically a oligarchy

  • I just want to be able to order a car with actual options again. Before 1980 you could walk in and order a vehicle without a radio for crying out loud. You could order it with the radio but tell them to delete the AC. You can order it with an AC, the radio, but tell them to leave the plain Jane wheels on. You could order it with the fancy wheels, no radio, no AC, 8 way leather power seats in the front and plain Jane cloth seats in the back. Etc etc etc. Now everything has to fit in three packages. It's fucking stupid. Then again paying half a years salary for a base model car is fucking ridiculous. Thank a union representative the next time you see him with a kick in the crotch.

  • Why don’t we just change it. After all, we control everything as long as we have a large number of people behind it. There’s 1.1m views, I’d say that’s a good start. If they can’t sell anything they’ll be forced to change it to the way we want it. Sounds ridiculous but it can work.

  • We are sorry but the freedom to buy a car directly from a manufacturer in America has been repossessed.

  • Although we can buy GPUs direct from manufacturers, it seems like the scalpers want to be dealers. We can't allow that, they raise the price too much.

  • You should do the house market.

  • I buy them used and rebuild them my way

  • What about carvana and online dealers like the where they deliver? Has anyone ever tried that? What's that experience like?

  • With any product in general, I've always liked buying direct from the manufacturer if possible. It's often less hassle and usually results in a cheaper price for the buyer. Agile Guitars, for example, you can buy right from the manufacturer, and they are a good price for what you get. Carvin/Kiesel guitars are the same way. My EVGA video card I also bought direct right from their own website. Direct from manufacturer purchase should always be an option. This is another example of lobbyists rigging the system. We don't truly have "free market capitalism." We actually need better separation of business and state. A lot of the problems these "regulations" claim to fix are, ironically enough actually caused by said "regulations" themselves.

  • 0:24 Journalists need to be way lower than 45% average.

  • Kinda seems to be the norm nowadays laws that were made to protect the consumer are ultimately being used to rack up more costs for the consumer

  • In 2008 I bought my brand new Mercury Mariner Premier. I am very picky and they didn’t have exactly what I wanted with all the features that I wanted and features I didn’t want, so I sat with a sales person and I built the car on paper. I brought pronounce of how much all the features and the car in general should be costing me instead of the MSRP and we signed a paper with an agreement that that’s what I will pay plus the additional offers they were offering. Three months later it landed on the lot and I got my custom built car :-) (they did try to squeeze an extra $600 when the car arrived by saying that the actual manufacturer price of the car has gone up by $600 and that it was out of their hands,even though the Mercury brand wasn’t selling great. They were so desperate…and dishonest.

  • So is it better to buy from a Nissan dealership instead of a AutoNation Nissan dealership?

  • In buying a 2020 Toyota Camry SE in October 2020, we went with the AAA Discount, which eliminated all the haggling. No trade-in because the old car had stopped working completely, but 1997 Lexus ES 300 / Toyota Camry parts are always in demand. The drawback was that the AAA Discount forced us to go to a particular local dealer and buy from their stock. So we wound up with a white car that is much harder to keep clean. At least we have a nice car built before COVID turned the car business upside-down.

  • Do you support legalizing direct selling. I personally do. Yeh it would make the car companies more money but if I benefit to I don't care if they make a few million more.

  • 3:56 Love it when Eberhart and Tarpenning are given due credit for founding Tesla.

  • God, he’s the softest of them all. Like, bro, get out of California for a while. Your breathing in too much Pelosi boobie crust with every breathe.

  • More like Stealership

  • Missouri dealers association actually got the legislature to outlaw tesla showrooms as well

    • Corrupt lobbyists gonna corrupt.

  • One word tesla?

  • I bought a used car on July 16th while I was in the process of moving from Washington to Montana. I found it Online in Portland Oregon and the paperwork process of the sale was very smooth. I spent about 1 hour on the dealerships lot. HOWEVER in the almost 2 months since I've been driving this car it is still not registered to me and I have no license plates for the car. I've been doing my best to work with them this entire time. After 6 weeks of nothing getting done I went to my local treasurers office (they handle vehicle licensing) explaining this snafu and when I did they gave me a form to provide the dealer with. I was told they simply had to fill out the form, include the title, the $8.13 fee and mailing it. I'm excited and I tell them about it after I faxed them the form (over 2 weeks ago.) Not hearing back I reached out 2 days ago... Despite having previously acknowledging the form in a text they pretended to not have seen it asking me if I faxed it to . I confirm I did and ask if they'd like me to re-fax it, no response (not unexpected). So I go and fax them the form AGAIN, not having less than 20 days left on my temporary tags. I shoot them another text letting them know and they responded with "They received it, will handle it". So we'll see what runs out first the tags or my patience. ​ It turns out they financed the car using my old address intending to register the car in my old state and shipping plates to my new state taking on ~$1,800 to my loan. Well my former state refused to mail the plates out of state, which took 6 weeks for the to tell me. Despite living in (to my knowledge) Montana is the only loop hole state that allows anyone to register there vehicles without paying sales tax, causing us to (Georgia even TRIED to sue the state who was then told to kick rocks.) This is also used by many expensive RV/Busses, who want's to pay sales tax on $100,000+ at ~10%(Washington) it adds up quickly. They can't seem to manage to register a Subaru, even with their "expert title clerk" in Montana. All they need to do is fill out a form and mail it with the title. Once they do this it is then my responsibility to pay the $400 registration fees. That's less than my 2 year registration in Washington. Many of you likely have never heard of lifetime vehicle registration. How does it exist you ask? Vehicles in Montana are registered as property instead of by DOT taxes. Here DOT does not rely on taxes from vehicles for their budget and registration is done on the county level. So when we build a new highway or replace a bridge it doesn't come from vehicle registration like every other state I've lived in It turns out this was all an excuse to pull one over on the lender, who wouldn't have approved a loan knowing I was moving to Montana that week. I maintained residences in both states at the time so it was technically accurate. I talked to the finance company who stated they wouldn't have approve the loan using my Montana address (which I asked to use multiple times.) So i'm stuck with a car that isn't in my name or the finance company and have dropped >$1000 in maintenance and replacing bad brakes they sold the car to me with. As well as having paid $800 towards my loan I have no legal rights to this vehicle. They have now deviated from our purchase agreement to boot. If I have to I'm prepared to drive the car 500miles to their lot and toss them the keys. But screw dealers, I couldn't even find the car I needed on a Subaru lot with it being 14 year old Subaru Outback. I'm now stuck with a 9K loan for a car I can't register and to add insult to injury the car books at $5500 if I wanted to sell it. They knew I was desperate and took advantage of me. FUCK YOU ! The one thing I have going for me is I have almost every communication in text as well as having the fax confirmations. I don't want to go to court but if they don't return the taxes and licensing I will be going after them, even if it's on Judge Judy or similar, it's an open and shut case. I have paperwork stating they will pay my taxes and registration and they haven't as of 2 months almost to the day. I bought my car July 16th and today is September 13th.

  • I got fucked for financing. I paid about four times for my Nissan pickup. 75000 for 25000 vehicle. I hate this country.

  • dealerships are government mandated middle men of the worst kind.

  • Reality is dealerships didn't know if production would suffer so in order to stay in business they sold what had for more since supply might end...not all are bad like try to make them out.

  • The free market is the solution. It's always the solution.

  • This sounds dumb. There's no way a manufacturer would set up a dealership in every town. Plus, the incentive for competitive pricing would be established by the fact that there are multiple automotive manufacturers. Franchise law is wrong.

  • I like the old photo at 3:58 that shows 41 MPG.

  • Nope this way the state holds the original manufacturing certificate and title.......you only get a copy of title.. The state owns your car....and license you by yearly tax to use it....and they make you insure their intrest.... It's a rig job. Facts and truth....

  • Literally ordered my Tesla in like 5 minutes all online. No haggling, just click purchase

  • It's called a MSO. Ive been told you can get one if you bring gold and a broker to the deal.

  • Ask Tesla.

  • Just purchased a new car yesterday. After the experience we decided the next car will be a Tesla. Not because it's electric or cool or whatever. Just to buy it on line without the professional scammers in the dealerships getting any of my dollars!

  • If you're military, Military Autosource is the only way to do it, used cars at hella discounts and custom factory orders with the same discounts if you want lol, picking up a brand new, fully optioned Widebody Scatpack for $54k when MSRP is over $60k, can't beat that.

  • Dealerships won't go away, they pay congress millions a year so there protected, there protected by corruption

  • Just like fake news media, meat, and everything else, the monopolies are taking over.

  • Because that's how corporation lobby government.

  • Convid pandemic... Lol!

  • Corrup... I mean lobbying.

  • I hate dealers 😒

  • Was trying to haggle a bit on a used car purchase recently. This is after I told them I had previously worked at a dealership. She said, and I quote: "We don't mark cars up thousands of dollars to sell them" ... i'm sorry, you literally just described how you make money on used cars? SMH.

  • I make Volvo S60's. We're still out of work because of no parts. It's crazy how much it actually costs to make one.

  • The one thing a dealership does right is let you test out the vehicles they have on the lot. That's about it. Other than that there is nothing more than possibly be a specialist for the vehicles you buy, which can be a crap shoot. When I went to buy my first car I ended up buying a Focus ST. It was during the same time the RS came out, and I really wanted that. I bought my ST for 22k delivered. I was willing to pay 35k for the RS, but the dealership markups brought it up to 45k, vanilla. That really pissed me off. I built one out to spec online, vanilla, but it would have been special ordered, and would have came close to the same cost as the dealership markup. The car was also a highly desired car, until the 10k markups. Anytime government gets involved they screw it up.

  • Climate change is bs

  • I can report that here in Victoria, Australia that the new car I bought from a dealer was good. But the people at the dealership were the lowest form of excrement that I have ever met. I say this now with no anger and a clear conscience.

  • Dealerships offer at best, a mediocre overpriced service.

  • 3:58 man cars used to get good millage back in the day. Check out the poster on the wall 41.57 MPG, imagine getting that car today. Lol or a bit of a issue with truth in adverts.

  • My tax guy cool 😎

  • If im gonna spend 30k+ on a car it better be EXACTLY what I want. I'd never buy a new car from stock unless it ticks literally every box honestly

  • could not find what the dealers buy their cars for, is it at 10% profit or closer to 40%?

  • Wrong , mid 70s 633CSI .

  • Why do I have sit at the dealership for 3 plus hours to buy a car same day! I bought a Tesla so much easier.

  • answer is simple: Because sellers want your moneys

  • LOL. As you mentioned "appetite for destruction," instantly, I'm here linking that line to Flo Rida's song American Superstar."

  • Hey can you do a video about “Proton” the company that bought Lotus in 90s?

  • To bad he wrong. Trust me dealerships aren't going anywhere anytime soon. Customers want to feel, touch, and smell the car they're paying thousands of dollars for. Tesla can sell directly from the manufacturer because they don't produce a lot of vehicles. Someone like Toyota produce about 10 million vehicles a year worldwide with tesla only producing a little over 500,00. So it would be impossible to sell, distribute, contact, and title that many vehicles. With the added headache of supply chain issues, new car inventory shortage, and increased demand for cars. Dealerships can sell used cars. Which tesla can not. You can't even trade your car to tesla. So no tesla has not broken the mold. They've only found what works for them.

  • Bottom line is just that Nolan. They're never going to make less money to make you happy. Never

  • No. They're gonna charge you 7k just to let you choose the car you want to build

  • Did the poster say 41.57 mpg ?

  • I'm speaking from an Italian/European point of you: I just had bad experiences in physical dealerships. For example with the last new car I bought the salesman didn't even know how many gears it had and told be that it had cruise control while it just had the speed limiter. After that car I recently bought a used one from an online dealership and the experience was SO much better. The salesman was great, he knew everything on the car and knew how to answer to any of my questions. Then the paperwork process was all done digitally and smoothly. I think that right now online dealerships need to do better than physical ones because people may be scared of buying online. After my experience I would definitely buy online again.

  • Can’t you order a Tesla online

  • Domestic US automakers have always allowed you to special order the exact car you want (through a dealer). It's just that in recent decades, they haven't really emphasized that fact. Although, Ford is changing that. For several years now if you go to the Ford website and use the 'Build' function, it will tell you what to do to send that build to a dealer and have it special ordered. The main downside is you will likely not be able to get as good a deal on a special order as you would buying one already on the lot. And you will have to wait several weeks.

  • I'm sure manufacturers get a percentage of the profits from the dealerships. which is why they like this layout. so they sell to dealerships for a price, then get like, 3% of the profits once it sells. providing more revenue than simply selling it to the consumer directly. i understand they cant male it specifically for the consumer since they wouldn't be working around the clock and that process also takes some yes and no time. eventually the consumer may decide to cancel the purchase. only high end suprcars operate like that since not many people can do so.

  • this is 1 of the million things i dont give a **** about it

  • I love seeing all this stuff about the insane difficulty to find a new car, costs going up, etc. I found a neat trick called buying a Passat. Apparently they have tons of them, no one wants them, and they took off like $8k below MSRP.

    • Always an option

  • 5:02 That's not good. WHY? Why it is bad the fact that I produce something and I have the right to sell it at the price that I choose? Why it is good the fact that someone is buying from the producer at a price and without doing anything, not a single improvement to the item he is selling it at a higher price? Is it normal that somebody is making money without producing something? Yes, i now there are indirect productive jobs like policeman, fireman etc. But I as a citizen, I benefit after there existence. But a dealership is just a parasite. AND YOU PROTECT THE PARASITE WITH THE LAW!

  • Yup, its why the new bronco is selling for the price of porches and other performance cars. You also forgot to mention this has also driven up used car prices. I have an okay 03 f150 and I've been offered 2k more than what I bought it for.

  • i like to make a dealer think i am going to take out a loan to buy a car get them to lower the price then bang pay in full most dealerships make their money on finance so don't let the dealer know you are paying in full until he gives you the final price

  • 10:24 when it comes to premium cars, custom order is ALWAYS the way to go. i'm 33 and i'm on 4th car, a 2021 BMW. before that i owned a BMW, audi and mercedes. i custom ordered every car i've owned and got 8-12% off retail. when you order a car and pay a deposit on it, dealerships are (typically) more willing to work with you on pricing because they save on storage and insurance on a car that's sold before it even gets to the dealership, as mentioned in the video. My current car had an MSRP (sticker price) of $83,495 USD, but the sale price was $73,195 ($1500 in factory rebates, the rest dealer discount), and this was in October 2020, at the very beginning of the model year. you're not going to get that price on car that's on the lot unless it was a test drive or floor model. mine was brand spanking new. pealed the factory scratch protection off of it myself.

  • Times are definitely changing.

  • almost all car dealerships are crooks, especially those selling used cars of different brands, they trick customers on almost every step of buying process, if you are not financially educated, 100% chance they will screw you over. that's why I buy from private owner only

  • why? because government, laws and humans who love government and laws arent overly bright.

  • You can't buy ANYTHING from a manufacturer, TV, HOOVER,COMPUTER, COOKER, God how stupid do you need tp be

  • In europe most people order their cars and dealerships are small. Salesmen are - at least in the European market I am familiar with - more patient and more knowledgeable. The car buying experience in the US is not good - limited selection, slow, annoying salespeople etc.

  • Tesla? Responding to clickbait....

  • Why would the manufacturers bully small dealerships when they are selling their cars? This whole concept seems absurd.