NADA: Peer-Reviewed Study: Dealership Competition Lowers Consumer Prices
By Jonathan Collegio, NADA Senior Vice President of Public Affairs
In automotive circles it’s a well-known fact that when local dealerships compete for customers, price competition kicks in, and the result is lower prices for consumers on new cars and trucks.
But the reality experienced by local dealerships every day has now been demonstrated through data by economists T. Randolph Beard , George Ford & Lawrence J. Spiwak, who studied thousands of new car transactions in Texas.
In a new study published in the journal Applied Economics, the economists:
“examine[d] how the closeness of a dealer selling the same make and model of vehicle affected the final price…”
and found: “very strong evidence that the proximity of a same-brand dealer reduces prices significantly.”
According to the study, customers saved an average of about $460 on the price of a new car when dealerships compete in proximity to one another.
The data are in and the data show: When local dealerships compete, consumers win.
Read the study here.
Click here to access NADA’s website.
NADA: The Big Lie About EV Sales
NADA: The Big Lie About EV SalesThe Big Lie About EV Sales By Mike Stanton, NADA President and CEO As someone who has...
NADA’s Stanton Discusses Vital Role of Dealers to EV Sales
NADA’s Stanton Discusses Vital Role of Dealers to EV SalesVital Role of Dealers to EV Sales By Jared Allen, NADA Vice...
Information About New Warranty Reimbursement Law
Information About New Warranty Reimbursement LawIADA and CATA promoted legislation (Public Act 102-232) to increase...
Benefits of the Franchised Dealer System
Benefits of the Franchised Dealer SystemThe current franchised new-car dealer model has benefited consumers,...
IADA Makes It Easier To Send Your Managers To NADA Professional Series
IADA Makes It Easier To Send Your Managers To NADA Professional SeriesIADA is excited to begin offering the NADA...