It's academic: Consumers don't need dealerships

|By:, SA News Editor

Automobile dealerships no longer provide value for consumers, concludes a research paper by INSEAD professor Karan Girotra.

"Car dealers and more generally intermediaries represent an extra layer of companies in the supply chain that clearly increases costs to customers," writes the prof.

The industry has evolved such that a consumer could search and research a car online, test-drive at a product gallery, and service a purchased vehicle at a reputable repair shop without needing the backstop of a manufacturer-certified dealership, concludes Girotra.

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