The END of Car Dealers Is NEAR | Episode 1042

In this episode of CarEdge Live, hosts Deb and Zach discuss the seismic shift in the automotive industry, focusing on Washington state's recent decision to allow Rivian and Lucid to sell directly to consumers—a move that sets a significant precedent for other states. The episode explores how consumer demand, backed by polling showing 70% support for direct sales, is pressuring traditional franchise dealer models. While dealerships have long been protected by state franchise laws, the growing influence of EV startups with deep pockets and aggressive lobbying is challenging that status quo. The hosts argue that while not all dealers are bad, the reputation of the industry has been tarnished by a small percentage of unethical actors, and the rise of direct-to-consumer sales could promote greater transparency and fairness. They also caution that this shift may lead to new monopolistic practices, likening it to Apple’s walled garden, and highlight the looming crisis for automaker finance companies due to massive depreciation of leased EVs. Meanwhile, the current market favors new car buyers, with dealers desperate to clear inventory at quarter-end, while used car sellers are in a strong position due to soaring values. The episode concludes with actionable advice: buyers should act now on new cars to take advantage of dealer desperation, while sellers should consider listing their vehicles through CarEdge.com’s beta program to attract competitive bids. The hosts emphasize that the future of car retail is in flux, driven by consumer power, technological disruption, and financial realities. The overarching theme is that the era of the traditional car dealership is evolving—and the end may be near, not because of technology alone, but because of shifting consumer expectations and economic pressures.