Costco is selling Vibes

[ned23]

Costco now offers new cars for direct sale to members. They have about a dozen models available through their purchase program. The Vibe/Matrix are two of them. Surprisingly, they offer the 1.8L with a nice trim package as one of the options. Something most dealers do not do.

[jake75]

They would have to go through a dealer in at least 49 of the 50 states - maybe 50 of the 50 states. Also - the sale probably could not take place except at the dealer's location. For example, in Ohio there can be no sales activity at the auto show - in fact many of the cars on display have the name of the dealer blocked out. These restrictions are basically anti-competitive state interference due to lobbying and campaign contributions of dealers and dealer associations.You also often see state sanctioned anti-competitive practices in the sale of alcoholic beverages, tobacco products and of all things, dairy products such as milk. There was an article in the Wall St. Journal a few years ago with the headline "In Pennsylvania you can go to jail for selling milk cheap." No cents-off coupons allowed either. And that is not the only state. In Ohio you can go to jail for selling beer or wine cheap. Many states, such as Ohio, also set the rates for Title Insurance, an industry with a loss to premium ratio of maybe 3%. No sense shopping around, they all have to charge the same insurance premium. They raised the rates a few years ago and I asked a Title Agent - 'what happened, did you have to pay a claim?"Ohio has a law that requires motor vehicle dealers, new or used, to have a fixed place of business and be open to the public for a minimum number of hours per week. That is to hamper those who might use the business model of buying cars at auction for consumers for a fixed fee. They would do business by appointment, phone, e-mail.In my opinion, Ohio, like many states, has the best legislature that money can buy, and they are bought off nearly every week.

[ned23]

Quote, originally posted by jake75 »They would have to go through a dealer in at least 49 of the 50 states - maybe 50 of the 50 states. Also - the sale probably could not take place except at the dealer's location. That sounds right, but it's interesting that the brochure advertised particular trim levels for different models.Quote » You also often see state sanctioned anti-Ohio has a law that requires motor vehicle dealers, new or used, to have a fixed place of business and be open to the public for a minimum number of hours per week. That's interesting, I'll look into the program and see what I can find. Quote » In my opinion, Ohio, like many states, has the best legislature that money can buy, and they are bought off nearly every week. Oh, few arguments there. I work with the legislature sometimes. They've also got term limits so nobody knows what the heck their doing. Every 4 years a new crop shows up trying to pass the same pro-business, special interest laws that failed last time. For example, every couple of years new legislators try to introduce bills to place mandatory time limits on issuing permits to fill in wetlands. They want the permits completed in 90 days, let's say. (as opposed to 9 months). So the dept of natural resources and epa has to sit down and explain that the Army Corps of engineers and Federal Laws are also involved in the process, and if Ohio can't get through the Army Corps processes and satisfy all the federal requirements within 90 days then they'll just deny all the permits after 90 das because they can't legally approve them and the developers will have to start over. Anyone want to bet whether a few developers gave campaign contributions? That said, I think Illinois could give Ohio a run for the money on corrupt government - although they haven't lost millions of dollars in a rare coin scam yet.

[jake75]

On the motor vehicle dealer open hours requirement - that was in the Dispatch in late December. I wrote this letter to the editor which was published."The state of Ohio's efforts to force used-vehicle dealers to be open a minimum number of hours a week is obviously a rule designed to protect the traditional "brick and mortar" car dealers from those who have a different business model that allows them to sell used motor vehicles at lower prices. Lindsay Komlanc, Bureau of Motor Vehicles, defends the proposal saying this requirement is intended to improve service for consumers. Please, let consumers decide for themselves what level of "service" they want to pay for when they buy a motor vehicle. Follow the money. I am sure that the association that represents used-car dealers has made substantial political contributions to our easily corrupted Ohio legislature. They have learned well from the Ohio association representing the wine and beer distributors in that regard. Next thing you know maybe the auto dealers association will have the state require minimum markups on motor vehicles."

[ned23]

The costco program does work with a brick and mortar dealer.