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The dealer franchise network: A good deal for everyone

July 3, 2014
By Mark Scarpelli, Metro Chicago NADA Director
Price Competition. Public Safety. Greater Convenience for American Consumers. We’ve said this before but now we’re showing everyone why new-car dealers are vital to the economy and to their local communities.
The National Automobile Dealers Association has launched a major "Get The Facts" initiative. Aimed at the media, opinion leaders and policymakers, the campaign promotes the benefits of franchised auto dealers and provides key facts about our businesses. The NADA has rolled out a variety of multimedia resources and an informative new webpage,
The centerpiece is a must-see animated video, "A Good Deal for Everyone," that details the value of franchised dealers in the car buying process — including the significance of performing warranty and safety recall work.
We’re also highlighting the economic engine that is the dealer franchise network. There are 17,700 new-car dealerships with nearly 32,000 domestic and international franchises across every state in the country which employ more than 1 million people.
At a time when some automakers, notably Tesla, are attempting to sell their vehicles directly to consumers, there have been many misconceptions about the dealer business. The NADA’s "Get The Facts" initiative sets the record straight about who we are and what we do.
And despite some misinformation that has surfaced over the last several months, franchised new-car dealers provide the best, most efficient and most cost-effective way to sell and distribute new cars in America, and we’re proud of our businesses and business model.
The NADA’s efforts will set the record straight about the benefits of the dealer franchise network for consumers, manufacturers and local communities everywhere. Franchised new-car dealers benefit consumers through price competition, accountability on warranty and safety recall issues, and provide enormous economic benefits to local communities across the country.
Indeed, the dealer franchise network is supported by automakers as the best and most efficient way to buy, sell and service cars in the marketplace.
The "Get The Facts" initiative highlights four central benefits of franchised auto dealers, which include:
Price Competition New-car dealers compete fiercely for business and drive consumer prices down;
Consumer Safety New-car dealers take the side of consumers in warranty and safety recall situations;
Local Economic Benefits New-car dealers create well-paying local jobs and generate significant tax revenue that have a huge impact on local economies; and
Added Value New-car dealers simplify an otherwise complex car-buying experience.
We’re making sure that the car-buying public — along with everyone else — understands that what we do is A Good Deal for Everyone.