Why Car Dealers Matter: The Truth About Middlemen in the Auto Industry

When you think about buying a car, you probably picture the final step—walking into a dealership, shaking hands, and driving off in something new. But what you might not think about is the incredibly complex process that got that vehicle into your hands. And even more overlooked? The vital role that middlemen like car dealerships play in making that possible.

We live in an era obsessed with “cutting out the middleman.” The phrase gets thrown around like it’s inherently virtuous. Tech companies promise lower costs and better service by eliminating car dealers and distributors. Some automakers, especially those in the electric vehicle space, push hard for direct-to-consumer sales, arguing that it's the modern way to sell cars.

But that narrative skips over something critical. Middlemen—like your local car dealer and the shipping company that brought the car to your part of the world—aren’t just part of the system. They are the system. And without them, the entire automotive experience would be slower, more expensive, and far less accountable.

Let’s admit it: Americans use middlemen every day. Whether it’s Amazon getting packages to your door, or your grocery store stocking fresh produce, these companies act as connectors. They’re the ones who bring products from Point A to Point B—efficiently, reliably, and at scale. Amazon may be seen as a tech giant, but it’s really a supply chain company, built on logistics and distribution.

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