Car Dealerships are not the Future | What's Coming Next

Added: 2026-05-10

[00:00:00]What's going on, YouTube family? Today, we're going to be talking about the future of auto sales, and it's not going to be dealerships. We're going to talk about all the new ways that they're going to be selling cars, but more importantly, what's going to happen with dealerships, and how this is actually going to be a bad thing and affect you buying a car. Also, huge shout out to Revenue for sponsoring this video, but more on that later. So, it's no secret that the general public absolutely hates dealerships. They believe that they offer nothing of substance. They're just there as middlemen, basically causing more problems when it comes to buying a car, marking cars up, adding all kinds of issues and fees, and especially during the pandemic, dealers were charging thousands of dollars over MSRP, which they thought was truly unfair.

[00:00:37]Now, a lot of people don't realize that dealers offer a lot more than just selling cars, the service, and the parts. And that's what I'm going to get into now, and how that's going to affect everything if dealerships were to magically disappear overnight. Because unfortunately, I think the future in car sales is all going to be online. and there's going to be a lot of competitors. So, everybody likes to showcase Tesla is the perfect example of this non-franchise dealer model. Now, Tesla does have a few good things, but it has a lot of issues. Perfect example, Tesla dealerships are not everywhere.

[00:01:07]So, if you buy a Tesla dealership in the middle of, let's say, I don't know, 500 miles away from a big city, you are absolutely screwed if anything happens to your car. Now, you have to spend hundreds if not thousands of dollars shipping it back into town, seeing what's wrong with it, and then waiting for your car. On top of that, there are not a lot of technicians that have the scanners and tools to work on those vehicles, which makes it even more complicated. Now, this is very similar with exotic cars. Now, my buddy has a McLaren in Montana, and every time he has an issue, he has to ship it all the way to Seattle to get it to run. Now, one of the funniest ones I heard is he let his battery die, and for some reason, the car would not start after charging the battery. No matter what he did, they just wouldn't start. He took it to every mechanic in his local town in Montana, and they couldn't fix it.

[00:01:50]So, we spent $3,800 shipping it from Montana to Seattle. And before it even got off the truck, they cleared the scanner, drove it around, put it right back on the truck, and came right back for a $300 repair just to reset it with the scanner. Now, these are some of the issues you're going to have if dealerships were to disappear. Now, the reason why I think that the future of car sales is not going to be through dealerships. It's going to be online. I think that as we go more into these EVs, cars are going to be basically thrown away items, almost like cell phones.

[00:02:17]Now, look at iPhones. Everybody gets a new iPhone every single year and some people wait two to three years after it's done. It pretty much is worth absolutely nothing. The technology is outdated. Everybody wants the newest, latest, greatest thing and then it gets kind of gets thrown to the wayside just like computers. Imagine EVs. They are exact representation of this. Remember everybody's fighting over 2022 Teslas.

[00:02:38]Now you can buy them for next to nothing at auction or at dealerships because they are considered old and everybody wants the newest, latest, greatest thing. But the real reason why you're going to see a lot of these manufacturers start to go over to selling cars online direct to customer is greed. Now, one of the good things about Tesla is they can get to control everything from when they fix it, build it, and send it out to the consumer. And there's no franchises that would screw up the financing or anything else. So Tesla gets to keep all the money. But at the end of the day, it's a dictatorship.

[00:03:08]There's nothing that thrives any type of innovation or thrives any type of competition. Now, when you're a Ford dealership, let's say you're in a big city like Vegas, there's about six of these dealerships here in Vegas. So, if I'm want to buy a brand new Ford F150, there are six other dealers that I got to compete with. So, each one is going to be lowering their price. This one will give you $500 off. The next guy will give you maybe $500 off of that.

[00:03:30]Next, I'll give you less than that. This guy will give you 0% uh financing. And so, you go back and forth till you get the deal you want. That's what's going to happen when it comes to competition from franchise dealers. Now, if you were to take these guys magically away and just make everybody basically gone, and then you only bought from Ford itself, almost like a bill to order system like Tesla, well, guess what? That scales of economy, the things that basically make Ford F-150s a little bit more affordable, which they're really not that affordable. So, your $75,000 truck today will probably cost about $85,000 if you order it directly from Ford because now why are they going to build thousands of uh Ford F-150s to send all over the United States when they'd rather just sit here and wait for you to order it? So, guess what happens? Supply shrinks, demand heightens, and so now they can get whatever they want for building basically whatever car you want at the time you order it. So, just like with Teslas were during the pandemic, everyone was going absolutely nuts, paying 5, 10, $15,000 over for an allocation, that's the exact same thing that's going to happen with with Ford F-150s. When you take away this very traditional, very simple model, all it does is cause more greed. So, Ford does control what they price the vehicle at, as well as financing options and everything else. But the big thing that's going to hurt people, like I said, is service. If you drive your brand new car and all of a sudden it has an issue, where are you going to go?

[00:04:48]You're going to be just like Tesla.

[00:04:49]You're going to have to get on your app, book an appointment, and you got to pray to God that there's a dealership somewhere close to you that can service the vehicle. Now, if all the dealerships are no longer selling cars, why are they going to stay open to service cars? So, a lot of those are going to shut down.

[00:05:01]So, Ford is going to have to make the major investment to go ahead and open service centers. And so, now you're going to have to pay top dollar on these. Now, if you don't want to take it to one of these Ford service centers, you can't take it to your regular mechanic because unfortunately, if you do any repairs from a third party company, that voids your warranty, just like on Tesla. So, I don't know if a lot of people know this. There's a lot of these EV companies that are out here fixing Teslas. And I've seen people get their warranties canceled because somebody else went in there either fix something, reset the system, whatever it is, and those cars literally will tell on you, and they'll pull up the footage of like, "Oh yeah, you had this in another shop. Somebody was in here with the scanner. They cleared it. Since you did this, we don't know what you did.

[00:05:36]there goes your warranty. And Ford is going to do the exact same thing. Honda, Toyota, they're all going to jump on that bandwagon. Now, ever since cars started getting sold on the internet, it's been no secret that that's the way we're going to go. And pretty soon, like I said, you will be able to buy all your cars 100% online. Now, they're doing this quite a bit. They had CarMax that came out and and kind of changed the system. Carvana is nothing new. That's the same that every dealer does.

[00:06:00]They just ran with it and said that they're 100% online. But they did a good job with brainwashing people saying that they're not a dealership. They're just an online tech company that sells cars.

[00:06:08]Now, if you fast forward a few years, now you have one of the biggest retail giants jumping in, Amazon. A site that has hundreds of millions of eyeballs on it every single day is now throwing their hat in the ring and they're going to start selling cars. So, if you want to buy a brand new Hyundai, you could actually do that right there on their platform. You can buy it, you could spec everything out, and then you know what the manufacturer has to do is they have to give that lead to a local dealer. and the local dealer has to freaking guarantee that offer. So now they're taking all the profit away from the dealers and unfortunately it's going to cause a lot of headaches. There's some dealers that are already suing because of this. But you're going to start to see this model over and over again. And before you know it, all these big fancy dealerships are not going to have, you know, tons of inventory because they're not making the same amount of money.

[00:06:50]They're making the $500 mini on these older cars. Now, a lot of people don't realize that when you sell brand new cars, believe it or not, you don't make any money. It's very, very uh thin margins. You make all your money on used cars and service. Now, they get bonuses from Ford or from Dodge or from Chevy or Honda Toyota. When they sell so many of, let's say, brand new Honda Accords or Ford F-150s, every time they sell their allocation, it looks good and they get, you know, very large bonuses because of that. That's why it behooves them sometimes to lower the prices below what they're selling for just to get rid of them. So, they get those big bonuses at the end of the year. But, if you take that away and basically you tell a dealer, hey, you know what? I'm going to sell you this car. You didn't have to do anything for it. Here's a layup. you're going to make 500 bucks off of this. So now the dealership, you know, it gets to sell another car, but it's probably going to count against their bonus. Um, it's probably going to count against, like I said, their overhead because now the customers got financing. It's got insurance. They picked all the options they want. There's nothing for the dealer to upsell. So little by little, dealers are going to make less. So they're not going to want to deal with these things. Now, there is a law, believe it or not, across the United States where manufacturers cannot sell direct to consumers. It is actually illegal. So that's why they have franchises. you know, part of the franchises is representing the company, offering service, parts, sales. It's all of a package. Plus, they have to buy so many cars every single year. So, every time you drive by a dealership and you see, you know, 200, 300 cars on the dealership floor that are brand new and used, it's because that particular uh franchisee paid for all those cars. So, you have to write a check every year to Ford for a bunch of cars you don't even want because that is part of the agreement. That's why Ford basically can foreshadow how many cars are going to sell. What Honda is going to sell, Toyota, all these manufacturers do the exact same thing. They'll operate the same way except for Tesla. They build whenever it's time to basically build a car where there's demand. So, believe it or not, Ford is one of the first companies that got sued trying to pursue this selling direct to consumer model.

[00:08:41]They were going to create something called Blue Oval or Blue Energy where they were only going to sell these new EV models directly from the manufacturer to the public. And what happened was is Ford forced a lot of dealers to buy those crappy Ford F-150 Lightnings, which people didn't want. They fell apart, the Mach 2 or the Maky Mustang and a lot of their other EVs. On top of that, some of these dealers had to spend, you know, over millions of dollars retrofitting their dealerships to add charging centers, electrical infrastructure, training for their techs for EVs, all these things to basically help support EVs. But then they can't get any of the profits from selling the vehicles. So, this is where we're starting to see a lot of these things go down to. Now, originally, I thought this was going to be the straw that's going to break the camel's back and every manufacturer is going to get away with it. Well, guess what? Now, we have Polestar. Polestar is Volvo's electric brand. You know, they're trying to sell direct to consumer. A lot of other companies are doing this along with like Amazon pretty much changing the game when it comes to buying cars directly online. I think more and more people are going to jump into this bandwagon and start doing it. But before I get into that, I want to talk about today's sponsor, Revenue. Now, I've been buying and selling cars for probably close to about 20 years. And every time I go out and buy something, it gets a little cashstrapped, especially now because the economy is slowing down. I don't have as much money. So, I started using Revenue to basically buy all my cars and my parts. Revenue is a line of credit that goes off of your business bank statements. They don't really care about your credit. So, if you need extra capital to buy either parts, pay for marketing, or to hire some new people, revenue is a great option. They don't care if you've been open for three months or for three years. All they care about is what's coming in the bank every single month. But more importantly, they give you the flexibility of either using cash or with your debit card, and you could always ask for increases as it progresses. Another great thing is you never get charged interest on the money that you're approved for, only when you actually use it. So, whatever you use is what you get charged for. So, I tell everybody, take 10 minutes, apply online, see if revenue is right for you, and once you get approved for your line, you don't have to use it. Just keep it as something for rainy day fund or if you get opportunity to make some extra money. And that's usually what I do because every time I'm either out of money or I don't have any capital left over is when I find the most amazing deals. And especially now as like I said, things are getting crazy out there, you're seeing people starting to fireell things. There's other opportunities are presenting themselves and you want to have capital ready at a moment's notice. That's where revenue comes in. So, make sure you use my link down below. Um, talk to them. It'll take about 15 minutes to get approved. And once you get that, you can use all kinds of businesses, automotive, construction, um, housekeeping. I mean, pretty much you list you name it. They got somebody in every single sector. Now, I've been working with them for over a year and they've signed up over a hundred of you guys just on my channel alone. So, I know it's a great program. A lot of you guys are happy with it. So, if you guys are, please comment the section below on what you guys got and what your business is. But, it's definitely worth a check.

[00:11:23]So, thank you so much for sponsoring this video. Let's get back into the dealerships. Now, the one thing I know that's going to change this model and basically kill out dealerships is greed.

[00:11:32]Everybody wants to make as much money as they possibly can without paying anybody. So over the last three years, I've seen more online marketplaces pop up than ever before. And a lot of these online marketplaces don't have anywhere where you can go look at these cars.

[00:11:48]Now, I'm working with a few auctions that I buy cars from, and they don't even have a location where you can go look at the cars anymore. If you buy from Mannheim, Adessa, you know, even the Copart auctions and uh CarMax auctions, you could physically walk down there, look at the car, start it up.

[00:12:04]Some uh auctions you could actually drive it around to see if this is the right vehicle for you. But over the last few years, greed has taken over.

[00:12:11]Manufacturers are wondering, "Why do I got to send my cars to this auction and pay hundreds if not thousands of dollars in fees? We're just going to auction them off from our storage lot." So now we have banks that are actually selling their own repos by themselves online for thousands of dollars less because they don't want to incur all the cost of sending it to auction, getting it reconed, and all these other things. So little by little, we're getting more efficient, but also companies are getting greedier. They want to keep as much money as they can on themselves. So if they're spending $2 million a year in auction fees, it's actually cheaper for them to spend $500,000, create an auction site, and make their own thing.

[00:12:48]And so that's what all these companies are doing. They have their own marketplaces now where they're selling their cars. So, ever since I started Auto Auction Pass, I started doing research on all these different auctions and marketplaces, and I noticed that they all have different platforms, different ways they want to sell cars, different access to different banks, different companies, and so pretty soon, it's going to get to the point where you can buy directly from them. Now, the site that I made, Auto Auction Pass, the whole purpose of that is to get the general public access to repos without needing a dealer's license. So, if you guys want to sign up, my link's down below, autoctionpass.com.

[00:13:22]We should be launching hopefully at the end of this month uh once Copart turns this on. But we have Copart, IIA, GSA, um a bunch of other auctions, which I'm going to be talking about here in a minute, but all these things on there because I'm starting to see the trend.

[00:13:34]People don't want to go to a dealership and pay three, four, five, $6,000 in markup. So, if I can offer cars directly to the public and they could save a few bucks and just clean up the cars themselves, it would be much better for the whole marketplace. And so I just want to be one of the first movers for this because you've seen people like Cars and Bids. Uh bring a trailer.

[00:13:53]They're selling retail absolutely crazy stuff. All I'm trying to do is give regular people access to auctions for dealers. And I thought it'd be kind of crazy. I figured auctions would fight back on this, but they're all for it because they just want to make more money. They don't care about the customers, the people, the dealers, nobody. They just want to make as much money as they can because like I said, at the end of the day, greed wins. And that's exactly what's pulling us in this direction where pretty soon everybody's going to have access to sites like mine where you could buy cars at auction without having a dealer's license and now you're saving thousands of dollars.

[00:14:26]Why are you going to go, you know, go to the dealership, you know? Um, we're working on financing for our site. I've seen a few other sites that are in Europe that already have it. They actually have stuff set up where you could buy cars from the auctions, finance them, and get everything serviced and dropped off to your house in a pretty bow. So, that's what I'm working on as well now. But every time I turn around, I see another company offering a new marketplace, a new way to buy cars, to cut out the middleman, to cut this dealership out, to cut this auction house out, to cut out everybody, and basically keep all the money for themselves. Don't be surprised if you see a lot of your big YouTubers all of a sudden start creating these new marketplaces for you guys to buy and sell your own vehicles. Doug Dearro is a perfect example of this. He made a lot of money selling cars and bids. You're going to see a lot of other people come up with these marketplaces to do this stuff. So, it's going to be very interesting to see how the market goes.

[00:15:14]But, like I said, I know people do not like dealerships and they are kind of a middleman. It's a pain in the butt. But, at the end of the day, they do play a vital role when it comes to service and parts. Now, if anybody owns a Tesla, I want you guys to share in the comment section what happens when your car dies or has an issue and there's no Tesla dealership around you. What do you do?

[00:15:32]Your car is bricked on the side of the road. You have to tow it. You spend thousands of dollars. Sometimes you wait weeks, if not months, for them to look at your car. And so I think that's going to be the reality coming forward. And on top of that, I think once EVs become more popular, it's literally going to be just like recycling scrap. It's almost going to be like buying a cell phone.

[00:15:50]You're going to go there. I like this car. You're going to drive for 2, three years and get rid of it. Also, another way they're going to probably eliminate this is you're going to see a lot of these manufacturers create secondary companies that are going to be their new franchise model where all their EVs are going to be under one label. All their gas engines are going to be over here.

[00:16:05]Also, they may offer a third-party company, which is a leasing company, but it's really the manufacturer. And technically, if you're leasing cars, it's different. So, if you can lease a car and you drive for two, three years, and every two, three years, they give you a brand new one, you just keep driving it once again, you'll never own anything. You'll just be making payments for the rest of your life. I feel like that's the model direction we're going in because everything I've seen over the last few years is basically forcing us down this road where they believe dealerships are taking too much of the pie or dealerships is not really something that's beneficial for most people. So, they just want to get rid of it. But like I said, at the end of the day, it's greed what wins overall. And I think everybody's greed of wanting to make more money and kick the dealerships out of the middle create the environment for this change. But also, I think it's going to be a big deal once they start closing down manufacturing centers and dealers start suing uh all the manufacturers. But anyways, I'd love to know your opinion in the comments section below. Let me know what you think. If all dealerships were to disappear tomorrow, how would you buy a car? Would you be okay buying a brand new car from online, which I guess wouldn't be that big of a deal. But more importantly, what about a used car? You know, we hear so many stories about Carvana and CarMax, people buying cars online, and then when they get there, it's nothing like what they thought. It was horrible. It was bad. Blah blah blah. And there's nobody you can complain to because there's no dealership. you got to basically send it back in the mail and ask for a return.

[00:17:18]So, these are some of the crazy things that we have to think about. But, let me know your opinion down below. Also, huge thank you to Revenue for sponsoring this video. Make sure you check them out. If you need a line of credit for your business, they're a great group of people. Just send them your business bank statements and within 15 minutes, they'll get you approved. Also, if you get a chance to check out Auto Auction Pass, um we have our early sign up. So, if you do that, there is no fees for the first year and you can start looking and buying cars online. And like I said, you don't need a dealer's license. you're going to be buying directly through me and you can do live bidding on the website. I should be the only one that's doing that which is awesome and I can't wait to show you guys that hopefully at the end of the month. But we'll see you next time.