The WaPo editorial board acknowledges the brokenness of the auto sales system: licensed dealers are protected by a law and that is bad for consumers. Kudos to the WaPo for writing about this.

Licensing requirements are always bad for consumers. Legislating the way the market should work is never optimal. As the WaPo points out:

Dealers insist that the current franchise laws enshrine an optimal arrangement for consumers. If that’s true, then they have nothing to fear from Tesla or anyone else who wants to offer something new.

Yes: if the existing system of licensure is optimal, then removing the law that enshrines will change nothing. So let’s do it – remove the law.

-JD Cross

 

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