Why buying a car at a dealership is more expensive? New study reveals the factors that raise the price.

Written by Andriely Medeiros de Araújo

Published on 08/04/2026 at 18:04

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Study explains why buying a car from a dealership is more expensive and how structure, logistics, and franchises increase the final price of the vehicle.

Buying a new car can be quite costly, and a study by the International Center for Law & Economics (ICLE) explains why. State laws that require vehicles to be sold only through franchised dealerships increase the final price by up to $4,992 — about R$ 26,000 for a $50,000 car.

This requirement acts as a “middleman tax,” transferring structural costs directly to the consumer.

Alternatives can reduce the price of the car

Brands like Tesla have challenged the traditional model by selling directly to the public, eliminating intermediaries and reducing costs.

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Dealership costs increase the value of the vehicle

The ICLE study details that maintaining large physical structures and a staff adds up to $1,900 to the price of each vehicle.

When combined with inventory, logistics, and financing interest costs that range from 6% to 9%, the final value increases even more — reaching $2,700 just for inventory management and vehicle movement in the lot.

Study explains why buying a car from a dealership is more expensive and how structure, logistics, and franchises increase the final price of the vehicle. Image: Canva.

Franchises were created to protect, but pass on costs

Historically, dealerships emerged to protect independent resellers from unfair competition with manufacturers.

However, according to the ICLE, this protection model ends up being passed on to consumers. Protecting an established distribution channel is not the same as protecting the end customer, the organization states.

The survey indicates that a large part of the amount paid does not reflect the car itself, but the dealership’s infrastructure.

From masonry and maintenance to payroll and inventory logistics, all these factors contribute to making buying a car from a dealership a more expensive option.

Tips to save on vehicle purchase

For those looking to save, alternatives like direct sales and online purchases can significantly reduce the price of the car.

According to the study, allowing manufacturers to adopt these models without intermediaries would help democratize access to vehicles at more competitive prices.

Study explains why buying a car from a dealership is more expensive and how structure, logistics, and franchises increase the final price of the vehicle.

With information from CanalTech

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Why buying a car at a dealership is more expensive? New study reveals the factors that raise the price.

Study explains why buying a car from a dealership is more expensive and how structure, logistics, and franchises increase the final price of the vehicle.

Alternatives can reduce the price of the car

Dealership costs increase the value of the vehicle

Franchises were created to protect, but pass on costs

Tips to save on vehicle purchase

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Why buying a car at a dealership is more expensive? New study reveals the factors that raise the price.

Study explains why buying a car from a dealership is more expensive and how structure, logistics, and franchises increase the final price of the vehicle.

Alternatives can reduce the price of the car

Dealership costs increase the value of the vehicle

Franchises were created to protect, but pass on costs

Tips to save on vehicle purchase

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On the Greek island of Ithaca, archaeologists have found what may be a sanctuary dedicated to the legendary Odysseus, with inscriptions bearing his name and votive offerings that span from the Mycenaean to the Hellenistic era.

Is a smart plug worth it in a regular home? What does it offer: turns on and off via smartphone, creates routines by schedule, prevents forgotten devices, sometimes monitors consumption, and improves habits without renovation or miracles.

Spain surprises the world by erecting 62 artificial dunes, mixing sand with natural remains of posidonia, and causing the structure to lose only 1.4% of its volume in 1 year.

Geographers redefine the Brazilian relief and confirm the presence of mountains in 14 states with a new system that changes historical criteria and alters the way the territory is classified.

There is a city in China right next to Hong Kong where people speak Portuguese, the streets have names in Portuguese, and the architecture looks like it came straight out of a historic city in Brazil.

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