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

Updated on 02/05/2026 at 18:05

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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

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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With billions in loans, China is rebuilding Nigeria’s railway network from scratch, abandoning the British colonial tracks that have turned to scrap and creating a corridor of over 1,300 km to take the load off the roads of Africa’s largest economy.

Australia prepares to dredge 96.5 million m³ in Moreton Bay to deepen, widen, and realign channels of the Port of Brisbane, in a project of up to 25 years designed to accommodate larger ships and enhance maritime safety and regional port efficiency.

A robot named Walter does the work of five bricklayers per hour and can save the construction industry, where the average age of professionals is 46 years and almost no one wants to learn the trade anymore, in the United Kingdom.

Cristiano Ronaldo builds a billion-dollar mansion in Portugal with 54,000 square feet, a 3-acre plot facing the Atlantic, private spa, indoor and outdoor pools, and an estimated value of an impressive R$ 385 million.

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