DaimlerChrysler, Ford and GM have each sent dealers letters recently regarding their dealings with online sales outlets. Each has reminded dealers that franchise agreements do not allow dealers to sell cars to third parties for resale. What is unstated is that such deals will probably mean there is no valid factory warranty on vehicles sold by these third parties. They may technically be second-hand cars, even with very low delivery mileage. All three manufacturers make the point, however, that sites which act as a referral service, or presumably as an “agent,” for the dealer are fine. Since dealers will almost certainly be delivering and providing service for the cars they provide, there is, operationally, not a great difference between the business models. The key sticking point is who books the final sale. (more…)