THE FRANCHISE SYSTEM

A quote from Beau Boeckmann

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Beau Boeckmann, vice president, Galpin Motors Inc., North Hills, Calif.
 
September 25, 2006 - 12:01 am ET
Look at how much dealers make on cars - 1, 2, 3 percent margins. That's extremely efficient.

We went through the nonsense of: Why can't you just buy directly from the factory? Is (the manufacturer) going to service the car? You need a place to service it, a place for inventory; you have to have people there to show the vehicles and explain their benefits. You put together all the things you need, and you have a dealership.

The factories have tried running dealerships and failed. They don't want any part of that anymore. If you look at community relations, it's car dealers who are often the most involved, the most generous with their money and their time.

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