As a second-generation dealer, I’ve always been a vocal defender of the automotive franchise system. And right now, that defense matters more than ever. While debates swirl on Capitol Hill and in the press about the “future” of car buying, too often the narrative paints dealerships as outdated middlemen standing between manufacturers and consumers.
Nothing could be further from the truth.
Our franchise system is what drives competition and makes car ownership accessible in communities big and small. Dealers compete every day — not just on price, but on service, trust, and long-term relationships. That competition benefits customers and manufacturers alike. In fact, recent studies confirm what we already know: OEMs gain enormous advantages by partnering with dealers who shoulder the cost and complexity of operations while delivering personalized service that a corporate model simply can’t replicate.
Wall Street may think it can apply a “big box” philosophy to car buying, but history shows otherwise. Selling and servicing vehicles requires an intimate knowledge of highly regulated state and federal laws — not to mention a deep understanding of the vehicles themselves. For most Americans, a car or truck is the second-largest purchase they’ll ever make after a home. Getting it right the first time matters. From test drives to financing, warranties, and recall support, customers need a trusted local partner — not a vending machine.
And let’s not forget what dealers contribute beyond the showroom. Collectively, we employ over a million Americans and support nearly two million more jobs across the country. We invest in our communities, build state-of-the-art facilities, and give back through local charities, schools, and organizations. That impact doesn’t come from a boardroom on Wall Street — it comes from people who live and work in the communities they serve.
The franchise system has proven itself for nearly a century, through every economic cycle and technological shift. It’s not broken. It doesn’t need fixing. It’s working — for customers, for manufacturers, and for the communities we call home.
I’m proud to be part of this system. And I believe, with conviction, that it’s worth protecting for the next generation of dealers who will carry it forward.
Valerie Romero
AIADA Chairman