There are practical reasons for this. People buy expensive items and expect to be able to get those items maintained and serviced. If the business was cutthroat, that could be more difficult. I don't want my dealer going bankrupt, frankly.
But the idea that dealerships aren't out there competing with each other is insane. Have you ever actually bought a new car?
>And the experience shopping for cars at a dealership is absolutely terrible, which shows you that they don't feel any pressure to compete.
Just the complete opposite experience I've had in my lifetime of buying new vehicles. And the idea that they don't compete is an outright fabrication. You have an incredible amount of leverage buying a car, and you can shop quotes around.