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Vishal Mehrotra, Assistant Professor, Bond University

Mercedes-Benz's legal win over car dealers could transform the way new cars are sold in Australia

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In what has been called the most important legal case in the history of the Australian automotive industry, the Federal Court has rejected a $650 million compensation claim against Mercedes-Benz for replacing its traditional dealership model with a fixed-price, direct-to-customer agency model.

It’s a decision that could transform the way roughly a million Australians buy a new car each year – an experience that has been consistent for decades, with shopping around for value and haggling over the price part of the ritual.

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