Karlotz: A New Way to Sell Your Used Car

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A company called Karlotz is trying to change the way used car sales are done. It takes on consignment rather than buying it and charges a service fee for selling your car. Instead of profiting from buying low and selling high, they charge a service fee to both the seller and the buyer. And they also don't pass that car on to a long chain of other intermediaries. They sell it directly on their own lot.

Why would anyone want to hire a middleman, like a wedding planner, especially if you have time to take care of the planning yourself? Marina Krakovsky, author of The Middleman Economy talks with EconTalk host Russ Roberts about middlemen in the modern economy. Despite predictions that the internet would destroy the need for middlemen, Krakovsky argues they're more valuable than ever though their roles have changed. Krakovsky looks at the different roles middlemen play today and how their value added can justify their existence.