How about removing the franchise monopoly provisions.
Make it like any other product. You don't need to go to the Coke store vs Pepsi store to get the respective products. You can choose from both at the same store. Car's should be no different.
Let whoever wants to open a car store open one. Let me open a shop where I sell you any brand of car under one roof. Heck let costco, walmart, target etc sell cars if they wanted to.
Its not Dealers vs Direct sales which is a problem. Its Dealers vs everyone else (including direct sales) that is the problem.