toy4two

If only all manufactuers sold direct to the public. When I can afford it I'm getting a Tesla just because of their business model.

http://www.npr.org/2013/05/19/184882...oe-car-dealers

gengar

I am 100% for getting rid of requiring dealerships for sales. The LFA buying process could be done entirely independent of dealerships and that made it an incredibly pleasant experience. LFA buyers were given the option of ordering the car and taking delivery anywhere. I wish I could do that with all my Lexus vehicles. I've also mentioned on this forum that the horrid Ferrari exclusive dealership system is one of the reasons I decided against buying one. There are many reasonable arguments for the dealer franchise system, but overall IMO it's outdated and unnecessary and doesn't provide society with the value that proponents claim it does.

But here's the problem: Tesla is only trying to get exceptions for themselves. They're not trying to get the system changed, get exceptions for EVs, or even get exceptions for small companies/startups. The media is making it out like it's Tesla vs the whole country's car dealers, but what Tesla is really lobbying for is just one more government benefit for themselves. For example, in Texas, Musk lobbied for a bill specifically just for Tesla to be exempt from dealership laws. Maybe I should lobby the states I live in to raise speed limits - but only for me, no one else! I'll give Tesla credit if they actually take on the dealership monopoly, or even if what they do spurs some actual change for consumers.

Hoovey689

iTrader: (16)

I do like the fact that without the middleman it allows Tesla and other automakers that follow suit to cater more to each customer and get the options that they want

spwolf

every manufacturer would love to be able to do this because it means more profits for them... good luck with getting best pricing for your car and repairs though... it is all fixed and much more expensive.

You cant get any discount on Tesla and their servicing is $600 per year despite the fact that it requires less maintenance than any regular car. Big win for the customers.

We have Toyota owned dealers in Europe... they have strict rules about pricing that they cant bulge on at all.

toy4two

Do people actually use the dealership to get repairs done outside of warranty? Their pricing is atrocious, on my Audi any independant will charge you $185-200 to replace an axle with bad CV joints.... dealership: $600.

It sounds like servicing a Tesla is as easy as swapping out a motherboard on a desktop computer. No coolant troubleshooting, no air/vacuum leaks, no emissions subsytems, only the suspension would need traditional servicing.

I would rather have one of those strict Toyota dealers in Europe that won't budge on price, than the 2 hour song and dance you have to go through for every single new car purcahse to "get the best price" and you still wind up leaving at least a few thousand on the table because it has to go to the dealership.

bitkahuna

iTrader: (20)

i completely disagree. by your logic dell computer shouldn't be able to sell computers directly to consumers. they do so, and through retailers. car dealers are GROSSLY inefficient. get rid of the requirement for manufacturers to sell through dealers, and let dealers focus on where their big margin area is anyway, SERVICE.

in the SE U.S. we have an even worse situation for toyota/lexus, the dealers can only buy from a private giant distributor, limiting selection, and keeping prices higher. it's a ripoff, adding no value to the supply chain.

I8ABMR

I love the idea of no dealerships to buy a vehicle. It would be easier and faster to go through the company directly. The experience would probably be more like calling up the internet sales guy, getting the price on the model you want, and then go down and sign.

spwolf

i dont understand what do you think this means?

This is about Tesla not having independent dealers, only their own. So you still have dealers, they are just owned by car company.

We have these in Europe forever, and I am telling you that based on our experience, it means that prices are higher for both cars and service. Factory owned dealers do not discount their cars or service.

And Tesla has very expensive service charges and no discounts at all for vehicles.... not an coincidence.

All car manufacturers would love to be able to do this in the US, as they would run their own stores in highly profitable areas and make even more money... Service would be even better as well as car sales process, but at the same time, pricing would actually go up as they would not be competing with same-manufacturer owned store few miles away.

spwolf

there is still dealer, just Tesla owned.

O. L. T.

iTrader: (17)

Companies just need to own their dealerships. They don't because they can let someone ELSE worry about all that and just take the vehicle sales without service headaches. To a dealer service = $$$, to a manufacturer that's busy trying to design the next year model it's just an anchor.

bhuwan

Tesla is the way of the future. The concept of the middleman ( new cars) will be exinct in my lifetime.

swajames

You can order your Tesla and never set foot in a dealership. You can order and pay your deposit online.

swajames

I'm also looking forward to the day when car manufacturers can't hide behind the "dealerships are independently owned" argument and avoid responding to dealer service issues. The market will still set the price of the car. I'd far rather buy directly and have dealerships as they are be service facilities who will stay in business only if they deliver the right level of service. Not to say all dealers are bad and not to say they don't add some value, but when anyone is in the middle of a deal and working for profit the cost of the deal is almost invariably increased.

LexFather

While there is value in direct sales it would be devastating in job loss around the country. A lot of consumers do need assistance with sales as they have no idea about cars. Some still hate using the internet. There are clearly pros and cons to both and if we go direct surely manufacturers will find ways to complicate things.

I am unsure why Musk trying to get advantages for his company is an issue? Why is he singled out? Every company CEO tries to do the same from tax breaks to finding ways to cut costs. Large and small companies get govt loans, not just him.

mmarshall

I agree with your scenerio of (possible) large job-losses. But, in general, with some exceptions, I can think of far more honest places (one of them right here on CAR CHAT) for the non-car-saavy customer to go to to get good advice than the typical smooth-talking salesperson. Of course, there are some good and honest salespeople (such as the late Liz Chun was, right here on this forum), but, even today, too many of them seem not to really have the customer's interest in mind....their main goal is simply to make money for themselves and the dealership. In fact, they go through special training-sessions on how to (discreetly) squeeze more and more money from customers while sounding credible.