tesla's real impact - breaking the car dealer monopoly
07-15-17, 08:51 AM
#196
Super Moderator
BTW, even the corporate dealerships "compete" with each other in some ways, for example, from what I heard, they do not necessarily share vehicle allocations, some get more allocation of certain models than others, I think based on their sales results.
Last edited by Gojirra99; 07-15-17 at 08:59 AM.
07-15-17, 09:11 AM
#197
Lexus Fanatic
They must compete. Two cars dealers selling the same products are gonna be competing. The whole idea of banning direct sales in the US is to allow the franchise to have a chance. The franchise is at a disadvantage from every angle.
07-15-17, 09:13 AM
#198
Lexus Fanatic
Agreed. There would be some competition, but nowhere near the level of competition if there were two independent franchisees going after customers.
07-15-17, 09:15 AM
#199
Lexus Fanatic
Thread Starter
iTrader: (20)
The dealership model is designed to put pressure on you to buy the car and not leave without buying the car. This is how it gets done. The whole point is to get you into the dealer, feel good about the brand, feel good about the car, then part with your hard earned money.
There needs to be certain element of pressure applied to the customer, how much pressure obviously is different for every person but if applied wrong, the customer will walk.
There needs to be certain element of pressure applied to the customer, how much pressure obviously is different for every person but if applied wrong, the customer will walk.
i believe you're saying the pressure is needed because without it, people wouldn't buy cars so often. and that's a bad thing why? because you think the economy depends on it maybe?
The vast majority of people who buy cars are not fans of dealers and salespersons because they are scams or frauds. The vast majority do not like dealers because you are parting with so much money. That is why.
) people, and on and on. all factored into what we pay for cars of course. and talk about bait and switch... the infamous come get model a, b, or c, for no money down and $x a month! only to find out THAT model is stick, no a/c, cloth, blah blah... "oh you wanted a NORMAL configuration? well that's $8000 more but hey check it out, you'll love it. what kind of payment were you looking for again?" 
My question from day one with Direct Sales models vs Dealership models is what do you hope to solve or achieve with choosing one over the other?
For Example:
[1]Is this whole purpose to make sure everyone pays the same price (so essentially no one person can claim to have overpaid or get the steal of the century)?
[2]Is the whole purpose to make buying is as simple as one click checkout?
[3]Is the whole purpose to avoid pressure from salesmen?
[4]to purchase the exact vehicle to your exact specifications?
And all I have read is its "unfair", the "grass is greener on the other side", "anti-competitive legislation" and so fourth.
For Example:
[1]Is this whole purpose to make sure everyone pays the same price (so essentially no one person can claim to have overpaid or get the steal of the century)?
[2]Is the whole purpose to make buying is as simple as one click checkout?
[3]Is the whole purpose to avoid pressure from salesmen?
[4]to purchase the exact vehicle to your exact specifications?
And all I have read is its "unfair", the "grass is greener on the other side", "anti-competitive legislation" and so fourth.
I still have yet to find a reason as to why a pure direct sales model helps any of the above concerns. If you give the mfg of the product TOTAL CONTROL, you would basically give a single entity the power to control every aspect of your purchase experience....anti-competitive without any legislation whatsoever.
and dealers aren't greedy with fake add-on packages (pin stripes for $200 anyone? how about extra rust proofing or upholstry protection for $500, tire warranty for $200, a couple of oil changes for $200, and on and on), endless fees and outright lying when the final deal is presented that doesn't match what was discussed?
07-15-17, 09:49 AM
#200
I have no idea where everyone seems to be finding all these dishonest dealerships that put pressure or play number games. I personally never had a single issue with a new car dealership. They are all multi million dollar establishments, and you're not that important for them to waste too much time onto. I bought or leased 8 vehicles in the last 5 years, and I've always been offered a reasonable deal from the get go, and always closed the deal with minimal to no negotiations. In several instances my salesman even advised me on how to get additional rebated without me even having to ask for it - once a promotion that saved me $2k on a purchase and once a promotion that waived the first two lease payments when I bought $150 key insurance.
There are some used dealerships that will pull a fast one, so with used cars its better to do your research.
There are some used dealerships that will pull a fast one, so with used cars its better to do your research.
07-15-17, 10:17 AM
#201
Super Moderator
As I said, vast majority of dealerships make most, if not all of their profits from servicing, not from sales anyway.
The newest Mercedes franchise here is owned by the largest auto group in Canada, they have 63 dealerships across Canada selling 30 auto brands, from Porsche, Bentley, Aston Martin, BMW, Audi, to the the various Japanese and Korean brands, and they own another Mercedes franchise in Quebec too, so I think they know what they are doing.
07-15-17, 10:47 AM
#202
Lead Lap
and you don't see anything wrong with that model? i believe you're saying the pressure is needed because without it, people wouldn't buy cars so often. and that's a bad thing why? because you think the economy depends on it maybe?
agree with that... and how about the vast waste of money sending out special offers in the mail with fake keys, scratch off panels, test drive money coupons, colorful posters with attractive (or even almost naked) people, and on and on. all factored into what we pay for cars of course. and talk about bait and switch... the infamous come get model a, b, or c, for no money down and $x a month! only to find out THAT model is stick, no a/c, cloth, blah blah... "oh you wanted a NORMAL configuration? well that's $8000 more but hey check it out, you'll love it. what kind of payment were you looking for again?"
Quote:Originally Posted by coolsaber
My question from day one with Direct Sales models vs Dealership models is what do you hope to solve or achieve with choosing one over the other?
For Example:
[1]Is this whole purpose to make sure everyone pays the same price (so essentially no one person can claim to have overpaid or get the steal of the century)?
[2]Is the whole purpose to make buying is as simple as one click checkout?
[3]Is the whole purpose to avoid pressure from salesmen?
[4]to purchase the exact vehicle to your exact specifications?
And all I have read is its "unfair", the "grass is greener on the other side", "anti-competitive legislation" and so fourth.
(numbers added) - i would say for me at least, 2, 3, and 4 are sufficient reasons for me to be willing to pay more to never set foot in a dealer again.
it's not anti-competitive, because each brand still must compete with other brands.
that "only thing other" is HUGE. since exchange rates can change fast and often, prices must take that into account. sometimes the consumer wins and sometimes they lose, but like a casino, it's setup so mostly they lose.
and dealers aren't greedy with fake add-on packages (pin stripes for $200 anyone? how about extra rust proofing or upholstry protection for $500, tire warranty for $200, a couple of oil changes for $200, and on and on), endless fees and outright lying when the final deal is presented that doesn't match what was discussed?
i believe you're saying the pressure is needed because without it, people wouldn't buy cars so often. and that's a bad thing why? because you think the economy depends on it maybe?agree with that... and how about the vast waste of money sending out special offers in the mail with fake keys, scratch off panels, test drive money coupons, colorful posters with attractive (or even almost naked
) people, and on and on. all factored into what we pay for cars of course. and talk about bait and switch... the infamous come get model a, b, or c, for no money down and $x a month! only to find out THAT model is stick, no a/c, cloth, blah blah... "oh you wanted a NORMAL configuration? well that's $8000 more but hey check it out, you'll love it. what kind of payment were you looking for again?" Quote:Originally Posted by coolsaber
My question from day one with Direct Sales models vs Dealership models is what do you hope to solve or achieve with choosing one over the other?
For Example:
[1]Is this whole purpose to make sure everyone pays the same price (so essentially no one person can claim to have overpaid or get the steal of the century)?
[2]Is the whole purpose to make buying is as simple as one click checkout?
[3]Is the whole purpose to avoid pressure from salesmen?
[4]to purchase the exact vehicle to your exact specifications?
And all I have read is its "unfair", the "grass is greener on the other side", "anti-competitive legislation" and so fourth.
(numbers added) - i would say for me at least, 2, 3, and 4 are sufficient reasons for me to be willing to pay more to never set foot in a dealer again.
it's not anti-competitive, because each brand still must compete with other brands.
that "only thing other" is HUGE. since exchange rates can change fast and often, prices must take that into account. sometimes the consumer wins and sometimes they lose, but like a casino, it's setup so mostly they lose.
and dealers aren't greedy with fake add-on packages (pin stripes for $200 anyone? how about extra rust proofing or upholstry protection for $500, tire warranty for $200, a couple of oil changes for $200, and on and on), endless fees and outright lying when the final deal is presented that doesn't match what was discussed?
07-15-17, 11:03 AM
#203
Lexus Fanatic
Well, I have never said that there was anything wrong about it. I am just saying that an element of pressure is needed, that could be "no pressure" or all the the up to "Full on pressure". Not every buyer knows or will pull the trigger on their own, thus an element of pressure is needed. I have said before, this Tesla example is not really a good one, the reason I say this is that there is more demand for their cars right now than there is supply. If Tesla ever become a huge widespread brand, and they all of sudden do not have the demand for their supply, you will absolutely see a pressure approach to buying their cars.
Last edited by Toys4RJill; 07-15-17 at 11:12 AM.
07-15-17, 11:06 AM
#204
Lexus Fanatic
.. and how about the vast waste of money sending out special offers in the mail with fake keys, scratch off panels, test drive money coupons, colorful posters with attractive (or even almost naked ) people, and on and on. all factored into what we pay for cars of course. and talk about bait and switch... the infamous come get model a, b, or c, for no money down and $x a month! only to find out THAT model is stick, no a/c, cloth, blah blah... "oh you wanted a NORMAL configuration? well that's $8000 more but hey check it out, you'll love it. what kind of payment were you looking for again?"
) people, and on and on. all factored into what we pay for cars of course. and talk about bait and switch... the infamous come get model a, b, or c, for no money down and $x a month! only to find out THAT model is stick, no a/c, cloth, blah blah... "oh you wanted a NORMAL configuration? well that's $8000 more but hey check it out, you'll love it. what kind of payment were you looking for again?"
07-15-17, 11:15 AM
#205
Lexus Fanatic
All aspects of a franchise vs corporate dealer are put at a disadvantage for the franchise. How does labor pricing in service get set? What is the true cost of Genuine Mercedes parts for the franchisee vs the true cost of Genuine Mercedes parts for the corporate store? What are the costs to get those parts to the franchise vs the corporate? Who gets the brand new S-Class first?
07-15-17, 11:15 AM
#206
Lexus Fanatic
The newest Mercedes franchise here is owned by the largest auto group in Canada, they have 63 dealerships across Canada selling 30 auto brands, from Porsche, Bentley, Aston Martin, BMW, Audi, to the the various Japanese and Korean brands, and they own another Mercedes franchise in Quebec too, so I think they know what they are doing.
07-15-17, 11:55 AM
#209
Super Moderator
Not sure what you 're addressing, but my reply to your previous post is just to state that it must have make sound business sense for a company like them to acquire a Mercedes franchise in a market with other Mercedes corporate owned dealerships.
07-15-17, 11:58 AM
#210
Lexus Fanatic
Ok, I see what you mean now.