Auto dealer paradigm

[Bobbo8]

I read the constant news about all the auto manufactures going to electric vehicles. Up to now the car dealers were united against Tesla/Elon concerned about the business model of sales/service but if/when the auto manufacturers go electric what happens to their cash cow of service dollars? Will the car dealers now unite against the Ford, GM, Fiat, Toyota, Honda etc or does their paradigm shift?

 

[Lasttoy]

Yes, if you go looking for EV in USA the dealers will tell u not to buy one. That will go on till they go out of business.
A buddy in NO told me that was the reason La had a law against Teslas in the state. Same for all the states that banned Teslas.
Dealers will fight till they die.
Confirmed by my neighbor who is GM at local Nissan dealership.

 

[ewoodrick]

EVs still need service. EVs crash. Many Tesla Service Centers have months waiting lines.

ICE dealers aren't the only ones that service ICE cars, there's a big industry around car repair. There's a shop on just about every corner.

Service is just another excuse from an entrenched industry that is going to disappear.

Facing cellular competition, at least the phone company decided to accept the obvious and stay the dominant player.

 

[Barklikeadog]

I think it is more likely that Tesla will need the help of dealers... than dealers disappearing. (although there are still far too many dealers)
What is the issue with letting someone hold inventory, hold parts inventory, pay the staff, pay to keep the lights on, take all the risk.
In exchange they get paid by moving inventory cars, providing service, and selling trade-ins.
It's too bad both sides are so entrenched. Even the Tesla higher ups admitted a few years ago that at some point, if enough cars are sold, the dealership model might be necessary.
A lot of people in this country like to see, touch, and drive the actual car that they are purchasing, and take it home same day. That is just their spending/shopping habits.

 

[Bobbo8]

I think it is more likely that Tesla will need the help of dealers... than dealers disappearing. (although there are still far too many dealers)
What is the issue with letting someone hold inventory, hold parts inventory, pay the staff, pay to keep the lights on, take all the risk.
In exchange they get paid by moving inventory cars, providing service, and selling trade-ins.
It's too bad both sides are so entrenched. Even the Tesla higher ups admitted a few years ago that at some point, if enough cars are sold, the dealership model might be necessary.
A lot of people in this country like to see, touch, and drive the actual car that they are purchasing, and take it home same day. That is just their spending/shopping habits.

I for one dont enjoy doing the “price” dance at dealers. That is why more people are buying on line to avoid the run around. How do you know you are getting the best price if every dealer claims they have the lowest price. I like Tesla’s sales model. The current dealer model sounds like the horse buggy argument. There would be more showrooms if the Car Dealers Associations didnt have the state legislations in their back pocket.

 

[Barklikeadog]

I for one dont enjoy doing the “price” dance at dealers. That is why more people are buying on line to avoid the run around. How do you know you are getting the best price if every dealer claims they have the lowest price. I like Tesla’s sales model. The current dealer model sounds like the horse buggy argument. There would be more showrooms if the Car Dealers Associations didnt have the state legislations in their back pocket.

This is where Tesla has an agreement with anyone who deals in their cars. They could say that the price is the price, negotiations only happen in certain cases(damage, old model, demo)
Maybe a dealer buys 50 cars(financed with interest paid to Tesla of course). Tesla knocks 1000 off each vehicle, dealership adds 1000 to each vehicle. The price on the lot is the same as online.
Or the price on the lot could be $250 higher and maybe you get some dealer service specials with it.
75% of the dealer revenue is from used cars(can haggle) and service/parts anyway. Who actually gets harmed by this?
Tesla makes their money and has 1 less headache, local entrepreneur is taking the risk and dealing with customers.

 

[CT200h]

I can see a time when both factory owned and dealer owned stores exist in the USA . Tesla is going to need help selling and repairing new and CPO cars. Especially CPO even today could be shifted away to dealer owned stores.
The dealers that earn good marks refurbish and selling CPO could then be able to sell new at a fixed price setup no haggle type arrangement.

 

[Bobbo8]

I can see a time when both factory owned and dealer owned stores exist in the USA . Tesla is going to need help selling and repairing new and CPO cars. Especially CPO even today could be shifted away to dealer owned stores.
The dealers that earn good marks refurbish and selling CPO could then be able to sell new at a fixed price setup no haggle type arrangement.

If Tesla opened a few more Secice Centers repairs wouldnt be a problem, in all of Upstate NY there are no Service Centers. You cant compare a ICE vehicle to an EV when it comes to regular service. No oil changes, radiator flushes, transmission issues, mufflers, etc. So I dont think Tesla would need car dealers to service Tesla’s.

 

[Barklikeadog]

If Tesla opened a few more Secice Centers repairs wouldnt be a problem, in all of Upstate NY there are no Service Centers. You cant compare a ICE vehicle to an EV when it comes to regular service. No oil changes, radiator flushes, transmission issues, mufflers, etc. So I dont think Tesla would need car dealers to service Tesla’s.

At what point are the service centers too big and expensive to handle? I see people complain because they have to call a national phone line and wait on hold forever. Id certainly pay a premium to have a local service repair shop. If EVs don't have as many service issues as ICE then why is there a serious need for more centers?

 

[TexasEV]

If Tesla opened a few more Secice Centers repairs wouldnt be a problem, in all of Upstate NY there are no Service Centers.

You can blame the New York auto dealers and the legislators they control for limiting the number of Tesla facilities in the state.

 

[S'toon]

Seems Americans Would Rather Not *** and Do Taxes Than Buy a Car Through Dealerships

 

[Evoyager]

Automakers decided to create a monster which was named MADA, which began the domination/monopoly. Later, as an adult, the monster moved to the state capital, found a mate (Mich State Congress) got married, and spawned a few offspring such as MIATA and NIADA. Together the family spread in most states and conspired to monopolize the business of selling and repairing vehicles. "Caveat emptor"

Michigan Automobile Dealers Association(MADA) Michigan Independent Auto Dealers Association (MIADA)
In 1920 the Michigan Automotive trade association was founded in Detroit. On May 19, 1921, the group was incorporated, with the following officers: G. S. Garber, President: H. H. Shuart Secretary; and Clark Graves, Treasurer. The association's purpose is to promote and protect the interests of franchised dealers. In 1937 the association moved from Detroit to Lansing and changed its name to the Michigan Automobile Dealers Association. The 100th anniversary of the powerful organization will be celebrated next year in 2020.

Beware, they are not your friend,,,,

 

[mspohr]

EVs still need service. EVs crash. Many Tesla Service Centers have months waiting lines.

ICE dealers aren't the only ones that service ICE cars, there's a big industry around car repair. There's a shop on just about every corner.

Service is just another excuse from an entrenched industry that is going to disappear.

Facing cellular competition, at least the phone company decided to accept the obvious and stay the dominant player.

Teslas require much less service than ICE cars. No oil change, fluid changes, tune-ups, etc. Then there are the thousands of parts in the engines, transmissions, pollution control systems that need regular replacement and repair.
My 4 year old Tesla hasn't had any "routine" service. Just a few minor issues in the first year that were fixed under warranty (flaky camera, water in tail light).
At 70,000 miles, I've saved $1000 on oil changes and thousands more on "tune-ups" plus so many things that would have needed repair and maintenance on an ICE car. This is all revenue lost to a traditional auto dealer selling ICE cars. No wonder they don't want to sell EVs.

 

[jeffro01]

No. No. No. The absolute worst thing that could happen to Tesla's sales model is the injection of stealerships. Even suggesting this as a path is, pardon the pun, ludicrous. Stealerships exist to trick unwitting consumers out of their funds. They lie, they cheat, and they steal hence their nickname. The only honest car dealership out there are the ones that went out of business, the model literally can't survive without deception.

The dealership lobby will eventually lose out because the consumer will eventually win. Perhaps spending the first 100 years or so of their existence earning the nickname stealership wasn't such a good idea. They never saw this coming and acted as such and I for one couldn't possibly be happier to see them go completely away. F'n crooks...

Jeff