"Consumers prefer dealers over Tesla model"

[Canuck]

The study merely found that consumers often get prices lower than MSRP under the present dealer system. That is absolutely true.

We needed a study to tell us that? The whole MSRP is a scam in the first place to make customers believe they are getting a deal. What a surprise that manufacturers are suggesting a price and that dealers may sell for less. There's never been a dealer that didn't sell for the less. I've bought enough new vehicles to know that the first thing they do is sit you down with the MSRP price and tell you what a great deal YOU are getting because here's the MSRP and here's where we are giving YOU a deal (but these incentives won't last for long, blah, blah, blah).

I like the no suggestion fixed retail price model better. It takes the YOU out of the equation and everybody is treated to exactly the same price.

 

[Electroman]

"You look like a nice guy"

"We typically don't do that, but we want you to drive away with a new car"

 

[Barklikeadog]

I dunno, I would prefer to support a local business whenever possible.
On one hand, Tesla should be able to sell how they like, I don't see a problem with it.
On the other, driving is a privilege and states can make laws to regulate it how they wish.
Don't like the law? Get out and vote.

 

[tomas]

I hate car dealers as much as the next guy. But give up sex and do taxes? Sorry Tesla but I'm selling you out if that's the options.

You are not American.

 

[lklundin]

I agree except the State of Michigan would never allow the direct sales model to take place given the pressure from the automakers...

Which is why Tesla Motors is suing the state officials of Michigan in federal court, with the intent of forcing the state to allow it.

Tesla wants to sell cars directly in Michigan, so it’s suing state officials

 

[bhzmark]

I agree except the State of Michigan would never allow the direct sales model to take place given the pressure from the automakers...

Huh? The automakers would love to sell direct like Tesla and dispense with their annoying middleman the independent dealers. They only pretend to support the independent dealers right now because they sort of have no choice. I would bet they are plotting a long-term plan to get rid of the independent dealers eventually.

they would be foolishly violating their fiduciary duties to maximize profits to their own shareholders if they weren't trying to get rid of independent dealers who harm their profits,their brand, and the consumer buying and servicing experience.

 

[PtG62901]

I dunno, I would prefer to support a local business whenever possible.
On one hand, Tesla should be able to sell how they like, I don't see a problem with it.
On the other, driving is a privilege and states can make laws to regulate it how they wish.
Don't like the law? Get out and vote.

Kind of true, but there are Federal Laws to be followed too. Easy to think of examples involving Supreme Courtcases.

 

[Thomas Allen]

The Big Three continue to follow Kodak's 20th century model, and they will all likely end up like Kodak. They are so vested in the past that they are blind to the future.

 

[lolachampcar]

wrong place for this but it did make me smile this morning

political choice this year

SNAFU v. FUBAR

 

[JY07]

The study merely found that consumers often get prices lower than MSRP under the present dealer system.

For a better comparison: how often do consumers get the car under invoice?

 

[TexasEV]

I dunno, I would prefer to support a local business whenever possible.
On one hand, Tesla should be able to sell how they like, I don't see a problem with it.
On the other, driving is a privilege and states can make laws to regulate it how they wish.
Don't like the law? Get out and vote.

1. If you want to support a local business, you're use free to buy a car that it sells.On the other hand a new company shouldn't be required to go through that local business in order to sell its product just because it happens to be a car.
2. How a company sells its product has nothing whatsoever to do with states regulating driving.

 

[lklundin]

The whole MSRP is a scam in the first place to make customers believe they are getting a deal. What a surprise that manufacturers are suggesting a price and that dealers may sell for less.

Let me try to describe how the non-US world sees the US dealership abomination in the very country that is supposed to be the epitome of a free market:

1) It is not just about what kind of price the buyer ends up paying but also the fact that everywhere else in the world, when you buy a new car, you sit down quietly at home and decide exactly what options you want (for a 6-8 week wait, while your car is built to order), instead of just picking a car already sitting in a lot, with stuff you don't want and without options you did want. Just like how Tesla does. Revolutionary to US people, but SOP in the rest of the world.

2) The rest of the world thinks of this when hearing 'US dealership':

Try to earn a bit of respect in the rest of the the world and get rid of legally mandated dealerships.

 

[DOCAL]

If the court wants to know what consumers actually prefer, then they should try asking some that have experienced both models.
I'll be happy to fly over there at my own cost and let them know how much better my Tesla experience was.

 

[ecarfan]

On one hand, Tesla should be able to sell how they like, I don't see a problem with it.

How auto manufacturers sell their cars has nothing to do with how states regulate how people drive cars on public roads.

 

[Barklikeadog]

If the court wants to know what consumers actually prefer, then they should try asking some that have experienced both models.
I'll be happy to fly over there at my own cost and let them know how much better my Tesla experience was.

Didn't Musk and Tesla say a couple years ago that when Tesla grows large enough, franchises with inventory will be a necessity for them?

What will happen to the anti-dealership crowd when this occurs? Or will it suddenly and magically be OK?
I see people going on about how dealerships are in the past with the dodo bird, yet Tesla -knows- that
dealerships are in their future. How do you reconcile these positions?

and remember, I am saying this as someone who thinks direct selling should be allowed.

 

[sandpiper]

Didn't Musk and Tesla say a couple years ago that when Tesla grows large enough, franchises with inventory will be a necessity for them?

What will happen to the anti-dealership crowd when this occurs? Or will it suddenly and magically be OK?
I see people going on about how dealerships are in the past with the dodo bird, yet Tesla -knows- that
dealerships are in their future. How do you reconcile these positions?

and remember, I am saying this as someone who thinks direct selling should be allowed.

I think it will become absolutely required at some point. Tesla could not possibly own all of the stores that will be required for a major brand. It would have to be a bit of a different model - that allows you to order line and delivers through the dealer. The dealer would get some sort of fixed cut of sales. And yes, they would provide service. Somebody has to. The cars are good but not perfect.

 

[3Victoria]

The laws were meant to protect dealerships from being abused by the(ir) manufacturers. However, Tesla does not have any dealerships to abuse, and the laws do not apply.

The fact that some of these laws were specifically modified to prevent Tesla is the problem.

 

[Barklikeadog]

How auto manufacturers sell their cars has nothing to do with how states regulate how people drive cars on public roads.

The problem area with this way of thinking is intent. For example, an unlicensed person can buy a car, but it still has to be registered and insured. Meaning that
the regulations start while the car is still on the lot. If dealerships ignored state regulations and allowed unlicensed uninsured unregistered owners
to drive off the lot... they won't be dealerships for long.

States are allowed to make laws and you can vote for representatives to change those laws.
That is the American way.

 

[Barklikeadog]

I think it will become absolutely required at some point. Tesla could not possibly own all of the stores that will be required for a major brand. It would have to be a bit of a different model - that allows you to order line and delivers through the dealer. The dealer would get some sort of fixed cut of sales. And yes, they would provide service. Somebody has to. The cars are good but not perfect.

I have to assume that Tesla will act much like the other automakers at that point and suddenly dealerships are off the endangered species list.
Their future plans aren't about ordering online and having it delivered to a dealer, but instead you go to a dealership which has an inventory on the lot.
Made to order for a large volume will simply become near impossible.

 

[deonb]

I dunno, I would prefer to support a local business whenever possible.

As far as I can tell, none of the employees at my local Tesla showroom & service center fly in from another state every morning.