Consider the members of Congress who are former car dealers. That would put them in Voldemort territory I'd think.
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So they sold X units, but none were plugins or hybrids... so they sell cars with ICE's? Fuel cells?
Hahahaha, that was a good dare, and I failed.
Here's the email I just sent to [email protected], just for the hell of it. Think I'm giving them too much warning?
Your video touting the “benefits” of car dealerships is laughable. The only competition between dealers that 80% of the buying public experience is which dealer can rip them off more. The video, once I stopped laughing, reminded me totally of a great movie called “Thank You For Smoking”. That’s what you guys sound like. No wonder most of the buying public hates car salesmen.
Now, if dealers would actually behave honestly, perhaps you might have an argument that people would partially believe. But the number of honest dealers out there in North America is a very very low percentage. There are some, who behave a little like the claims made in your video. But most are a bunch of sharks.
I know you'll be kicking and screaming trying to persuade the public that "No, really! We're good!", instead of introducing changes to your dealership model to clean it up. But that's why the writing is on the wall, and ultimately you're going to fail.
Here's the email I just sent to [email protected], just for the hell of it. Think I'm giving them too much warning?
Your video touting the “benefits” of car dealerships is laughable. The only competition between dealers that 80% of the buying public experience is which dealer can rip them off more. The video, once I stopped laughing, reminded me totally of a great movie called “Thank You For Smoking”. That’s what you guys sound like. No wonder most of the buying public hates car salesmen.
Now, if dealers would actually behave honestly, perhaps you might have an argument that people would partially believe. But the number of honest dealers out there in North America is a very very low percentage. There are some, who behave a little like the claims made in your video. But most are a bunch of sharks.
I know you'll be kicking and screaming trying to persuade the public that "No, really! We're good!", instead of introducing changes to your dealership model to clean it up. But that's why the writing is on the wall, and ultimately you're going to fail.
Yes. Because it so convenient to go to three dealers to get the "best price."
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They really think the buying public likes them. So probably not.
I hope this backfires on them. anyone with a decent production capability aught to be able to do a parity of this add and blow it out of the water... something like this:
Here's how most American's buy a new car... they call around to find it's impossible to find out the bottom line price for a car because dealers keep that secret so they don't have to compete with one another. the car buyer typically chooses a dealership closest to them and walks in. After hours of staged back and forth negotiations where they are left in a room for long periods while the rep and his boss play good cop/bad cop and up sell warranty extensions, clear bra and other paint coats and options. the buyer gets exhausted and signs on the dotted line or leaves. some of the worst buying experiences one can have are in a car dealership. the National Association Of Dealership Associations wants to make sure you don't have another choice. They have been busy banning other options in states across the country. If there are truly so many advantages to franchised dealerships then why is the NADA worried, promoting the concept that there should be no other option, shouldn't the sales model "sell itself?" On the other hand, advocates of a direct sales model aren't trying to make direct sale the only option, just an additional option. The consumer wins when they get to choose!
Here's how most American's buy a new car... they call around to find it's impossible to find out the bottom line price for a car because dealers keep that secret so they don't have to compete with one another. the car buyer typically chooses a dealership closest to them and walks in. After hours of staged back and forth negotiations where they are left in a room for long periods while the rep and his boss play good cop/bad cop and up sell warranty extensions, clear bra and other paint coats and options. the buyer gets exhausted and signs on the dotted line or leaves. some of the worst buying experiences one can have are in a car dealership. the National Association Of Dealership Associations wants to make sure you don't have another choice. They have been busy banning other options in states across the country. If there are truly so many advantages to franchised dealerships then why is the NADA worried, promoting the concept that there should be no other option, shouldn't the sales model "sell itself?" On the other hand, advocates of a direct sales model aren't trying to make direct sale the only option, just an additional option. The consumer wins when they get to choose!
FLDarren
Member
If I had the choice, I'd rather ride a pedal bike to work everyday in 100 degree heat and 99% humidity everyday than buy a car from a dealer. I'd be happier coated in sweat and exhausted walking into the office than the thought of having to wade through shark infested water that is a car dealer. Maybe that's going a bit too far, but you get my point. No more dealerships for me, EVER!
Another point that is completely false is how they say direct auto sellers can set price as high as they please. That's simply not the case. If the price is too high, people won't buy. It's plain and simple. It's not in the long term best interest of the company to set a high price. In the long run, there are substitutes for everything. Monopolies just don't last.
Another point that is completely false is how they say direct auto sellers can set price as high as they please. That's simply not the case. If the price is too high, people won't buy. It's plain and simple. It's not in the long term best interest of the company to set a high price. In the long run, there are substitutes for everything. Monopolies just don't last.
The only people who think purchasing a car should be required to go through car dealers are other middlemen, like the "required by law in many state"'s liquor distributorships. What's their reason for existing again, other changing rent? In washington state, you can't sell beer directly from the brewery to a restaurant. That would be wrong! And what if the middlemen don't want to distribute your new brewery's beer? Too bad.
I love the remarks about consumer safety, warranty and recall work and how dealers are incentivized to perform recalls. Yeah, the dealer franchise system really protected the consumer from GM's failure to issue recalls. 
Larry
Larry
I love the remarks about consumer safety, warranty and recall work and how dealers are incentivized to perform recalls. Yeah, the dealer franchise system really protected the consumer from GM's failure to issue recalls.
Larry
Yep. Of course their argument is that things would have been much worse if they weren't there 'protecting the consumer'. Sure.
Larry93428
Member
The commission system rewards the salesperson for pushing options; "for better trade-in when the time comes".
They really are behavior specialists, recognizing what buttons to push: macho, sexy, or whatever it takes.
It is all for the dealer.
I award that video a Flushie.
They really are behavior specialists, recognizing what buttons to push: macho, sexy, or whatever it takes.
It is all for the dealer.
I award that video a Flushie.
I sincerely doubt that NADA is in a position to document any concrete actions that they have taken to mitigate the situation. All that they seem to have are talking points and cute videos lacking any substance.
Larry
I would gladly pay Tesla $600 a year for service over paying dealerships for the ridiculous "service" they attempt to rake you for. Example of me bringing in wife's new Lexus for oil change/maintenance.
Starts with me trying to understand how a simple oil change is $130 (I ask myself... what kind of gold infused synthetic oil are you pouring into this car that warrants a $130 price tag?) and then whatever 20,000 mile maintenance check up / diagnostics they run with their low tech gadgetry will make it $220. I'm literally thinking... So I'm paying $220 for an oil change at 20,000 miles.
Conversation continues with, "Oh, looks like you missed your 15,000 mile service, would you like to double that up ($450)?" Seriously now, how badly does this new Lexus need to suck to require service at 15,000 miles? Apparently it was a missed a tire rotation...
In my head, the tangible work is: oil change + tire rotation + <wave magical diagnostics wand> = $450
Tesla, just take my money... These dealerships are horrible.
Here's an article from the YouTube video in case anyone missed it.
http://www.thecarconnection.com/new...ign-to-tout-benefits-of-franchise-dealerships
Starts with me trying to understand how a simple oil change is $130 (I ask myself... what kind of gold infused synthetic oil are you pouring into this car that warrants a $130 price tag?) and then whatever 20,000 mile maintenance check up / diagnostics they run with their low tech gadgetry will make it $220. I'm literally thinking... So I'm paying $220 for an oil change at 20,000 miles.
Conversation continues with, "Oh, looks like you missed your 15,000 mile service, would you like to double that up ($450)?" Seriously now, how badly does this new Lexus need to suck to require service at 15,000 miles? Apparently it was a missed a tire rotation...
In my head, the tangible work is: oil change + tire rotation + <wave magical diagnostics wand> = $450
Tesla, just take my money... These dealerships are horrible.
Here's an article from the YouTube video in case anyone missed it.
http://www.thecarconnection.com/new...ign-to-tout-benefits-of-franchise-dealerships
palmer_md
Member
The NADA fight with Tesla does not make sense to me. Lets assume I own a Chevrolet dealership, and now Tesla moves in with a store that is direct to consumer. It has absolutely no effect on me that they are direct to consumer. It is a different manufacturer with a different but competing product. I might be fearful of a GM direct to consumer store moving into my area, but not a competing manufacturer. I'm not sure why they are fighting to get Tesla to join them, other than I'm sure there are some dealers who would like to open a Tesla franchise. The problem is that they are risking the entire dealership model to get Tesla on board.
That brings me to my next thought, and that is that if I had a Chevrolet dealership, I'd love the direct to consumer model. My customer goes to GM.com and specs the car, orders it and it gets delivered to my dealership. I have an employee that specializes in teaching the new owners about their new car and signing all the paperwork. All the money transfer is between the customer and GM, and I send GM a bill for the time we spent transferring ownership and training the new owner. I don't have to spend any money purchasing cars for my lot, I don't have to pay all the "flooring" fees and such. The customer needs maintenance and such, they return to me. It sounds like a win-win to have the manufacturer sell directly and I just transfer ownership and take care of maintenance and warranty issues. Once again...why are they fighting this?
That brings me to my next thought, and that is that if I had a Chevrolet dealership, I'd love the direct to consumer model. My customer goes to GM.com and specs the car, orders it and it gets delivered to my dealership. I have an employee that specializes in teaching the new owners about their new car and signing all the paperwork. All the money transfer is between the customer and GM, and I send GM a bill for the time we spent transferring ownership and training the new owner. I don't have to spend any money purchasing cars for my lot, I don't have to pay all the "flooring" fees and such. The customer needs maintenance and such, they return to me. It sounds like a win-win to have the manufacturer sell directly and I just transfer ownership and take care of maintenance and warranty issues. Once again...why are they fighting this?
True, but what about every other new manufacturer that starts selling cars from now on? None of them will use dealerships either, and after a couple of decades it's feasible that the majority of cars will be sold direct to consumer. At that point it's painfully obvious you're just overhead, and nobody wants to buy a car from you when they can buy direct from one of the other manufacturers. Dealers are fighting the principle of eliminating the middle-man (themselves), not Tesla specifically.
No, the car gets delivered directly to the customer. You never see it, and never get any revenue from it. As for service, you would essentially be no different than any other auto repair shop, and be competing with all the other shops out there. The auto manufacturers would have their own service shops to handle warranty repairs.
Basically, the direct to consumer model bypasses the dealer completely. They are right to be afraid of it. I hope it wins.
lolachampcar
Well-Known Member
Grendal,
I'm going to poach a line (sort of) from Kay (Tommy Lee) in MiB here-
"A consumer is smart. Consumers are dumb, panicky dangerous animals and you know it."
I think what you are seeing is an add campaign targeted at Consumers. I have yet to see more than a token post supporting any person's sales interaction with a Dealer so the Consumer gets it. NADA is doing the only thing they can do when you hold a very bad hand and that is to (1) Lie about your hand or bluff and (2) try to use previous profits to buy protection or legislation as it is called in the US.
Luckily, the hand is so bad that even the attempt at a PR campaign is laughable. However, let's not overestimate the Consumers' intelligence. Some will go for this.
I love the remarks about consumer safety, warranty and recall work and how dealers are incentivized to perform recalls. Yeah, the dealer franchise system really protected the consumer from GM's failure to issue recalls.
Larry
I went to the same dealership I bought my car from since day 1. Five years later, they said " Oh, we fixed (insert item here), there was a recall on that 3 years ago". Timely , my a** :cursing:
I don't trust them one bit.
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+100 on doing a parity. And don't forget that pretty cartoon woman walking into the dealership and having all the car salesMEN tell her what to buy. I will never forget the Buick guy who told me "list sticker price" was a good deal and when my jaw dropped he told me to go home and ask my boyfriend if I didn't believe him.
I bought the 96 Buick I wanted from the only woman salesperson I could find in the area. Even when I bought my Prius last year, I asked for a female salesperson and in the 3 dealerships I spoke to, the answer was that they don't have any. All had female receptionists though. Yeah that's an industry I want to support...
I bought the 96 Buick I wanted from the only woman salesperson I could find in the area. Even when I bought my Prius last year, I asked for a female salesperson and in the 3 dealerships I spoke to, the answer was that they don't have any. All had female receptionists though. Yeah that's an industry I want to support...
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