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I don't think hostage is too much of an exaggeration, especially while we're sitting there while the sales guy is supposedly talking to his manager and they still have the keys to our car supposedly working on the appraisal. What's important is the customers perception of the process, and the perception is we're hostages of the dealer cartel.
I do know that there has been some true competition in new car sales brought about by the internet. The last truck I purchased - '08 F-350 - was via on-line, and there are non-nefarious ways to determine how much the dealer hold-back is, and play internet dealers against each other to reduce that holdback to a very skinny number. For those who don't know the term, that refers to the amount below "invoice" that represents a dealer's operating margin on any vehicle. In other words, one can pay waaaay below invoice and still the dealer is not losing money.
By the way, I bought it in Alaska, from a dealership in California, and the vehicle was delivered from factory to New Jersey. Selling dealer never saw the truck (until a year ago, when we stopped by). Confusing to all, esp. the NJ "courtesy" dealer who wondered what in tarnation that vehicle that just was dropped off was doing there....
By the way, I bought it in Alaska, from a dealership in California, and the vehicle was delivered from factory to New Jersey. Selling dealer never saw the truck (until a year ago, when we stopped by). Confusing to all, esp. the NJ "courtesy" dealer who wondered what in tarnation that vehicle that just was dropped off was doing there....
callmesam
Member
This. Is the only way to fight the stealerships.
Pit them against each other until there's no meat on the bone.
And then never buy another gas car again.
Boom.
So you are including the trade-in process with all the issues that raises. I was comparing new car purchase of Subaru to new car purchase of Tesla MS and could see no essential difference except I had to do all the (online) paperwork to buy the MS (no big deal). Got to drive a 'new' loaner Forester by myself: "here are the keys, knock yourself out". Whee.
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My point. One thing we should have learned from our politicians by now is that abusing words in this way detracts from the merits when attempting a rational discussion.
So if hostage is not the right word, how would you describe this?
When the Dealership Steals Back the Car They Just Sold You
It reads much better if you keep repeating that the dealer is here to protect you in your head as you read it.
lolachampcar
Well-Known Member
I take no issue with anyone that wants to defend dealerships or those that choose to use them. I just do not want NADA and their dealers telling me I have to use them. There is a big difference.
My understanding is that Tesla does not take trade-ins of non-Tesla's , they refer the customer to Shift Cars as a way to sell their used car.
I am not even sure that Tesla is interested in accepting used Tesla trade-ins. Someone posted recently that the used Roadster CPO program has ended, and I see no sign of Tesla selling "pre-owned" Model S vehicles.
In Canada they have to accept trade-ins or potentially make their customers pay thousands extra in taxes. When you trade-in for a new vehicle you only pay sales tax on the difference in price. That said, I believe they have a contract with a 3rd party that immediately takes non-Teslas off their hands.
That's also true in some U.S. states. It's another example of the political power of the auto dealer cartel. The tax break is only available if you trade in the car to the dealer, who then can profit from selling the used car obtained at a favorable price, but if you sell the car yourself you can't pay sales tax just on the difference in prices of the two cars. The purpose of the law is to encourage people to trade in rather than selling themselves, ensuring a supply of used cars for dealers to profit from. It makes it worthwhile to accept a lower price as a trade-in rather than a better price from CarMax, etc. or a private sale if the sales tax savings is significant. Meanwhile the state loses the difference in the sales tax on these transactions which have no equal in any other consumer purchase.
lolachampcar
Well-Known Member
Most dealers will do a courtesy trade where you being the buyer for your trade in to the table. This routinely cost me $500 to $1000 saving at least that again in sales tax.
PS
TESLA will not for MS!
PS
TESLA will not for MS!
mrElbe
Active Member
If I sell my car privately, Tesla Canada offered to buy the car from me for the agreed price and immediately sell it for the same price to the final buyer. Now it is considered a trade in for tax purposes.
lolachampcar
Well-Known Member
That is commonly called a courtesy trade where the dealer does you the courtesy of selling to your buyer. The dealer typically charges a fee for the paperwork involved ($500 from BMW the last time I did it with them) but otherwise passes the car straight through. Tesla is not doing courtesy trades on MS. If Tesla in Canada is now saying they will do a courtesy trade, they have changed their position (which I think would be a good thing).
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