Should We Be Concerned?

[Ken7]

When you go to Best Buy to see a TV, it will be nothing like you will see when you get it home.

They constantly fool customers with a special Torche mode that makes the pictures look fantastic. They have direct ultra high definition audio video feeds that look fantastic in the store.
Most people simply look at internet reviews and order their big screens delivered direct to their homes, saving sales taxes and delivery hassles.

The future is to order direct. You get the lowest price and do not need to deal with high pressure dealerships with deceptive selling tactics.

Tesla at least publishes the price for everyone that orders at any given time. When you go to a legacy dealership everybody pays a different price, depending on how much they can fool you into paying. Not unusual for a special rebate/sale to happen at a dealership the day after you drive your new car home.

I’m well aware of how BB adjusts their TVs, I’ve been into high end video for many many years, and you’re right. That’s why I always ask for the remote to put the display in the most calibrated mode possible. I have considerable experience in this and have attended many high-end video shootouts that take place in NYC. The best TVs today, when placed in their most accurate modes, are co close to proper calibration that there’s little need for an ISF calibration as there once was. The best manufacturers have gotten really good at providing settings that are very accurate when placed in the proper mode.

Further, I often bring my own content, both HD and UHD recorded from my own cameras, on a USB or HDMI drive, as a means of comparison. I’m looking for differences in how these displays handle content that I know. That’s a huge advantage in picking out subtle differences. They know me at my local stores and are very receptive to my tests. In fact I often get several BB employees gathered around who are also curious about the differences too. BB employees are generally better schooled than they used to be. It’s been a long time since I’ve heard a BB employee telling a customer something like, “you have to refill plasmas with gas every couple of years, so you’re better off with LCD”. Of course the days of plasma TVs are gone anyway, but you get my drift.

I don’t just use BB either. There are still high end A/V stores that know how to accurately set up their displays and often this is where I buy my equipment.

So if you know what you’re doing, in-store tests like these are extremely valuable and impossible to perform buying on the internet. I am very happy that these brick & mortar stores still exist. An ‘internet only’ buying world is not one I look forward to.

 

[Xenoilphobe]

Amazon for cars -- love it! Of my last 10 cars purchases only two was bought in a store, the others were all bought online (ebay, Tesla) - only saw one of them before it was unloaded in my driveway- post purchase. 3 Telsa's, FJ Cruiser, Ford Fusion Hybrid X2 (bought in store - 4 hours wasted), Miata, Zero FX motorcycle (bought from a dealer and the f'ed me and added $1400 in additional costs), Passat Wagon X 2 even my off road trailer was bought online and drop shipped to my house.

The only reason I bought the Fusions in store was that the HOV tags had to be ordered by July 1, 2011 and being phased out, so I have to have a qualified vehicle quickly to meet the ability to get the tags.

 

[Xenoilphobe]

I’m well aware of how BB adjusts their TVs, I’ve been into high end video for many many years, and you’re right. That’s why I always ask for the remote to put the display in the most calibrated mode possible. I have considerable experience in this and have attended many high-end video shootouts that take place in NYC. The best TVs today, when placed in their most accurate modes, are co close to proper calibration that there’s little need for an ISF calibration as there once was. The best manufacturers have gotten really good at providing settings that are very accurate when placed in the proper mode.

Further, I often bring my own content, both HD and UHD recorded from my own cameras, on a USB or HDMI drive, as a means of comparison. I’m looking for differences in how these displays handle content that I know. That’s a huge advantage in picking out subtle differences. They know me at my local stores and are very receptive to my tests. In fact I often get several BB employees gathered around who are also curious about the differences too. BB employees are generally better schooled than they used to be. It’s been a long time since I’ve heard a BB employee telling a customer something like, “you have to refill plasmas with gas every couple of years, so you’re better off with LCD”. Of course the days of plasma TVs are gone anyway, but you get my drift.

I don’t just use BB either. There are still high end A/V stores that know how to accurately set up their displays and often this is where I buy my equipment.

So if you know what you’re doing, in-store tests like these are extremely valuable and impossible to perform buying on the internet. I am very happy that these brick & mortar stores still exist. An ‘internet only’ buying world is not one I look forward to.

Yeah, I kinda like some brick and mortar just to see the product. Just go with good specs and get a quality OLED and you really don't need to hit the store, when I was upgrading about 5 years ago now, I just bought Samsung's first curved screen OLED (it was 3 times my first used car), out of the box it was shockingly awesome, and even today it blows away most everything on the market. The same why I buy cars - just get the best one for the job.

 

[Sealander]

Purchasing a car is a big investment for most and a 10-20 minute test drive is hardly sufficient to determine if it is a right fit. We have rented both Model S and Model 3 for several days before finally purchasing our Model 3. This is a much better way to decide on a car. You can bring it home, put it in your garage, drive it on the roads you are familiar with, see how comfortable the seats are during a drive, etc. In fact, now whenever we travel we rent a Tesla to drive instead of going through one of the regular car rental companies because we know what we are getting and feel more comfortable driving the same car we have at home.

 

[buckerine]

Purchasing a car is a big investment for most and a 10-20 minute test drive is hardly sufficient to determine if it is a right fit. We have rented both Model S and Model 3 for several days before finally purchasing our Model 3. This is a much better way to decide on a car. You can bring it home, put it in your garage, drive it on the roads you are familiar with, see how comfortable the seats are during a drive, etc. In fact, now whenever we travel we rent a Tesla to drive instead of going through one of the regular car rental companies because we know what we are getting and feel more comfortable driving the same car we have at home.

The problem is the vast majority of people don’t do this. I’m as tech savvy and online-adapted as any one on Earth and even I felt more comfortable going to the store, poking around and test driving the car. If I never had a chance to test drive the car, there is NO a chance I would’ve bought it. And I’d wager a guess that most people are in the same boat.

 

[bob_p]

We're a little skeptical about the 7 day/1000 mile return policy and the loss of test drives at stores that will be closing. Would not be surprised for Tesla to make additional adjustments in the coming months after they've seen the impact of these decisions.

Closing the stores and shifting exclusively to online sales is a great idea overall. This is bad news for the dealership lobbies who have been trying to keep Tesla from opening stores and doing direct sales in every state. With only online sales, the dealership lobbies won't be able to do anything to prevent Tesla from selling vehicles - plus eliminating the local stores emphasizes how little value local dealerships play in the purchase process, especially when you eliminate haggling on prices.

Tesla could offer test drives out of the service centers or go back to what they did in the early days with periodic test drive events - since some owners will want to sit in a vehicle before making a purchase. Though as more Tesla vehicles are sold, it's also increasing likely current owners could help by doing test drives with their friends.

We've purchased 3 Tesla vehicles (S P85, S 100D, X 100D) in Texas, all purchased online. We took test drives prior to purchasing our S P85 and X 100D. For the S 100D, we ordered it on the first day it was available online, so we didn't purchase it in advance, though we did take a test drive in an AP2 vehicle before the order to see for ourselves the new AutoPilot system.

If a Tesla customer who has purchased 3 Tesla vehicles has taken a test drive prior to each purchase, then it seems unlikely Tesla will be able to get away without offering test drives.

Plus, many purchases are done with trade-ins. If you trade-in a vehicle for a new Tesla and then return it after a few days - now you're stuck without any vehicle and forced into buying something else off the lot on short notice. How many Tesla customers will really want to deal with that?

After the dust settles, we expect Tesla to offer some type of test drive program - and instead of spending $$$ on operating many stores, to also see them implement improvements in the online purchase process, such as adding online chat or teleconferencing to help customers through the purchase process, replacing what they would have gotten (excluding the test drive) from a local store.

 

[jerry33]

At least some perhaps many stores will be converted to galleries. I don't expect the situation to change much in Texas because the galleries are all in high volume areas (other than the ones attached to the service centre).
Presumably, the traded vehicle will not be processed until the return period is over.
I don't doubt there will be alternative ways to test drive.

 

[Alset4S]

I didn't get seriously interested in buying a Tesla until the Model 3 production ramped up. While researching M3 I came across TMC and learned many members had purchased a pre-owned MS instead of new M3.
Hmm, how do you make that decision without a hands on side by side and driving experience? If there had not been a Tesla SC where I was able to see, touch and drive the cars most likely I would not have purchased or bought the wrong model for me.
Currently there's no real competition in the EV market. Two years from now that's not likely to be. Tesla, in my view, will be at a huge disadvantage if potential buyers can see, touch and drive the competition but have to rely on online pictures and videos to "demo" a Tesla.

 

[jerry33]

Currently there's no real competition in the EV market. Two years from now that's not likely to be. Tesla, in my view, will be at a huge disadvantage if potential buyers can see, touch and drive the competition but have to rely on online pictures and videos to "demo" a Tesla.

Based on what I've seen of the competition, two years from now won't be significantly different than today. Particularly with the new price structure. M3 is now cheaper than the just refreshed Leaf, or the new Volvo that won't be out for a year. Competition will be the same as now, if for no other reason that it will take several years and a lot of money to bring enough batteries on line. Earlier in the Investment thread it was said European car makers are pushing hybrids, one significant reason for this is that hybrids don't require as many batteries--even though hybrids are a dead end.

I don't for an instant believe that there won't be plenty of opportunities for prospective buyers to test drive a Tesla.

 

[PWlakewood]

Business models evolve and change with any business/product and Tesla is no different. In fact they are better positioned to make a huge difference in the online automotive market place better than any other manufacturer. Think back to how old school car companies just continue to do things the same old way because that's how they have always done business. Now look what is happening with all OEMs, they are playing catch up with Tesla and not making the changes necessary early enough. Tesla is a leader and innovator and will continue to dominate in the car world. One of the best examples that many of us have mentioned is Amazon. Look at what they have accomplished and where they are headed. So many business have failed and gone away because of the shifting business model which is mainly online shopping. Take black Friday for example. It use to be one of the biggest days for shopping now its becoming cyber Monday. Jeff Bezos and Elon musk are leading the change and not just watching as they get left behind.

 

[tomas]

I predict: if you put down $1000 refundable deposit, you will get a test drive where a Tesla rep comes to you at your convenience and location for test drive appointment. Better for buyers, much lower cost for Tesla. One guy booked solid with no real estate overhead, vs 5 people standing around in high priced real estate waiting for customers.

 

[Need]

They have already tested this out in the CPO market. When you buy a Tesla CPO, you don't get to see the car or test drive it. They figured out if people are willing to buy a potentially dirty (no detailing) but mechanically sound used Tesla without seeing or driving it first, they would buy a new Tesla the same way. They also got 400,000+ preorder of M3 to prove this.

If later they found out people really want test drives... all they have to do is bring back referral. Make it so that in order to get the referral, you promise to let your "friend" test drive your car and you have to be there on delivery day (at home or at delivery center) to teach him/her how to use the car!

 

[Snerruc]

I haven’t gone to a dealership to buy a car since the 1980s. You could buy one then as now without going to the store. Lately I have purchased them on line as most dealers have a web specialist. I much prefer Tesla’s way of doing business.

 

[kavyboy]

I predict: if you put down $1000 refundable deposit, you will get a test drive where a Tesla rep comes to you at your convenience and location for test drive appointment. Better for buyers, much lower cost for Tesla. One guy booked solid with no real estate overhead, vs 5 people standing around in high priced real estate waiting for customers.

THIS! This is exactly how this should work. If the "one guy" can't handle it, then there's the flexibility to move another person in (temporarily, seasonally, or full time) to handle the load. Everything is also in place to appear at events like Drive Electric Week gatherings. I'm really hoping the store closings are the first move toward this plan.

 

[FlatSix911]

The OP is correct. Most young people outside of Google City do not have $40K cash, for anything. Good luck managing bank loans when your payment is due and you don't have your refund yet.

I wonder if the remaining centers will have a Model S or X to test drive for more affluent/less tech buyers?
Not everyone is comfortable with large online purchases outside of the Silicon Valley bubble... ​

 

[Sunshine State]

I wouldn’t be surprised if it’s a legal maneuver to get around franchise laws. Or it could just be the beginning of the end.

 

[tomas]

The doom/gloom is astounding!
People said they couldn’t get to production targets. They did.
People said they wouldn’t get into China, they did.
People said they’d never make 35k car... they did.

Now, filling backlog in China and Europe, with 35K model 3 and reduced North America pricing, and Model Y imminent, they are going under?

As with all announcements, the elimination of retail sales locations is directional and gradual. And they will find other ways to provide sales info and test drives. If one approach fails, they will react quickly.

Tesla needed retail stores when there were few on the road. No longer the case. Smart to know that trading retail stores for lower price a much better demand lever now.

It’s a continuation of the beginning. I’m impressed with the courage of this company to revolutionize the industry at every turn.

 

[Big Earl]

The problem is the vast majority of people don’t do this. I’m as tech savvy and online-adapted as any one on Earth and even I felt more comfortable going to the store, poking around and test driving the car. If I never had a chance to test drive the car, there is NO a chance I would’ve bought it. And I’d wager a guess that most people are in the same boat.

Tesla’s own data says something like 82% of buyers didn’t test drive first. Not sure you’re going to win that wager.

 

[tomas]

Tesla’s own data says something like 82% of buyers didn’t test drive first. Not sure you’re going to win that wager.

Not sure that’s a forward indicator, as majority of those were enthusiasts and placed pre production reservations. Nonetheless, I think many will continue to buy without drive, and Tesla will find innovative ways to provide drives.

 

[Droschke]

Looks like Tesla is closing "some" stores and converting "some" to galleries and information centers only and to show the interested customers how to purchase the car online and arrange for test drives. That's how it was when I bought my car.