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You know, the dealers use the main talking point about how they're an advocate on behalf of the consumer. Consumer protection they say. Righttt.

I nearly forgot my own opposite experience of this, about 2 years ago... one of my tipping points to the Tesla.

We have a 2006 Cadillac DTS. At 65,000 miles, all of the sudden, overnight it developed a pretty significant oil leak. We took it into the only remaining Cadillac dealership/service center left in the Northern Oregon area, Vic Alfonso. When we took it in, after looking at it for half a day, the service manager came back and told us we have an (engine) "case half" seal leak. Even told us it's quite common with the Northstar engine. WTF?! Common?! I thought the Northstar engine was supposed to be one of the most reliable ever built, with no maintainence required for the first 100,000 miles. I asked how much. About $3,000 he said. But this car is just outside of warranty. Sorry, it's pretty typical he said.

So not satisfied with that answer, we didn't do anything that day. After stewing about it, my wife called Cadillac direct and told them the story we were given. Cadillac HQ wasn't that happy with the answer either. They called the dealership on our behalf. After a day or so, Cadillac called back and said they are having the repair bill lowered to $2,000, and that our out-of-pocket would be $950.

In this case, the factory stood up for us (quickly I might add), in place of the greedy dealership. If these numbers are to be believed, the dealer tacked on an extra grand of pure profit. And sounds like they do this commonly, and are likely getting away with it every time.

By the way, where's the competition dealerships talk about... with only one Cadillac dealership in all of Northern Oregon!

The other key talking point the dealerships bring up, is that the dealership model creates jobs, jobs that a factory-direct model doesn't. This is not a zero sum game. With a factory direct operation, you're still going to need nearly the same body count to run show rooms and service centers, direct or not... but without unnecessary bloat dealerships bring/steal from the barefoot pilgrims that slip I nto their shark infested lots.
 
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+1. As I've mentioned elsewhere on the forum, I've had a couple of occasions where the manufacturer went to bat for me against the dealer.

Also a friend of mine recently had a similar experience. He went to the dealer to get a proper OEM towing hitch installed. They improperly installed a poor quality aftermarket hitch (yes, cheaper hitch installed wrong), despite telling him they were installing an OEM hitch. When the hitch catastrophically failed in the middle of a long road trip, he went to a local dealer who replaced it with the proper OEM hitch. Only after arm twisting from Nissan Canada - my friend called them to complain about the dealer - did the original dealer finally pay ALL of his costs for the replacement, including hotel charges for the resulting overnight stay during the repairs. Needless to say he's not going back to that dealer ever again.
 
This is incorrect in some states, and especially for local taxes.

Some states charge a different local tax rate for local retail sales vs. sales that come from out of state. In some states, if you purchase a car at a dealership, you'll be charged the prevailing retail tax rate (state tax rate + local tax rate). However, if you purchase a car from out of state, you'll be charged only the state tax rate, which could be as much as 3% less.

My state handles it differently, in that sales tax is collected at registration time based on the county you reside in, so that argument doesn't hold water in Illinois. But it does hold water elsewhere.

While in Missouri, I overheard someone saying that purchasing a car from outside of Missouri has sales tax benefits to the consumer, and the locality loses some tax revenue.

Up until last year this was the case in Missouri. But I believe that a law was finally enacted last summer in order to eliminate this loophole (Illinois side dealers heavily targeted St. Louis area customers as tax savings can obviously be quite significant on a vehicle purchase, particularly around the time this bill was being debated). My MS purchase was actually a CA sale, and since I took delivery before Tesla had a MO dealership license last year my tax bill was significantly lower - but it was only my local municipality that lost out on my sales tax, not the state.

And even though I thanked FlasherZ and Liz and the other owners/enthusiasts in person... I would like to do so here as well. Thanks to EVERYONE who came out and supported this cause and helped to inform their representatives about this issue. And particular kudos to Liz for being so well spoken to all of the reporters who interviewed her - she was amazing!

That said, I do believe that we will need to continue to be vigilant on the activities of the MO Auto Dealers Association and their attempts to continue to curtail the direct sales model. Rep. Diehl, the house majority leader, is my local rep. I did appreciate the fact that he was willing to speak with myself and another constituent on Monday. He had already made up his mind on the bill, so there was no begging and pleading with him, but I do plan on following up with him in writing tonight/tomorrow (I really do find the whole Emerald angle which has been little mentioned in press to be an interesting twist to this whole debate). I did offer to take him for a test drive the next time he was in town.. but he kinda wryly smiled and said he had just driven one the night before and thought it was pretty awesome (well, he tried to be a bit understated about it - but my interpretation of it was that he thought it was pretty awesome). :smile:

While waiting to meet with Rep. Diehl, I applauded their office for keeping the Rep's FB page open for comments and for responding to both my emails and voicemail, and I lamented to his secretary about Rep. Kolkmeyer deleting the comments on his page and locking it down. She informed me that Kolkmeyer got quite an overwhelming response online as well via voicemail with many rude comments and personal attacks. I kinda just shrugged at her and said unfortunately that's politics in the social media age (though I agree that criticism can and should be relayed without resorting to personal attacks).

Though part of me is a bit disappointed in myself for only finally being a good citizen and participating in our democratic system on something that superficially looks like a rich girl trying to buy an expensive car (such a first world problem) instead of rallying against unfair wages or wars or civil rights etc etc... I try to remind myself that this issue really is bigger than just this free market fight. I truly believe that Tesla's and Musk's mission of ushering in sustainable transport is vital on a global level, so I am happy to be a small part of that as a consumer, enthusiast, and citizen.

#SaveMoTeslas
 
The other key talking point the dealerships bring up, is that the dealership model creates jobs, jobs that a factory-direct model doesn't. This is not a zero sum game. With a factory direct operation, you're still going to need nearly the same body count to run show rooms and service centers, direct or not... but without unnecessary bloat dealerships bring/steal from the barefoot pilgrims that slip I nto their shark infested lots.

Actually, there is one, and only one job at a dealership that would be eliminated with a factory direct model: the owner.

If you want to understand why dealer's associations are fighting so hard against factory direct sales, look no further than who would be out of a job.

Another fun fact, in many counties across the US the wealthiest resident is... surprise surprise... the owner of a car dealership!

EDIT: I realized there would be one other person out of a job: the finance manager. You know, the guy or gal you have to sit down with after deciding to buy a car and work out interest rates and also reject the guantlet of profit pads, like Scotchguard and underbody coating.
 
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EDIT: I realized there would be one other person out of a job: the finance manager. You know, the guy or gal you have to sit down with after deciding to buy a car and work out interest rates and also reject the guantlet of profit pads, like Scotchguard and underbody coating.

Took me nine hours to sit through this garbage the last time I bought a car from a dealer.
 
Actually, there is one, and only one job at a dealership that would be eliminated with a factory direct model: the owner.

Another fun fact, in many counties across the US the wealthiest resident is... surprise surprise... the owner of a car dealership!

EDIT: I realized there would be one other person out of a job: the finance manager. You know, the guy or gal you have to sit down with after deciding to buy a car and work out interest rates and also reject the guantlet of profit pads, like Scotchguard and underbody coating.

Excellent point!
 

This was my favorite part:
According to the comments by staff from the FTC’s Office of Policy Planning, Bureau of Competition, and Bureau of Economics, current laws in both jurisdictions “operate as a special protection for [independent motor vehicle dealers] – a protection that is likely harming both competition and consumers.” The comments note the staff’s strong opposition to state laws that mandate a single method of distributing automobiles to consumers.
 
This was my favorite part:
I read what the FTC said and according to what I can find they have the ability to issue cease and desist orders. They have no punitive ability but they can use the law to stop what they feel is a restriction of fair trade or a monopolistic competition. Why would they not do this for those states that want to restrict direct to consumer automobile sales.
 
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