NADA Chairman: Consumers Prefer Dealers Over Tesla Direct Sales

Tesla

OCT 11 2016 BY STEVEN LOVEDAY 124

Tesla Store

Tesla Store, Image Credit: Gizmodo

Jeff Carlson, chairman of the National Automobile Dealers Association (NADA), said that consumers would rather purchase a vehicle through a franchised automotive dealer that can offer discounts, than through a direct sales retail set up, like that of Tesla. He believes that those hearing the lawsuits and making the policies, should be aware of what the customers want, and in his mind, the customers’ bottom line is the best price.

Competing Dealerships Clutter Major Intersections

Competing Dealerships Clutter Major Intersections

Carlson runs Ford and Subaru dealerships in Colorado. Of course, since he’s a dealer himself, and the chairman of NADA, he is compelled to follow this way of thinking. He said:

“They can continue to support the franchised dealers who discount up to $700 … or, the choice for the policymakers, they can offer the consumer a vertically integrated model that prices vehicles at retail. The public policymakers are going to go to the consumers and say, ‘Which one do you want, the discounted product or the product at retail?’ I think they’ll make the right decision.”

This all comes to the forefront as Tesla recently filed a lawsuit against the state of Michigan. Tesla is prepared to challenge Michigan law that says that auto companies can’t sell their cars in the state, without using a franchised dealership.

Carlson explained that due to several dealers offering the same vehicles, new car prices must be competitively lower, for the each dealer to be successful. This adds up to hundreds of dollars in discounts, which benefit consumers.

He believes that it is in the hands of the consumers to stop companies like Tesla from moving in. If the buyers realize that they will no longer receive better prices, because of no middle man and lack of competition, Carlson believes that they will argue against Tesla’s plans. He added:

“Do you all want us to create a new market in the state of Michigan or do you tell your legislators that, ‘Yes, allow the manufacturers to have the Tesla model,’. I don’t think the consumer is going to support that.”

Source: Detroit News

Categories: Tesla

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124 Comments on "NADA Chairman: Consumers Prefer Dealers Over Tesla Direct Sales"

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While I would agree that I would rather buy through a dealership I don’t think I should be forced to.

Imagine if all the companies out there who had direct sales were told they couldn’t…

I FOUND THE ONE PERSON THAT ENJOYS DEALERSHIPS, YOU GUYS!

Wow! I really didn’t think they existed. I have never met someone that liked the dealership experience.

So you guys never return anything back to the actual place you bought it? A B&M store is nice as you have a guaranteed place to get it serviced and usually washed for free.

Not to mention not everyone likes paying MSRP for something but if you’re so inclined who am I to tell you otherwise.

Maybe it’s just the lazy or ignorant that don’t know how to negotiate a good price or even just stupid. I mean anyone that pays an additional $5k for a pair of slightly larger rims I have to confess probably falls in to one of those.

Like I said, I like knowing there is a dealership nearby. That doesn’t necessarily mean I would buy from them however I may. I do think it’s stupid that in some states you are forced to buy a car through a dealership as your only option.

So much for the “more options is better for the consumer” crowd…

I get free car wash in Tesla service and no one is trying to take my money, is so Apple Store experience. But. I respect the people who love haggling and casinos, all I ask is the respect of the people like me who doesn’t want to se a dealership ever again.

Apple store experience? Sure.

But I just got my iPhone 7 brand new for $350 through my T-Mobile rep.

Is the “Apple Experience” worth 2x?

The Tesla experience is all about keeping more money for Tesla.

The reality is, Tesla would not be able to survive as long as it has if it did go through a dealer experience, they would be losing even more per car than they already are.

Beyond that, when they would not be in control of leasing… you would quickly see how those residual values drop.

It’s simply an antiquated system that has seen it’s day. Those that profit from it have developed a great deal of power/influence and don’t wish to see their golden goose slaughtered.

The point being the more in hurry you are, less informed, are a minority, or a woman, dealers rip you off more. If not they rip you off less.

“So much for the “more options is better for the consumer” crowd…”

Huh what? I agreed with your first comment, “I don’t think I should be forced to”. AFAICT that’s all the comment you’re replying to is saying.

You like dealers. Great! Shop there. No dealer sells the product you want? Take your pick — choose a different product, or choose a different sales model, whichever is more important to you.

I don’t. Great! I don’t shop there. No direct sales of the product I want? Same rules.

Like you said.

How can you not realize that anytime there is an extra layer of people in any transaction you are going to be paying more, period. You might be able to negotiate your way into paying only a smaller amount extra but you will never come out ahead.

So competition does not bring lower prices to the consumer? Huh, well that’s strange to hear.

And you guys wonder why you pay so damn much for Tesla parts… Just look at what they charge you for their slightly larger rims. It’s ridiculous!

Imagine if you could only buy Samsung TVs from Samsung. You’d never get as good a deal as you could get it at times at say Fry’s…

You guys think Elon is offering you a car at a lower price than if he sold direct and also through a dealership. Agh

“And you guys wonder why you pay so damn much for Tesla parts… Just look at what they charge you for their slightly larger rims. It’s ridiculous!”

Just look at what stealerships ~MARKUP~ on new products.
Boy, the ~MARKUPS~ really helps sales and offers the best price don’t they?

So you can get OEM Tesla products elsewhere like you can other manufacturers?

That’s the same where I have to buy OEM catalytic converters only from the OEM!

You’re doing it wrong…

ROTFLMAO….
You think MSRP is real?
So I can go straight to GM/Ford/Toyota/etc….
and give them my money for the total of MSRP?

lol…

“Maybe it’s just the lazy or ignorant that don’t know how to negotiate a good price or even just stupid.”

Price disparity from one stealership to another is the problem. Having to negotiate wastes my time but then after you drive off, the stealership down the street will have it for less. Boy doesn’t that make you feel really good…..lol
Why do you have to negotiate for the best price?

Stealerships also put a stealership markup on new products. Just wait and see when the Bolt hits the floors. Same thing hit the Volts when released.
What is the added value of the markup? Explain that please.

What, you think Tesla doesn’t do that with their first run (and even more) of cars? Either way you are paying more. It’s just that with dealerships they call it a premium where with a Tesla it’s baked in to the ridiculous option upcharges or the fact that you’ll wait a couple years to get your car.

Again, like I said. I think it’s nice to have a dealership nearby because I like the option but I think it’s stupid that some states prohibit the direct sales model…

“Again, like I said. I think it’s nice to have a dealership nearby because I like the option but I think it’s stupid that some states prohibit the direct sales model…”

Both models should be allowed to exist.
That way the market will decide, or he11, maybe they both can co-exist! Who knows!
Only one way to find out though.

You skirted past my question….
can go straight to GM/Ford/Toyota/etc….
and give them my money for the total of MSRP?

Why bother answering a question that has no relevancy to what is being discussed?

Afraid to answer the yes or no question. That’s OK DJ.

I will answer it.

No, you cannot go to Ford directly and buy.

Even European deliveries of BMW, etc which have PRESET prices at a discount… you still get your car delivered at the dealer.

The manufacturers are not setup to handle each sale individually, that is what the networks are for.

I promise you, if you go to any dealer, and pay the MSRP on the car, it will be the smoothest sales experience ever.

The reason why people hate dealerships… they hate Negotiating…. but they don’t have to…. they can just pay the full sticker price.

Yeah… everyone pays the same… or I go home to find that my neighbor paid less for same car I got… Then their service department lies to me about some recalls… trys to move me into another car… yeah… dealers are wonderful… what utter BS.

I dont want to finance parasites (dealers who dont contribute anything to my wish to buy a tesla). Therefore I dont prefer dealerships in the slightest, lets make a poll.

I agree. What most don’t understand is there is a thing called “Dealer Markup” that is applied before the discounts are applied. All the dealership model does is make money for the dealership. It’s why anyone is in business, to make money.

+100

This is in my mind the biggest failure with dealers. Any mildly popular vehicle will have a MARKUP, not a discount.

Next grouse is every department trying to rip you off. Sales, finance, service – they all have their own tactics.

Jeff Carlson, what do you say to this?

Dealer profit per car is quite marginal–likely the same as the cost of running a compamy store, where costs are baked into MSRP, because dealers must complete with each other in the most cutthroat manner, but gentil company stores have less of an incentive to be efficient.

So you’re saying they make their money on service, and electric cars require far less of it, which is one of Tesla’s points.

Judging on how often the Tesla’s need to go back… I promise you, the lack of warranty work is not an issue. lol.

A modern gas engine is just as reliable as EV motors.

The rest of the car…. electronic gizmos,, paint, and general fit and finish are still Tesla issues.

[citation needed]

Dealerships add very close to no value and add cost. Time to let them die.

So you’d rather give the $ to Elon then. What, you think he’s gonna cut you a deal and not overcharge you on the options?

Hahahahahahaha

I’d certainly rather give my money to a company like Tesla Motors; a company which is trying to push forward the EV revolution, and its promise of ending our addiction to funding Big Oil and burning fossil fuels; and not give money to a legacy auto maker which is doing all it can to hold the EV revolution back, plus a “stealership” middleman which is jacking up the price and making the buying experience stressful or even traumatic, without adding much if any value.

And I’m most definitely not speaking just for myself, here.

From Autoblog.com: “Americans hate car shopping so much they’d rather give up sex and do taxes”

http://www.autoblog.com/2014/06/03/americans-hate-car-shopping-so-rather-give-up-sex-do-taxes/

+100

+100000……..

All that does is further prove that most Americans are idiots…

I mean is it that hard to go to Truecar, Costco, Sams, etc.. and get a few prices and then go ask the dealer to beat it?

I dunno about you but my taxes are way harder than buying a new car. I’d gladly do that any day.

It’s a huge pain in the a**.

The only reason dealers exist is due to outmoded laws. According to the article: Almost no one would go to a dealer if they had any choice.

Give them the peaceful death they deserve.

Yes… and the dealers often gouge when a car is popular and won’t even take MSRP. The dealers are creeps!

Don’t believe in supply and demand?

yes, extremely limited models are sold for ABOVE sticker when they come out.

The Model S, X, and 3 are not those cars, neither are the other 99.5% of cars on the road.

Yes a poll. Unstead of his storytelling.

He is speaking as a dealer, regardless of the position he hold, there is no data to back up what he believes to be true.

What a bunch of BS.

“NADA Chairman: Consumers Prefer Dealers Over Tesla Direct Sales”

Consumers to the NADA Chairman: No we don’t!

+1!

+1

Dealerships really have no one to blame except themselves for buyer’s negative attitudes towards dealerships.

Why can’t we have both? Why does it have to be one or the other? Let all auto companies sell direct and through dealers. If dealers can offer the cars cheaper than the manufacturer.. good for them.

I’ve been to both. Once you’ve been to a Tesla service center and gotten top class service you won’t want to go to a regular dealer again!

i think this is foolish talk. that’s like saying that if you went to a bentley dealership and got top flight service, you would never go to another dealership again. there is a reason why everyone isn’t driving around in bentley’s…the cars are expensive!

people here are commenting on these laws (which are only in about 10 states) without knowing why the restrictions were put in place in the first place. in a litigation, that is the question that is going to be asked. for example, if you were to ask me should a manufacturer be able to sell cars with no physical presence in the state, i would say that they should not, because there are legitimate consumer protection issues in not considering the sale of a car to be treated like the sale of an ipad. of course, you always have the option of going out of state to buy a car. if the manufacturer doesn’t have physical presence in the state, it means that to have any service done on the car, you will have to transport the car out of state, so if you believe that it is onerous to have to go out of state to buy the car, don’t you think that you would also find it onerous to have to ship the car out of state for service? so if the manufacturer doesn’t have a local presence that is convenient to you at the time of sale,… Read more »

“no comment” continued his FUD campaign:

“if the manufacturer doesn’t have physical presence in the state, it means that to have any service done on the car, you will have to transport the car out of state…”

I’m sure it will come as a great surprise to Tesla Motors that they can’t open service centers in Texas, Arizona, or other States where they are blocked from making direct sales from their stores. /snark

Scottsdale-Hayden Road
15001 N Hayden Rd. Suite 110
Scottsdale, AZ 85260

Austin-Pond Springs
12845 Research Boulevard
Austin, TX 78759

Dallas-Cedar Springs Road Service Plus
6500 Cedar Springs Road Suite 100
Dallas, TX 75235

Houston-North
14820 North Fwy
Houston, TX 77090

“no comment”, if you are unable to refrain from spouting an endless stream of anti-Tesla FUD, then at least don’t insult our intelligence by saying things which are so obviously untrue.

Okay, now you’re just being cute! You know full well, that Tesla would love to operate service centers where they sell their cars! Pretending that those decisions are of Tesla’s own volition, as opposed to the decisions of the state governments, is not only disingenuous(fooling no one here) but makes you look the shill.

+1

“it’s not that people are inherently stupid”

Right. For example, I am not stupid enough to accept an argument that goes:

1. The manufacturer has no in-state service centers.
2. Oops I accidentally on purpose forgot to tell you that the reason they have no service centers is that they are prevented from opening them by law, that same dealer protection law as it happens.
3. Therefore to protect the poor consumers, we not with anger but sadness must prevent the manufacturer from selling cars.

This is about as valid an argument as the fellow who axe-murdered his parents and then asked the judge for leniency because he was an orphan.

my suspicion is that you are writing a bunch of stuff without knowledge. for example, if you live in iowa, and own a tesla vehicle, you will have to ship it out of state for service as there are no service centers in iowa or wisconsin. is that due to a law banning tesla service centers in iowa and wisconsin? or is that due to tesla concluding that there wasn’t enough business in iowa or wisconsin to establish a physical presence? articles previously presented on insideevs were focused on bans on direct *sales*; i don’t recall anything suggesting that a manufacturer was banned from setting up a service center. indeed, tesla actually is opening service centers in states like indiana and michigan where they have no sales presence. i don’t know how extensive the capabilities of these service facilities are, though. even still, tesla service network is quite paltry for a company that seeks high volume sales. while i don’t doubt that tesla would like to have an extensive sales and service network, as i’ve previously stated, stuff isn’t free, and it will be expensive if tesla seeks to create it’s own nationwide sales and service network. tesla may make… Read more »

“my suspicion is that you are writing a bunch of stuff without knowledge”

Someone is, but it ain’t me.

“tesla actually is opening service centers in states like indiana and michigan”

This is not believable, considering Michigan law explicitly bans manufacturer-owned service centers. I can’t speak to the law in other states, but I’ve read the Michigan statute in detail. See Michigan HB 5606 (2014) 14(1)(q):

“Sec. 14. (1) A manufacturer shall not do any of the following:

(q) Own a motor vehicle service and repair facility”

HB 5606 is of course the infamous dealer-protection bill of 2014. The outright banning of repair facilities is regrettably less reported but no less consequential — as your own comments show.

The hypothesis that state governments are selflessly working to protect consumers and dealer protectionism is not the motivation just doesn’t stand up to Occam’s Razor. No amount of schoolyard insults (“fanboys”) will change that.

your beef isn’t with me, it’s with tesla because the tesla website indicates that a tesla roadside assistance service center in detroit will be “coming soon”. see for yourself:

https://www.tesla.com/findus#/bounds/42.4502301,-82.91045099999997,42.2551921,-83.287959?search=service,&name=Detroit,%20MI,%20USA

All well stated, as usual, no comment, thanks!

pity the Fudiots, and ignore them wherever possible, is my humble (unsolicited) advice – the silent majority know too well who the flagrant shorthand abusers are and scroll past every word they thoughtlessly write.

Attributing well-discussed subjects to shorthand FUD-speak absolutely defines the responder as one not worthy of response – nor his hoard (force him to stay on (or INCREASE) his meds if he expects a reply).

Thankfully, he/they will die, verbally and physically, and likely by their own hand.

Okay, let’s summarize this thread: You: dealer protection laws are necessary to protect consumers because the manufacturer won’t service them otherwise. Me: this is a circular argument because those laws also forbid the manufacturer from opening service facilities. You: you are writing “without knowledge”, Tesla is opening service centers in Indiana and Michigan, “stuff isn’t free”, fanboys, etc. Sorry, it is difficult to actually distill a point out of that comment. Seems to have been a generic “you are wrong”. Me: I have specific support for my point about the law preventing service facilities in the case of Michigan, here is chapter and verse of the law. This refutes your “without knowledge” accusation. You: citation of Tesla website so not my fault. So, we started out with you claiming dealer protection laws are a necessity, and somehow ended up with you citing a link on a Tesla website, that doesn’t relate to your initial, discredited claim. (It’s not relevant to the “dealers” topic but I’ll happily concede that link is incorrect and should be fixed.[*] After all, only a “fanboy” would accept information like that without verifying it, right? I’m sorry you were embarrassed by accepting Tesla’s information at face… Read more »

Even if his claim were true, then why not let Tesla sell direct anyway. If people don’t like it, they won’t buy Tesla and it’ll only prove his point.

So let the market make the choice. Remove the regulation.

Some interesting points, #1 dealer in the nation, Auto Nation…#2? COSTCO, which gives fixed pricing and even the experience…To use Costco, you have to first select a make and model to ensure it’s eligible for the Costco program…So if you pick say a Volt, the dealers aren’t suppose to say “why a Volt? You look like a Camaro guy”…

Lexus also announced a pilot program to offer fixed pricing at dealers…

Costco actually has variable pricing. It’s dependent on the dealer.

My last car was anywhere between $1k over invoice to $1k under invoice. I obviously went with the latter 🙂

Wait a minute. Weren’t you the person who said, “Maybe it’s just the lazy or ignorant that don’t know how to negotiate a good price or even just stupid.” yet now you’re saying you use a third party to negotiate for you?

Pot meet kettle.

It’s called starting point 😉

Only a stupid person IMO wouldn’t have a worst case cost as a backup if they went in purposely to haggle 🙂

I have also found that pitting dealerships against other dealers works well once you get them down to their “final” price. Got another $600 off that way the last time I bought a car.

But what an unfair to others hassle that is… fixed prices are far nicer. If you don’t like them don’t buy until you get it for what you want to pay used.

There is no reason the cost of running a dealership should be any larger or smaller than the cost of running a company store. Both need retail space, provide the same services, and require people.

The difference is consistency. In a dealership model the quality of the dealers can vary, and the price can vary. Buyers can go to a terrible dealership in the sticks if they only care about price, or a good dealership in the city if they care about good service, and pay more for it.

In the company store model, you don’t get that choice, and all of the costs of the stores are simply baked into the MSRP of the car.

There’s also an incentive difference: the ass of the owner is on the line with a dealer franchise, a company store can be run poorly for much longer, and there need to be competitive systems set up in company stores to make up for the natural competition that no longer exists.

If you don’t like the service at a company store you go to the next.. and if you like the service there you can always give a tip.
You OK with that freedom?

As for your competition part, I’d say customer shall be king and best served, but the current dealership incentive – which is – to sell fast and as much and expensive as possible doesn’t achieve that. I’d really like to see with what kind of incentive models the company stores come up with there.

Sell the most cars as expensive as possible? Sounds like Tesla Motors (and every other car company).

Good! Then you’ll purchase using the superior dealership model, and I’ll get “ripped off” by the terrible Tesla! But at least we’ll both be happy! Unless of course you don’t want me to be happy?

Please tell me you’re NOT going to force me to deal with the magnificent dealers, when my preferred choice is to be brutalized by the awful Tesla direct sales model?! Can’t we all just get along?!?

Four Electrics continued his fawning worship of auto stealerships:

“…there need to be competitive systems set up in company stores to make up for the natural competition that no longer exists.”

Or maybe the company store can be set up to actually help the customer get what he wants and/or needs, rather than viewing customers as “marks” to be fleeced by high-pressure salesmen who try to “steer” them into whatever car the stealership is trying to sell this week.

Running costs? Yes, they should be the same. What you are missing is the extra layer of profit that a franchise store must have to stay in business.

So what he is saying is for a manufacturer to actually succeed in this sector of selling cars they must be competitive in their pricing… so the customer wins?

Wait that cant be right dealers cause the manufacturer to stay at a low cost…. no that’s competing brands.

Its because dealerships have repair shops and Tesla doesn’t…..

Obviously it’s because everyone everyone uses dealerships that’s that means we love them…. same reason the most popular color was Model T was black

A 700 dollar discount on a 1000 dollar markup is still a markup. It should be paraphrased as “which dealer rips you off least”.

Oh well, there is a whole horde of people that fall for huge “discounts” but that does not neccesarily imply the best price.

I can buy pavement tiles from the general hardware store for 5,30 euros or from our garden center which is not in a commercial district for 3,20 euros. Guess where I bought them?

But you get the markup either way, it’s not like Tesla sell the cars at cost.

Yes, but with a franchise dealer purchase you are paying the manufacturers mark up and the dealers markup.

“consumers would rather purchase a vehicle through a franchised automotive dealer that can offer discounts”

LOL. of course. those dealers buy the car from the producer and then sell it at a discount to the consumer. it is because they love to make a loss.

They make it up in volume 🙂

The president of NADA is employing magical thinking in a world of alternate reality, and sure, there, dealers are a deal, but most of us don’t live in that made up place.

Having had to deal w dealers for 4 decades I tend to disagree.

I bet if you thought back to the worst day of your life, it didn’t involve an auto dealer. There you go, you’re better off at a dealer than not. Done. Publish the results.

Not.

???
Is this reasoning a la Trump?

The worst day had nothing to do with a dealer, nothing to do with a car, but a lot to do with someone dying.

Still no need for dealers.

I’m pretty sure Sublime was joking.

The whole forced dealership model needs to be scrapped. It is one of those things that made sense at the time but now should be scrapped.

Back when cars were unreliable and needed frequent repairs, it was very important to have a dealer that would service the cars. But there was a problem because the automakers were big giant corporations that could slap around the little mom & pop dealers so they created laws to restrain the automakers from abusing the dealers.

But that is ancient history now. Cars don’t need repairs as much, there are lots of independent repair shops now, dealerships are often big multi-million dollar operations, with all the imports there are more car companies now so they don’t have such a strong position, etc.

Scrap the forced system. There doesn’t seem to be a problem with Best Buy selling Apple computers despite the fact that there are also Apple stores. So dump it.

But while we are on this topic of restricted sales channels . . . I think Tesla needs to open up and start selling auto parts. Tesla’s monopoly on repairing Teslas is very annoying.

The protection laws have to be scrapped not the dealers, let them compete

I have to agree with you here big time. In the past, we had to make sure there was a dealership that was selling the cars so we could get them repaired. We didn’t have social media presence like we do now where we can blast a company for poor customer service, they have to be on their game. Times have changed and we need for the archaic system to change with it.

Back in the day, as I recall it, repairs were mostly done at independent shops, not dealers. The dealer lock-in model seems like a more recent development.

I can’t stand dealerships.
Of course dealerships would make such a statement.

The more I ponder this, the more it seems to me that this is a control issue. Elon likes to micromanage everything. He wants to control everything. Thus, we have company stores, no discounts, a rushed Autopilot, stupid falcon wing doors, a vertically integrated battery factory, a vertically integrated space company–the list goes on and on. And, in truth, a benevolent dictator with good taste can go a long way, as we’ve seen with Steve Jobs. Control also works really well for premium brands, where people are buying an experience, and the brand must be protected. Thus, I don’t think we’ll ever see Tesla cede control of selling cars to dealerships. Elon doesn’t want to give dealers the freedom to decide how to sell cars in their own local markets, because odds are most won’t match his vision. They will compete on price, try to maximize efficiency, offer price discrimination, etc. But, as long as the Tesla brand stays premium, this will work just fine. Control works great with premium brands; there is ample money available to do everything that the customer could reasonably want. Tesla was not founded to be a premium brand, however. I wonder if it will… Read more »

Tesla will continue to be a premium brand well after the Model 3 is released. Mainstream brands all have products that start well under $20,000. Premium brands start around $30,000 and go up from there. Pricing your base model at $35,000 puts you solidly within the premium segment of the market, and Elon has said they wouldn’t be going after any future products farther downmarket than that.

Yes, it is most definitely a control issue. Elon’s seen first hand the treatment of EVs at the hands of dealerships. He, needless to say, wants no part of it. Your rather subjective criticisms, suggest that he doesn’t know what he’s doing. I would suggest a reality check. Company stores that appear to have more foot traffic in a day, than some dealers see in a week. No discounts(favoritism) on new vehicles(although some substantial discounts on inventory cars) because he doesn’t countenance disparity. A driver assist system that far exceeds any other tested against so far. Falcon wing doors that seem to attract crowds whenever they’re operated. Model X owners routinely speak of having to reserve ‘Tesla Time’ because of those doors. A vertically integrated battery factory when making a crap ton of electric cars and the systems to provide fuel for those cars, is kinda seen as a GOOD thing, not BAD! So no, Musk will not cede power to those who absolutely do not share his interest and who very often operate in antipathy to them! Also, Musk has no control over how dealers sell their cars. He doesn’t GIVE them freedom to do anything! On the other… Read more »

The best example of the way Tesla can handle things vs the traditional way is with the BMW i3. BMW USA has a program where if you own an i3 you are supposed to be able to call ahead to your local dealer and reserve a loaner for extended trips. The problem is that BMW USA is no power to enforce this program with the dealers so finding one that participates is difficult. If there were a need for a program at Tesla there would be no worries about finding a participating store.

Four Electrics:

“No Discounts” is for special ordering your exact desired configuration. Anybody can go to a Tesla showroom and buy an “Inventory” car with a few hundred or few thousand dollar discount off the price.

But don’t let facts get in the way of a perfectly good rant…..

To be fair and complete Nix, not just a few people do Not want a upwards-of-$100k car that has already been driven by several unknown Tesla owners and others for a 1-2% discount.

The alternative is to state that Tesla pre-builds cars, which you have vigorously pointed out many times is simply not true.

So, it makes sense to put the costs of the ~6 Chevy dealers, within 10 miles of me, in the price of all Chevys?

Tesla won’t be continuing such a high ratio of configured cars, in the future. That means they’ll need more tools to move much bigger inventory. Their direct sales model will adapt (already started).

If he’s really sure that’s what customers prefer, then he should allow the to have a real choice instead of trying to prevent it.

Otherwise it’s just doublespeak, a la 1984.

“…doublespeak, a la 1984.”

Actually, in Nineteen Eighty-Four, it’s “doublethink”.

“Jeff Carlson, chairman of the National Automobile Dealers Association (NADA), said that consumers would rather purchase a vehicle through a franchised automotive dealer…”

Sure. That’s why every year, in Consumer Reports‘ annual survey, Tesla Motors earns the highest customer service satisfaction rating of any auto maker; because customers really prefer the hassle and stress of haggling with auto salesmen.

Oh, wait…

In other news, the head of the Tobacco Institute again insisted that there is no scientific evidence that cigarette smoking causes lung cancer. 🙄

InsideEVs is throwing red meat to its readers! 😀

BS! No one likes dealerships!

Fine, then why do they need legal protection? If consumers choose dealerships over direct sales anyway there is no reason to ban direct sales!

LOL, Jeff Carlson’s statement reminds me of Trump standing up at the debate and expressing how he has the “utmost respect for women”.

If Politifact would fact-check Jeff Carlson his statement would rate a “pants on fire” lie rating.

And since only politicians rate lower then auto sales people at dealerships I think that says it all:

http://www.automotive.ventures/members-congress-car-salespeople-least-trustworthy/

There are lots of people who like the dealership model, the dealership employees.

And when the dealerships go out of business, they can become Tesla Service Center employees and re-connect with all their old customers who jumped ship to board the USS EV Revolution.

Car dealership employees hate the dealership model too. Car sales employee turnover is now at record high levels, now in the 60-70% rate!!

That means the cars now spend more days on the lot in some dealerships than their sales staff does.

too true

$$$$ is their only motivation so they are trying to rationalize the snot out of it.

No real dealerships mean everyone is on the same playing field for them. Don’t like it? Go buy something else. There are other car makers around ya know?

what do I miss about not having a non tesla dealership? NADA.

I think this whole thing (and pretty much every other NADA story ever) can be summed up by Upton Sinclair’s “It is difficult to get a man to understand something, when his salary depends upon his not understanding it!”

Dealers SUCK. Mostly money from my wallet…

HOGWASH…let the market decide Mr. NADA Chairman

“Which one do you want, the discounted product or the product at retail?”

That’s a false choice; if I don’t want the product at retail, then I’ll shop somewhere else for a different product. Nobody is forcing me to buy a product at retail.

The NADA Chairman tells me I prefer dealers over Tesla’s direct sales model.

I say I prefer Tesla’s direct sales model over dealers by a massive margin.

Who is right?

Carlson’s Ford and Subaru dealership say I want paint sealant, VIN etching, and an overpriced extended warranty on the new car I buy. (Sir, the paint sealant is already on the car, we can’t remove it…)

I say I don’t want their more than $700+ dollars worth of rip-offs.

Who is right?

One of the older scams:

I love that scene! It’s a classic.

My favorite part is when says he will talk to his boss, not about the car of course, about tickets to the big game. But he does not lie in the sense that he does talk to the boss.

Yeah it’s a classic. My former roommate was an extra in that movie. All alone listening to Jose Feliciano.

“consumers would rather purchase a vehicle through a franchised automotive dealer that can offer discounts”

So who receive these discounts? People who dealers decide are worthy of them? Not minorities, old people, women or others that they can gauge. In reality, the discounted price, it actually the fair price. Everyone else got screwed.

In other news, most Americans would rather be beaten over the head with a lead pipe than get a small painless injection at the doctors office.

I realized long ago that our local troll coven was highly slanted to being pro-hydrogen fuel cell. But I never realized how pro-dealership they tended to be too.

Interesting.

Less surprising if you assume they’re being paid for it. In both cases.

@Nix: “Troll Coven”, you keep flirting with the dark and irredeemable side, I suggest you consider reading back through your recent responses, you Seem capable of perceiving the pattern. pp-hole-speak do not become one of your apparent thoughtfulness.

I object to adolescent shorthand, as apparently I belong to YOUR handy denigration of: Troll Coven.

Congratulations, you amused a NARROW few, and permalienated people that might have enlightened you (no need or desire to Convince you, but might have added to your knowledge on the Completely Off Topic subject matter to which you so Eloquently referred).

Too bad you are unable to return to your Best Bits like this one (Very Much like another frequent contributor), that quite a few remember. They Might tend to Automatically respond to Your current missive -much like you occasionally do- and you are obviously surprised at the Venomous reply that seems to exceed what you currently wrote.

Yeah, people are like that..

How about it be dealt with ‘the American way’ by allowing both sales models to exist and letting the consumer freely decide?

Whether or not consumers prefer one model or the other is of course a totally red herring. Tesla isn’t demanding that dealerships be outlawed. They simply say they shouldn’t be mandatory, but should have to compete with a direct sales model.

Dealerships are mandatory because they themselves reckon they can’t compete with direct sales. That says all we need to know about which is more efficient. But even if that was not the case, there would be no reason to give cars special treatment compared to other products. You should be allowed to use dealers or sell directly or both, and consumers free to choose INDIVIDUALLY, not collectively by making a majority decision and enforce that for all.

I have not seen a study, but in my experience competition between dealerships is a thing of the past in most communities. In many areas all the car dealerships (of every make) are owned by the same person or corporation. In very large population areas, there are 2 or 3 different owners, so there is a little competition, but this seems to be the exception rather than the rule. So, if I want to buy a Ford, say, not only might I have to drive 100s of miles to find a different dealership owner, chances are the local owner also sells Toyotas, Hondas, etc. This is not very good for the manufacturer, as the dealer will push whichever cars are most profitable. Protectionist laws which reduce completion should be repealed. If dealerships are to survive, they should prove that they can perform better than company owned stores. Laws should ensure that service centers are available within some maximum distance of the location that cars are sold, enforcing dealer only seems wrong to me. Particularly when there is no mandating that dealerships have different owners. How would you feel if every single dealership in the country was owned by AutoNation, would… Read more »

Yeah, but that TrueCoat…