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Auto Dealers Whine That Tesla Stores Are Illegal

wired.com

11–20 of 154 posts

Re: Auto Dealers Whine That Tesla Stores Are Illegal

#12
post #3

Anyone who's ever bought a car knows firsthand how unpleasant it is to deal with traditional car dealers. The price of every vehicle is fully negotiable but the negotiating room is opaque.[1] Key car features and options are bundled in arbitrary packages and priced in ways that make pricing even more opaque. Car salesmen (they're typically men) almost always have a fake smile on their face and come across as smooth-t…

Indeed. A persistent cartel is a sign that such industry has unethical legal protection, to the detriment of the consumer.

Re: Auto Dealers Whine That Tesla Stores Are Illegal

#13

So my running list of things that are obviously outdated and fruitlessly resisting their death throes now includes: - Auto dealerships - Music labels - Government secrecy

Only 3? I figured Radioshack/Bestbuy belong in this category in the long run.

Would be interesting discussion on what industries denizens of HN think will fall in this manner.

Re: Auto Dealers Whine That Tesla Stores Are Illegal

#15
post #6

I'm confused. Is this article saying that in the US it's illegal for a maker of the product to sell the product to whomever he wants? How is that helping anyone but the dealerships?

That is correct. Car dealers are much like real estate brokers - politically savvy and entrenched.

Re: Auto Dealers Whine That Tesla Stores Are Illegal

#16
post #3

Anyone who's ever bought a car knows firsthand how unpleasant it is to deal with traditional car dealers. The price of every vehicle is fully negotiable but the negotiating room is opaque.[1] Key car features and options are bundled in arbitrary packages and priced in ways that make pricing even more opaque. Car salesmen (they're typically men) almost always have a fake smile on their face and come across as smooth-t…

It can be a rather unpleasant experience, plus it makes me feel bad to immediately hate the person before I get to know his/her style of selling. I know it's unfair but when that salesperson walks up I'm immediately "just go away and leave me alone".

Plus the sad fact is that the salesperson is the middleman of the manager, who is the middleman of the financier, who is the middleman of the dealership. There are probably more steps I'm forgetting.

Why can't cars be sold just like any other product? What makes them so special that government has to be involved, other than protecting monopolistic practices? I may never purchase a Tesla but I would argue against anyone that would want to stop this type of car sales.

Re: Auto Dealers Whine That Tesla Stores Are Illegal

#17

All that the auto dealers are going to do with this effort is draw attention to this cool new car. Sure, they might succeed in banning them in a state or two (which is ridiculous), but in the end any publicity will benefit Tesla and hurt the dealers (disclaimer: I am not a marketing professional). EDIT: To clarify my vague statement above, I meant "banning" the Tesla display store business model, not banning Tesla al…

The most likely outcome, unfortunately, is that Tesla is forced to sell through dealers like everyone else. I hope I'm wrong.

Re: Auto Dealers Whine That Tesla Stores Are Illegal

#18
post #7
post #5

So if "anything that gets you to the executed contract is part of the sale", shouldn't all those independent car dealerships be paying the car manufacturers for those expensive and slick TV, magazine and internet advertisements they produce to get people to go to said dealerships to buy their cars? (Or do they already?)..

They do.

Actually, we do. If you look closely you'll often see a line item on the final invoice for something like "advertising" or "promotion". Yup --- they make you pay for the advertising.

I learned this years ago from a site that walked through car purchase negotiation techniques. Sorry, I don't remember which site.

Re: Auto Dealers Whine That Tesla Stores Are Illegal

#19
post #13

So my running list of things that are obviously outdated and fruitlessly resisting their death throes now includes: - Auto dealerships - Music labels - Government secrecy

Only 3? I figured Radioshack/Bestbuy belong in this category in the long run. Would be interesting discussion on what industries denizens of HN think will fall in this manner.

Also: Bookstores, Record stores

Re: Auto Dealers Whine That Tesla Stores Are Illegal

#20
Today I found out that USA (arguably the most libertarian country on earth, as far as business is concerned) has strict laws governing the sale of vehicles, said laws actually preventing companies from selling vehicles. I find that quite amazing.
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