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Auto Dealers Whine That Tesla Stores Are Illegal

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Re: Auto Dealers Whine That Tesla Stores Are Illegal

#21

Post by jbigelow76 »

talmand wrote: post #16
cs702 wrote: 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 proba…

> Why can't cars be sold just like any other product?

Because then they run the risk of getting Amazon'd or Wal-Mart'd.

Re: Auto Dealers Whine That Tesla Stores Are Illegal

#22

Post by freehunter »

tomrod wrote: post #13
jasonkolb wrote: post #8

So my running list of things that are obviously outdated and fruitlessly resisting their death throes now includes: - Auto dealerships - Music labels - Government secrecy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

Radio Shack made themselves obsolete. I don't think Best Buy is obsolete, but merely needs a restructuring.

Radio Shack used to be great when you were working on a project and just needed one more part; a capacitor, a motor/servo, a PIC, etc. I don't need another phone reseller, I don't need useless RC cars, I don't need odd TV remotes. I need an electronics store that sells electronic parts.

Best Buy is great for researching your purchases. I can read reviews of a laptop online, but I can't feel it, feel the build quality or the keyboard, I can't test the viewing angle. I can read reviews of TVs, but I can't see the picture quality, I can't hear the speakers. I can't ask questions and get answer immediately. Best Buy is great for this.

I don't mind paying a higher price if it means I get what I need as soon as I need it. These stores should, IMO, focus on things that a customer would not trust an online purchase for, and focus on adding value to these immediate purchases. Radio Shack for parts, Best Buy for consumer purchases, each with value added by knowledgeable salesmen.

Re: Auto Dealers Whine That Tesla Stores Are Illegal

#23

Post by jetti »

talmand wrote: post #11

"Oh no! It's a new business model that is different than our old business model! We must use legal means to stop it immediately because we don't know yet if we can compete with it!" Plus, customers may like it better since the current method is usually despised...

There is no competition to be had. The dealerships aren't scared of competition from Tesla, especially since the price of a Tesla Model S is out of range for the majority of car buyers. What they are scared of is that Tesla sets a precedence for other manufacturers to follow suit which would then put a lot of people out of work.

Re: Auto Dealers Whine That Tesla Stores Are Illegal

#24

Post by damoncali »

jimm wrote: post #18
jellicle wrote: post #7

Earlier quoted context omitted.

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.

Semantics. We also pay for their air conditioning, tools, coffee, uniforms, etc. if you want to use that logic. It's just broken out for some reason.

Re: Auto Dealers Whine That Tesla Stores Are Illegal

#25

Post by artursapek »

jwr wrote: post #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.

If there's any industry begging to be "disrupted," it's the automotive industry.

Re: Auto Dealers Whine That Tesla Stores Are Illegal

#26

Post by tzaman »

True story (mine): I knew a car dealer that made it very clear to me that if I buy the new car from him (and leave the old one there for a lower price) he'll give me significant discount. I said to myself "can't hurt to try" and went this route. The next day after owning the car (which I still own) the new owner of my old car called to ask what's the realistic condition. Turns out the dealer sold him the car for about $1500 more than I got from him, so I can only imagine he made the same thing with my new car, earning him $3000 for less than two hours of papirology.

I don't mind people making money, but for $10 - %15k cars it's an absolute steal.

Re: Auto Dealers Whine That Tesla Stores Are Illegal

#28

Post by jetti »

jwr wrote: post #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.

Not to mention that there are some states that just prohibit the sales of vehicles on Sunday. That is what I find amazing. I can't imagine being told that one day a week I'm not allowed to sell my product.

Re: Auto Dealers Whine That Tesla Stores Are Illegal

#29

Post by mratzloff »

jetti wrote: post #23
talmand wrote: post #11

"Oh no! It's a new business model that is different than our old business model! We must use legal means to stop it immediately because we don't know yet if we can compete with it!" Plus, customers may like it better since the current method is usually despised...

There is no competition to be had. The dealerships aren't scared of competition from Tesla, especially since the price of a Tesla Model S is out of range for the majority of car buyers. What they are scared of is that Tesla sets a precedence for other manufacturers to follow suit which would then put a lot of people out of work.

What they are scared of is that Tesla sets a precedence for other manufacturers to follow suit which would then put a lot of people out of work.

Good. There's no reason it should receive protection by the government in the first place. It's bad for the consumer.

Re: Auto Dealers Whine That Tesla Stores Are Illegal

#30

Post by talmand »

jetti wrote: post #23
talmand wrote: post #11

"Oh no! It's a new business model that is different than our old business model! We must use legal means to stop it immediately because we don't know yet if we can compete with it!" Plus, customers may like it better since the current method is usually despised...

There is no competition to be had. The dealerships aren't scared of competition from Tesla, especially since the price of a Tesla Model S is out of range for the majority of car buyers. What they are scared of is that Tesla sets a precedence for other manufacturers to follow suit which would then put a lot of people out of work.

What you say is true, but I think it supports my statement. It's the dealerships themselves that have to compete with the business model, not necessarily the automakers. The dealers have to show to the automakers that their method is better or they fail.
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