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Ford CEO says EVs will be sold 100% online with nonnegotiable price

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Re: Ford CEO says EVs will be sold 100% online with nonnegotiable price

#71
post #60

Earlier quoted context omitted.

Many states have laws that explicitly prohibit direct sales. https://en.wikipedia.org/wiki/Car_dealerships_in_the_United_...

That's just a racket for the dealerships though.

Right, this is just an answer for "why has this obvious disruption never come up in the last ~100+ years"

Re: Ford CEO says EVs will be sold 100% online with nonnegotiable price

#72
post #58
post #39

A lot has been said about the dealership model in the last few years, and the almost universal consensus is that it is an unnecessary and predatory industry and all auto makers should just sell cars directly like Tesla does. That being said, is there any counterpoint to this view? Are there any benefits that dealerships offer today over direct sales? What would we lose if we got rid of every dealership? If there is t…

> That being said, is there any counterpoint to this view? 1. A national dealership network is at minimum, a soft-guarantee that your car can be maintained/recalled/fixed without you jumping through hoops. Unfortunately, that soft-guarantee is saddled with all the other baggage of car dealerships. Pushy sales-people, extended warranties, predatory loans, etc. 2. It forces you to buy local, so not all the money flows…

Looking at Detroit.. I don’t think a lot of money is flowing there.

Re: Ford CEO says EVs will be sold 100% online with nonnegotiable price

#73
post #50
post #39

A lot has been said about the dealership model in the last few years, and the almost universal consensus is that it is an unnecessary and predatory industry and all auto makers should just sell cars directly like Tesla does. That being said, is there any counterpoint to this view? Are there any benefits that dealerships offer today over direct sales? What would we lose if we got rid of every dealership? If there is t…

Local profit? That is, in many towns, my understanding is that the local dealerships are relatively well off. Which implies that a bit more of the money is kept local to where the cars are being sold. I'm guessing this is less true today than in years past.

The other side of that is the dealership owner is often the richest person in a small town and has extremely outsized impact on local politics.

Re: Ford CEO says EVs will be sold 100% online with nonnegotiable price

#74
post #39

A lot has been said about the dealership model in the last few years, and the almost universal consensus is that it is an unnecessary and predatory industry and all auto makers should just sell cars directly like Tesla does. That being said, is there any counterpoint to this view? Are there any benefits that dealerships offer today over direct sales? What would we lose if we got rid of every dealership? If there is t…

FortNine made a case for it. They're Canadian, though.

https://www.youtube.com/watch?v=meHYBhcpdvQ

Re: Ford CEO says EVs will be sold 100% online with nonnegotiable price

#75

Earlier quoted context omitted.

That's a great point, but I haven't heard when that is going to happen. Until then, IMHO ads shouldn't be discounted by Ford (this of course assumes that Ford actually wants to convert people from ICE to EV).

The Lightning seems to be designed to convert F-150 buyers. It looks just like a regular F-150 and comes with features rural customers would love, like powering your house during blackouts and your tools away from an outlet.

It's not designed to convert existing F150 buyers.

It's designed to get the guy who has a Tesla and a Tacoma in his driveway and who sees fullsize domestic trucks as a penis extension for backwards hicks to trade both those in.

This isn't about converting existing owners. It's about growing the potential market.

Re: Ford CEO says EVs will be sold 100% online with nonnegotiable price

#76
post #50

Earlier quoted context omitted.

Local profit? That is, in many towns, my understanding is that the local dealerships are relatively well off. Which implies that a bit more of the money is kept local to where the cars are being sold. I'm guessing this is less true today than in years past.

In many small to medium size towns if you find the family who owns the local ($BRANDNAME) dealership they are often among the wealthiest people in the entire county. edit: I can see from the two other comments here alongside mine that this is a common observation.

What does that have to do with anything?

Re: Ford CEO says EVs will be sold 100% online with nonnegotiable price

#77
post #39

A lot has been said about the dealership model in the last few years, and the almost universal consensus is that it is an unnecessary and predatory industry and all auto makers should just sell cars directly like Tesla does. That being said, is there any counterpoint to this view? Are there any benefits that dealerships offer today over direct sales? What would we lose if we got rid of every dealership? If there is t…

It's a big purchase, so you'd want to at least test it out in person?

Even with dealer car sales there's usually a 48 hour or so grace period where if you realize you made a mistake, etc. they'll take it back and annul the sale. I imagine for a purely online sale there'd be a similar agreement and they just pick the car back up.

Re: Ford CEO says EVs will be sold 100% online with nonnegotiable price

#78
post #9

The article ended just as it got good. What exactly does fixed price sales mean and why can't dealerships do that? What is Ford's plan for dealerships? Tesla has dealerships too right? I walked past the one in Red Hook Brooklyn. Or maybe that was just servicing? But they did have new cars there. And why won't Ford be advertising EVs? Super bowl ads always have car commercials. How else are they going to be able to te…

They’re saying that since the F150 EV is sold out until two+ years from now they don’t need to do any of that stuff. And they’re pissed at dealers doing markups I bet.

Probably. But DTC gives the brand a better relationship with the customer / market. Why wait for what gets filtered back from the dealerships? Why not have a direct relationship with a higher quality signal?

I say this because approx every month I get a postcard from a local dealership that references a car I haven't had for 12+ yrs. My sense is, many dealerships are highend mom & pops. That is, they suck at marketing.

That doesn't benefit the brand.

Re: Ford CEO says EVs will be sold 100% online with nonnegotiable price

#79
post #39

A lot has been said about the dealership model in the last few years, and the almost universal consensus is that it is an unnecessary and predatory industry and all auto makers should just sell cars directly like Tesla does. That being said, is there any counterpoint to this view? Are there any benefits that dealerships offer today over direct sales? What would we lose if we got rid of every dealership? If there is t…

Many states have laws that explicitly prohibit direct sales. https://en.wikipedia.org/wiki/Car_dealerships_in_the_United_...

And thoroughly defended for a measly $10MM per year. https://www.opensecrets.org/industries/summary.php?cycle=202...

Re: Ford CEO says EVs will be sold 100% online with nonnegotiable price

#80

Earlier quoted context omitted.

In many small to medium size towns if you find the family who owns the local ($BRANDNAME) dealership they are often among the wealthiest people in the entire county. edit: I can see from the two other comments here alongside mine that this is a common observation.

What does that have to do with anything?

maybe the amount of profit made in being a middle-man between the manufacturer and consumer end-user is unreasonable and unwarranted?
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