Auto Dealers Whine That Tesla Stores Are Illegal
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Re: Auto Dealers Whine That Tesla Stores Are Illegal
#2All 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 altogether. That's a much more unlikely outcome, although I'm sure they would if they could.
Re: Auto Dealers Whine That Tesla Stores Are Illegal
#3Anyone 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-talking, commission-seeking sharks pretending to be one's best friend. Customers who bite the bullet and buy a vehicle nearly always come away feeling like the dealer took advantage of them.
Kudos to Tesla for taking on this cartel.
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[1] Edmunds lists the following types of fees charged by traditional car dealers at the time of sale: "registration fees," "doc fees," "trade-in fees," "dealer fees," "holdback," "financial reserve," and "advertising fees." Good luck trying to figure out what these fees ought to be for the vehicle you want to buy. Source: http://www.edmunds.com/car-buying/what-fees-should-you-pay.h...
Re: Auto Dealers Whine That Tesla Stores Are Illegal
#4tesla did some great work here. i can't follow the argument that automakers selling cars kills competition. the analogy to apple stores is a perfect example: there are still thousands of resellers offering apple products!
Re: Auto Dealers Whine That Tesla Stores Are Illegal
#5So 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?)..
Re: Auto Dealers Whine That Tesla Stores Are Illegal
#6I'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?
Re: Auto Dealers Whine That Tesla Stores Are Illegal
#7So 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.
Re: Auto Dealers Whine That Tesla Stores Are Illegal
#8So my running list of things that are obviously outdated and fruitlessly resisting their death throes now includes:
- Auto dealerships - Music labels - Government secrecy
Re: Auto Dealers Whine That Tesla Stores Are Illegal
#9All 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…
"Sure, they might succeed in banning them in a state or two..."
More likely they will be forced to create a franchise dealership network.
Re: Auto Dealers Whine That Tesla Stores Are Illegal
#10I abhor when people use "veep". It just looks childish and makes no sense....