Just had a bunch of people drooling over my car & one asked " what's wrong with these cars that make car dealers not want to sell them ." He was a little better educated when he got in his ICE to leave.
Let's see... 3000 BMW, Audi, Lexus sales displaced in CA alone, times $6K profit per car... I'd say they have 18 million reasons to want to sell them.
Skip ahead to the 50 minute mark to find out why Tesla will never allow its vehicles to be sold through auto dealerships. Dealers and their sales people have no say about this. This is not about dealers not wanting to sell Telsas - they do - but Tesla won't let them because Tesla does not see this as a viable sales model for its vehicles and Tesla's view of service in no way meshes with how dealers work.
So no, Teslas will never be sold through traditional dealerships and the desire of the car salesman will go unfulfilled. I would love to see every car dealership out of business. They serve absolutely no useful purpose other than to provide exorbitant donations to industry lobby groups who pervert democracy by helping to enact laws to keep companies like Tesla out of their local markets.
So no, it's not the dealers that don't want to sell Teslas. It's Tesla that doesn't want to have anything to do with the dealers, and exactly why dealers and NADA are up in arms. Apparently auto dealerships don't understand capitalism and fell that car manufacturers must go through them to sell their vehicles. This sense of entitlement on the part of the auto dealers will be their undoing. Instead of finding ways to be competitive, they are trying to keep others from competing in their markets. That is the last step of a dying regime.
Pretty soon house owners will be selling directly to house buyers. It's a world gone mad.
NADA is waging a war on Tesla.
We need to fight back and boycott the dealers!!!
It makes you think about how much stuff is sold to us by a middleman... Almost everything.
Somehow the argument is that dealers are here to protect consumers from the big bad car companies. That's some strong Kool Aid they are drinking. I'm still waiting for someone to explain it to me in a way that I can understand, because so far I haven't seen where this has ever been the case. Has anyone here ever felt that an auto dealership was there to protect you, the consumer? The question itself is so absurd and ridiculous that I'm not even sure whether to laugh or scream when I read it out loud.
If someone came along and streamlined the home buying process to the point where it was a matter of just looking at something online and hitting the "But it now" button, bypassing realtors, escrow and title companies. etc., I would be all for it. I would also find another line of work because I have many talents. I ran my own marketing firm in Seattle for a few years and was a graphic designer for 10 years prior to that. I would never think to put my own career interests ahead of what's for the greater good, especially by going out of my way to block someone who has a better idea and a better way of doing things. Sometimes we have to get out of the way of progress and reinvent ourselves. That's how we grow.
@AR Just so you know, I was just having a little fun at your occupation's expense. :-)
Looking forward to August for you!
@AR, we have that here in Singapore. House buyer meets House Seller. No "middleman" involved. It's a new concept but everyone saves a bit of money
Dealers don't REALLY want to sell them, though car salesmen/women do.
Car dealerships make their money on services. Electric cars don't cost a lot to service and require a completely new skill set.
I sold my trade-in to AutoNation, at Tesla's suggestion, for a fair price which I based on published comps. I have little interest and no time to sell my car directly to any buyer other than a friend or relative. AutoNation, a "middleman", provided a valuable service to me and, I hope, to the eventual buyer. I am glad a middleman was there to help. That being said, Musk has well articulated why he believes dealerships would not contribute value added service for the sale of his cars, and I agree with his argument. However, this should not be extrapolated as a blanket indictment of all "middlemen".
Autonation buys your car and then makes it their business to sell the car - that is a fair middleman deal.
Dealers want to have exclusive rights, but when Elon asked how many cars are you commiting to sell - no commitments were made - that is a one sided middleman deal. I wouldn't do that either.
We sold our Volvo to a dealer here in California that handles Mc Laren, Volvo and Fisker. They are consolidating operations from three buildings to two, and their old building for Volvo will now be the new Tesla service center. I had a suspicion from talking to the nice gents I did the sale with, that they would love to be able to sell Tesla. Well, sadly that's not going to happen. They do have two brand new Fiskers if you want one. (Probably priced to move.) FYI - really great people there. I won't ever buy an ice again, but if I did, I would purchase there. Really seemed to be fair and decent guys.
Well that Teslas don't need much service is a thing that has to be proofen first. Tesla service is not excactly cheap and they just got more expensive. If the service is as they claim, just checking the breaks and stuff, I'm sure a dealership can make some money out of that.
If you make a crappy product, you need aggressive, inventive (ie. lying) salesmen making big commissions to sell it. But make a good product, and you just need people to demonstrate it and ring it up.
It's pretty simple math. A Tesla has orders of magnitude fewer moving parts. As will any purely electric vehicle. Fewer moving parts == fewer things to service.
Even look at regular service. My last car required approximately 4 regular service visits per year. The Tesla "requires" one.
On the flip side, the current crop of Tesla Model S cars will have more defects per moving part than more established cars, but I've experienced the same phenomenon with other first year car models as well. It's not an EV thing, but a first model year thing.
Car dealers, long before Tesla, got worried about internet sales "Cutting out the middleman."
Tesla has to make a life-or-death guess about how much servicing to budget for when pricing the package. With only beta testing and engineering guesses to go on, they've had to protect the firm by providing a reasonable income stream. It may be too high, but if the Service Centers operate on a "no-profit" basis, that should just result in more care and attention. Jerome, new national service manager, at Teslive said his instructions were to make all customers completely happy, price no object.
I am very glad Tesla is not using dealerships. I am looking into a less expensive EV for my wife until her Model X arrives. I have had 10 emails back and forth with Nissan on a Leaf, and I still can not get them to give me a quote on a lease for a SL or SV. They keep asking me what I'm willing to spend, and then they will see what they can find for me.... I called Ford on the Fusion EV and asked what their lease price is. I was told he would call me back after talking to the manager. Still nothing.... They all deserve to be unemployed after the Tesla revolution is complete!