Do you think the major car companies will ever offer "direct to consumer" purchasing?

[vi edit]

At some point will dealers be obsolete and only be used for service?

Example -

Instead of having giant lots full of cars, GM would have a small "test lot" of demo cars that you could visit and test drive. These are all fully broken in cars that you don't have to baby when you test drive them and you really can get a feel for how they run.

If you like the car you just call up the sales line of the company and tell them what car you want, what trim level, what options, ect and the sales rep tells you if that vehicle is already produced and waiting to be shipped, or if they have to build it and when it will be ready.

After those details are done, you can get financing done right over the phone or get an address on where to ship the check to if you finance from a local institution. If you go with someone else for financing you mail the check in, the car company calls you back up and lets you know they have it, and when the car will be delivered.

Cars are delivered to the "demo lots" that you test drove at.

Cars would be sold at invoice prices instead of marking them with an MSRP and having to dick around with them and 8 other dealers to get the best price.

Service would be handled by either a garage owned by the car company or could be done by an independent much like it currently is.

Anyone agree?

 

[SynthDude2001]

I like your idea. It wouldn't ever really affect me though since I don't plan on buying a new car for a long long time...

 

[atiyeh]

no

 

[BigToque]

Sounds good to me

 

[Albis]

ppl are impatient

ppl like buying the car ASAP

your ordering system would probably save money but it takes around 2 months to get a custom ordered car to the lot for you

 

[chasem]

Also people tend to want to see their car before they lay down cash for it.

I would do this though.

 

[z0mb13]

any car manufaturer that try to do this will get serious backlash from the dealers

 

[vi edit]

Originally posted by: z0mb13
any car manufaturer that try to do this will get serious backlash from the dealers

Didn't BMW at one time offer a deal where you could basically get a free trip to Germany and drive your car off the lot and around the country before it was shipped to the US? Doing this negated some import taxes and all you paid for was shipping and the price was about the same as buying it new off the lot?

Do they still do that? Any reason why it was dropped?

 

[cchen]

Toyota once said that they are aiming for a 3 day turnaround, from the time you place your order for any custom configured car to the time its delivered on your doorstep. Right now they are not there yet, but their supply chain is amazing, so it could potentially happen in the near future.

 

[nakedfrog]

Originally posted by: vi_edit

Originally posted by: z0mb13
any car manufaturer that try to do this will get serious backlash from the dealers

Didn't BMW at one time offer a deal where you could basically get a free trip to Germany and drive your car off the lot and around the country before it was shipped to the US? Doing this negated some import taxes and all you paid for was shipping and the price was about the same as buying it new off the lot?

Do they still do that? Any reason why it was dropped?

VW did that as well, many moons ago. If they still did it, that would be sweet.

 

[TheLonelyPhoenix]

Originally posted by: vi_edit

Originally posted by: z0mb13
any car manufaturer that try to do this will get serious backlash from the dealers

Didn't BMW at one time offer a deal where you could basically get a free trip to Germany and drive your car off the lot and around the country before it was shipped to the US? Doing this negated some import taxes and all you paid for was shipping and the price was about the same as buying it new off the lot?

Do they still do that? Any reason why it was dropped?

I was under the impression you could still do this...

 

[StephenM]

I like the idea, strikes me as a vast improvement over the current method of selling cars. Dealing with car salesmen seems to be a universally unpleasant process. I'd even go one step further and let these "demo lots" rent cars out for a whole day, or longer, for some nominal fee. First hour is free, then $50 a day or so. Fee is refundable with purchase of car. If I was about to spend $20K+, I'd be willing to spend $100 or so to test the car out over a weekend.

There was an article about this a few years back, I want to say in either R&T or Autoweek. The gist was that the manufacturers were all in favor of it, but current dealerships were quite unhappy (middlemen hate getting cut out). They also mentioned that dealerships have a tremendous amount of political clout, especially in states with a sales tax....I guess a lot of the revenue comes from car sales.

 

[iamwiz82]

Originally posted by: vi_edit
At some point will dealers be obsolete and only be used for service?

Example -

Instead of having giant lots full of cars, GM would have a small "test lot" of demo cars that you could visit and test drive. These are all fully broken in cars that you don't have to baby when you test drive them and you really can get a feel for how they run.

If you like the car you just call up the sales line of the company and tell them what car you want, what trim level, what options, ect and the sales rep tells you if that vehicle is already produced and waiting to be shipped, or if they have to build it and when it will be ready.

After those details are done, you can get financing done right over the phone or get an address on where to ship the check to if you finance from a local institution. If you go with someone else for financing you mail the check in, the car company calls you back up and lets you know they have it, and when the car will be delivered.

Cars are delivered to the "demo lots" that you test drove at.

Cars would be sold at invoice prices instead of marking them with an MSRP and having to dick around with them and 8 other dealers to get the best price.

Service would be handled by either a garage owned by the car company or could be done by an independent much like it currently is.

Anyone agree?

That is basically what DCX does at it's Marshalling Center In Lake Orion, MI. Employee only, though.

 

[ElFenix]

ford tried direct to consumer purchasing. the texas legislature decided that was selling cars without a license, and told them to stop

 

[GTaudiophile]

Originally posted by: vi_edit

Originally posted by: z0mb13
any car manufaturer that try to do this will get serious backlash from the dealers

Didn't BMW at one time offer a deal where you could basically get a free trip to Germany and drive your car off the lot and around the country before it was shipped to the US? Doing this negated some import taxes and all you paid for was shipping and the price was about the same as buying it new off the lot?

Do they still do that? Any reason why it was dropped?

You can still do this. It's called Eurpean Delivery.

 

[vi edit]

They also mentioned that dealerships have a tremendous amount of political clout, especially in states with a sales tax....I guess a lot of the revenue comes from car sales.

Good point. Couldn't the car manf. just charge sales tax and then just report it to the state like most retail companies do?

 

[jamesave]

yes

 

[StephenM]

Originally posted by: vi_edit


Good point. Couldn't the car manf. just charge sales tax and then just report it to the state like most retail companies do?

They could, and would....I think this change would be revenue-neutral from the state's perspective. Nevertheless, dealerships would lobby against it hard, and politicians would probably tow the line, out of fear of losing a donor. I can just imagine the campaign ads: "Big Business wants to drive out your friendly neighborhood car dealer, and ruin the trusted relationship you have with your local service representative. Do you want corporate suits in Europe, Japan, or even DETROIT telling you how to buy a car? Vote no on question 7"

I'd still like to see it, but I can understand why it's no easy task.

 

[z0mb13]

Originally posted by: GTaudiophile

Originally posted by: vi_edit

Originally posted by: z0mb13
any car manufaturer that try to do this will get serious backlash from the dealers

Didn't BMW at one time offer a deal where you could basically get a free trip to Germany and drive your car off the lot and around the country before it was shipped to the US? Doing this negated some import taxes and all you paid for was shipping and the price was about the same as buying it new off the lot?

Do they still do that? Any reason why it was dropped?

You can still do this. It's called Eurpean Delivery.

yes and IIRC you need to do it through a dealer...

also you have to wait a VERY LONG TIME till ur car gets in the states.. a lot of people dont have the patience for this

 

[Tom]

the reason they sell cars at dealers is because that's the best way to get people to pay a lot more money than something is worth, even though they don't need it at all.


It's called, marketing.

 

[RossMAN]

If you belong to a credit union I would see if they are an Autoland partner. It makes the car buying experience 100x better as you don't have to step foot into a dealership and you get a GREAT DEAL!

My friend bought his Mazda RX-8 through his CU for about $200 above invoice plus $113 TTL, signed papers at the CU, car was delivered to the CU. Absolutely no haggling, no bargaining, and no headache :thumbsup:

 

[RichieZ]

Originally posted by: vi_edit

Originally posted by: z0mb13
any car manufaturer that try to do this will get serious backlash from the dealers

Didn't BMW at one time offer a deal where you could basically get a free trip to Germany and drive your car off the lot and around the country before it was shipped to the US? Doing this negated some import taxes and all you paid for was shipping and the price was about the same as buying it new off the lot?

Do they still do that? Any reason why it was dropped?

THey do, and I might do it. Dealers dont' really care b/c it doesn't come out of their allotment of cars so its basically free money for them

 

[z0mb13]

Originally posted by: RichieZ

Originally posted by: vi_edit

Originally posted by: z0mb13
any car manufaturer that try to do this will get serious backlash from the dealers

Didn't BMW at one time offer a deal where you could basically get a free trip to Germany and drive your car off the lot and around the country before it was shipped to the US? Doing this negated some import taxes and all you paid for was shipping and the price was about the same as buying it new off the lot?

Do they still do that? Any reason why it was dropped?

THey do, and I might do it. Dealers dont' really care b/c it doesn't come out of their allotment of cars so its basically free money for them

but you have to wait a long time..

first you wait about a month or two for ur car to get produced..

then you have to fly to germany and drive it around..

then the car gets shipped to the US (long wait here too)

I dont know if its worth the wait + cost of ticket to go to germany (and also hotel costs, etc)

 

[RichieZ]

Originally posted by: z0mb13

Originally posted by: RichieZ

Originally posted by: vi_edit

Originally posted by: z0mb13
any car manufaturer that try to do this will get serious backlash from the dealers

Didn't BMW at one time offer a deal where you could basically get a free trip to Germany and drive your car off the lot and around the country before it was shipped to the US? Doing this negated some import taxes and all you paid for was shipping and the price was about the same as buying it new off the lot?

Do they still do that? Any reason why it was dropped?

THey do, and I might do it. Dealers dont' really care b/c it doesn't come out of their allotment of cars so its basically free money for them

but you have to wait a long time..

first you wait about a month or two for ur car to get produced..

then you have to fly to germany and drive it around..

then the car gets shipped to the US (long wait here too)

I dont know if its worth the wait + cost of ticket to go to germany (and also hotel costs, etc)

eh, i'm a management consultant so hotels and flights will be covered by points. I don't mind waiting for the car to get produced and shipped back, I already have a car that I will sell later. Bacially I'll get a free trip to europe and i'll realize some of the euro delivery discount since I dont' have to pay for hotels and airfare.

 

[TitanDiddly]

Good idea, not happening.

-M4H