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Why don't the Big-3 sell autos directly to consumers?

her209

her209

No Lifer
1. The car is built to the customer's exact specification.
2. The car costs less because no middlemen are adding costs to the price of the car.
3. The car manufacturer gets a real-time detail view of which cars and options are in most demand.
 
let me drive to the factory to test drive one of those babies...and then I'll say I don't want it
 
Originally posted by: ghost recon88
Screw dealers. Most of them are sharks anyways.
Click to expand...

Apparently it is not that easy. The franchises that have been issued are apparently quite difficult to revoke.
 
Originally posted by: Capt Caveman
You want the Big 3 to spend the money to hire their own sales force and build their own dealerships?
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Yes, it would be a skeleton sales force. The only cars on "the lot" would be the test drive cars. The order is placed with the manufacturer which then builds the car and delivers it to the customer.
 
Originally posted by: her209
1. The car is built to the customer's exact specification.
2. The car costs less because no middlemen are adding costs to the price of the car.
3. The car manufacturer gets a real-time detail view of which cars and options are in most demand.
Click to expand...

Great idea but most state laws won't allow it.
 
Again, been there done that.

GM tried multiple times to do this, failed. The import brands all tried to do this, failed.

Next.
 
Originally posted by: her209
Originally posted by: Capt Caveman
You want the Big 3 to spend the money to hire their own sales force and build their own dealerships?
Click to expand...
Yes, it would be a skeleton sales force. The only cars on "the lot" would be the test drive cars. The order is placed with the manufacturer which then builds the car and delivers it to the customer.
Click to expand...

So, no more of being able to buy a car and drive off the lot that same day?
 
Originally posted by: Capt Caveman
Originally posted by: her209
Originally posted by: Capt Caveman
You want the Big 3 to spend the money to hire their own sales force and build their own dealerships?
Click to expand...
Yes, it would be a skeleton sales force. The only cars on "the lot" would be the test drive cars. The order is placed with the manufacturer which then builds the car and delivers it to the customer.
Click to expand...

So, no more of being able to buy a car and drive off the lot that same day?
Click to expand...

Yup! You will have to wait until the Big 3 gets their bailout first. Then wait for the UAW worker to make a decision to either come to work to build the car of your choice or just call in to the job bank (remember there is about 20% difference between working and just calling in)! And finally, if there will be a bank willing to finance your car!

Maybe by the time the final decision is made, you would probably be better off to get one of those so called "rice ready" autos!
 
This is not how business works. Most large manufacturers sell direct to distributors who sell to end users. You could remove that, but then the manufacturer would just end up doing the work of the distributor anyway.
 
I for one am looking forward to the day I can buy a car from NewEgg and have it shipped UPS Guaranteed 3 Day Service.
 
Last I heard most states had laws in place disallowing auto makers the ability to sell directly to consumers.
 
Who decides what your trade in is worth and if they are willing to take it.

Who does warranty work (if you think anything but a handful of independant shops have the tooling and the training to work on later model vehicles especially hybrids you are in for a rude awakening),

and will they do it at the reduced labor hours and stringent conditions the dealers have to work at, including getting debited if the manufacturer believes it was an improper warranty repair by automatic deduction from your bank account,

did I mention you must purchase their tools at their prices and they deduct from your bank account the money for the tools.

Almost all GM dealers are on whats called the RIM program for parts, meaning GM decides what parts you stock, delivers the parts and automatically deducts the money from your account or line of credit. No money no credit no parts.

Those cars you see on the lots are most likely on a floorplan (line of credit for dealers) the manufacturer like GM, Ford, Chrysler already have their money for those vehicles and the dealer pays interest every month for each of those vehicles.

There is much more but I have to run.
 
I generally research the hell out of a car before I buy one. I just need to goto the dealer to sit in it and get a feel for it to see if I really like it. I don't need a salesman hassling me. However, I do not want to drive to find a factory that will let me test drive one. Although I live 5 minutes from a GM plant... they do not make anything there I want to buy.
 
one way to get that price is to look in the paper for their ads, for example
for new cars.

i paid $14K for a new truck in 1998. full-size F150 with a V6. the dealer
kept trying to add options, i must have said "no" 5-10 times in the process
of buying the truck. the whole process took a few hours. it eventually
came out that the dealer made $100 on the truck - a $50 commission for
the salesperson.
 
Originally posted by: her209
1. The car is built to the customer's exact specification.
2. The car costs less because no middlemen are adding costs to the price of the car.
3. The car manufacturer gets a real-time detail view of which cars and options are in most demand.
Click to expand...

Doesn't Volkswagen allow you to buy directly from the factory? I read somewhere in Europe they have the factory where you can pickup your car direct from the manufacturing line.
 
Originally posted by: Brovane
Originally posted by: her209
1. The car is built to the customer's exact specification.
2. The car costs less because no middlemen are adding costs to the price of the car.
3. The car manufacturer gets a real-time detail view of which cars and options are in most demand.
Click to expand...

Doesn't Volkswagen allow you to buy directly from the factory? I read somewhere in Europe they have the factory where you can pickup your car direct from the manufacturing line.
Click to expand...
Volvo, BMW and Mercedes all allow for American buyers to fly in and pick up cars at the plant and drive it around Europe for a few weeks at which point you have it shipped home.

Have no idea if people who live in Europe can do the same thing.
 
There has been suggestions that Wal-mart get into the car business via direct selling.

They would have test drive cars at the store and then you would pick out the options and color you like and it would be shipped there in a few days.
 
Originally posted by: Brovane
Originally posted by: her209
1. The car is built to the customer's exact specification.
2. The car costs less because no middlemen are adding costs to the price of the car.
3. The car manufacturer gets a real-time detail view of which cars and options are in most demand.
Click to expand...

Doesn't Volkswagen allow you to buy directly from the factory? I read somewhere in Europe they have the factory where you can pickup your car direct from the manufacturing line.
Click to expand...

You do not actually buy directly from the factory. One still has to order the car thru a US dealer. Then fly to Europe and pick it up at a designated facility, drive it for a short while in Europe and deliver it to a shipper. One can save some money if they have the time it takes to do all this.
 
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