Why the **** do we have dealers: Tesla

Markbnj

Elite Member <br>Moderator Emeritus
Moderator
Sep 16, 2005
15,682
14
81
www.markbetz.net
Garage thread?

I don't think the whole dealer model originated for no reason, or because there were no benefits. Perhaps it is obsolete today, or perhaps not. At the very least Tesla should be able to choose how they want to do business.
 

mizzou

Diamond Member
Jan 2, 2008
9,734
54
91
Dealers historically provided a combination of service and sales. A way to keep your brand functioning at a high standard. I build them and train you how to sell them and maintain them.

I wonder though, if Tesla will also prevent independent mechanics from working on their cars.
 

Linflas

Lifer
Jan 30, 2001
15,395
78
91
Dealers historically provided a combination of service and sales. A way to keep your brand functioning at a high standard. I build them and train you how to sell them and maintain them.

I wonder though, if Tesla will also prevent independent mechanics from working on their cars.

This. And at the state and local level they wield serious political clout.
 

Raizinman

Platinum Member
Sep 7, 2007
2,355
75
91
meettomy.site
Having worked in dealerships most my life they benefit in many ways:

They make test driving a vehicle easy as they are local.
If you need any special parts for your vehicle, they are there.
Service often requires proprietary tools and training for warranty or non-warranty repairs.
A dealer will usually trade quicker for their model cars.

Whatever type of vehicle you drive, try and imagine what it would be like to travel 300 or 400 miles to get warranty service for a transmission or engine repair.
 

DrunkenSano

Diamond Member
Aug 8, 2008
3,892
490
126
Having worked in dealerships most my life they benefit in many ways:

They make test driving a vehicle easy as they are local.
If you need any special parts for your vehicle, they are there.
Service often requires proprietary tools and training for warranty or non-warranty repairs.
A dealer will usually trade quicker for their model cars.

Whatever type of vehicle you drive, try and imagine what it would be like to travel 300 or 400 miles to get warranty service for a transmission or engine repair.

Tesla seems to allow you to test drive with no issues. Dealerships may have parts, but they will charge you an arm, a leg, your first-born, and your house for it. They are incredible con-artists.
 

Jimzz

Diamond Member
Oct 23, 2012
4,399
190
106
Dealers historically provided a combination of service and sales. A way to keep your brand functioning at a high standard. I build them and train you how to sell them and maintain them.

I wonder though, if Tesla will also prevent independent mechanics from working on their cars.

How would they. They do not stop any one from selling their cars right now. They just do not give preference to a dealer or single seller.

You can order a Tesla car and sell it if you like.
 

zerocool84

Lifer
Nov 11, 2004
36,041
472
126
Having worked in dealerships most my life they benefit in many ways:

They make test driving a vehicle easy as they are local.
If you need any special parts for your vehicle, they are there.
Service often requires proprietary tools and training for warranty or non-warranty repairs.
A dealer will usually trade quicker for their model cars.

Whatever type of vehicle you drive, try and imagine what it would be like to travel 300 or 400 miles to get warranty service for a transmission or engine repair.

All of those points you made give zero reasons why we need dealers. Saying you'd have to travel far to get warranty service, how do you think a company like Kia was in the beginning? They didn't have dealers in every city. A dealer fixes none of that.
 

boomerang

Lifer
Jun 19, 2000
18,883
641
126
Having worked in dealerships most my life they benefit in many ways:

They make test driving a vehicle easy as they are local.
If you need any special parts for your vehicle, they are there.
Service often requires proprietary tools and training for warranty or non-warranty repairs.
A dealer will usually trade quicker for their model cars.

Whatever type of vehicle you drive, try and imagine what it would be like to travel 300 or 400 miles to get warranty service for a transmission or engine repair.
Additionally, they employ a ton of people both directly and indirectly and in good paying jobs. But that doesn't seem to be very important to many people these days. I guess as long as it's not your job going bye-bye it's all good.
 

Kushina

Golden Member
Nov 22, 2010
1,598
2
81
Having worked in dealerships most my life they benefit in many ways:

They make test driving a vehicle easy as they are local.
If you need any special parts for your vehicle, they are there.
Service often requires proprietary tools and training for warranty or non-warranty repairs.
A dealer will usually trade quicker for their model cars.

Whatever type of vehicle you drive, try and imagine what it would be like to travel 300 or 400 miles to get warranty service for a transmission or engine repair.

BMW/Toyota/Mfr could do all this much better if they had their own local stores/lots.
 
Oct 25, 2006
11,036
11
91
Additionally, they employ a ton of people both directly and indirectly and in good paying jobs. But that doesn't seem to be very important to many people these days. I guess as long as it's not your job going bye-bye it's all good.

We could claim this for EVERYTHING. Everything in the world could have a middleman and provide tons of new jobs.

But at some point, that middleman is inefficient and necessary.
 

EvilYoda

Lifer
Apr 1, 2001
21,198
9
81
Given that this subject is very closely related to my job, it's a fascinating time in the industry. I always like to ask the people talking about "why have a dealership" if they have actually been to a Tesla store seeing as how most major cities are lucky to have a single store unless you live in California or the NE. Tesla has only basically had one product to sell at a time with most of its buyers not making their decision based on budget. They have, to this point, no direct competitors. With Tesla coming out with more affordable models, it'll be interesting to see how things progress.
 

boomerang

Lifer
Jun 19, 2000
18,883
641
126
We could claim this for EVERYTHING. Everything in the world could have a middleman and provide tons of new jobs.

But at some point, that middleman is inefficient and necessary.
So, come up with a method to support the people of the world and post back. Middlemen make the world go around. Do you expect that if a surgeon made his own surgical instruments he could or even would lower the price for his services? I could go on and on forever on this.

Spouting pretzel logic to justify something you want so very, very much is truly symbolic of the times we live in. Everybody wants what they want and they want it NOW! The consequences be damned!
 

ElFenix

Elite Member
Super Moderator
Mar 20, 2000
102,402
8,574
126
Additionally, they employ a ton of people both directly and indirectly and in good paying jobs. But that doesn't seem to be very important to many people these days. I guess as long as it's not your job going bye-bye it's all good.

if ford didn't have independent dealers they'd still need to employ pretty much all of those people doing the same jobs they already do. they'd just now do it directly for ford instead of an independent dealer, and might even be union. the only people who wouldn't be doing quite as well as they did are guys like bud adams and red mccombs.
 

PricklyPete

Lifer
Sep 17, 2002
14,582
162
106
Additionally, they employ a ton of people both directly and indirectly and in good paying jobs. But that doesn't seem to be very important to many people these days. I guess as long as it's not your job going bye-bye it's all good.

You think none of those jobs would exist if the manufacturer handled sales and servicing directly instead of through dealerships?

Having laws requiring dealerships is ridiculous. If some car manufacturers decide that is the way they want to handle their sales/service, so be it...but having the government meddle in that process is bad for all of us.
 

DesiPower

Lifer
Nov 22, 2008
15,299
740
126
if ford didn't have independent dealers they'd still need to employ pretty much all of those people doing the same jobs they already do. they'd just now do it directly for ford instead of an independent dealer, and might even be union. the only people who wouldn't be doing quite as well as they did are guys like bud adams and red mccombs.

But then by your logic, the managers of these "outlets" would be as rich as bud adams and red mccombs, wont they? if not then how come Ford will be spending the same? I guess then warren buffett will get that much richer? You logic is sadly flawed.