NADA Is Terrified of Tesla 455
cartechboy writes It's no secret that the National Automobile Dealers Association has been trying to block Tesla from selling cars directly from consumers, but to date, it has been defeated countless times in many states. Now NADA put out a release and promotional video touting the benefits of dealer franchises, something Tesla has shunned. NADA mentions price competition, consumer safety, local economic benefits, and added value.
Re:We should have a choice (Score:5, Interesting)
Buying a car (Score:5, Interesting)
..in the traditional sales system is not a thing that most people enjoy
Some people falsely believe they are "players" but they still get screwed
Most people are "sheep" and they get screwed faster and harder
I am not a master negotiator..I just want a car at a fair price
I always feel like a lamb in a roomful of tigers when I deal with a traditional car dealer
I'm a really good engineer, and I have many other talents..but cutthroat negotiation is not one of them
I really, really want a better system
Re:Speculation... (Score:5, Interesting)
While possibly true, it's complete speculation to tie this to Tesla.
But hey, Tesla gets page views.
Not really. Tesla doesn't really have the volume (or the low end offerings) to eat the dealerships' bread and butter(except possibly some relatively niche outfits who used to sell a lot more ~100k ICE vehicles to techies made good); but they have been extremely aggressive about 100% company-owned and operated sales locations, and have skirted the laws in various ways ("Information centers" that look sort of like a dealership except that the staff are forbidden to sell you anything, just show you stuff and you can go use that computer over there to buy online if you want...) in states where the dealerships have purchased protective legislation.
Barring a radical overthrow of the automotive order, Tesla isn't personally going to terminate dealerships; but if their model holds up, persuades lawmakers, survives in court in more hostile states, etc. it can be copied pretty much verbatim by any manufacturer that cares to.
And the NADA can't exactly be ignorant of how...beloved...a traditional industry it is that they represent. Merely seriously proposing that we could eliminate car dealers, in our time!, probably excites more people than fancy electric cars do. This isn't one of those "Upstart company disrupts traditional business right in the face, laughs" situations where hand-wringing moralists write books about the moral decline and inevitable decadence of our civilization occasioned by the hardships of the traditional business.
Re:We should have a choice (Score:4, Interesting)
How often do you think most people drive "coast to coast"?
My wife's car is four years old and has never been more than 100 miles away from home. And since she shares a birthday and ethnicity with Nikolai Tesla, she's bugging me about wanting to get one. She'd be the perfect customer for one if we had that kind of coin to throw around. Which we don't. And if we did, I'd be angling for an Audi R8. Say, do they make a hybrid Audi R8?
Re:We should have a choice (Score:4, Interesting)
I've had two cars most of my serious adult life, so it wouldn't be a concern for me, personally (I'd simply take a gasoline powered vehicle on a cross-country trip, which I've done on several occasions).
For a cross-country trip, though, yeah, 265 miles isn't far enough. That's about four hours of driving versus the 400 mile range of a typical gasoline car giving about six hours of driving. And it only takes a few minutes to fill up, and you don't have to plan which gas station you use. So for a lot of people, the idea of making a cross-country trip in a Tesla is still disadvantageous versus a traditional automobile.
Tesla is shiny, and I want one. It would serve 80% of my driving needs. I still require a different capability vehicle for the rest of my needs/wants, though.
Re:We should have a choice (Score:2, Interesting)
80% of needs you probably still shouldn't buy a tesla unless you have a 2nd vehicle. 80% means 73 days of the year you need another vehicle. I imagine it would need to suit 99%+ of the time to make it work. That gives you 3-4 days a year you need another vehicle... which renting is perfectly suitable. Thing is I need a truck 1% of the time, but I don't own one I'll borrow my dads or rent one.
Re:Speculation... (Score:3, Interesting)
This is exactly the same sort of rubbish that we heard when the first Japanese cars started arriving.
Re:Speculation... (Score:5, Interesting)
I actually went in with a bid from Truecar, and the dealer claimed that the price they quoted included discounts I wasn't eligible for. Never mind that they asked the eligibility questions online and I answered them correctly. I'm sure they violated their agreement with Truecar and what they did was illegal, but I wasn't about to try to fight it especially since they were in another state.
Still, I got a price much better than I probably could have negotiated. I thought the price they actually quoted was too good to be true, but I figured I was better off starting at a price 30% below sticker and having them talk me up, than starting at sticker price and having to talk them down. I got the price I figured was fair in the first place. I just felt dirty walking out all the same.
Re:Speculation... (Score:4, Interesting)
For people who hate negotiating, your method is probably best. But, even the quotes you received were likely gamed by the dealers giving them. Dealers don't work in a vacuum...they know the other dealers, and know what numbers you'll be able to get from them. If you think about it for a moment, the dealer that quoted 23500 would go out of business if he was constantly being undercut by his brethren. So, by giving customers these quotes, they make the customer feel like a winner, and often will take turns.
As for your negotiator friend, you need to consider the value of your own time. I'm generally in the same boat as him, but I won't try to squeeze them for the last $100...it's just not worth my time. Once the dealership has spent several hours with you, they've already made an investment in time. Walking away from a deal after hours, isn't something they ever want to do.
Re:Speculation... (Score:5, Interesting)
What part of this CAN'T you get if the manufacturer runs the showroom?