If you live in Michigan...

[BajaDrifter]

You should be concerned by a state bill (house bill 6233) they are attempting to pass. It seeks an end to Telsa's direct to customer sales from the maker. In other words, you would have to go through a dealer like we Jeep buyers have to. Originally, the bill was to protect Telsa's sales model in Michigan, but they have introduced add-ons that eliminate Telsa's exception. It seems dealerships are well protected in many states by state laws. Telsa has had to dance a fine line to get sales in many states. Some customers have to drive out-of-state to get repairs. How many of us have to deal with 'dealer mark-up' on sought after vehicles or just plain popular models that everyone wants no matter the make or model. Will there be a dealer mark-up on the 392 beyond the msrp? Recently GM came out with an all electric Cadillac model that dealers did not want to sell at a set price. I read that GM lost more than a few dealerships over this, probably no big deal to them. I happen to think if car manufacturers offer direct sales, it will be a plus for the consumer, set prices and no more battles with second parties about warrantee repairs, you deal directly with the factory repair service.

I can imagine the lobbyist for dealers pushing this bill and kicking up big campaign bucks to lawmakers to get this through to the Governors desk. If you live in Michigan, now is the time to write your legislators and let them know how you feel about this. These days its very easy to email your elected representative, take a little time out to do so. You will doing yourself a favor. I read it has already passed the legislator and is off to the state senate.

Come to think of it, no matter what state you live in, this should be an issue. Why do dealerships have to be protected by state law?

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[AustinL911]

Better include a $20 bill in that email to your reps, otherwise, they couldn't care less.

 

[LostWoods]

I'll be honest, this is one piece of regulation I'm not exactly against. Dealerships serve as a point of sale and a post-sale support center and companies like Tesla are woefully inept in this capacity. I mean a full 15 states don't even have a Tesla service center and even large states like Michigan, Wisconsin, Oregon, and Utah only have a single center.

I'm all for direct to consumer but not when they expect any service to become a full day effort from the owner. Not when they're so flippant about how they present it to buyers and definitely not when they have such a horrible track record.

 

[BajaDrifter]

I'll be honest, this is one piece of regulation I'm not exactly against. Dealerships serve as a point of sale and a post-sale support center and companies like Tesla are woefully inept in this capacity. I mean a full 15 states don't even have a Tesla service center and even large states like Michigan, Wisconsin, Oregon, and Utah only have a single center.

I'm all for direct to consumer but not when they expect any service to become a full day effort from the owner. Not when they're so flippant about how they present it to buyers and definitely not when they have such a horrible track record.

Well, to each his own I suppose, but that full day effort is from folks having to drive out of state because of these protective laws dealerships lobbied for. Also, if think Telsa has a horrible track record compared to some of these rip off dealerships, I don't what to tell you. Often people have to appeal to the factory for help because dealers don't want to. They have more interest in protecting the brand than dealers do.

 

[LostWoods]

Well, to each his own I suppose, but that full day effort is from folks having to drive out of state because of these protective laws dealerships lobbied for. Also, if think Telsa has a horrible track record compared to some of these rip off dealerships, I don't what to tell you. Often people have to appeal to the factory for help because dealers don't want to. They have more interest in protecting the brand than dealers do.

Do you realize how incredibly rare it is that people actually have to get the manufacturer involved? You see it here because people are about 100x more likely to bitch about their problems than they are to sing praises.

People have to drive out of state because there are literally 15 of them without Tesla presence. If I have a vehicle in one of those states and I need a part replaced, Tesla's own warranty states that utilizing a non-Tesla service center may invalidate the warranty, let alone be covered. That's massively anti-consumer.

Tesla is regularly bottom of the barrel in every quality survey out there. They regularly have issues straight off the truck because Tesla has prioritized volume over quality. I know more people whose 3 has been out of service for at least a month in its first year and it's more than a handful of cars.

I support the free market but I don't support companies fucking over customers with lies in the sales process that are then nullified but the ubiquitous "if it's not here then it doesn't count" document in the sales package.

 

[BajaDrifter]

Do you realize how incredibly rare it is that people actually have to get the manufacturer involved? You see it here because people are about 100x more likely to bitch about their problems than they are to sing praises.

People have to drive out of state because there are literally 15 of them without Tesla presence. If I have a vehicle in one of those states and I need a part replaced, Tesla's own warranty states that utilizing a non-Tesla service center may invalidate the warranty, let alone be covered. That's massively anti-consumer.

Tesla is regularly bottom of the barrel in every quality survey out there. They regularly have issues straight off the truck because Tesla has prioritized volume over quality. I know more people whose 3 has been out of service for at least a month in its first year and it's more than a handful of cars.

I support the free market but I don't support companies fucking over customers with lies in the sales process that are then nullified but the ubiquitous "if it's not here then it doesn't count" document in the sales package.

Precisely my point. People have to drive out of state because of state laws protective of dealerships and not permitting them to service vehicles in their states. How wonderful for the consumer eh? Listen, for every good story about dealerships, I would venture there are 10 others who like to use horse whips on them. Who enjoys buying a new car at a dealership? I don't know anyone who looks forward to the hard sell. Everyone I know will use the dealership for warranty work and after that use a trusted mechanic who won't over sell. Dealerships basically prey on the unsuspecting and uninformed.

Telsa is up against the system, plus they are venturing into a new arena with growing pains, but I believe the major car manufacturers see the benefit of direct sales and repair facilities. Dealerships aren't there to help the customer, but to squeeze whatever extra they can out of us. That's how it is set up. At one point, it was to the benefit of the manufacturer to have set points where they could unload their merchandise and let someone else deal with buyers. It's not so difficult and troublesome with the internet these days. Telsa is proving the point despite having to wrestle with all the dealership protection laws.

 

[LostWoods]

I can't help but feel from the tone of your posts that your motivation for posting this is less the fact you believe in the direct-to-consumer model and more that you really like Tesla.

I'd really like to see data to back up anything you've claimed because this isn't David vs Goliath when Tesla is literally the world leader by market cap and even doubling #2 still wouldn't make it close. They're not hurting in the slightest right now for cash or demand and until they take a more consumer-friendly approach, they can deal with it. This applies to Tesla or anyone else who steps out of the boutique segment into the full market.

 

[Oil_Burner]

Recently GM came out with an all electric Cadillac model that dealers did not want to sell at a set price. I read that GM lost more than a few dealerships over this, probably no big deal to them.

They will lose about 150 dealers; however, I read that those dealers will get about $300K if they leave. I read the reason isn't because they had to sell at a set price, it is because they would all need to invest $200K in infrastructure to support servicing and charging the all electric Cadillac.

 

[LostWoods]

They will lose about 150 dealers; however, I read that those dealers will get about $300K if they leave. I read the reason isn't because they had to sell at a set price, it is because they would all need to invest $200K in infrastructure to support servicing and charging the all electric Cadillac.

That makes a hell of a lot more sense than not wanting to sell a vehicle at a certain price.

 

[BajaDrifter]

I can't help but feel from the tone of your posts that your motivation for posting this is less the fact you believe in the direct-to-consumer model and more that you really like Tesla.

I'd really like to see data to back up anything you've claimed because this isn't David vs Goliath when Tesla is literally the world leader by market cap and even doubling #2 still wouldn't make it close. They're not hurting in the slightest right now for cash or demand and until they take a more consumer-friendly approach, they can deal with it. This applies to Tesla or anyone else who steps out of the boutique segment into the full market.

Well, frankly I would not purchase any all electric vehicle now or in the next few years, but I do like their sales model, and the fact they are doing so well as you state, attests to them doing something right. I don't think it's Elon Musk's charisma that is selling all those cars. I think it is a very consumer friendly way to sell cars. No high pressure salespeople, set prices, and showrooms. As I understand it, they even deliver the car to you.

 

[Orange01z28]

The government shouldn't be involved in this whatsoever

Businesses should be able to run any type of business model that works for them, whether it be direct-to-consumer or dealer network or anything else

 

[BajaDrifter]

The government shouldn't be involved in this whatsoever

Businesses should be able to run any type of business model that works for them, whether it be direct-to-consumer or dealer network or anything else

Have to agree with you 100%. I think the market will dictate what works best. Instead, literally across the nation, dealerships are protected by state laws.

 

[BajaDrifter]

They will lose about 150 dealers; however, I read that those dealers will get about $300K if they leave. I read the reason isn't because they had to sell at a set price, it is because they would all need to invest $200K in infrastructure to support servicing and charging the all electric Cadillac.

I stand corrected. Thanks.

 

[BajaDrifter]

Take a gander at this video from Fast Lane Trucks.

We Just Bought A Brand New Ford F-150 Raptor, And It Was A PAINFUL Experience: Here's What Happened! - YouTube

These guys buy and sell trucks regularly as they drive test them in their videos and do some real world evaluations. Here the guys tells how they wanted to purchase a current year Ford Raptor and found out Ford stopped making them for awhile as they get their new F150 tooled up. He is in Denver and found out the dealers are marking them up over 100K! I don't know what to say about these blood sucking dealers, especially since they have laws protecting them.

 

[LostWoods]

What's wrong with the free market determining the price of a vehicle?

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