This is crazy
#2
Moderator
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Good find if it works.
#3
Pro
Another reason to support the "no independent dealer" dealership model that Elon Musk has with Tesla. Ohhhhh, but lest we forget, as the Automobile Dealer's Association tells us, that they are there for consumer protection. Please.
I don't know how long it's going to take, but as competition becomes more fierce amongst auto manufacturers, the current auto independent dealership model as we know it will go away. It's all but guaranteed. Dealers will still exist as service shops and may even have a few models on their floor for test drives, but the days of these dealers making margins off of new cars are numbered. They will earn a nominal commission in lieu of the margins.
I don't know how long it's going to take, but as competition becomes more fierce amongst auto manufacturers, the current auto independent dealership model as we know it will go away. It's all but guaranteed. Dealers will still exist as service shops and may even have a few models on their floor for test drives, but the days of these dealers making margins off of new cars are numbered. They will earn a nominal commission in lieu of the margins.
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Aquineas (05-12-2022)
#4
I can't see it happening because there's no compelling policy reason for it. It's a state, not federal issue, and most states have laws protecting dealer franchises and prohibiting direct sales from vehicle manufacturers. State legislators are strongly motivated to protect local businesses. That's one reason Tesla purchase locations are few and far between.
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#5
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"...the current auto independent dealership model as we know it will go away." I'm NOT holding my breath...
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Aquineas (05-12-2022)
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Kracka (05-12-2022)
#7
Pro
I can't see it happening because there's no compelling policy reason for it. It's a state, not federal issue, and most states have laws protecting dealer franchises and prohibiting direct sales from vehicle manufacturers. State legislators are strongly motivated to protect local businesses. That's one reason Tesla purchase locations are few and far between.
Musk has more proven that dealers do little to nothing to "protect the consumer." Conventional auto manufacturers know this and are already exploring ways to ditch the traditional dealership roles as they exist today.
#8
Moderator
Somebody is drinking the Tesla Kool-Aid.
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JerryU (05-12-2022),
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Zormecteon (05-12-2022)
#9
November 4, 2021 Tesla stock was 129.91. Today the stock dropped to 734. Long term Tesla will lose out to real car companies like Ford and Chevy. The cybertruck is nowhere near ready while Ford is actually rolling out Lightnings. I don’t know that traditional dealers are dead yet, even though I don’t feel like traditional dealers really benefit consumers
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frankz06_cf (05-12-2022)
#10
Instructor
November 4, 2021 Tesla stock was 129.91. Today the stock dropped to 734. Long term Tesla will lose out to real car companies like Ford and Chevy. The cybertruck is nowhere near ready while Ford is actually rolling out Lightnings. I don’t know that traditional dealers are dead yet, even though I don’t feel like traditional dealers really benefit consumers
#11
Pro
November 4, 2021 Tesla stock was 129.91. Today the stock dropped to 734. Long term Tesla will lose out to real car companies like Ford and Chevy. The cybertruck is nowhere near ready while Ford is actually rolling out Lightnings. I don’t know that traditional dealers are dead yet, even though I don’t feel like traditional dealers really benefit consumers
Sure the Tesla stock price is getting hammered, but so are the rest of the markets. Global markets (including crypto) are getting completely decimated due to inflation and a host of other obvious things I am not permitted to speak on here. A recent list of 50 companies accounts for $5 TRILLION in lost value!!! That said, Tesla stock is still worth more than GM, Ford, and Chrysler combined and is poised to become much more valuable in time. Everyone who has ever bet against Tesla has lost.
#12
I have no issue with MSRP + $100k , capitalism at its finest. But if the dealer has promised someone the first Z06 at MSRP and the dealer then has a ZO6 on the floor to sell before the customer gets their car. That is a problem. If I owned a dealership I would auction off each car or each car allocation , why not. This is a luxury item , to the highest buyer goes the goods...
#13
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SIDEBAR
In fact Ciocca (formerly Kerbeck) typically had ~200 new Vettes in Stock because some folks could not wait 6 weeks to have one made to their specs at BG. Or their wife (etc) had to see it before they bought! They typically were giving 10+% discounts.
In fact like a few other dealers they "helped BG" avoid layoffs in the winter when many dealers were not buying Vettes. They took advantage of GM price incentives in that slow sales period. Typical just before Spring they had ~250 in stock and would sell at what I called "winter pricing" to move more cars. I bought my 2017 Grand Sport at that time, made just for me (as all 6 Vettes) in BG and got those same discounts (~15%.) There prices were simple to understand. Discounts were exactly what was published on the Internet! BTW, my last two were delivered to a local small dealer who charged only $350. Loves getting my aftersales service! Overall about as close to GM selling direct as it gets! (And GM doesn't have to deal with all the BS from folks who don't know what they want!)
As I recall they (Ciocca) were the 1st to say they would offer the C8 Z06 at MSRP! Glad you don't own them as that is where I bought 3 of my 6 Vettes!
Last edited by JerryU; 05-12-2022 at 02:13 PM.
#14
Safety Car
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New World Order
The existing manufacturer franchise model makes sense when supply exceeds demand. Inventory is on the lot that needs to be hustled to sell it. Hand holding free oil changes service department lounges and restaurants as enticements. The direct to consumer model exists only when demand exceeds supply. The buyer pursues the sale. Until recently, the two were mutually existent and compatible. Today, the traditional and alternative markets have demand that exceeds supply. So Tesla's strategy is the marketing darling.
#15
I'm not as bullish on Tesla as this other guy, but I agree that the dealership model is bullshit. Selling for $100k over MSRP is not "capitalism at its finest" as one confused commenter said. How could any clear-thinking person celebrate the fact that some dipshit is getting $100k for adding absolutely no real value to the transaction and is only involved because corrupt local politicians have legislated that they must be? You think some scumbag in Florida is more deserving of that extra $100k than GM or the consumer? The fact that GM and the customer are forced to have this shady character inserted into their transaction, only to gouge the consumer, is capitalism at its very worst. Anyone who celebrates that is worshipping greed and laziness and elevating ruthlessness above anything resembling integrity. It's frustrating to see what was once the engine for American ingenuity and prosperity get redefined to mean "set your scruples aside to exploit whatever loophole you can to make a quick buck by any means necessary".
#16
Safety Car
The existing manufacturer franchise model makes sense when supply exceeds demand. Inventory is on the lot that needs to be hustled to sell it. Hand holding free oil changes service department lounges and restaurants as enticements. The direct to consumer model exists only when demand exceeds supply. The buyer pursues the sale. Until recently, the two were mutually existent and compatible. Today, the traditional and alternative markets have demand that exceeds supply. So Tesla's strategy is the marketing darling.
It happened because once a few dealerships started keeping more supply on the lot they all have to. Customers EXPECT to find the color and trim of car they want on the lot or at least quickly routed from another lot
This forced dealerships to pay rent on cars that dint sell and forced manufacturers to make massive incentives on cars that needed to be moved off lots to make room for new ones. It was a losing situation.
Covid changed all that. Now it is the norm for lots to not have supply and for consumers to have to order their car. Manufacturers are not moving back to the old model where they lose money.
I read they are moving from an old expectation of 80/20 percent of cars sold off lot to cars ordered to now a 20/80 percent of same.
This is also going to dramatically reduce the usefulness of dealerships...which you don't need as they exist anyways as the manufacturer can always house cars in vending machines like carvana does and just ship on demand.
And look here is Ford already trying it out...
https://joinyaa.com/guides/ford-model-e/
Last edited by bhvrdr; 05-12-2022 at 03:11 PM.
#17
E-Ray, 3LZ, ZER, LIFT
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.....You think some scumbag in Florida is more deserving of that extra $100k than GM or the consumer? The fact that GM and the customer are forced to have this shady character inserted into their transaction, only to gouge the consumer, is capitalism at its very worst. ....
Nope they IMO are dip *****, legal but dip *****!
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VetteND (05-12-2022)
#18
Hmm, as I read it, this is a dealer offer. What about the dip **** flipper (some of whom are forum members and proud to post they have sold several and have others on order. Probably bought at MSRP from an honorable Chevy Dealer!
Nope they IMO are dip *****, legal but dip *****!
Nope they IMO are dip *****, legal but dip *****!
#19
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Another reason to support the "no independent dealer" dealership model that Elon Musk has with Tesla. Ohhhhh, but lest we forget, as the Automobile Dealer's Association tells us, that they are there for consumer protection. Please.
I don't know how long it's going to take, but as competition becomes more fierce amongst auto manufacturers, the current auto independent dealership model as we know it will go away. It's all but guaranteed. Dealers will still exist as service shops and may even have a few models on their floor for test drives, but the days of these dealers making margins off of new cars are numbered. They will earn a nominal commission in lieu of the margins.
I don't know how long it's going to take, but as competition becomes more fierce amongst auto manufacturers, the current auto independent dealership model as we know it will go away. It's all but guaranteed. Dealers will still exist as service shops and may even have a few models on their floor for test drives, but the days of these dealers making margins off of new cars are numbered. They will earn a nominal commission in lieu of the margins.