Direct sales vs dealerships, opinion?

[ExtraSlow]

Rivan is in the news trying to get set up to sell directly to customers in Colorado. Among other states.

What do you think? Do you support direct sales, or should dealerships be protected? Or a hybrid solution?

[killramos]

Fuck dealerships.

If I could order a car online through the company website I would. It’s the aspect of Tesla’s strategy I support most.

I haven’t had many super bad situations with dealerships, but certainly nothing about the experiences could be classified as good. Dealerships are forced cartels, I’d rather the free market decide the best way to buy or sell a vehicle.

[you&me]

This quote is hidden because you are ignoring this member. Show Quote

Fuck dealerships.

If I could order a car online through the company website I would. It’s the aspect of Tesla’s strategy I support most.

I haven’t had many super bad situations with dealerships, but certainly nothing about the experiences could be classified as good. Dealerships are forced cartels, I’d rather the free market decide the best way to buy or sell a vehicle.

The dealership model is definitely antiquated, but it's a relic of a time where there was no alternative.

You can't really blame the dealers that have invested (sometimes) 10s of millions in their (manufacturer mandated) facilities for protecting their position.

A new entrant to the market like Rivian doesn't have any legacy obligations, so I feel they should have a clear(er) shot at direct selling. However, if I was a dealer for a brand that was exploring direct selling, like say, Porsche and the manufacturer wanted to mow my grass, you can bet I'd put up a fight.

[killramos]

Oh totally. I think the franchise agreements need to be honoured for whatever period they are exclusive for. Can’t have people taking advantage of a dealers test fleet only to be undercut by a manufacturer online.

However a new entrant? Fair game to direct sell.

Those states where they are trying to ban direct selling, that’s backward.

That said, if the dealers think they have such a compelling experience so as to make their cut worth it (lol) they can fill their boots.

[ExtraSlow]

What if, hear me out here, you could buy online from a dealership!

[killramos]

I mean, you essentially can.

[ExtraSlow]

This quote is hidden because you are ignoring this member. Show Quote

I mean, you essentially can.

Most dealerships don't think it's possible.

[you&me]

There are still a number of significant costs that dealerships bear that is integral to the total ownership cycle of a vehicle, namely service and parts depts. Obviously these could be centralized and concentrated by manufacturers, but again this represents a significant investment by dealers that they're highly unlikely to simply walk away from... not to mention significant profit centres to offset the sometimes abysmal profits on the new cars (that the dealers are forced to buy from the manufacturer).

Then there are things like used cars, appraising and 'landing' trade-ins, etc.

None of this is insurmountable from the perspective of a technological or disruptive alternative, but there is a very significant investment by the players being disrupted (the dealers) that can't simply be ignored or brushed aside in the name of change.

[spikerS]

This quote is hidden because you are ignoring this member. Show Quote

Most dealerships don't think it's possible.

I bought Baygirl's car over the phone in like 15 mins...

[ExtraSlow]

This quote is hidden because you are ignoring this member. Show Quote

I bought Baygirl's car over the phone in like 15 mins...

That should be the norm.

[Thaco]

i hate dealerships and their bullshit high pressure upsells, that's why i buy my vehicles from auction, i dont need the bullshit, i give you money, you give me car, done deal.

[rage2]

NADAs benefits of a dealer model is hilarious.

https://www.nada.org/WorkArea/Downlo...id=21474838849

1 is hilarious, encourages price shopping. Who has time for that for minuscule savings?

2, there are laws that enforce recall and communications. Local dealer doesn’t do any of the communications. And laws require Suzuki (their example) to continue to support their cars.

3, Tesla still employ locals.

4 contravenes 1 in terms of convenience.

I mean Tesla probably isn’t the best at setting direct sales as an example, but NADAs points are pretty stupid. I think the only advantage to a local model is loyalty. I’m well taken care of at the local dealers. Tesla would only give me special treatment if I was a celeb or influencer that can negatively affect their marketing efforts. A well thought out direct to consumer model would be able to replicate that easily.

In larger cities, traditional manufacturers already own corporate stores, so it’s already direct to consumer.

[heavyD]

My issue is that dealerships are privately owned and do what's in the best interests of their business not necessarily what's best for the brand or owners. Plenty dealers don't even use manufacturer fills for oils and other fluids to save money. Subaru Calgary for example uses cheap bulk Esso oil when servicing vehicles and always try to upsell BG fuel injection cleaners and crap into services despite the fact that Subaru does not recommend the use of such treatments. The luxury brands are better but the local BMW dealers for example jack up the Freight & PDI charges for M cars for no other reason because they can. The only way to get them to remove their fudge factor was to threaten to walk out on the deal but I shouldn't have to do that when I'm trying to purchase a BMW.

[killramos]

BMW’s problem is one guy owns both dealerships in the city.

[tonytiger55]

Its a bit like when you go to a retail store to see or try a product. Then ordering off Amazon because its cheaper.
Could such a thing be done with buying a car? Buying a vehicle is the second biggest purchase a person makes (the first being a home).

[Buster]

This quote is hidden because you are ignoring this member. Show Quote

should dealerships be protected?

Why should any business be protected?

[dirtsniffer]

This quote is hidden because you are ignoring this member. Show Quote

BMW’s problem is one guy owns both dealerships in the city.

And that guy is a real....

[killramos]

This quote is hidden because you are ignoring this member. Show Quote

And that guy is a real....

Yup. lol

[Mitsu3000gt]

I would like it if there is an actual benefit, but without competition it's impossible to tell if there is a price advantage. Take Genesis for example and their "no haggle" pricing - they tell you that you're getting a deal, but you probably aren't.

I would like it if you could buy factory direct alongside dealerships - lower price in exchange for not using dealership resources, or something like that.

[ExtraSlow]

This quote is hidden because you are ignoring this member. Show Quote

Why should any business be protected?

I don't think they should. But others disagree I'm sure. Looking for debate and input.