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so for the luxury brands, whats the point of dealearship? just to make sure certain people in this country can have a job.
Reduces overhead. Once a manufacturer "sells" a car to a dealership it's no longer theirs.
Tesla builds to order because they have to. They can't carry thousands of units of stock.
But that doesn't help a guy much that wants a car today.
Quote:
Originally Posted by some1livesinamerica
on the other hand, if the direct sale model prevails, car manufacturers will be competing with each other
Manufacturers compete with each other now.
There will be no savings, only a different group taking the profit and less competition, not more.
we don't really know if the car manufacturers will actually translate the saving in cost to the consumers.
on the other hand, if the direct sale model
I don't think theres that much difference between direct selling or dealership. remember that dealers have to pay the manufacturer for the right(franchise fee) to be a dealer. if they sell directly, all the cost shouldered by the dealer will be shouldered by the manufacturer.
maybe the only benefit is that you get the same price wherever you shop.
so for the luxury brands, whats the point of dealearship? just to make sure certain people in this country can have a job.
Luxury brands deliver the "concierge" experience at their dealerships. Dealerships are also the point of contact for servicing issues and maintenance. Your average Ferrari or Lambo owner aren't in their garage changing their own oil, for example. They need a place to service the cars.
But, as you can imagine, there's not that many high end dealerships out there, so in many respects, they pretty much do utilize a direct sales model. There's probably 1 Lamborghini dealership for every 1000 Ford dealerships in this country. If you don't live near a dealership, you order your car online and they'll deliver it to you, exactly like Tesla does.
There are going to be a bunch of people who have Honda Accords that they're used to keeping a long time that are going to buy Model 3s.
When they break or there's an accident and it takes forever to get fixed because of single part sourcing and specialized body shops things are going to get ugly.
People are going to expect the cars and the service organization to work. There are no other options except for them.
True. It will be interesting to see how it plays out. Frankly, I think they will have to make some concessions to buyers. I know one idea Musk laid out to get around the states direct sales laws was to build supercharger stations that would also double as service centers, and if need be, could be franchised to also be approved as a dealership.
I know one idea Musk laid out to get around the states direct sales laws was to build supercharger stations that would also double as service centers, and if need be, could be franchised to also be approved as a dealership.
They need to find a better model for taking trades as well.
Just calling wholesalers with your car and getting you a bad price doesn't really get it. Independent dealers work the numbers to make a deal.
This is another thing that a "regular" buyer will care about a lot more than a well-heeled one.
Please, do not have it upside down. Somewhere down the road, it was decided that auto makers can not sell direct. Before, they could. But somewhere someone said - we have cousins and brothers and nephews that need businesses. Why not to let them open dealerships and to place yoke on stubborn goats like H Ford, so that they don't get too smart and learn about profit sharing?
It's business owners pitching business to business owners.
Always look for the easiest reason _ Qui Bono? Who benefits from this? Automaker? No. Buyer? No.
And by the way.
Back in 2001 or so, there was famous case when business owner bought 28 M3 convertibles to the tune of $250 000 for each one of his company employees. He bought them directly from BMW. Now do your math. That's about $8 000 a pop. They were around $20K at dealership then, I believe.
So here's your real reason why they can't. As then a helluval men loose their free profit.
And btw, OP. Capitalism has none to do with your question. Being free market and free country does.
as a consumer, i rather just be able to buy the car at a set price, just like when i go to a grocery store, the price for the item that i want to buy is set. i dont enjoy doing all the research on the internet and negotiate with the dealers on the price. if i really have a choice, i would pick the tesla's model over dealership.
Different grocery stores around me sell the same items at different prices. If you don't like negotiating with a dealer, just pay what is on the sticker.
Quote:
Originally Posted by ukrkoz
Back in 2001 or so, there was famous case when business owner bought 28 M3 convertibles to the tune of $250 000 for each one of his company employees. He bought them directly from BMW. Now do your math. That's about $8 000 a pop. They were around $20K at dealership then, I believe.
Citation please.
However, there are fleet deals right now. A company can buy lots of anything per unit cheaper than you can right now. That isn't the same thing. Somewhere somehow some dealer got compensated for "delivering" those 28 M3s, or 50 Transit Vans, or whatever.
The law was set up so the manufactures didn't get so greedy. So the distributors now are the greedy ones. Getting kickbacks, illegal stuff.
I have a good friend who owns a liquor company. Oh the issues she has to deal with. Many countries are easy but the US. Of course.
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Many countries are easy but the US. Of course.
