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Old 03-12-2014, 06:59 AM
 
Location: Great State of Texas
86,052 posts, read 84,329,907 times
Reputation: 27718

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Quote:
Originally Posted by middle-aged mom View Post
Same deal in Arizona and Texas. It's all about protecting local dealer lobbies.
It's all about protecting their elected seats and campaign fund sources.
That's what it comes down to..keeping the hand that feeds you happy and protected.
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Old 03-12-2014, 07:15 AM
 
Location: Central Texas
13,715 posts, read 31,096,671 times
Reputation: 9270
Quote:
Originally Posted by Liberal01 View Post
I thought conservative that the government should keep their hands off business and not protect anyone. I guess it only works when it is not MY business the government should protect...
Yes - a conservative position should allow Tesla to operate as they want in this case.

I think we will see this play out the same way in many states, regardless of its blue/red status.
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Old 03-12-2014, 07:32 AM
 
79,908 posts, read 44,075,058 times
Reputation: 17204
As I noted earlier there are valid concerns on the part of owners of dealerships. Manufacturers force them to invest millions into their buildings to sell their products. They then shouldn't be allowed to undercut them.


It appears Tesla is going to be happy with slow growth. Reading on their model they want to own and operate their own facilities. If they want to sell out of the mall but open a service center elsewhere in town that shouldn't be anyone else's business.
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Old 03-12-2014, 07:33 AM
 
Location: Central Texas
13,715 posts, read 31,096,671 times
Reputation: 9270
Quote:
Originally Posted by Auntie77 View Post
We are talking about something other than politics here, people. TAXES. It's sort of like some states object to Amazon selling to customers and not collecting sales taxes for the states. Well....can you imagine how much more in taxes a state loses from cars that are not having vehicle/luxury taxes on the sale of cars? Teslas aren't cheap, despite the subsidies. I can understand how a state would be reluctant to give up tax revenues when a factory waves "Ohh goodie, a CHANCE at having a factory", when you know that when setting up the factory, they will be negotiating with the state for a lot of other concessions.

Tesla is wanting to compete with car dealers in those five states, without competing on a level field. Like Amazon, but on a very large scale. A lot of local politicians are going to see this as supporting their local small business community over a large multinational.
I don't see how taxes are an issue here. The state will collect sales tax on a car sold in the state, whether it is bought from a franchise dealer or not.

Why should a car manufacturer (any manufacturer) be required to sell through a franchised dealer? Why can Apple sell computers and phones from its own stores?
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Old 03-12-2014, 07:44 AM
 
Location: NJ
23,446 posts, read 17,121,013 times
Reputation: 17479
Buy the car in CA, transfer it to any state. Done!
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Old 03-12-2014, 08:12 AM
 
259 posts, read 151,074 times
Reputation: 44
Nobody forces anybody to become a car dealer. We have a crazy sales model for selling cars where not only the manufacturer but also the middle man have to make a profit. This elevates prices of new cars. Why do we do it?




Quote:
Originally Posted by pknopp View Post
As I noted earlier there are valid concerns on the part of owners of dealerships. Manufacturers force them to invest millions into their buildings to sell their products. They then shouldn't be allowed to undercut them.


It appears Tesla is going to be happy with slow growth. Reading on their model they want to own and operate their own facilities. If they want to sell out of the mall but open a service center elsewhere in town that shouldn't be anyone else's business.
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Old 03-12-2014, 08:33 AM
 
79,908 posts, read 44,075,058 times
Reputation: 17204
Quote:
Originally Posted by Liberal01 View Post
Nobody forces anybody to become a car dealer. We have a crazy sales model for selling cars where not only the manufacturer but also the middle man have to make a profit. This elevates prices of new cars. Why do we do it?
Kind of like Obamacare.
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Old 03-12-2014, 09:31 AM
 
15,803 posts, read 14,414,927 times
Reputation: 11861
They don't even need Tesla to collect the sales tax. Where I live (NYS) and I suspect most states, the DMV collects the sales tax when the car is registered. So even in a private sale, the sales tax gets collected. If a dealer is doing the title/registration paperwork for you, the'll collect all the DMV fees, including the sales tax, and forward that to the DMV. However that step isn't necessary to collect the tax.

The reason for the state laws is that car dealers, being numerous, profitable, and being willing to use their money to protect their business (by making campaign contribution) tend to be politically powerful at the state level. They don't want the car companies taking back the retail side of the business, so they use their influence to create these laws.

Quote:
Originally Posted by lycos679 View Post
Tesla would still be required to collect sales tax and remit the tax to your state of residence.
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Old 03-12-2014, 09:34 AM
 
259 posts, read 151,074 times
Reputation: 44
What does it have to do with the topic? Why do you think you could post off topic just to express your emotions?



Quote:
Originally Posted by Marv101 View Post
The Democrats are the undisputed champions of anti-business legislation and regulations; have you been to Detroit or Chicago lately, and have you seen their respective balance sheets?

The greens have destroyed the fossil fuels production and manufacturing industries in California over the course of the past three decades, and have deliberately forced hundreds of thousands of farmers into bankruptcy for ages thanks to their job-killing mindset, just like our current President.
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Old 03-12-2014, 09:38 AM
 
259 posts, read 151,074 times
Reputation: 44
I wonder how much this franchise model adds to the price of a new car? How much we pay the middle men who practically does nothing except for adding "dealer package" to the price of a new car, dealer package that is pretty much a pin stripe at $500 a pop. That's extortion.
Dealers should be making money on used cars and repairs, both warranty and after warranty.




Quote:
Originally Posted by BBMW View Post
They don't even need Tesla to collect the sales tax. Where I live (NYS) and I suspect most states, the DMV collects the sales tax when the car is registered. So even in a private sale, the sales tax gets collected. If a dealer is doing the title/registration paperwork for you, the'll collect all the DMV fees, including the sales tax, and forward that to the DMV. However that step isn't necessary to collect the tax.

The reason for the state laws is that car dealers, being numerous, profitable, and being willing to use their money to protect their business (by making campaign contribution) tend to be politically powerful at the state level. They don't want the car companies taking back the retail side of the business, so they use their influence to create these laws.
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