Comments on: Legality of Tesla's Store Model Being Challenged

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By: scott kessler

scott kessler — Wed, 17 Oct 2012 05:28:23 +0000

Having just reserved my Tesla model S at Tesla’s Newport Beach store I can attest that it was a wonderful experience…much more like an intriguing discovery than the dreaded go to a dealership to haggle over buying a car for 3 hours. If I had to go to a “traditional” type dealership to make my purchase would have procrastinated the process for a long time… My father owned a VW dealership and I pretty much grew up there…I’ve sat in the “closing room” and seen a lot of deals go down “traditionally”…
I believe Tesla has found a better way…Congratulations Tesla

By: Jack Burgess

Jack Burgess — Thu, 11 Oct 2012 01:23:01 +0000

These laws are antiquated, protectionist, and now only serve as an arbitrary barrier to protect a special interest group — the automobile dealers. Created prior to any Internet commerce, the laws no longer make sense in today’s modern markets. They were originally enacted to foster competition. But over time as our modes of commerce have changed, these laws have come to do just the opposite. If we allow them to stay in place, they will continue to stifle true competition, thus harming market efficiencies and the productivity of the automobile industry as a whole. Today, we consumers end up paying a little bit more for our cars due to this now unwarranted protectionism. These laws should have been changed years ago.

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By: AP

AP — Tue, 09 Oct 2012 16:58:53 +0000

Welcome, Tesla, to the real automotive world. As a GM employee, I can tell you they are only dealing with the same issues every other manufacturer does.

Ford tried this when Nasser was CEO, and was quickly shut down by state franchise laws.

A lot of money changes hands in the car business, so everyone wants their say, and their piece of the pie.

By: dutchinchicago

dutchinchicago — Tue, 09 Oct 2012 15:50:48 +0000

The worst part of buying a new car by far is having to deal with a dealership. I would love to be able to bypass them. I do not want to be subjected to pressure sale tactics to get me to buy what ever car they happen to have on the lot.

Ofc ourse dealerships need to make money so somewhere in your car's final sale price you are paying for that dealership to exist. Not having to deal with a dealership and getting a cheaper car sounds like a good plan to me.

By: SEO Newcastle

SEO Newcastle — Tue, 09 Oct 2012 14:45:02 +0000

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By: Roy_H

Roy_H — Tue, 09 Oct 2012 12:33:48 +0000

“Telsa should have broken the “monoply” model by the auto dealers by selling cars directly on the internet.”

Tesla DOES sell directly on the internet. http://www.teslamotors.com/

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By: Roy_H

Roy_H — Tue, 09 Oct 2012 02:31:35 +0000

Notice that it is not customers who are complaining, but dealerships. If these cars were sold through a conventional dealership there would be at least a 20% mark-up. How many customers would prefer to pay $10K to $20k more?

Almost all GM dealerships are excellent and honest. However it only takes a few bad apples to taint the whole company. These bad dealerships perform unnecessary repairs to drive up the repair bills and when the opportunity arises, will gouge the customer with price mark-up. Franchise laws prevent GM from taking disciplinary action against these bad dealers. Tesla's factory stores avoid this possibility.

"The business model that works best is having the manufacturers focus on building quality products and the dealers focused on selling and serving the vehicles," said the NADA in a statement.

If this was true, they wouldn't have to have laws to force auto companies to use franchised dealerships.

These laws should be repealed.