Car dealers are not liking Tesla

While Texas & Arizona won't let Tesla sell their cars there, they want Tesla to build a factory in their states:

http://www.huffingtonpost.com/2014/03/19/tesla-sales-ban_n_4992758.html?ref=topbar


Chutzpah!

 

New Mexico, which is consider the front runner for the factory, doesn't either; but the state legislature is planning a special session to pass a law allowing direct sales.

 

Arizona just took a bill that was wholly unrelated to the auto industry, took out literally everything in the bill, and replaced it with language allowing direct sales in hopes that they can appease Tesla.

 

My state is getting into this now apparently. It raises the question - what benefit do dealerships serve in this day?

I think lawsuits like these are the first salvos in a fight that will eventually land car dealerships in the dustpan of history right next to CDs, newspapers, big expensive cable TV packages, and dirty magazines - RIP'd by the internet.

I've not understood what value they provide or purpose they serve since you can do tons of research online. All thats missing is the ability to direct buy. Literally, the ability to test drive is all i can see as the value of a dealership.

 

Test drive and with these newer cars being all computerized the service departments now are an asset, IMHO. A lot of times Pep Boys or your local yokel mechanic down the street can't even diagnose what's wrong with your car but the dealer can have it hooked to a machine and troubleshot in 20 minutes.

 

That's all well and good.

And car companies should be allowed to sell through dealers if they want to. But, they shouldn't be forced to by law. That's insane.

And, like Tesla is doing, and car company could still set up showrooms and/or a service network.

 

I agree with you. I was just stating the lone benefits dealers provide.

 

I've had the opposite experience twice --- albeit with older cars.

--- Air conditioner wasn't functioning properly. Dealer couldn't fix, said it must be an "electrical" issue. Goodyear place down the street diagnosed it in 10 minutes --- a couple of loose wires.

--- When we moved from South Florida a few years ago our wheel nut lock key somehow got misplaced, meaning there was no way to remove a tire that needed to be replaced. Dealer could not offer a solution for fear of damaging the wheel. Auto repair shop down the street was able to get the tire off (rendering the lock useless, of course, but that was of no concern to me).

 

What difference does it make to the consumer if the store they bought their car from is owned by the manufacturer of the car or a third party dealer? Car still gets repaired in the same store, just the owner is different