Dealership model vs. direct sales?

[CyberGus]

The geezers like me on this forum will remember “full service” gas stations where an attendant pumped the gas for you. (Still the law in NJ and Oregon.) The arguments made by auto dealers defending their own existence sound very familiar…

You need us!
No we don’t.

We protect you!
No you don’t.

We’re worth the extra cost!
No you’re not.

Think of all the jobs!
They’re shit jobs that provide nothing to society.

We help keep your money local!
Sure, by taking it out of our pockets.

It’s the law!
Gee, I wonder how that happened.

It’s for your own good!
We got it from here, thanks.

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[HaulingAss]

You make a very good point. Take for example the Hummer that had the huge mark-up with a total price of $177K. The finance department is licking their chops at that. Of course with that higher price they will have to extend the loan on that huge amount which hands them even more money!

You're also right in that there are very few times consumers do well. I'm 65, so you can just imagine how many times I've played "the Game". Fortunately, I was able to play the game and walk away feeling pretty good, with our purchase of the 2020 Pacifica PHEV. It was late in Nov. of 2020 and the prices of fuel had been cheap all year, and with Covid, all their sales were down. The dealers were advertising huge rebates and bargain prices, trying to move inventory. The PHEV's were abundant in So, Cal. I had about 10 dealers emailing me and calling when I showed interest online. Luckily, I was able to take advantage of that and negotiate over the phone with several dealers, over a couple of days to get the discounts they were promoting at 0% financing. I did have to buy from a dealer almost 100 miles away. But it was worth it.
There is absolutely NO CHANCE of that happening in our current environment.

People who finance a $177K Hummer because they don't have the money are even stupider than someone who buys a $177K Hummer with cash. But now I'm splitting hairs!

 

[HaulingAss]

The geezers like me on this forum will remember “full service” gas stations where an attendant pumped the gas for you. (Still the law in NJ and Oregon.)

Unless you are riding a motorcycle. Then you can fill it yourself. You are supposed to wait for the attendant to hand you the nozzle and turn the pump on but I've never seen one upset that I beat them to it!

At least in Oregon, I have no desire to ride in N.J. just to see.

 

[Sirfun]

The geezers like me on this forum will remember “full service” gas stations where an attendant pumped the gas for you. (Still the law in NJ and Oregon.) The arguments made by auto dealers defending their own existence sound very familiar…

You need us!
No we don’t.

We protect you!
No you don’t.

We’re worth the extra cost!
No you’re not.

Think of all the jobs!
They’re shit jobs that provide nothing to society.

We help keep your money local!
Sure, by taking it out of our pockets.

It’s the law!
Gee, I wonder how that happened.

It’s for your own good!
We got it from here, thanks.

I agree with most of that. Except the part about jobs. There are a lot of good people that work hard at those jobs, like my neighbor who's a mechanic at the Kia dealership. Not every kid growing up wants to go on to college. There is nothing wrong with being a mechanic. Especially if it's something you enjoy doing.

 

[happy intruder]

POLL RESULTS


Connecticut law forbids motor vehicle manufacturers from selling their products directly to customers, a fact that has kept electric vehicle maker Tesla, which does not use dealers, from further expanding its commercial presence in the state. Tesla has argued that the law is an unnecessary restriction on consumers, but dealers say the existing law is needed to protect buyers' interests when recalls or other large-scale issues arise.

Should Tesla and other car companies be allowed to sell directly to consumers in Connecticut?
YES (67%, 16881 VOTES)

NO (33%, 8367 VOTES)

• 25248 Votes
• 0 Comments

Ugh, those damn dealerships are starting to show up. More votes, please

sounds like one side is stuffing the ballot box.......hahahahaha

 

[CyberGus]

I agree with most of that. Except the part about jobs. There are a lot of good people that work hard at those jobs, like my neighbor who's a mechanic at the Kia dealership. Not every kid growing up wants to go on to college. There is nothing wrong with being a mechanic. Especially if it's something you enjoy doing.

Tesla manages to have mechanics and service their vehicles without 1 single dealership.

 

[Ogre]

Think of all the jobs!
They’re shit jobs that provide nothing to society.

I have a lot more sympathy for the people pumping gas than I do the dealerships. Like… piles more.

The people pumping gas might cost me $0.05/ gallon and ends up in the pocket of someone who genuinely needs it.

Dealerships cost us thousands and ends up in the pocket of some millionaire and likely several sleazy salespeople/ finance managers.

There are honest people working in the service end of dealerships, but almost none on the sales end.

 

[SwampNut]

Paying people to do jobs that don't need doing is charity/welfare handouts. We stopped worrying about the buggy whip makers eventually. Same needs to happen when other technologies and needs are replaced by something new.

I'm always shocked by the high number of people who both hate dealerships for all the obvious reasons, but claim we need them...because reasons. One common one is repair, and I point out that Tesla has mobile service, which should be awesome, but some people find a way to hate that too. People fear change.

 

[Sirfun]

Tesla manages to have mechanics and service their vehicles without 1 single dealership.

Gus, I get that you're having a rough time looking at your inbox waiting for an invitation to the BBQ. It's alright bud, even Jeff Roberts the drone pilot didn't get one.
Yes, Tesla provides jobs to people without having dealerships. My point is that those jobs are not shit jobs, providing nothing to society.
I guess it hit a sore spot with me, because I know lots of great people that have performed jobs like that their whole life, that aren't college educated professionals. Those are not shit jobs. They are the backbone of America.
I was one of them. I followed my dad and worked in construction almost 40 years, until I retired. Not every person growing up aspires to go on to college and work in a professional career.
A couple of days ago, a friend of mine posted this quote by Ali. It really hit home with me. As bizzare as it seems, I met Ali when I was 16 at my first job as a busboy doing room service at a Hotel, Ali and Angelo Dundee were very nice when I served them.
Please don't disrespect people by calling their jobs meaningless, or Shit Jobs.

 

[Ogre]

Yes, Tesla provides jobs to people without having dealerships. My point is that those jobs are not shit jobs, providing nothing to society.

I think people are bothered by the dealership structure, not the individuals who work there.

There are certain to be some fantastic people working at the dealerships. It is the legalized monopoly/ monopsony which is destructive.

Forcing Ford to guarantee an individual exclusive access to a market provides a tremendous lopsided structure. Neither the manufacturer, nor the consumer have a ton of options to switch save to another brand of car.

Only its worse than that because in many regions, most of the dealerships are owned by the same company. I had a bad experience with the local Subaru dealership. If I wanted to switch to another provider I’d have to drive 40 miles to the next city to purchase my car and get it serviced.

The guys working in the shop could be a the best folks around and do a great job… even as their employer screws every customer coming in and out.

 

[CyberGus]

Yes, Tesla provides jobs to people without having dealerships. My point is that those jobs are not shit jobs, providing nothing to society.

I was referring to the dealerships, not their service departments. Vehicle sales can and will happen without the vampiric salespeople. Vehicle service will not happen without servicepeople.

 

[CyberGus]

I think people are bothered by the dealership structure, not the individuals who work there.

Car salespeople are some of the worst people I've ever had to associate with. I'm sure there are nice people on both sides, but some of them have made my skin crawl. When they are gone, they will not be missed.

 

[Ogre]

Car salespeople are some of the worst people I've ever had to assocaite with. I'm sure there are nice people on both sides, but some of them have made my skin crawl. When they are gone, they will not be missed.

Yeah, generally speaking the sales process is essentially institutionalized douchebaggery.

It is likely impossible to have a moral compass and work on the sales side of most auto dealerships.

 

[SwampNut]

I think people are bothered by the dealership structure, not the individuals who work there.

Both, for me. The entire structure of the manufacturer-dealer chain is horrible. As noted above, most car sales people behave a certain way; for some it's intrinsic, for others it's just learned and/or forced behavior because of the whole process.

 

[Ogre]

Both, for me. The entire structure of the manufacturer-dealer chain is horrible. As noted above, most car sales people behave a certain way; for some it's intrinsic, for others it's just learned candor forced behavior because of the whole process.

I was thinking more about the service side of things.

As mentioned above, 100% agree on the sales side.

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