Dealers Supposedly Don't Want to Sell EVs!

[heisnuts]

I think you can also use the credit to buy a home charging station.

Yes, Tesla has a lot of merchandise you can purchase online (both with points and $$). Tesla's whole buying process is different than the traditional dealership. You have to buy/order the car through the website, you use the Tesla App when you need service (which worked really well for me the one time I used it), and you purchase parts, accessories, merchandise, etc. through the App or website as well (although you can also go into a Tesla store to buy parts and accessories as well).

To me the ecosystem works really well. Since it is all one company all locations have your info, service/purchase history and credit card on file. When I walked into the local Tesla store to buy the mobile charger the rep brought out the charger, verified it was me, and was able to automatically charge the $230 for the NEMA 14-50 mobile charger right to my card on file.

For service, you use the App to request their mobile service or set up an appointment at a service center. Since I do not need a loaner car, I like to drop off the night before the service. With Tesla it is really easy. You just park the car in their lot, use the app to tell them what space you left it in, they use their access to start and service the car, and when done they park it in the lot and text you when it is done and you come and pick it up at your convenience (even after hours). If they need authorization during the service or you have questions during the service, you use the app to text back and forth.

During my one service visit to fix a small scratch noted before delivery, I asked the center if they would install the GPS linked Homelink system while they had the car. I was able to submit that request during the service, approve the $350 charge to install it, have them charge the card on file when the car was done, and then was able to pick it up that night after coming home from work (after the center had already closed). All of my paperwork is accessible from the app, which makes the process really easy.

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[llinthicum1]

The dealership business model is broken. Consumers should be able to order the vehicle they want directly from the manufacturer and have if deivered to their preferred dealer. With this model, dealers will not have to keep large inventories that they have to pay interest on. Customers will get the vehcile they want and the dealer will receive the difference between dealer invoice and MSRP set by the manufacturer. Dealers will still make money on financing, insurance, delivery prep, and extended warranties. Dealers will also make money on service - there will be gas vehicles requiring service for decades to come. Changing the dealership model could be a win/win. But the current model is simply not working.

 

[Mach1E]

I think the problem with the “get rid of the dealerships” argument is that people are (wrongfully) assuming that this would equal everyone getting “the Tesla experience.”

Does anyone honestly think Ford or GM or Dodge manufacturer direct would result in the same process Tesla does??

If anyone wants to study what a world of manufacturer direct vs dealership looks like……. Just study the BOAT industry. Both have existed side by side for decades.

Manufacturer direct-
Significantly higher prices
Long wait times (from 6 months to several years)
No local service
Pros- highly customizable and better made boats

Dealer-
Significantly lower prices
No wait time (boats in stock)
Local service
Cons- less customized and lower quality

The quality thing is more of a boat market thing, I don’t think that would apply to the car market. Partly because the manufacturer direct boats typically cost double for the same size as a dealer boat.

 

[Mach1E]

The dealership business model is broken. Consumers should be able to order the vehicle they want directly from the manufacturer and have if deivered to their preferred dealer. With this model, dealers will not have to keep large inventories that they have to pay interest on. Customers will get the vehcile they want and the dealer will receive the difference between dealer invoice and MSRP set by the manufacturer. Dealers will still make money on financing, insurance, delivery prep, and extended warranties. Dealers will also make money on service - there will be gas vehicles requiring service for decades to come. Changing the dealership model could be a win/win. But the current model is simply not working.

That’s how I bought my Mach E. Was your experience different?

On the Mach E, invoice is MSRP.

 

[Ghost Ryder]

For sure.

That’s why Tesla has the highest profit margin in the industry.

Which also means they didn’t pass that savings on to the consumer.

Except maybe finally this year, but we shall see how long the low prices last if they succeed in squeezing the competition out. They raised prices the last few years just as fast as they lowered them this year.

Not sure if Lucid or Rivian will exist in 5 years though.

Tesla pricing strategy seems to be aimed at keeping the factory operating at 100% and keeping their wait time for delivery low. If wait time is to high because of high demands, then they would raise prices to curb demand, if there is too much inventory, than lower prices. Almost a raw supply/demand curve.

As a business, it would be foolish for Tesla to sell a car for less than what hey could get for it unless there are other motivating factors (putting other manufacturers out of business by under cutting them).

As consumers, we got to get out of the mindset that businesses are looking out for us. Rest assure that they are not.

 

[Ghost Ryder]

That’s how I bought my Mach E. Was your experience different?

On the Mach E, invoice is MSRP.

I had to buy from a dealer that was 60 miles away because the local dealers (many) were charging ADM on orders. There were reports that others had ADM sprung on them when their cars arrived. Essentially the dealer stole the car from them when it arrived.

 

[SigSauer]

Stopped in our dealer, Krieger Ford Columbus, Ohio, for warranty work and was told they were waiting on parts and that I would receive a letter from Ford when parts were available. Then they said after January 1st they will not be a EV certified dealer and will not service our MME.

Talk about throwing the customer under the bus!

 

[Mach1E]

Stopped in our dealer, Krieger Ford Columbus, Ohio, for warranty work and was told they were waiting on parts and that I would receive a letter from Ford when parts were available. Then they said after January 1st they will not be a EV certified dealer and will not service our MME.

Talk about throwing the customer under the bus!

I blame Ford for this.

Dealers already have slim margins on EVs, then Ford forced hundreds of thousands $$ on the dealerships to become a “certified EV dealer.” No wonder so many opted out.

 

[rhfritz]

When we needed a replacement second vehicle this year, we opted for a hybrid. And the Prius has been readily available since 2006, yet the Toyota salesman barely knew anything about it. I think they take the viewpoint that as a niche market, the car must sell itself, so they don't bother learning about it.

 

[ChehRob]

Dealership laws were written long ago when car sales was a mom and pop sort of business. A typical dealership took up about 2-3 city lots, many of them smaller. No owners owned more than one brand - that is like Ford, Mercury, Lincoln - three dealerships. Now one owner in town owns most of the big-name manufacturers dealerships.

 

[AKgrampy]

We see a lot of the no EV's by dealers out here. The dealers here are angry about the MSRP mandate because "things are different here." At the moment, all but one Ford dealer in the state has an $8,000 ADM for both Lightning's and MME's. No, that's not a typo. They think that's how it should be. MSRP? Yeah, good luck. They're angry about the requirement for a battery lift, they're angry that they had to put in L2 chargers almost 3 years ago, they're angry they have to have an EV tech, and they're angry they need to have a DCFC. Plus, some are now refusing to service any vehicle (ICE or BEV) not purchased through them regardless of the reason -- including folks who moved here with the cars. And the islands with just one dealer? Yeah, tough luck.

There is no advantage to the dealership model as far as I can see. Just terminate the franchise agreements and sell direct. Just get rid of them.

18 months waiting for the one dealer on this rock to do the Glass Recalls. They'll never do the HVBJB recalls. Why should they? They just ignore Ford and sell F150s and police SUVs at a stupid markup.

I am glad the sole dealer in Fairbanks Alaska does not have a mentality like that! Obviously the islands are even more isolated but we have no other choice within 350 miles and the next choice is 2000 miles! I am not sure what went on here but the local dealer elected to not go EV but I have heard since that they now are; however, they have not made any movement towards adding a L3 charger. It does take awhile to get your car scheduled but the service is good and the tech is great.

 

[david_quick]

Has anyone seen this article? https://wapo.st/463h9Ot

My dealer was all about EVs when I bought mine. Has anyone else experienced what is presented in this article?

My local dealer is spending a lot of money on upgrades to meet certification requirements. To be fair the group includes GM, KIA, Hyundai, Honda, Dodge/Ram/Jeep, and VW. They all are investing in upgrades to support EVs. Additionally they are all no second sticker dealerships and trade heavily on that.

A few years ago when the Cadillac Lyriq was announced GM had told dealers that if they did not make the investment to support EVs their franchise would not be renewed. They can play hardball if they want to.

 

[thekat03]

Stopped in our dealer, Krieger Ford Columbus, Ohio, for warranty work and was told they were waiting on parts and that I would receive a letter from Ford when parts were available. Then they said after January 1st they will not be a EV certified dealer and will not service our MME.

Talk about throwing the customer under the bus!

Ugh. At least you know now instead of getting blindsided in January?

So, what happens if the prospective buyer wants to test drive a vehicle before he buys it?

Also, what about people who want or need to buy a car quickly? I am glad dealerships have some cars on the lots, so people can go try them out and see the colors and features in person.

 

[heisnuts]

So, what happens if the prospective buyer wants to test drive a vehicle before he buys it?

The Tesla direct-to-sale model works when there is a high level of interest in the vehicle being sold. But as we've seen these past several months Tesla sales have slowed, so Tesla instituted several (MSRP) price cuts. This was a bad optics problem for Tesla, because just weeks before recent purchasers paid thousands more for the same model. Tesla had to make the price cuts to increase sales volume because the company, without a vast dealer network, has no real estate (and the staff that manages the real estate) to store unsold vehicles.

No one ever complains about the dealership sales model when the local dealers (and now web sites) discount off MSRP to compete for sales. When the vehicle is a highly-desired model and supply and demand market pricing raises individual vehicle pricing via ADM, everyone's panties get in a wad. The Ford Bronco is the perfect example of that. Now that Broncos are plentiful, the ADM as gone away for the most part (except the Raptor), and the social media dealership model bitching has pretty much subsided.

Our local Tesla store has demo vehicles for test drives. They actually loan them out to you and have you test drive it on your own. When I started to get interested, I rented a Tesla for a weekend road trip so I could not only spend a couple days with it, but also see how it felt on a longer road trip and how easy Tesla Supercharging was on the road.

 

[agoldman]

If I never had to talk to or visit another dealer for the rest of my life I'd be fine with that as long as there was reliable service centers of some sort to handle warranty and other repairs. I have zero use for the sales department. And the current dealer service model is antiquated.

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