01-20-2016, 02:17 PM
http://arstechnica.com/cars/2016/01/tesl...ftc-panel/
But they can't do anything about it. Congress or several states would have to stand up to the dealership lobby (these guys can make the gun lobby look like amateurs).
The dealership model was supposedly setup for consumer protection but consumers aren't complaining about car makers ... the strongest argument dealers now make is even weaker, for competition among dealers for consumer dollars.
Two problems:
1) In some markets one dealer controls selling the entire car brand, and dealers must create a markup.
2) Invoice price is already known, and "competition" is usually about how much more can be added-on, not taken off.
The strongest manufacture-direct argument, I think, is that if people don't like Tesla, they buy another BRAND. That forces the manufacturer to try harder, without the insulating protectionist dealership barrier.
My apologies for not creating a political thread without naming politicians to get riled up about. I realize that bores some of you.
But they can't do anything about it. Congress or several states would have to stand up to the dealership lobby (these guys can make the gun lobby look like amateurs).
The dealership model was supposedly setup for consumer protection but consumers aren't complaining about car makers ... the strongest argument dealers now make is even weaker, for competition among dealers for consumer dollars.
Two problems:
1) In some markets one dealer controls selling the entire car brand, and dealers must create a markup.
2) Invoice price is already known, and "competition" is usually about how much more can be added-on, not taken off.
The strongest manufacture-direct argument, I think, is that if people don't like Tesla, they buy another BRAND. That forces the manufacturer to try harder, without the insulating protectionist dealership barrier.
My apologies for not creating a political thread without naming politicians to get riled up about. I realize that bores some of you.