Monday, February 13, 2017

"The Real Reason Car Dealerships Are the Worst"


3 comments:

Rabel said...

Who will repair your vehicle and honor your warranty if there are no dealers? Joe's auto repair?

Methadras said...

I've always been a big believer that the manufacturer shouldn't have an independent dealership model. Tesla does this. They are a direct to customer manufacturer, the only difference being that you have to go to them, not another retailer to buy. However, they do everything from warranty coverage to repair. If they can do it, then I don't see why others can't.

Rabel said...

Meth said:

"I've always been a big believer that the manufacturer shouldn't have an independent dealership model."

I'd agree that independent dealerships shouldn't be mandated by law. But the idiot in the video was making an argument for online sales without any dealerships at all and for "car stores" which would sell all brands. Neither of these ideas would seem to provide adequately for the service function I mentioned.

Tesla was able to create its company owned dealerships because it had an almost unlimited amount of money available to build and staff those dealerships. Some of that money came from me in the form of government subsidies.

There's a pretty good write-up on the history of dealership creation here. It's from Elon! I say pretty good because about halfway through he reverts to the salesman/promoter that he is.