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Haggling & buying:New York Auto Dealers Try To Make Registering Tesla Stores Illegal:

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  • 20-08-2013 12:20pm
    #1
    HandsomeDan
    Banned (with Prison Access) Posts: 843 ✭✭✭


    Looks like American dealers don't like Tesla's selling model.

    "Tesla Motors is facing a formidable opponent it may not have sufficiently appreciated: the auto dealers of America, and their state associations.

    Tesla, you may remember, is selling its electric cars online, not through franchised, independently owned dealers, and delivering them directly to buyers from the factory.

    In doing so, Tesla Motors [NSDQ:TSLA] has removed the two parts of car shopping that customers clearly hate most: haggling and buying.

    Its Tesla Stores, it says, are simply educational showrooms where no cars are actually sold.

    Dealer groups--who view the approach as a dire threat--do not believe this, and they are both changing state laws and suing Tesla to prevent the company from opening its stores.

    By the beginning of this month, Tesla faced lawsuits in four states over its stores."


    Don't Telsa know only a 'crap salesman' gives the selling price before the buyer is committed to buy?

    http://www.greencarreports.com/news/1080001_auto-dealers-fight-against-tesla-stores-elon-musk-weighs-in


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    #2
    HandsomeDan
    Banned (with Prison Access) Posts: 843 ✭✭✭HandsomeDan


    Wow blocking replies. Looks like the dealer lobby is even stronger than I thought.

    Do you guys realize the significance of what's going on over there?


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    #3
    goz83
    Registered Users Posts: 8,034 ✭✭✭goz83


    Looks like the powers that be are pretty much banning electric cars...the oil/money hungry monsters.


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    #4
    Outkast_IRE
    Registered Users Posts: 7,515 ✭✭✭Outkast_IRE


    Where do you bring a tesla car when theres a problem ?
    I assume there must be designated repair centres that you must use.


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    #5
    biko
    Registered Users Posts: 81,223 ✭✭✭✭biko


    "Listen here you little Tesla upstart! This is how we have sold cars around these here parts for generations! And we're not gonna let some young slick come here and change the way we do business!"
    yeehaw!


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    #6
    ba_barabus
    Registered Users Posts: 9,615 ✭✭✭ba_barabus


    Isn't this always the way in the US Auto industry. the BIG THREE conspire to have the small start ups shut down?


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    #7
    AltAccount
    Registered Users Posts: 2,058 ✭✭✭AltAccount


    HandsomeDan wrote: »
    Looks like American dealers don't like Tesla's selling model.

    "Tesla Motors is facing a formidable opponent it may not have sufficiently appreciated: the auto dealers of America, and their state associations.

    Tesla, you may remember, is selling its electric cars online, not through franchised, independently owned dealers, and delivering them directly to buyers from the factory.

    In doing so, Tesla Motors [NSDQ:TSLA] has removed the two parts of car shopping that customers clearly hate most: haggling and buying.

    Its Tesla Stores, it says, are simply educational showrooms where no cars are actually sold.

    Dealer groups--who view the approach as a dire threat--do not believe this, and they are both changing state laws and suing Tesla to prevent the company from opening its stores.

    By the beginning of this month, Tesla faced lawsuits in four states over its stores."


    Don't Telsa know only a 'crap salesman' gives the selling price before the buyer is committed to buy?

    http://www.greencarreports.com/news/1080001_auto-dealers-fight-against-tesla-stores-elon-musk-weighs-in

    It's a fairly indefensible idea. I wonder how many manufacturers/dealers are uncompetitive due to union pay rates etc, yet are happy to be part of a "union" against Tesla in this instance?

    Not sure if they'll be successful with killing this, but I really hope not.

    I'm still unsure how trade-ins etc. are handled by Tesla in these instances. Maybe the buyer profile of these cars is that they're very much second cars or playthings and therefore trading in a car is less of a concern.

    HandsomeDan wrote: »
    Don't Telsa know only a 'crap salesman' gives the selling price before the buyer is committed to buy?

    That's a silly comment, and only reflects the fact that you don't actually understand the principle that was being explained to you.


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    #8
    HandsomeDan
    Banned (with Prison Access) Posts: 843 ✭✭✭HandsomeDan


    AltAccount wrote: »
    That's a silly comment, and only reflects the fact that you don't actually understand the principle that was being explained to you.

    Nope, it's you who doesn't understand: customers don't like haggling with salesmen.


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    #9
    Guy:Incognito
    Registered Users Posts: 38,247 ✭✭✭✭Guy:Incognito


    HandsomeDan wrote: »
    Nope, it's you who doesn't understand: customers don't like haggling with salesmen.

    Theres nothing stopping them walking in with a cheque and paying the list price so. I doubt any
    Salesman will argue. thats effectively what theyll be doing woth tesla, no?


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    #10
    HandsomeDan
    Banned (with Prison Access) Posts: 843 ✭✭✭HandsomeDan


    Guy:Incognito wrote: »
    Theres nothing stopping them walking in with a cheque and paying the list price so. I doubt any
    Salesman will argue. thats effectively what theyll be doing woth tesla, no?

    The list price is bs/ a smokescreen.

    The whole resale industry is built on sucking as much money out of the transaction as possible.

    That's not what they'll be doing with the telsa. Because there are no discounts to be had, they'll have to be shrewder/ more careful with their margins.

    Look at the list price on the new 6 series. A bs inflated figure designed only to give scope for big discounts.


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    #11
    AltAccount
    Registered Users Posts: 2,058 ✭✭✭AltAccount


    FFS, I can't believe I'm being drawn into this...
    HandsomeDan wrote: »
    The list price is bs/ a smokescreen.

    Not in a competitive market, especially the second hand market, when customers have tools like Carzone to allow them to compare hundreds of similar models based on price.

    HandsomeDan wrote: »
    The whole resale industry is built on sucking as much money out of the transaction as possible.

    All sales industries are built like that. Even lower price/margin industries do it in the expectation that it will generate larger volumes or market share (thereby sucking more money out of the market).

    HandsomeDan wrote: »
    That's not what they'll be doing with the telsa. Because there are no discounts to be had, they'll have to be shrewder/ more careful with their margins.

    Who are Tesla's competition? Do you really think with their market position that they're a low margin seller?

    Lack of discount does not equal lack of margin.

    HandsomeDan wrote: »
    Look at the list price on the new 6 series. A bs inflated figure designed only to give scope for big discounts.

    What % discount would you expect on a 6 Series in Ireland?

    What about a lower level BMW like a 3 Series?



    P.S. Sorry for letting you let me derail your thread.


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