Below MSRP?

[spectremotorsports]

they have powerful lobbyists.

This is the only bit that matters. Manufacturer owned dealers would employ just as many people, taxes would still be paid, and the car buying process would be less of a headache. Large manufacturers would love to come out and support Tesla in pushing that sales model, but they can't because the lashback from dealers if they lose would be too large.

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[Tim Hilliard]

This is the only bit that matters. Manufacturer owned dealers would employ just as many people, taxes would still be paid, and the car buying process would be less of a headache. Large manufacturers would love to come out and support Tesla in pushing that sales model, but they can't because the lashback from dealers if they lose would be too large.

Actually most manufacturers struggle trying to support their products without 2-3 step distribution. Giving a little profit to a second party that alleviates you from supporting a product over a large geo area is a very solid business model. And do you think a manufacturer could care less if the car went through a website for a purchase vs. a dealer? You Tesla lovers realize that my $33K Mustang would have cost me $37,015 (MSRP) under the wonderful Tesla model? You people seriously disturb me with your logic.

 

[spectremotorsports]

Actually most manufacturers struggle trying to support their products without 2-3 step distribution. Giving a little profit to a second party that alleviates you from supporting a product over a large geo area is a very solid business model. And do you think a manufacturer could care less if the car went through a website for a purchase vs. a dealer? You Tesla lovers realize that my $33K Mustang would have cost me $37,015 (MSRP) under the wonderful Tesla model? You people seriously disturb me with your logic.

You're assuming that the msrp would remain the same under a model that doesn't have middlemen. I would think dealers are factored in when the accountants and analysts come up with MSRP. Assuming it did, I would gladly pay a little more for ease of business and being able to go to any dealer to get the same deal.

 

[chopsui]

Actually most manufacturers struggle trying to support their products without 2-3 step distribution. Giving a little profit to a second party that alleviates you from supporting a product over a large geo area is a very solid business model. And do you think a manufacturer could care less if the car went through a website for a purchase vs. a dealer? You Tesla lovers realize that my $33K Mustang would have cost me $37,015 (MSRP) under the wonderful Tesla model? You people seriously disturb me with your logic.

MSRP includes profit for the dealer. In a direct sales model, the manufacturer wouldn't necessarily set the same MSRP.

Manufacturers probably don't want to own and run actual brick and mortar dealerships, but it would be nice if people who know exactly what they want could order online straight from a dealer. No salesman, no spending an hour or two in the finance office saying no to extended warranties, dent repair insurance, etc., etc.

The problem is that dealers work to actively prevent any other sales model even being tried through the power of law. They and their talk-radio-listening defenders clearly don't in fact believe in the free market.

 

[healntoe]

You're assuming that the msrp would remain the same under a model that doesn't have middlemen. I would think dealers are factored in when the accountants and analysts come up with MSRP. Assuming it did, I would gladly pay a little more for ease of business and being able to go to any dealer to get the same deal.

This too is known as capitalism!

 

[healntoe]

A bit oversimplified don't you think Chopsui?

 

[spectremotorsports]

This too is known as capitalism!

Capitalism implies a free market. If we had a free market Tesla wouldnt be fighting to do business from state to state. BOTH models would be allowed to do business, and the better one, whichever it may be, would win out.

 

[chopsui]

A bit oversimplified don't you think Chopsui?

You'll have to be more specific.

 

[Tim Hilliard]

You're assuming that the msrp would remain the same under a model that doesn't have middlemen. I would think dealers are factored in when the accountants and analysts come up with MSRP. Assuming it did, I would gladly pay a little more for ease of business and being able to go to any dealer to get the same deal.

Fine for you but I like living in America where I have choices and decide how much I want to pay and actually have a relationship with someone who I make large purchases with. #ImNotBuyingGumInTheCheckOutLine Does Tesla accept trade-ins? Do they do creative financing to help people out of upside down deals? Does Tesla have fixed pricing on trades? How did this system that Tesla stole from Saturn work out for Saturn? So you would be happy to pay a 10% rate to borrow money even when you know you could have gotten 1% money? And I am correct in assuming the Manufacturer would not lower the price to consumers because that is how making a profit works, eliminate competition and maximize profits. :headbonk:

 

[spectremotorsports]

Fine for you but I like living in America where I have choices and decide how much I want to pay

Again, with a true free market, you would still have your choices. Allowing one model to exist does not mean the other would instantaneously disappear.

 

[Tim Hilliard]

Again, with a true free market, you would still have your choices. Allowing one model to exist does not mean the other would instantaneously disappear.

:doh: This is the entire basis for everyone's argument! Do you think if Tesla had normal stores that could set their own prices anyone would buy a car from a factory store for more money? Unless I am mis-reading your post this is what you are implying?

 

[FPCV8YO]

Fine for you but I like living in America where I have choices and decide how much I want to pay and actually have a relationship with someone who I make large purchases with. #ImNotBuyingGumInTheCheckOutLine Does Tesla accept trade-ins? Do they do creative financing to help people out of upside down deals? Does Tesla have fixed pricing on trades? How did this system that Tesla stole from Saturn work out for Saturn? So you would be happy to pay a 10% rate to borrow money even when you know you could have gotten 1% money? And I am correct in assuming the Manufacturer would not lower the price to consumers because that is how making a profit works, eliminate competition and maximize profits. :headbonk:

Wonder how they got upside down in the 1st place...

 

[FPCV8YO]

MSRP = manufacturer SUGGESTED retail price. We seem to forget this when a new, highly in demand piece like the GT350 hits the market. Simple supply and demand economics dictates that those who want it most will pay the highest price -- such is true even if one of us jumps at the chance to pay the window sticker price! We all know that in 6 months the market will be stabilized and one can be had at a discounted price.

I say all of this to say why do many get worked up over ADM when this is the pattern that is constantly repeated and realistically it's fair and right. You make a conscious decision to part with your hard earned cash to be first!...or you choose to hold on to your cash and wait. An automobile dealership is a speculative business and many of them barely make it. Most car deals are "mini deals" resulting in a few dollars of GP and every now and then, some money can be made on selling a new car. This while
a dealer hopes to make "stair step" bonus money by stringing together many mini deals (that system varies by franchise) in a month, but if they don't , then they must get creative in the other dealership departments to remain profitable...all while keeping employees paid keeping millions tied up in inventory (car and parts)...and yes, hold back money comes with every deal but that is many times eaten up by interest paid on inventory that sits or is sometimes passed along to a customer to get a deal done. Food for thought when trashing a local dealer who wants to make money on someone who is willing to fork it over to be first!

I've never known of a dealership owner who wasn't a whale.

 

[Tim Hilliard]

Wonder how they got upside down in the 1st place...

Because in a free open market people are allowed to make their own decisions good or bad. Please provide me with the proof that no one has had a Tesla they could not afford or traded it in, lost money and DECIDED to go into something else. You people make no sense with these arguments. I think everyone needs to read Adam Smith before they can wax poetic about how dealers should be allowed to operate LOL

 

[FPCV8YO]

Because in a free open market people are allowed to make their own decisions good or bad. Please provide me with the proof that no one has had a Tesla they could not afford or traded it in, lost money and DECIDED to go into something else. You people make no sense with these arguments. I think everyone needs to read Adam Smith before they can wax poetic about how dealers should be allowed to operate LOL

So, the dealer is going to HELP them out of 1 bad situation into another? Perhaps, even the same dealer.

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