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NADA Is Terrified of Tesla

cartechboy writes It's no secret that the National Automobile Dealers Association has been trying to block Tesla from selling cars directly from consumers, but to date, it has been defeated countless times in many states. Now NADA put out a release and promotional video touting the benefits of dealer franchises, something Tesla has shunned. NADA mentions price competition, consumer safety, local economic benefits, and added value.

455 comments

  1. Speculation... by mythosaz · · Score: 5, Insightful

    While possibly true, it's complete speculation to tie this to Tesla.

    But hey, Tesla gets page views.

    1. Re:Speculation... by Anonymous Coward · · Score: 5, Insightful

      How is it not tied to Tesla? All cars in the US are sold at dealerships, well at least all cars you don't put together yourself that you order from the back of a magazine. Tesla rolls in recently and is the ONLY one not using dealerships. Why would the NADA have to start pimping themselves if people never had an option not to use a dealer? Car dealers are SCUM. They are leaches. Their goal is nothing but to separate you from as much money as they can. Remember that the next time you are sitting at a salesmans desk that is out in the open on the sales floor with a lot of hustle and bustle around, people walking by and they are playing music over the speakers in the showroom relatively loud. There is a reason they do those two things and its not for your benefit. Ask them why that ONE car stock number 7782 that was advertised for 12,888 is not in stock and why the advertised price on another car is $15,800 but that assumes every rebate that you cant possibly get and $5000 down and then another $1000 for a doc fee plus a delivery change of $781. It's not 15,800. Why not just advertise it on your site or the paper for $1000 and add a $18,000 deliver charge? What's the difference? Again they are SCUM. People only kind of like dealers that only do most of those things, it is relative. That is sad. If you like a dealer, it is because you got ripped off and you didn't even know it.

      Helping the local jobs and economy argument is bullshit. If that was the case, let's create dealerships for everything and we will all be rich, all have jobs, and be debt free. Same as the RIAA/MPAA arguments. Money does not grow on trees and people do not have a limitless supply. People would spend the money they spent at a dealer somewhere else, possibly at another local store with local employees. Cars still need to be repaired and parts bought for them, that will still happen with or without a dealership.

    2. Re:Speculation... by fuzzyfuzzyfungus · · Score: 5, Interesting

      While possibly true, it's complete speculation to tie this to Tesla.

      But hey, Tesla gets page views.

      Not really. Tesla doesn't really have the volume (or the low end offerings) to eat the dealerships' bread and butter(except possibly some relatively niche outfits who used to sell a lot more ~100k ICE vehicles to techies made good); but they have been extremely aggressive about 100% company-owned and operated sales locations, and have skirted the laws in various ways ("Information centers" that look sort of like a dealership except that the staff are forbidden to sell you anything, just show you stuff and you can go use that computer over there to buy online if you want...) in states where the dealerships have purchased protective legislation.

      Barring a radical overthrow of the automotive order, Tesla isn't personally going to terminate dealerships; but if their model holds up, persuades lawmakers, survives in court in more hostile states, etc. it can be copied pretty much verbatim by any manufacturer that cares to.

      And the NADA can't exactly be ignorant of how...beloved...a traditional industry it is that they represent. Merely seriously proposing that we could eliminate car dealers, in our time!, probably excites more people than fancy electric cars do. This isn't one of those "Upstart company disrupts traditional business right in the face, laughs" situations where hand-wringing moralists write books about the moral decline and inevitable decadence of our civilization occasioned by the hardships of the traditional business.

    3. Re:Speculation... by demachina · · Score: 4, Insightful

      Tesla's 3rd generation car is supposed to be a mass market vehicle that may disrupt the "automotive order" if Musk manages to build it. The giga battery factory he is looking for a home for is a critical component since it is critical to have enough affordable batteries for a mass market electric car.

      Tesla today wont disrupt NADA, but Tesla in a few years very well may, they know it, so they are trying to nip it in the bud.

      --
      @de_machina
    4. Re:Speculation... by LifesABeach · · Score: 4, Funny

      You didn't mention the plad suits; why?

    5. Re:Speculation... by WindBourne · · Score: 5, Insightful

      Barring a radical overthrow of the automotive order, Tesla isn't personally going to terminate dealerships; but if their model holds up, persuades lawmakers, survives in court in more hostile states, etc. it can be copied pretty much verbatim by any manufacturer that cares to.

      In fact, the ones that they fear is not tesla, but China. If Tesla opens the door this way, then the Chinese companies will come to America in exactly the same fashion.

      --
      I prefer the "u" in honour as it seems to be missing these days.
    6. Re:Speculation... by hendrips · · Score: 5, Insightful

      Indeed, I moderately dislike Tesla generally and Elon Musk specifically, and I'm neutral on both electric cars and luxury cars. Nevertheless, I'm cheering myself hoarse for Tesla in this fight. I'd cheer equally for just about anyone who would make a similar effort to reduce the amount of sliminess involved in car purchases.

    7. Re:Speculation... by dishpig · · Score: 5, Funny

      He couldn't find the 'i'.

    8. Re:Speculation... by whoever57 · · Score: 2

      Not really. Tesla doesn't really have the volume (or the low end offerings) to eat the dealerships' bread and butter(except possibly some relatively niche outfits

      If you consider BMW niche, then yes.

      If I walk round my office car park, I see more Teslas parked here than BMWs. Considering the number of years that BMW has been selling cars, that' s pretty amazing. In all fairness, I should mention that the Tesla factory is just a few miles up the road, so I live in prime territory for Tesla.

      --
      The real "Libtards" are the Libertarians!
    9. Re:Speculation... by Anonymous Coward · · Score: 0

      You didn't mention the plad suits; why?

      And the white shoes and belt. And binaca.

    10. Re:Speculation... by Anonymous Coward · · Score: 0

      Barring a radical overthrow of the automotive order, Tesla isn't personally going to terminate dealerships; but if their model holds up, persuades lawmakers, survives in court in more hostile states, etc. it can be copied pretty much verbatim by any manufacturer that cares to.

      In fact, the ones that they fear is not tesla, but China. If Tesla opens the door this way, then the Chinese companies will come to America in exactly the same fashion.

      I seriously doubt that. You have to figure car manufactures are behind this as well, and something interesting to me, did Tesla give up its patent rights in hopes of getting manufactures and dealers to back off? It is a possibility! Like I said you have the backing of Car Manufactures with their lobbyist bought and paid for laws/regulations you would see some sort of new laws banning car dealers from selling directly to consumers.

    11. Re:Speculation... by Anonymous Coward · · Score: 0

      I think you suffer from confirmation bias. BMW will sell about 2 million cars worldwide this year. BMW's plant in South Carolina produces about ten times more cars than the Tesla plant. The South Carolina plant is one of a dozen or so BMW plants worldwide.

    12. Re:Speculation... by Immerman · · Score: 5, Funny

      But without the sliminess of dealerships, how will we keep the engines lubricated? Sure, we can change the oil regularly, but we all know that even many years later it's still mostly the final remnants of salesman slime that really keep your engine running smoothly. Just look at how many cars, and other goods for that matter, break down as soon as the warranty expires and the last traces of salesmanship finally evaporate. Coincidence? I think not.

      --
      --- Most topics have many sides worth arguing, allow me to take one opposite you.
    13. Re:Speculation... by Anonymous Coward · · Score: 5, Insightful

      I have heard Elon Musk speak on this. His basic proposition is that he has never had a positive dealership experience and he has rarely met anyone that has had a positive dealership experience.

      It is a fairly compelling argument.

    14. Re:Speculation... by Anonymous Coward · · Score: 1

      Doesn't matter. They'll get zip from me. Nada.

    15. Re:Speculation... by drinkypoo · · Score: 0

      In fact, the ones that they fear is not tesla, but China. If Tesla opens the door this way, then the Chinese companies will come to America in exactly the same fashion.

      With what, fucked-over old VWs (well, licensed copies) with non-matching front and back halves? They don't have anything else that will pass the crash tests.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    16. Re:Speculation... by Marxist+Hacker+42 · · Score: 2, Insightful

      Never buy from a man in a suit. A large portion of what you are paying for is the suit.

      --
      SJW: a person who perceives an injustice, and while correcting it, commits a greater injustice.
    17. Re:Speculation... by Anonymous Coward · · Score: 0

      Car Industry Grade D:
      Tesla will win...

    18. Re:Speculation... by DigiShaman · · Score: 3, Informative

      Say what you will about Saturn, but I remember back in the 90s how purchasing a car from the dealership was pretty transparent. The price was hardly obfuscated.

      --
      Life is not for the lazy.
    19. Re:Speculation... by master_kaos · · Score: 2

      I have boughten a total of 3 cars in my life. First was a brand new car and the salesman was your typical slimeball. 2nd car was from a used car salesman fairly slimy. Third guy was fantastic. But he wasn't a salesman, he was more of a general manager. I only got to him by word of mouth. But I was in and out of the dealership in less than 45 minutes and saved a bunch of money

    20. Re:Speculation... by Jeremi · · Score: 4, Funny

      In fact, the ones that they fear is not tesla, but China. If Tesla opens the door this way, then the Chinese companies will come to America in exactly the same fashion.

      Given the product quality and level of support provided by Chinese manufacturers -- if American dealers can't compete against that, then they really don't have any reason to exist.

      --


      I don't care if it's 90,000 hectares. That lake was not my doing.
    21. Re:Speculation... by davester666 · · Score: 1

      you win the internet today.

      --
      Sleep your way to a whiter smile...date a dentist!
    22. Re:Speculation... by Anonymous Coward · · Score: 3, Interesting

      This is exactly the same sort of rubbish that we heard when the first Japanese cars started arriving.

    23. Re:Speculation... by pepty · · Score: 4, Informative

      With what, fucked-over old VWs (well, licensed copies) with non-matching front and back halves? They don't have anything else that will pass the crash tests.

      Volvos will be made in China and exported to the US beginning next year.

    24. Re:Speculation... by TWX · · Score: 4, Funny

      The electric car doesn't need nearly as much grease as there are no reciprocating engine parts to keep lubricated. There certainly are axle and wheel bearings, and possibly some other random bearings, so it should be a lot easier without salesmen-slime. We can reserve that long-lasting grease for the door hinges.

      --
      Do not look into laser with remaining eye.
    25. Re:Speculation... by TWX · · Score: 1

      Cool, I guess I'll go buy ... a ...

      Nevermind...

      --
      Do not look into laser with remaining eye.
    26. Re:Speculation... by TWX · · Score: 1

      Unfortunately a lot of the import dealerships have realized this and switched their employees to company polos. Still equally slimy, just less material to hold it in.

      --
      Do not look into laser with remaining eye.
    27. Re:Speculation... by Anonymous Coward · · Score: 0

      or next years volvo/

    28. Re:Speculation... by Anonymous Coward · · Score: 0

      Car dealers are SCUM. They are leaches. Their goal is nothing but to separate you from as much money as they can.

      They're nothing compared to realtors.

    29. Re:Speculation... by Maxo-Texas · · Score: 3, Insightful

      Look.

      Go to the "internet fleet sales" and get a bid from your local dealers.

      For example, I got 19500, 20000, 22000, and 23500.

      I went in, did the car deal in 2 hours and I was done.

      Could I have gotten the car deal for 19200? Sure. I have a friend who REVELS in doing this. He will spend 3 to 4 hours negotiating with the salesman and then the manager. They think they have him trapped in a room with them-- but actually he has THEM trapped in a room with him. After four hours, he'll still negotiate over the last 12 to 17 bucks. And usually win.

      Dealers serve a purpose. They need a reasonable profit.

      If you seriously want to buy a car amazon style and not get the support of a dealer then more power to you. You may be like my friend (only in a different way).

      Car dealers are just people and they need to earn a living too. And most car sales people earn average or slightly above average incomes.

      But seriously "Internet sales" for the win. Get a bid, no negotiating. You walk in and THAT'S the price you will get. No ripoffs... no talking to the manager.

      --
      She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
    30. Re:Speculation... by kwbauer · · Score: 1

      Just like the local Mickey D / Culvers / gas station owners / whatever franchise owner is a leach? Dealerships are basically the same as any other franchise. You do realize that the BP station down the road is not actually owned by BP, right. Are there problem dealers? Sure. Are all dealers problematic? Nope.

    31. Re:Speculation... by epyT-R · · Score: 2

      boughten?

    32. Re:Speculation... by Anonymous Coward · · Score: 2, Informative

      With what, fucked-over old VWs (well, licensed copies) with non-matching front and back halves? They don't have anything else that will pass the crash tests.

      Oh really?
      http://euroncap.com/results/qoros/3/528.aspx
      https://www.youtube.com/watch?v=J9cakKinONA

    33. Re:Speculation... by Anonymous Coward · · Score: 1

      Money is even more easily created than being grown on trees.

      Indeed, with IT the money supply is limitless.

    34. Re:Speculation... by Anonymous Coward · · Score: 0

      Say what you will about Saturn, but I remember back in the 90s how purchasing a car from the dealership was pretty transparent. The price was hardly obfuscated.

      That purchasing experience is why we bought a 2000 Saturn. 13 years and 238,000 miles later, we finally replaced it (and gave it away to someone in desperate need of a car, since it still worked). I hated doing the "pass me a number" dance for my new car.

    35. Re:Speculation... by AmiMoJo · · Score: 1

      People said the same thing about Japanese cars back in the 50s, and look what happened.

      --
      const int one = 65536; (Silvermoon, Texture.cs)
      SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
    36. Re:Speculation... by stiggle · · Score: 0

      We have dealerships for almost everything else.
      Walmart, Giant Eagle, Kroger, Meijers, BestBuy, Target, Home Depot - all dealerships. You don't buy your corn flakes direct from Kelloggs, you get them through your local grocery dealership. That new hard drive isn't bought direct from Seagate its picked up from BestBuy.

      The difference is the competition - If you don't like the prices at Walmart you can go to Giant Eagle instead. The competition pushes the retail prices down.

    37. Re:Speculation... by Anonymous Coward · · Score: 0

      Their goal is nothing but to separate you from as much money as they can.

      Welcome to capitalism. This little rant describes practically every business out there and most of them are just as ruthless.

    38. Re:Speculation... by Anne+Thwacks · · Score: 2

      Yiou should go to Specsavers: You obviously missed the word franchised which is the crux of the matter. You can buy Kellogs products anywhere, not just from the "franchised Kellogs dealer" who withholds the supply of bowls, spoons and milk until you sign your soul to the devil.

      --
      Sent from my ASR33 using ASCII
    39. Re:Speculation... by AmiMoJo · · Score: 1

      The only down-side to the Tesla model is that you can't negotiate. If you are willing to wait you can often screw the dealerships hard and get a real bargain. Wait for the the right time of year, or when a new model is shipping, or when the registration numbers change (if your country does that). >50% discounts off list price are not unheard of.

      --
      const int one = 65536; (Silvermoon, Texture.cs)
      SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
    40. Re:Speculation... by Anne+Thwacks · · Score: 4, Informative

      It was true when the first Japanese cars came. However, I am guessing they read the reviews and created MITI. Meanwhile the American motor industry was telling the world "American cars are bigger, so they must be better" the real Ford Galaxy (500) was as big as an aircraft carrier, and at least twice as hard to steer (at least here in Europe it was). And with a 500 cubic inch (7 litre) engine it could almost outperform the average European 2 litre model on a strait road, Unfortunately we have not had strait roads in the UK since the Romans left in 530AD.

      --
      Sent from my ASR33 using ASCII
    41. Re:Speculation... by L4t3r4lu5 · · Score: 1

      To beat a salesman, you just need to know what you want, how much you'll pay for it, and be willing to walk away if they say no or try anything funny.

      "Hi. I am out today to look at compact cars with decent mixed use fuel economy, a comfortable ride, automatic gearbox, and a few extras like heated front windscreen and heated seats, and iPod connectivity, and steering controls for the stereo. I have ready access to $XX,XXX; You have 15 minutes to talk to whomever you need to for this to happen. If you've not agreed to it by then, I'm driving the 150 yards to the next dealership. Clock's ticking!"

      --
      Finally had enough. Come see us over at https://soylentnews.org/
    42. Re:Speculation... by stiggle · · Score: 1

      Totally missed the word franchise as its not in this thread, just dealership, so only spoke about dealerships.

      Perhaps you need to visit a reputable optician rather than a SpecSavers franchise.

    43. Re:Speculation... by Rich0 · · Score: 4, Interesting

      I actually went in with a bid from Truecar, and the dealer claimed that the price they quoted included discounts I wasn't eligible for. Never mind that they asked the eligibility questions online and I answered them correctly. I'm sure they violated their agreement with Truecar and what they did was illegal, but I wasn't about to try to fight it especially since they were in another state.

      Still, I got a price much better than I probably could have negotiated. I thought the price they actually quoted was too good to be true, but I figured I was better off starting at a price 30% below sticker and having them talk me up, than starting at sticker price and having to talk them down. I got the price I figured was fair in the first place. I just felt dirty walking out all the same.

    44. Re: Speculation... by therealkevinkretz · · Score: 1

      Coercive laws forbidding direct sale to consumers and requiring they be sokd through dealerships is the *opposite* of capitalism.

    45. Re:Speculation... by drinkypoo · · Score: 1

      Volvos will be made in China and exported to the US beginning next year.

      That ought to work out about as well as VWs made in Mexico, except there's more freight costs involved. I eagerly await their massive failure by disassociation while going down the road. But who's pocketing the money on that one? A lot of the automakers are actually getting paid for the cars built in China this time around, although how much they're getting paid is probably still a point of contention.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    46. Re:Speculation... by peragrin · · Score: 1

      yea and more"Japanese" cars are currently made in America and "American" Cars are made in America.

      --
      i thought once I was found, but it was only a dream.
    47. Re:Speculation... by Chris+Mattern · · Score: 2

      Dealers serve a purpose. They need a reasonable profit.

      If they serve a purpose, they deserve a reasonable profit. For the life of me, I cannot see what that purpose is. Perhaps you can enlighten us.

    48. Re:Speculation... by msauve · · Score: 2

      Boughten is perfectly cromulent.

      --
      "National Security is the chief cause of national insecurity." - Celine's First Law
    49. Re:Speculation... by Beer_Smurf · · Score: 1

      You do realize that lots of cars are now made in Mexico, including GM trucks.

    50. Re:Speculation... by rjune · · Score: 1

      In regard to: "Internet sales" for the win. Get a bid, no negotiating. You walk in and THAT'S the price you will get. No ripoffs... no talking to the manager.

      That's how we bought our last car, except they forgot the doc fee. Our old car was dead and we were in a bind. They stuck us for that, an extra $100. The delivery consisted of here are your keys, good bye!

      Next time I buy a car, I'll be ready to walk as soon as the bull starts. The previous posters are right, most dealers are scum!

    51. Re:Speculation... by Anonymous Coward · · Score: 0

      cars from japan were terrible at one time too. Same with South Korea. How are they now?

    52. Re:Speculation... by dcw3 · · Score: 3, Interesting

      For people who hate negotiating, your method is probably best. But, even the quotes you received were likely gamed by the dealers giving them. Dealers don't work in a vacuum...they know the other dealers, and know what numbers you'll be able to get from them. If you think about it for a moment, the dealer that quoted 23500 would go out of business if he was constantly being undercut by his brethren. So, by giving customers these quotes, they make the customer feel like a winner, and often will take turns.

      As for your negotiator friend, you need to consider the value of your own time. I'm generally in the same boat as him, but I won't try to squeeze them for the last $100...it's just not worth my time. Once the dealership has spent several hours with you, they've already made an investment in time. Walking away from a deal after hours, isn't something they ever want to do.

      --
      Just another day in Paradise
    53. Re:Speculation... by Anonymous Coward · · Score: 0

      I don't need dealers so I don't need their "reasonable profit".

      I need access to service centers if I buy a new ride and want to retain the factory warranty, but I don't need any of the rest of typical dealer infrastrucure and personnel.

      That's one reason I buy used vehicles instead.

    54. Re:Speculation... by DirkDaring · · Score: 1

      Thats how I bought my car as well. Time messing with salesmen doing the 'check with manager' etc BS = 0.

    55. Re:Speculation... by Anonymous Coward · · Score: 0

      Dealers serve as a price inflator, nothing more. There is no value added by a dealer, ever, only price added.

    56. Re:Speculation... by cdrudge · · Score: 1

      Their goal is nothing but to separate you from as much money as they can.

      This differs from EVERY other retail position how?

    57. Re:Speculation... by FictionPimp · · Score: 1

      You can get them to give you a price? Last car I bought I had trouble with that. I see a car I like, ask the cost. I'm told, "That's not how we work here. Let's talk about what monthly payment you would like."

      No thank you, I don't care about my monthly payment. I can do math myself. I want to know how much I'm going to pay for a car. Then I can negotiate on price. Once that is done I'll worry about finding the best deal on a loan.

      I told one dealer the price was too high. His response was to offer a 5 year loan to lower my payments....

    58. Re:Speculation... by Anonymous Coward · · Score: 0

      we said the same thing about the japanese 30 years ago.

    59. Re:Speculation... by Entropius · · Score: 1

      Many businesses have figured out a business model such that being nice to their customers aids in separating them from their money, because they tend to come back.

    60. Re:Speculation... by Entropius · · Score: 1

      I had one of the early ones, a '94 SL2. It was a great car and ran fine, although somewhere north of 115k miles when the odometer died the engine started randomly eating oil. I understand many of them from that era did the same.

      Did I mention the odometer died? So did the gas gauge (intermittently). The water pump died when a thermostat malfunctioned and caused it to overheat. The AC died when a pressure sensor died and the compressor blew itself up.

      Basically, it's a great car, except the engine's taste for oil and the random-ass failures of everything electronic in the whole damn car.

      Oh, and you could unlock it with a screwdriver and start the engine with same. Mine disappeared and did a two-month stint bringing cocaine back from Mexico. (The police found it abandoned -- apparently the smugglers got fed up with driving stick, because they'd managed to break the mechanical linkage between the shifter and the transmission. Or maybe they wanted A/C in the desert -- amateurs. The cops told me to "go get it detailed and don't smell the white powder ground into the carpet.")

    61. Re:Speculation... by Bacon+Bits · · Score: 2

      If they actually provide a service that people need, then why are they so afraid of direct sales? It seems to me that, like home realtors, car dealerships ought to be perfectly capable of functioning in a mixed market.

      --
      The road to tyranny has always been paved with claims of necessity.
    62. Re:Speculation... by Thud457 · · Score: 1

      Elon Musk wants to put a man on Mars by 2026.

      But what he's not telling us is that man is the President of Earth, and he wants 100 Billion dollars to give him back.

      Are you BAD enough to rescue the President from Mars?
      Bad Dudes 2026.

      --

      the preceding comment is my own and in no way reflects the opinion of the Joint Chiefs of Staff

    63. Re:Speculation... by Lluc · · Score: 1

      Volvos will be made in China and exported to the US beginning next year.

      *one* model of Volvo will be made in China and exported to the US late 2015. This model is the S60L, which is currently only built in China for the Chinese market. I've read about no other models coming to the US. I'm sure they will come eventually, though. If it wasn't for Geely (Volvo's owner), the company would probably heading for the same fate as Saab given their shrinking market share.

    64. Re:Speculation... by Anonymous Coward · · Score: 0

      By all means haggle but 4 hours of his life to save $17?

    65. Re:Speculation... by Anonymous Coward · · Score: 0

      A car manufactured in China is not the same as a car manufactured by a Chinese company. Compare the iPhone to something from Hauwei.

    66. Re:Speculation... by s122604 · · Score: 4, Insightful

      Sigh

      Nobody is saying that there can't be franchised dealerships. If that is the way a company wants to organize its distribution chain, fine..
      The issue is that car dealers, slimebags that they are, are trying to use the legal system to force all businesses, whether they want to organize that way or not, to follow that model.

      The reason for this is quite clear (at least to me it is), and it has nothing, absolutely nothing to do with any altruistic purpose (keeping costs down, protecting the customer, or some such bullshit). Its all about using the force of government to protect their racket. They realize, quite accurately, that Tesla's model would threaten to remove a lot of the zero-value-add profit that gets extracted by the dealer from the consumer.

      It's not a hard point to understand, unless you are determined not to understand it.

    67. Re:Speculation... by Anonymous Coward · · Score: 0

      As someone who worked as a car salesman for years, "most car sales people earn average or slightly above average incomes" may be true - but I find it to be inaccurate based on the hours you're required to work. Most dealerships (GM brands and Nissan) pay their sales reps between 1,800 to 2,500/mo (US) and require them to work 65+ hours/week (9am through 9pm Mon-Sat). You only make beyond the base salary when your commission on used car sales reaches beyond what your base salary is; new cars contribute towards this also but are called "minis" and only add toward that balance in amounts of $100-200. So, if you only sell new cars at $200 per car you have to sell at least 10 cars before you can make beyond your base salary - something that only the top 10-25% of car salesman at any given dealership tend to do.

    68. Re:Speculation... by dj245 · · Score: 2

      This is exactly the same sort of rubbish that we heard when the first Japanese cars started arriving.

      Different cultures. Don't assume that just because they are neighbors, Japanese products and Chinese products have the same potential. Japan has a long history and culture of quality and craftsmanship, and these are values which show in their products and services. In Japan people do a good job for the sake of doing a good job. I'm not as familiar with China but when I traveled there, I constantly felt hustled and that people were trying to take advantage of me. Their culture will gladly screw you over to make a dollar.

      --
      Even those who arrange and design shrubberies are under considerable economic stress at this period in history.
    69. Re:Speculation... by idontgno · · Score: 3, Insightful

      Their purpose is to earn a reasonable profit, for any definition of "reasonable" that translates to "as much as I can get away with".

      This is capitalistic economics: "What the market will bear".

      --
      Welcome to the Panopticon. Used to be a prison, now it's your home.
    70. Re:Speculation... by Anonymous Coward · · Score: 1

      Middle men are market inefficiencies.

      Clearly we should have the government mandate that the buyer must hire an independent authorized vehicle transport to drive the car from the dealership to their home, and a separate independent authorized key transfer agent to hand the key to you. It's no different than requiring that the buyer buy from an independent dealer.

    71. Re:Speculation... by Anonymous Coward · · Score: 0

      "Car dealers are just people and they need to earn a living too."

      This is very true; but as history is showing us - we love getting stuff cheaper, and at some point - that cuts out the middlemen.

    72. Re:Speculation... by Anonymous Coward · · Score: 0

      given how much it costs to ship a car from china to the US, it would be cheaper to build a car in Mexico or Central America, and then transport it here via train. Either that or use bots and build it in Mississippi or Kentucky.

    73. Re:Speculation... by gauauu · · Score: 2

      Boughten is perfectly cromulent.

      <grammar police>That site lists it as an adjective. He used it as a verb. I don't think that qualifies as cromulent in that case.</grammar police>

    74. Re:Speculation... by Applehu+Akbar · · Score: 2

      You could also try a car buying service, such as the free one that AAA offers. You specify what you want, and the service goes out and finds the car. And because it was bought through the conventional network, you can still get dealership service in your town after the purchase.

    75. Re:Speculation... by ultranova · · Score: 1

      This differs from EVERY other retail position how?

      Most retailers do it by making themselves the attractive option, rather than use law to make themselves the only option.

      Steam or GoG.com aren't going to sue indie developers for selling directly to me. Nor are stores going to sue bakeries, should one keep a bread counter open. They don't have to; they provide sufficient convenience to consumer and producer alike to get their share of business fairly. That auto dealers don't, according to their own judgement, should tell everyone everything they need to know about them.

      --

      Forget magic. Any technology distinguishable from divine power is insufficiently advanced.

    76. Re:Speculation... by Anonymous Coward · · Score: 0

      The problem for some of us with "no-haggle" dealers like Saturn and Carmax is that everyone pays the same price no matter how much research we do or how obstinate we are. With haggling dealers, I always pay less than average (though I'm sure not nearly as much less as some shrewd buyers), because I've done some research on current demand and supply, manufacturer's suggested and competitors' pricing, the equipment, and how the particular dealer has been known to do business. Do I want to haggle over a can of soup? No, not worth my time. But for a $20k+ car? Absolutely, regardless of how annoying a process it can be.

    77. Re:Speculation... by eth1 · · Score: 2

      Dealers serve a purpose. They need a reasonable profit.

      If they serve a purpose, they deserve a reasonable profit. For the life of me, I cannot see what that purpose is. Perhaps you can enlighten us.

      Overcharging for maintenance, and conveniently collecting large numbers of scummy sales droids into one location where they can normally be avoided.

    78. Re:Speculation... by Maxo-Texas · · Score: 2

      A central, local point of contact.
      A specialist in the legal issues around buying a car.
      Mechanics trained in a particular brand of car supported by a shop with the proper tools and materials.
      Live, human customer service.
      A central, local place to buy accessories for the car.
      Someone to keep track of maintenance and remind me when it's time so I don't overlook it and damage the car.
      Someone local to do recall repairs if they are needed.
      Someone I can trust more than "Rick" at the local garage to have standard pricing.
      Someone who I can purchase a car warranty from who will honor that car warranty consistently.
      Someone I can be sure will use legitimate parts to repair my car. (at least for the last 14 years)

      Just off the top of my head.
      Mainly- once I *own* the car, having a dealership gives me peace of mind.
      And since my buying experience isn't stressful, it's nice to have someone local to see for a couple hours, get all the paper work done, and resolve the multi-thousand dollar transaction in a consistent and safe manner.

      --
      She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
    79. Re:Speculation... by Anonymous Coward · · Score: 0

      They serve the purpose that any middleman serves, which is convenience. A middleman can aggregate a number of products from different manufacturers, negotiate better bulk pricing from the manufacturer, provide better local service...

      Never mind.

      (captcha is 'services')

    80. Re:Speculation... by drinkypoo · · Score: 1

      You do realize that lots of cars are now made in Mexico, including GM trucks.

      You do realize that I wouldn't drive any of that shit, which is all garbage, unless it was free. Especially GM trucks. Ford may do everything upside down and backwards, but at least they use enough metal. I haven't been "excited" about a truck since say 1998 or so, until the 2015 F-150. And I'm not about to rush out and buy one, it just seems to represent finally a modern attempt at building a truck.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    81. Re:Speculation... by Maxo-Texas · · Score: 4, Insightful

      Firstly, I don't think car dealerships should be legally protected. So we are in agreement on this point.

      However....

      Best Buy should have been perfectly able to function in a mixed market. But instead people use them as a show room- look at the products, and then buy online.

      The second is probably a better model. Customers test drive and look at the cars at a dealership and then buy them from the non-dealerships. And then probably try to get support from the dealerships.

      The same thing is true for crafting and several other fields. The biggest thing we lose is customer service. Man- you look at the shows from the 50's and customer service levels were 10x what they are now. Department stores literally had an employee at every counter.

      By squeezing out the profits- we lose customer service and employment opportunities. It's like the reverse of a virtuous cycle. The end is everything automated and online with very few humans. I don't see what's going to stop it.

      --
      She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
    82. Re:Speculation... by Maxo-Texas · · Score: 2

      Lol-- not quite.

      He could get the same car I got for $19,000 for $18,673 for four hours of his life.
      He starts at a higher price- negotiates through the "no haggle price" and that last $17 is at the end.

      Plus-- he's not doing it to save money. He's doing it because haggling like that is one of the most entertaining things he can imagine doing. He loves every minute of it. He even haggles for his brother's cars so he can do it more often.

      --
      She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
    83. Re:Speculation... by Maxo-Texas · · Score: 1

      That's terrible. My stepdad used to make $2000 per month back in 1976.

      Did a little googling and the "average" seems to vary between $42,000 (glassdoor.com) to $63,800 (wsj.com). I'm betting there are geographical cost of living differences.

      --
      She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
    84. Re: Speculation... by Anonymous Coward · · Score: 0

      I can't stop laughing. Thanks!

    85. Re:Speculation... by Maxo-Texas · · Score: 1

      LoL. If the point of negotiating wasn't to save money, he would pay them money to negotiate. It's one of the most entertaining things he can imagine to engage in a long tense negotiation. And that last $17 is the entire point since that is where he breaks them and he wins.

      --
      She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
    86. Re: Speculation... by Anonymous Coward · · Score: 0

      Did they try the "four corner" carny trick on you? Car salesmen use that a lot to confuse price with monthly payments.

    87. Re:Speculation... by Anonymous Coward · · Score: 0

      In the Philippines the Chinese cars are sold right off the docks, no dealership at all. Japanese cars, too. You go to the port and buy them right off the ship. Cheap. Who really needs a "dealership"?

    88. Re:Speculation... by BasilBrush · · Score: 2

      Customers test drive and look at the cars at a dealership and then buy them from the non-dealerships. And then probably try to get support from the dealerships.

      This is not an issue with regard to Tesla. There are no dealerships, so the only company you can get test drives from is Tesla themselves.

      Likewise support and service comes from Tesla. I believe they use local third parties in some cases to deliver their service. But it's Tesla themselves that you are dealing with.

      Altogether a far better experience than scummy dealerships.

    89. Re:Speculation... by tlhIngan · · Score: 1

      The only down-side to the Tesla model is that you can't negotiate. If you are willing to wait you can often screw the dealerships hard and get a real bargain. Wait for the the right time of year, or when a new model is shipping, or when the registration numbers change (if your country does that). >50% discounts off list price are not unheard of.

      You know, you can't negotiate on most online sales either too. Do you haggle with Amazon.com when you want something? Or do you just click "Add to cart"?

      And yet, Amazon.com is extremely popular.

      And right now, Tesla's got a 3 month waiting list. Used Teslas sell for more than retail price. So I'm not exactly sure if waiting would get you anything, other than next year's model.

      Plus, dealerships offer the discounts because they have inventory - and inventory not moving is cash that's flying out the door (takes space, depreciates, etc). So by offering discounts they hope to convert inventory to cash (or just meet current cashflow needs - it doesn't have to be for profit - sometimes it's just better to convert it to cash to pay bills).

      Direct sales don't usually have inventory - you purchase and they build it. Or they have very little inventory sitting around, enough to cover the period between shipments.

    90. Re:Speculation... by Anonymous Coward · · Score: 0

      If you seriously want to buy a car amazon style and not get the support of a dealer then more power to you.

      Since when do dealers provide support? My experience with multiple dealers has been absurdly inflated prices for basic mechanic service and bogus charges for failing to fix things they are supposed to be the experts at. More than once my family members and myself have been taken to the cleaners by a dealer trying to get a problem fixed. They'll charge for one repair after another only to have you keep coming back because they never fixed the problem to begin with.

    91. Re:Speculation... by BasilBrush · · Score: 1

      Just like the local Mickey D / Culvers / gas station owners / whatever franchise owner is a leach?

      They are transparent. The price of a Big Mac is advertised at the store, and that's the price you pay. The price can vary by location, but can see that up front and decide.

      Every car dealership starts with a lie. The sticker price is not what you pay. You have to talk to a liar for hours to get the true price. Even then, you can't be sure you got down to the true price. Which means that true price competition can't operate.

    92. Re:Speculation... by torkus · · Score: 4, Interesting

      What part of this CAN'T you get if the manufacturer runs the showroom?

      --
      You can get rich if you own a politician, but you have to be rich to buy one in the first place.
    93. Re:Speculation... by torkus · · Score: 1

      >50% discounts off list price are certainly unheard of in the US. Well unless the car is used :)

      The lack of ability to negotiate isn't unique to direct sales. Saturn used to do fixed pricing and IIRC there was one or two others that did the same (again, in the US).

      Consider the opposite though...a car with limited availability that's in demand can, and will, be sold above sticker price - much less invoice. Dealerships are just butt hurt that they can't get in on this and scum their way into extra profit.

      Tesla has no need to run silly sales and promotions like other manufacturers (you'll note that the DEALERSHIPS aren't offering these promotions themselves) or worry about having stock levels too high. They're selling em as fast as they can make em.

      --
      You can get rich if you own a politician, but you have to be rich to buy one in the first place.
    94. Re:Speculation... by Anonymous Coward · · Score: 0

      Why the fuck did you reward their dishonesty by purchasing from them anyway? I would have walked out, bought the car at a competing dealer, and faxed them the sales slip when I was done to prove they lost a sale. Not to mention reporting them to my state's attorney general and truecar.com.

    95. Re:Speculation... by JohnFen · · Score: 1

      You bought a car from a dealership and it wasn't stressful? I envy you. My experiences with dealerships have been nothing but horrible. So bad that I refuse to do it anymore. I now buy my cars used from individuals. It's a million times better and less stressful than hassling with a dealer.

      I also have every benefit on your list -- no dealer needed. Most of those benefits come from my auto mechanic. Wait, I lied -- I don't have this one: "A specialist in the legal issues around buying a car", but it's not needed. The legal issues around buying a car aren't so complex that a specialist is required.

    96. Re:Speculation... by Anonymous Coward · · Score: 0

      The quality of Volvos will tank, I guarantee it. If it doesn't, the cost of keeping their Chinese plants "honest" will negate a lot of their savings.

    97. Re:Speculation... by torkus · · Score: 1

      I totally agree with you on shopping based for total price and it drives me nuts when the dealerships try to talk around it. I usually throw up my hands and tell them I'm going to read their worksheet from the bottom up. You start with the total $ and then show me what went into it. I usually only have to get up and put my coat back on once or twice before they stop with the games.

      With that said...many people do NOT buy cars like you or I. Many people live check-to-check so the monthly payment has to work into their monthly budget and it's the only immediately relevant number to them. Sad but true and it's how people wind up getting ripped off at dealerships.

      --
      You can get rich if you own a politician, but you have to be rich to buy one in the first place.
    98. Re:Speculation... by JohnFen · · Score: 1

      And that last $17 is the entire point since that is where he breaks them and he wins.

      This is the aspect of negotiation that makes me HATE negotiation. I just want the damned car (or whatever). I'm not interested in playing some sort of game where one of us wins and the other loses. It's one of the reasons I avoid dealers like the plague -- they price expecting that haggling will be done, which gives me a choice between two awful things: overpay for the car or engage in that stupid, unpleasant haggling "game".

    99. Re:Speculation... by JohnFen · · Score: 1

      "Best Buy should have been perfectly able to function in a mixed market. But instead people use them as a show room- look at the products, and then buy online."

      If Best Buy wasn't incredibly overpriced and a bit sleezy, they might might be able to land more of those sales.

    100. Re:Speculation... by torkus · · Score: 1

      I sincerely, wholeheartedly hope they DO disrupt NADA and the automotive industry as we know it.

      Plus it's hilarious watching a PSA written to 'teach' things basically everyone knows are complete BS. It amazes me that people can say these things without dying laughing.

      --
      You can get rich if you own a politician, but you have to be rich to buy one in the first place.
    101. Re:Speculation... by Anonymous Coward · · Score: 0

      What you recommend is basically equivalent to the retarded move known as "paying sticker price".

      It's not that hard to find the honest-to-god, rock-bottom invoice price of any vehicle on the internet. Do it. Call it "item #1".

      It's also not hard to find a list of all current promotional deals, both for dealers and for buyers. Do that too. Call these "item #2".

      Now get out your calculator (or your brain) and first sum up all of the sub-items in #2 that you're eligible for. You might have to try a few combinations to get the biggest total. Then subtract that number from #1. Now take the result of that and multiply by 1.05. No more, no less. Call this "the only amount I will pay any dealer anywhere ever for this car".

      Now assess your trade-in for the amount you want them to pay. Keep this number separate.

      Now go to a dealership. Test drive the car because the (otherwise useless) salesman will get pissy if you don't. Tell them your price. Refuse to budge even an inch. Take care of the purchase price for the new car first. Don't even talk about a trade-in yet. If they won't give you the price you're requesting, go to another dealership, because, hey, the NADA likes to tout "price competition" as a benefit of their racket, so use it against them.

      Once you've gotten the price you want on the new car, now it's time to talk about selling your old one. Get the price you want from your old car. Call it "old car sales amount". Now demand that as credit at the dealership. Subtract "old car sales amount" from "the only amount I will pay any dealer anywhere ever for this car" and that's the amount you have to pay the dealership. Pay them with a cashier's check from your bank. Yes, that means you will need to handle financing through your bank. This is far better than getting pillaged by manufacturer financing and the fees they tack on to give the dealer a kickback for finding another sucker.

      The dealership will (omni)loathe you by the end of this process, but you'll get a car without getting your finances ass-raped by an NADA member.

      Your alternative is to buy a Tesla, who sells their cars without any leeway for haggling, but also without the ridiculous baggage of a jackass middleman. When lawmakers extract their collective heads from their collective asses and make this the normal way to buy a car, it'll be better for everyone except middlemen. And middlemen are really just a rent-seeking drag on the economy anyway, so fuck 'em.

    102. Re:Speculation... by JohnFen · · Score: 1

      The only down-side to the Tesla model is that you can't negotiate.

      That's an upside.

    103. Re:Speculation... by cyberchondriac · · Score: 1

      Just stop with the common sense already. That leaves little room for outrage, hyperbole and overreaching capitalism bashing. You're no fun.
      That said, it is important to shop around for the right dealer, there are a lot of scumbags out there.

      --

      Look back up at my post, now look back down, you're on the Internet. Now look back up. I'm a signature.
    104. Re:Speculation... by Anonymous Coward · · Score: 0

      Apple and Samsung both make their phones and tablets in China. Nobody would argue the build quality of both companies products are top-notch.

      China CAN, in fact, make good products. Take a look at ham radios. Two generations ago it was dominated by American manufacturers. Then, starting with the last generation, formerly unknown companies like Yaesu and Icom began to dominate with Japanese-built radios. At first, the radios were a bit quirky and took some getting used to, but now they are far and away the best on the market.

      Guess what's happening right now? Chinese manufacturers such as Baofeng (or whatever the hell they want to be known as this week) are at the "cheap but quirky" phase. As they learn what works and what doesn't, and grow in size and can create a proper American distribution channel the documentation will improve and future models will be less quirky. It's already started with them.

      Tomorrow's Chinese products, in theory, could meet the Western world's standards for quality very quickly. After all, they've been building crap to our specifications for a while now, so it's not like they don't know what to expect. At the moment, Chinese brands are focusing on price (because that's a great "product differentiation" for an unknown brand) but once they get their foot in the door, watch out.

      Samsung has gone from a second-tier Korean manufacturer with some quirky builds to being a "best-of-breed" manufacturer in many areas. The press constantly toots the horn that Samsung is "the new Sony". Next generation might be dominated by a Baofeng or a ZTE.

    105. Re:Speculation... by torkus · · Score: 2

      How dare he spend time and effort and money to resolve a problem he's personally experienced?

      I'm sure there are millions of customers satisfied by their experiences at dealerships. They did just fine so it's clearly just him having an unreasonable expectation. maybe it's a childhood trauma manifesting itself and causing him not to properly appreciate the dealerships. It's totally unreasonable - and obviously should be explicitly illegal - that Elon dare make a change to this. I mean...think of the children!

      While we're at it, we should make it illegal to go from point A to point B in a straight line as well. Shortest distance my ass....

      --
      You can get rich if you own a politician, but you have to be rich to buy one in the first place.
    106. Re:Speculation... by Anonymous Coward · · Score: 0

      See, i've had the same car for 10 years... well past their warranties, and it runs as well as it did when it first rolled off the lot. How did I manage this feat you ask? Well sit down and I shall tell you, young'in. See every 3 years I go back to my dealership, on a night in which the moon is at its fullest. As per my contract, the salesmen will dance in a half circle around the bare metal of my engine, rejuvenating it with saleslime.

      Moral of the story: be a good negotiator, salesmen will always revel in the chance to get their mitts on your car. :)

    107. Re:Speculation... by Maxo-Texas · · Score: 1

      I did a lot of retail business with Best Buy from 1996 to at least 2008 and I *never* *ever* got the feeling they were "overpriced" and "sleezy".

      They run a 2.55% profit margin and their management is not taking home ridiculously inflated salaries being somewhere around 355th and 452nd in executive compensation salary rankings.

      Their prices reflect having local customer service, paying taxes, shipping of products, maintaining inventory and paying inventory tax, paying for air conditioning and heating, and paying rent on the brick and mortar location.

      I no longer do business on a regular basis with Best Buy because I stopped buying DVD's when I realized I wasn't rewatching them that often and I've had the same computer, TV, and blue ray players for years.

      I did buy my ROKU HD there last year. The price was in line with the rest of the market- a salesperson showed me where they were, asked if I had any questions, and then didn't stay to pester me.

      I guess you've had bad experiences with them. That's too bad.

      --
      She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
    108. Re:Speculation... by Maxo-Texas · · Score: 1

      Oh, I thought you were talking about tesla's model to essentially order online and then have it shipped to the customer.

      I.e.
      www.teslamotors.com/own
      Tesla Motors
      You don't need to be near a store to order a Tesla - just use the online order form to reserve a Model S or start the Roadster purchasing process.

      I have no preference between a manufacturer and a "dealer" in particular running the local location and/or show room. Either way, paying a lease or mortgage on all that land and property tax on it, and inventory tax on the cars, and salaries to employees is going to make a car with a local presence (be it run by a dealer or by the manufacturer) more expensive than one lacking these factors.

      --
      She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
    109. Re:Speculation... by Anonymous Coward · · Score: 0

      Even better for them, it lets them know you are going to finance and by financing you, they end up with more money overall. Plus, by starting with what you can afford a month, they are hoping that you (not knowing the math beforehand) throw out a payment that buys you a more expensive car.

    110. Re:Speculation... by Maxo-Texas · · Score: 1

      Wait until you get a car from a local person that turns out to not have a good title- or was in an accident and reconditioned. Talk about stress.

      Plus- I prefer to buy a new car and a car warranty.

      As I said above- internet bidding is VERY low stress and laying an 8 year warranty over the top of that erases stress. I keep my cars a long time (or until a high school student totals them from behind).

      You send emails to the internet/fleet sales manager and say, "I'm going to buy a new car, Model & Make X with these features. What's your best no negotiation "walkin/drive out" price?" I've done it three times now and it was always wonderfully stress free.

      --
      She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
    111. Re:Speculation... by Maxo-Texas · · Score: 1

      On the time thing-- I had a friend who was going to go and spend 3 to 4 hours of his time arguing over the $20 court administration fee on a ticket while everyone was going to get together for gaming.

      First, I said "dude, at your salary rate the hours you are spending are ridiculous to the money you might save."

      Second, I said, "Tell you what- I'll GIVE you $5 if you just pay the ticket."

      And finally, I found the relevant state law section and found that the administrative fee was in the law- AND what the court charged him was probably wrong. The Admin fee for no license sticker is $20-- but the admin fee for no registration sticker is $10. So he had a case for $10 savings.

      But the law also said, "the court may forgive the ticket and apply an admin fee of up to $10". Note the "MAY". If he went to argue it- the court could have legally said, "Oh, you are right. But tell you want. You don't have to pay the admin fee at all because we are not going to forgive your ticket."

      He paid and I told him he did the right thing instead of taking the opportunity to rag on him. Money spent in the service of a friend's happiness is no vice. Best 5 bucks I've spent this year so far.

      --
      She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
    112. Re:Speculation... by Anonymous Coward · · Score: 0

      Walking away from a deal after hours, isn't something they ever want to do.

      Which is why you should.

      AC

    113. Re:Speculation... by Maxo-Texas · · Score: 1

      Hmm. Mine have been honda dealerships. Perhaps that's the difference?

      --
      She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
    114. Re:Speculation... by Anonymous Coward · · Score: 0

      It's not about the current state of Tesla, so much as not allowing the precedent to be set for what Tesla may grow into, plus future startups.

      Note, the New Jersey law only allows exceptions for companies existing prior to 2014, i.e., only Tesla. Thus slamming the barn door back shut.

      Sunny Guy

    115. Re:Speculation... by JohnFen · · Score: 1

      Wait until you get a car from a local person that turns out to not have a good title- or was in an accident and reconditioned. Talk about stress.

      Not stressful at all, because I can, and do, easily run title and accident checks and get exactly the same information that a dealership would have. Plus, I don't have to worry that the dealership is withholding important information.

      As I said above- internet bidding is VERY low stress and laying an 8 year warranty over the top of that erases stress.

      Warranties don't decrease my stress level at all -- they merely increase the sense that I've just got ripped off. But that's a personal issue. In any case, you may find the internet bidding process to be low stress, but that certainly isn't true for everybody. The stress comes from interacting with a dealership, and internet bidding doesn't eliminate that.

      I keep my cars a long time (or until a high school student totals them from behind).

      As do I.

    116. Re:Speculation... by JohnFen · · Score: 1

      All I know is that literally every item I've priced at Best Buy can be had from other retailers for at least half the price, and when I have gone into Best Buy I have always been pressured to buy stuff I don't want.

      The "sleazy" part pretty much comes from the Geek Squad, which is a pure ripoff operation.

    117. Re:Speculation... by Anonymous Coward · · Score: 1

      How is Volvo not a car manufactured by a Chinese company?

    118. Re:Speculation... by painandgreed · · Score: 1

      This is exactly the same sort of rubbish that we heard when the first Japanese cars started arriving.

      Different cultures. Don't assume that just because they are neighbors, Japanese products and Chinese products have the same potential. Japan has a long history and culture of quality and craftsmanship, and these are values which show in their products and services. In Japan people do a good job for the sake of doing a good job. I'm not as familiar with China but when I traveled there, I constantly felt hustled and that people were trying to take advantage of me. Their culture will gladly screw you over to make a dollar.

      Different cultures, sure, but I'm not so sure how long that history and culture of quality and craftsmanship really is. Reading the record of the Japanese prince's trip around the world to study culture and what to bering back, one of the things that surprised me was the claims of America and Europe's culture of quality and workmanship and how Japan should emulate them. Stating that Japan didn't have such a culture but should adopt one in order to moderize.

    119. Re:Speculation... by Rich0 · · Score: 1

      Why the fuck did you reward their dishonesty by purchasing from them anyway? I would have walked out, bought the car at a competing dealer, and faxed them the sales slip when I was done to prove they lost a sale. Not to mention reporting them to my state's attorney general and truecar.com.

      Simple - by the time you get far enough to realize what they're doing you've already invested a considerable amount of time. Additionally, I tend to drive cars until they are basically dead, and that was the situation I was in, so I didn't really want to deal with delaying another day with another dealer who might or might not do the same.

      I was tempted though.

    120. Re:Speculation... by Anonymous Coward · · Score: 0

      [deletia..]
      Car dealers are SCUM. They are leaches. Their goal is nothing but to separate you from as much money as they can. Remember that the next time you are sitting at a salesmans desk that is out in the open on the sales floor with a lot of hustle and bustle around, people walking by and they are playing music over the speakers in the showroom relatively loud. There is a reason they do those two things and its not for your benefit.

      [yet more deletia...]

      Same as the RIAA/MPAA arguments. Money does not grow on trees and people do not have a limitless supply. People would spend the money they spent at a dealer somewhere else, possibly at another local store with local employees. Cars still need to be repaired and parts bought for them, that will still happen with or without a dealership.

      I couldn't agree more. Both the music industry (which I used to work in and despise) and car dealerships have the same issue. They provide no value to the consumer. PLENTY of value to the manufacturer and their own bank accounts, but NONE to the buyer.

    121. Re:Speculation... by Anonymous Coward · · Score: 0

      With things like the Quoros 3, which got one of the best crash scores of any 4-door sedan in 2013.

    122. Re:Speculation... by Pascoea · · Score: 1

      How about we just get the gov't out of the way? If a company chooses to sell their cars directly from a website, or a gallery, or a dealership then that is their prerogative. If their chosen distribution model isn't what the consumer wants then they either adapt the model or they go away.

    123. Re:Speculation... by nolife · · Score: 1

      Wait until you get a car from a local person that turns out to not have a good title- or was in an accident and reconditioned. Talk about stress.

      You look at the title before you buy it. If you bought a car with no title or a recon, that was your own fault, anyone can EASILY avoid that situation with a 5 second look at the title. Unless the person forged the title but that is another issue.

      --
      Bad boys rape our young girls but Violet gives willingly.
    124. Re:Speculation... by Anonymous Coward · · Score: 0

      A dealer is an outsourced distribution channel (from the car maker point of view). Also, a dealer can bundle up sales services with additional services that a manufacturer don't typically offer, like collision center, repairs/maintenance, etc. all these services available also for other brand(s) than what they sell

      A dealer knows the local market better, can react quicker to changes in the market conditions, can bundle up to sell few brands from one or multiple car makers, etc., some also sell (certified) used cars, etc. In that sense, a dealer can be a mini total auto market, offering products and services beyond just selling new cars from brand X. I do all my auto business (buying/leasing, maintenance, repairs, state inspections, etc.) with one dealer for convenience (time is the most important for me, within the budget that I have established myself).

      Tesla with their high margins and low sales volumes today (compared to the big makers) can see little savings from outsourcing their sales to dealers. But the economics look different in the much larger smaller margin "classic" consumer market.

      P.S. The (Fortune 200) company I work for offers "factory prices" discounts for employees. I can show up in any Ford dealership and I can buy any Ford model on a pre-determined "factory" price (in fact negotiated price between my company and Ford), with the dealer being nothing else than the boy who gives me the keys and do the paperwork for Ford.

    125. Re:Speculation... by DigiShaman · · Score: 1

      96 SC2 with a failing rear main seal. That, and the hastings rings were known to be crap. In addition, I had to change the camshaft cover seal. That seal turned into brittle "plastic"; I can only imagine how the rest of the seals were.

      Basically, I liked the car when it was new. The engine however used poor materials.

      --
      Life is not for the lazy.
    126. Re:Speculation... by Maxo-Texas · · Score: 1

      It's more likely with private individuals.

      For example:
      http://forum.freeadvice.com/au...

      I was looking for a used car, found one one craigslist. Got a cashiers check to pay for it received the car and title payed with the check. Tried to get a temporary tag from the dmv but the car was never registered to the guy i got it from. The title he had was still from where he bought it from someone else. So needless to say i couldn't get the tag. I put a stop payment on the check and just want out of the deal. Now he won't take the keys and title back. What are my options? Am i just out of luck?

      http://www.cnbc.com/id/1012508...

      ---

      But basically, we have different priorities. You feel this isn't stressful. I would find having to validate the title to be stressful.

      I know some people say warranties don't make sense. I buy them on my large purchases and have a repair warranty on my house. Insurance *never* makes sense on an individual basis unless you "lose" the gamble.

      I've had good luck with warranties. Most have been close to break-even. One was ridiculously profitable for me. So I may like them more than some people.

      --
      She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
    127. Re:Speculation... by Maxo-Texas · · Score: 1

      I haven't had to deal with the geek squad.

      As for pricing "Half the price" sounded like hyperbole so I checked and...

      Best Buy.: Roku 2 $69.99
      Best Buy: Roku 3 HD Sale: $89.99

      Amazon: Roku 2 $68.00 free Prime Shipping. (this is $1 cheaper)
      Amazon: Roku 2 $50 + $5 Shipping. (this is $14 cheaper)
      Amazon: Roku 3 HD $92.99 free PRIME shipping (this is $4 more)
      Amazon: Roku 3 HD $88 +$5 PRIME shipping = $93. (this is $4 more)

      A scan of other products (lego movie $15b vs $15a vs $14(cheapest vendor with shipping thru amazon) finds a similar set of fairly close prices. In some cases Best Buy is cheaper. In some cases one vendor including shipping thru amazon is cheaper than amazon or best buy (Amazon itself is usually about the same price as Best Buy or even higher).

      Now- for Best Buy - I have to spend $3 to $6 on gasoline to go to and from the store. For Amazon I have to wait 2-3 days to get the product.

      Other than the geek squad, I don't see a reason for the intensity of your anger.

      --
      She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
    128. Re:Speculation... by Anonymous Coward · · Score: 0

      That is what was said about the model S until the price basically doubled.

    129. Re:Speculation... by JohnFen · · Score: 1

      I'm afraid that you misread me -- I have no anger at all. I was just surprised to see Best Buy cited as an example of something being done right because that doesn't square with my experience.

      I'm also not comparing website prices. I'm comparing prices of equipment sold in my local brick & mortar Best Buy with the same equipment sold in a nearby computer parts store. The nearby store, on average, is priced 2/3 to 1/2 of what Best Buy prices are. This might be influenced by the types of products I tend to buy -- I don't buy Rokus or movies there. I buy networking items: switches, cables, drive enclosures, that sort of thing.

    130. Re:Speculation... by JohnFen · · Score: 1

      I was looking for a used car, found one one craigslist. Got a cashiers check to pay for it received the car and title payed with the check. Tried to get a temporary tag from the dmv but the car was never registered to the guy i got it from.

      You should never pay until after the title check and a mechanic has taken a look at the car. Then you don't have to worry about this type of problem.

      What are my options? Am i just out of luck?

      You have the same options that you'd have if a dealer did this to you: sue. Although if I were in your shoes and the check never cleared, I'd just park the car in the guy's driveway, drop the title & keys in his mailbox and walk away.

      But basically, we have different priorities. You feel this isn't stressful. I would find having to validate the title to be stressful.

      Clearly we do. A title check is just a stop to the DMV website. It's no more or less stressful than online shopping.

      I've had good luck with warranties. Most have been close to break-even.

      If I had such experience, I would probably feel differently. But, seriously, I can't think of a single time that I actually used a warranty on anything I had. It's all just burnt money.

    131. Re:Speculation... by Maxo-Texas · · Score: 1

      Just to be clear- that's example of someone who got a bad title and not me.

      I've had one lawsuit against a person with no assets. They are basically judgement proof. As the judge said, "I award you $25,000. Good luck on every collecting it."

      --
      She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
    132. Re:Speculation... by Maxo-Texas · · Score: 1

      Oh, I wasn't citing them as right. I was citing them as an example of how in a mixed market- consumers use and abuse the retail stores and then buy online for the cheapest price. It's not a sustainable model.

      I don't have a preference either way but I recognize the trade off in lower prices vs worse (no) customer service, often reduced selection, and loss of local support if there is a problem.

      --
      She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
    133. Re:Speculation... by Entropius · · Score: 1

      Oh, I forgot one more thing:

      One resonant mode of the engine vibrating in its brackets happens to have a frequency ... the same as the idle frequency of the engine. So, over time, the engine would shake itself loose and break the brackets.

      It would get to a point where I'd have to rest my foot lightly on the pedal at stoplights to throw it out of resonance. Apparently it was a known problem with the things. When it got bad I'd take it in and get the mounts replaced, but it would come back after another few years.

    134. Re: Speculation... by ThirdCoastGuy · · Score: 1

      That's used car sales, not new car. A whole other class of uppity pricks.

    135. Re:Speculation... by EvilJoker · · Score: 1

      Customers test drive and look at the cars at a dealership and then buy them from the non-dealerships. And then probably try to get support from the dealerships.

      This isn't usually an issue. Most dealerships are selling manufacturer warranties, which are valid nationwide at any dealer. When you have a warranty claim, you take it to any dealer. Their manufacturer-certified service center fixes it, and sends the bill to the manufacturer. The dealer makes a healthy profit, even though you bought the car elsewhere.

    136. Re:Speculation... by EvilJoker · · Score: 1

      Counter-example: Buy a new hard drive direct from Seagate

      Granted, the prices are all MSRP, so as to not alienate Best Buy/etc. There's no incentive to buy from them, but the option is there.

      Dell and HP also have online stores. In fact, I've found it to be EXTREMELY rare for anything in tech to have a corporate site, and not have the option of buying it from them directly. Few things are more infuriating than when I'm at the manufacturer's page, decide to buy a product, and it says "This item is available from these fine retailers." It's even worse, since said retailers never have the part in stock.

    137. Re:Speculation... by Shortguy881 · · Score: 1

      Except its not a capitalist system. Its a government sanctioned monopoly. Then you are at the mercy of the few who are allowed to sell the car.

      --
      Brilliance without wisdom, power without conscience. Ours is a world of nuclear giants and ethical infants.
  2. Could the Tesla circle jerk be any more open? by Anonymous Coward · · Score: 0

    I can understand the admiration for the technology and the hope it gives to some here but we're really analyzing the comings and goings of the NADA over this? WTF is next?
     
    If this was anyone but Tesla it'd be a total non-starter.

    1. Re:Could the Tesla circle jerk be any more open? by khallow · · Score: 3, Insightful

      I believe this has greater significance than merely a turf war in some backwater market. We have a direct connection between development of a new technology and the challenging of a significant evil of the developed world, institutionalized rent-seeking. A similar thing is happening with the ride sharing services challenging taxis and other escort businesses.

    2. Re:Could the Tesla circle jerk be any more open? by Anonymous Coward · · Score: 2, Funny

      First I heard that ride sharing services were challenging the escort business.

      Are these ride sharing services over Craigslist, perchance?

    3. Re:Could the Tesla circle jerk be any more open? by NotQuiteReal · · Score: 3, Funny

      ride sharing an escort - eeew.

      --
      This issue is a bit more complicated than you think.
    4. Re:Could the Tesla circle jerk be any more open? by Anonymous Coward · · Score: 0

      but we're really analyzing the comings and goings of the NADA over this?

      It's an invitation for everyone to trot out their RIAA/MPAA/BSA rants and give them a sed job.

    5. Re:Could the Tesla circle jerk be any more open? by Stolpskott · · Score: 0

      From my perspective, the most interesting thing about this is not the pro-Tesla/Elon Musk choir, or the Automotive lobbying juggernaut against it, but the fact that this is happening in America (statement of the bloody obvious, I know).
      America, being the home and religious temple for Capitalism - Capitalism being an economic system where, if a new supplier in the market can provide more desirable products or with a more efficient/cheaper supply chain, that new supplier can gain a foothold in the market and offer their products/services in competition with the established actors, without political interference in the process.
      The capitalist approach would be for the authorities in America to say to Tesla "You think you have a product which customers will want, which they will buy, and which will not blow up in their faces? Power to your elbow, go ahead and sell to Joe Public*!"
      Instead, allowing the established automotive manufacturers to try and dictate "we sell through our Dealerships, they are a 'Good Thing' so you need to do the same, so that we are all doing things the same way smacks of something. I do not want to call it Socialism, but I cannot think what else to call it, because even collectivist Keynesian Capitalism does not really cover it.

      * With the caveats that applicable advertising laws and standards are met.

    6. Re:Could the Tesla circle jerk be any more open? by Lab+Rat+Jason · · Score: 1

      America has been socialist since Obama starting working us over.

      --
      Which has more power: the hammer, or the anvil?
    7. Re:Could the Tesla circle jerk be any more open? by Anonymous Coward · · Score: 0

      I had an escort back in college. On the small side, but back the seat up and there's plenty of room for two. More would probably be difficult, you'd have to get really cozy with your friends. Don't try to squeeze 4 big guys in there, that little escort just doesn't have the umph for it.

      Ride-sharing might not be that glamourus, but you get where you need to go, and maybe you'll meet some interesting people along the way.

  3. We should have a choice by Anonymous Coward · · Score: 4, Insightful

    There will always be a need for car dealerships, but there is no good reason to ban direct sales. This is pure rent-seeking behavior. The dealerships should position themselves as Tesla's partners in buying/selling used Teslas and in repairs.

    1. Re:We should have a choice by metac0rtex · · Score: 5, Interesting

      They are only crying because this a market they don't have cornered. Actual competition is terrifying to "free market capitalists". NADA can fuck right off.

    2. Re:We should have a choice by nospam007 · · Score: 5, Insightful

      "There will always be a need for car dealerships,..."

      Yes, because we just love to give cuts to as many people as possible for our purchases.

      I remember fondly the days when we couldn't buy computers, hairdryers, video recorders and even luggage containers in a supermarket, because those needed 'special' vendors with 'secret' knowledge.

    3. Re:We should have a choice by Anonymous Coward · · Score: 0

      I wouldn't have a problem with them claiming all of this information if it was not illegal for a manufacturer to sell a car directly and there was tangible evidence to suggest these claims at all. Propping up your business model by making yours the only legal way of doing business is not good for the economy. Just look at the credit card industry.

      Maybe we should just start saying car dealerships are anti-American and unpatriotic because they support abortion (of permitting the American people to choose how we purchase our cars).

    4. Re:We should have a choice by mOzone · · Score: 1

      the big 3 dont care . its not cutting into any of there markets realy and people who buy teslas all ready have car sitting next to it in driveway its a cod peice at best . when tesla has a car that can go coast to coast with same or fewer stops as a gas car then they will freak . till then its a bunch of hype a cod peice

    5. Re:We should have a choice by fuzzyfuzzyfungus · · Score: 2

      If anything, given the rather limited distribution of spare parts, maintenance expertise, and the like, Tesla is actually the outfit where the 'dealer' would largely be the holder of the secret knowledge. They've just made the decision that the 'dealer' is always going to be a direct extension of their customer service apparatus, rather than an independent operator.

      From my (admittedly quick and unscientific) sampling of the owner forums, stories involving technical trouble almost always end with some Tesla minions whisking the vehicle away, working some cryptic mechanical magic, and updating the firmware. By comparison, all but the most esoteric internal combustion units are a mere commonplace for the local independent mechanics, with much of the push for dealer-provided service being sustained by assorted fairly heavy handed artificial lock in, and still only moderately effective.

      Now, given the sometimes perverse incentives of the middlemen, Tesla may be wise to have decided that sales and maintenance are too important to be left to car dealers; but they are about as far in the 'secret knowledge' direction as anybody in the business, they just don't let a third party in on the interaction.

    6. Re:We should have a choice by mattack2 · · Score: 3, Informative

      265 miles isn't far enough for you? You also get *free* charging at their stations.

    7. Re:We should have a choice by Trailer+Trash · · Score: 4, Insightful

      They are only crying because this a market they don't have cornered.

      Actual competition is terrifying to "free market capitalists".

      No it's not. It's terrifying to cronies who use crony capitalism to keep a grip on their markets through government "regulation".

    8. Re:We should have a choice by PopeRatzo · · Score: 3, Interesting

      when tesla has a car that can go coast to coast

      How often do you think most people drive "coast to coast"?

      My wife's car is four years old and has never been more than 100 miles away from home. And since she shares a birthday and ethnicity with Nikolai Tesla, she's bugging me about wanting to get one. She'd be the perfect customer for one if we had that kind of coin to throw around. Which we don't. And if we did, I'd be angling for an Audi R8. Say, do they make a hybrid Audi R8?

      --
      You are welcome on my lawn.
    9. Re:We should have a choice by jeIlomizer · · Score: 2

      Riiiight... the auto industry is unregulated and free market...

      How does that debunk what he said at all? More choices would make it *more* like a real free market, so it makes no sense to legally limit people's choices from a free marketeer's perspective.

      --
      If something is so important that you feel the need to post it on the internet... It probably isn't that important.
    10. Re:We should have a choice by iggymanz · · Score: 2

      no need at all for them.

      order your electric car online with drivers license and insurance policy number taken during checkout, delivery person drives to your home, takes video of you and them checking out the condition of everything, and then they take taxi or shuttle or whatever back to warehouse.

    11. Re:We should have a choice by khallow · · Score: 1

      More choices would make it *more* like a real free market, so it makes no sense to legally limit people's choices from a free marketeer's perspective.

      Exactly. It's not, by definition, free marketers who advocate dealership rent seeking.

    12. Re:We should have a choice by Balthisar · · Score: 3, Interesting

      I've had two cars most of my serious adult life, so it wouldn't be a concern for me, personally (I'd simply take a gasoline powered vehicle on a cross-country trip, which I've done on several occasions).

      For a cross-country trip, though, yeah, 265 miles isn't far enough. That's about four hours of driving versus the 400 mile range of a typical gasoline car giving about six hours of driving. And it only takes a few minutes to fill up, and you don't have to plan which gas station you use. So for a lot of people, the idea of making a cross-country trip in a Tesla is still disadvantageous versus a traditional automobile.

      Tesla is shiny, and I want one. It would serve 80% of my driving needs. I still require a different capability vehicle for the rest of my needs/wants, though.

      --
      --Jim (me)
    13. Re:We should have a choice by PeterM+from+Berkeley · · Score: 5, Informative

      So, you realize that his person meant crony capitalists when he put free market capitalists in quotes, right?

      --PM

    14. Re:We should have a choice by master_kaos · · Score: 1, Interesting

      80% of needs you probably still shouldn't buy a tesla unless you have a 2nd vehicle. 80% means 73 days of the year you need another vehicle. I imagine it would need to suit 99%+ of the time to make it work. That gives you 3-4 days a year you need another vehicle... which renting is perfectly suitable. Thing is I need a truck 1% of the time, but I don't own one I'll borrow my dads or rent one.

    15. Re:We should have a choice by Balthisar · · Score: 1

      Yes, exactly, but although to prevent others from misunderstanding what you clearly understand, the 80% figure was just a standard Pareto choice.

      In my case I would have to decide what percentage each of my needs/wants is. Is it a percentage of my annual miles/km driven? Percentage of activities that merit a certain vehicle? Or percentage of days of the year that I perform those activities?

      A Tesla-like vehicle would certainly cover 99% of my miles driven, but maybe only 70% of days I use a vehicle, but also 90% of the activities for which I want a vehicle.

      --
      --Jim (me)
    16. Re:We should have a choice by TWX · · Score: 1

      An electric car would work perfectly for most households with more than one driver. One traditional liquid-fuelled vehicle that can be refuelled by pouring in more fuel and thus would be useful out-of-town, and electric cars for all of the other regular commuter vehicles in the household that don't need to commute out-of-town and don't need to drive more than a couple-hundred miles a day.

      Just some perspective, most people drive 10,000-20,000 miles a year. There are about 270 weekdays in a year. If one's job has one driving close to the range of an electric car every workday (I'll call that 200 miles a day, for the math to be easy, the new vehicles appear to have more range than that) then that'd be 54,000 miles a year just on work/commuting alone. Even at 100 miles a day that's still 27,000 miles a year in just commuting. For the sake of argument, let's assume that a car gets driven about half of the mileage on the weekend that it gets driven on the weekday, so the weekend days effectively are another one day's driving. 270*1.2 is 324, divide 15,000 miles per year (on average) by 324, and you get a little under 50 miles a day.

      We can conclude that most drivers, assuming 15,000 miles per year, drive less than 50 miles a day. Thus, most drivers could use an electric car for their work, and if the range is more than 250 miles they could even probably go several days or an entire work week without running out of range. They wouldn't even have to recharge every night, which might extend the life of the batteries. Might not want to drive past 200 miles if one's range is less than 300, in case the last day one has unexpected errands to run, but should still be practical.

      My round-trip commute is 20 miles. My wife's is 40 miles. Even if errands were to triple the mileage we'd still have enough range daily. Not having electric cars seems just silly in this context.

      --
      Do not look into laser with remaining eye.
    17. Re:We should have a choice by zugmeister · · Score: 1

      There will always be a need for car dealerships, but there is no good reason to ban direct sales. This is pure rent-seeking behavior. The dealerships should position themselves as Tesla's partners in buying/selling used Teslas and in repairs.

      I'm not so sure about that. While I'm no expert on the subject I found this podcast. It's from NPR and 16 minutes long, but I thought it very informative.

    18. Re:We should have a choice by rtb61 · · Score: 2

      Well for those long distance trips catch a sleeper on a train and rent on location, hell with high speed rail, oh wait the Republicans killed those, I was going to say you wouldn't even need the sleeper, just a seat and luggage space and quicker than the car without all of the fuss of a plane.

      --
      Chaos - everything, everywhere, everywhen
    19. Re:We should have a choice by Tom · · Score: 2

      I remember fondly the days when we couldn't buy computers, hairdryers, video recorders and even luggage containers in a supermarket, because those needed 'special' vendors with 'secret' knowledge.

      As a matter of fact, yes I do fondly remember my first computer dealer because they actually knew shit and helped me put together as well as upgrade several of my first PCs. I spent a ton of my money there and didn't regret one cent of it.

      Dealers absolutely can add value to the system. It's just that most don't, and sadly too many consumers shoot for the cheapest price so aggressively that good dealers go out of business and the scum survives, and it's getting ridiculous. Have you bought crap online recently? Same scummy behaviour showing up there now. I was taken aback when I wanted to buy a plane ticket and at the very end of the deal a "payment processor fee" showed up - except that no matter which payment option I picked, there was always this fee, so it should've been figured into the real price, but of course that wouldn't have placed the site so highly in the price-search engines... (yes, I bought elsewhere, even though the final price was the same).

      Dealers are scum, but part of the reason is that market evolution strongly selects for the scumbags.

      --
      Assorted stuff I do sometimes: Lemuria.org
    20. Re:We should have a choice by TWX · · Score: 1

      Many states have laws requiring that service be possible (ie, documented) for the end-buyer and for independent shops. I expect that part of Tesla's current behavior is due to the newness of the technology, and that in-essence, the current car is a beta product. Once the technology is firmed up it will be a lot simpler for others to repair well-documented platforms, if those right-to-repair laws continue to exist, as manufacturers will be forced to document those procedures and systems.

      I was part of my high school's electric car club. We had a Porsche 914 that was converted; long after the club ended the car ended up in private hands and last I saw was still in-use in California as a commuter car. That car was very basic, with 24 six-volt deep cycle lead-acid batteries, with an electric motor that was some kind of starter motor for an aircraft engine, with the large motor controller and electrical bus for the few accessories that the car had (lights, mainly) but even if computers are heavily integrated into electric cars the systems are still fairly straightforward. There's power storage, capacitors for immediate power delivery, a motor controller, power distribution for systems, and a charging circuit, possibly with regenerative braking. Each part could be somewhat discrete and modular, allowing the diagnosis to look at each major component.

      Compared to dealing with an internal combustion engine an all-electric setup is easy. I built a 408 stroker from a Chrysler LA small-block 360, deciding on the clearances (.0015" piston-to-cylinder wall) that the machine shop had to bore and hone the block to, then assembling the whole thing in my garage over several days. Maintenance is also a massive headache in many circumstances, and the fluids are extremely messy and make it much worse. By contrast that Porsche was a pain when it came to the batteries (we didn't charge in-car and had to pull the caps, so I ruined many shirts with acid) but just about everything else was clean. There was grease in the transaxle for the gears and differential, grease in the wheel bearings, grease in the ball joints and steering linkages, and there was brake fluid (both for the brakes and for the clutch), but there was no steering fluid (manual steering on this car, but electric cars could use electric-assist rather than hydraulic assist), no engine oil, no coolant. No gasoline or diesel. No heat-worn linkages like the carburetor choke mechanism to repair, no fuel lines. A lot less things to have as a mess.

      --
      Do not look into laser with remaining eye.
    21. Re:We should have a choice by Anonymous Coward · · Score: 0

      Soon, one hopes. Audi have been kicking ass at Le Mans with a hybrid. Not just a hybrind in fact, but a *diesel* hybrid. Presumably they've got an eye towards monetarizing that, cause the endurance racing circuit isn't a fantastic way of turning a profit.

    22. Re:We should have a choice by Anonymous Coward · · Score: 0

      Tesla is shiny, and I want one. It would serve 80% of my driving needs. I still require a different capability vehicle for the rest of my needs/wants, though.

      I know what you mean. The typical gas car is more than enough for my daily needs, but every once in a while I have a trans-pacific trip. It sucks, but what am I going to do? Not buy a vehicle from Boeing that can cover my big trip? Rentals are for suckers.

    23. Re:We should have a choice by blackest_k · · Score: 1

      My typical weeks driving is about 200 miles, In ireland anyway your unlikely to drive more than 270 miles one way anywhere. Dublin/Cork is 158 so you would need to recharge some at your destination.

      It could be quite interesting as a rental car you might never need to charge between depots.

    24. Re:We should have a choice by kwbauer · · Score: 1

      A range of 265 miles is only half of how far I can go in the two ICE cars I own and I don't have to wait 4-8 hours to fill my tank either.

    25. Re: We should have a choice by jxander · · Score: 2

      You realize that range was chosen quite intentionally to suit road trips.

      Drive 4 hours and hit a supercharger station. 20 minute "refill" while you use the restroom, stretch your legs, etc. and back on the road. Rinse and repeat. You can find a hotel along the way that'll let you plug in overnight, and away you go.

      People have already made coast to coast road trips in a tesla. Sure, it requires a bit more forethought than a petrol-mobile. But it's certainly possible.

      --
      This signature is false.
    26. Re:We should have a choice by kwbauer · · Score: 1

      My wife and I can drive half-way across the country in the same amount of time we can fly and have our car at the destination for about half the price we can fly and rent. Flying and renting works out the same as driving when going alone but not so much when not alone.

    27. Re:We should have a choice by kwbauer · · Score: 1

      And where exactly do you live that you are buying your VCR directly from Sony or Toshiba and your luggage directly from Samsonite? Oh wait, you aren't. You are buying them from the 3rd party who takes a cut, What a sucker for giving that supermarket a cut on those purchases.

    28. Re: We should have a choice by Balthisar · · Score: 1

      Well, here's the current map of superchargers: http://www.teslamotors.com/sup...

      So unless my plans coincided with that map, I would still take a gasoline fueled vehicle. But like I said, that range isn't a deal-killer for me, personally, because I have the option to take a second vehicle. But I don't represent the majority of the people, and the majority of the people don't plan their routes around charging stations, and given that we're talking "wide acceptance" I would presume that means something that is useful (in the context of this type of travel) for the majority of the users.

      Actually looking at the current supercharger map, I think I would take a Tesla on a previous road trip I've made. I could have made that supercharger map. A couple of spotty areas, but doable. For me, a very small portion of potential road trippers on a specific route.

      I'm not trying to hate on Tesla. Like I said in the parent, shiny, want. But my circumstances support it and I'm not egocentric enough to think that what's good enough for me is good enough for everyone else.

      --
      --Jim (me)
    29. Re:We should have a choice by havana9 · · Score: 1

      And where exactly do you live that you are buying your VCR directly from Sony or Toshiba

      I actually bought Philips TV sets, VCR, lamps, fridges, dishwashes and hairdryers directly from Philips. I only had to drive to their facory outlet near thei warehouse. The price were lower than the special offer in supermarket, and sometimes you could buy refurbished products at very low prices. Unfortunately they closed the warehouse and the outled a couple of year ago.

    30. Re:We should have a choice by stiggle · · Score: 1

      Talk to Tesla about training, certifying and licensing your staff to sell/maintain Tesla vehicles. Get regular testing to ensure your staff stay fully trained.

      Tesla still get the sales, but now also get the fees for training, certifying, licensing logo and other trademarked materials. Just need to make it clear that they are are franchise/dealership and not the company so the customer has a choice.

    31. Re: We should have a choice by Neil+Boekend · · Score: 1

      If it doesn't coincide with your plans for this year than that is a reason not to buy right now.
      Slide the date setting to 2015 and see what they are planning: full coverage.
      As with all such plans: a bit of salt is required, but I fully expect them to have the 2015 coverage maps by 2017.
      And Tesla's or other electric cars are not good enough yet for everybody. That doesn't matter, the emission savings will be monstrous if 60% makes the switch (and the electricity is from either nuclear or other green sources).

      --
      Well, I might have a way, but it only works on a semi spherical planet in a vacuum.
    32. Re:We should have a choice by Rich0 · · Score: 1

      "There will always be a need for car dealerships,..."

      Yes, because we just love to give cuts to as many people as possible for our purchases.

      But, who is going to convince me to buy the $1000 paint protection treatment, or the $3000 extended warranty, or add $500 worth of mark-ups to a sticker that everybody already knows is a joke going in?

    33. Re: We should have a choice by Richard_at_work · · Score: 2

      What about those of us who cannot charge the vehicle at our own premises? On street parking, pavement between the road and the car, no guarantee of a parking space outside the house etc etc.

    34. Re:We should have a choice by fuzzyfuzzyfungus · · Score: 1

      Oh, I don't (at least not yet) have any reason to suspect malice, rather than novelty, as the reason for the scarcity of external expertise; I don't think that Tesla has done anything malicious so far, so once the novelty wears off a bit it's entirely possible that the situation will change. My point was just that, at present, having an independent mechanic do a great many things (with third party parts, even) is totally doable with many cars; but the Tesla is not one of them.

      We'll see, in time, if this is because they like it that way, or because it just isn't logistically possible for much of an aftermarket to exist at this point.

    35. Re:We should have a choice by Anonymous Coward · · Score: 0

      "You are buying them from the 3rd party who takes a cut, What a sucker for giving that supermarket a cut on those purchases."

      Yes, they get around 1%, like on milk and bread.

      The 'special' ones were waiting all day for somebody to come into their 'net' and make a purchase, just like the car dealers, who get between 10 and 30%.

    36. Re:We should have a choice by Anonymous Coward · · Score: 0

      Say, do they make a hybrid Audi R8?

      No, but a hybrid Audi R18. I am afraid it might be a bit more expensive than the R8.

    37. Re:We should have a choice by Anonymous Coward · · Score: 0

      I remember fondly the days when we couldn't buy computers, hairdryers, video recorders and even luggage containers in a supermarket, because those needed 'special' vendors with 'secret' knowledge.

      I remember fondly the days when we couldn't buy telephones, anywhere, because only approved devices could be attached to the network, and they needed special care available only through AT&T technicians.

      I'm not going to say that legally entrenched car dealerships are a good system, but they are, in fact, an improvement over legally entrenched monopolies. Sometimes we forget that the crappy systems we have now have been put in place as reforms over the even worse systems that preceded them.

    38. Re: We should have a choice by Neil+Boekend · · Score: 3, Informative

      It's not a solution for everyone.

      Here most cities welcome no-smog cars so they cooperate with anyone who wants to have an electric car. Often if you buy an electric car (and have no driveway or somesuch to park it) the city will restrict a parking spot right in front of your house to electric only and allow the charger installing company to rip up the sidewalk to install the thing. In some cases they even pay for the electricity.

      --
      Well, I might have a way, but it only works on a semi spherical planet in a vacuum.
    39. Re: We should have a choice by Richard_at_work · · Score: 1

      Here, they wouldn't even designate the space outside our house as disabled (as my wife is), so they aren't going to designate it as electric only :)

    40. Re:We should have a choice by AmiMoJo · · Score: 2

      Driving for 6 hours without a significant break (30 minutes minimum) is not safe. You may think you can handle it, but endless studies have shown that tiredness has a similar effect to drink driving. For the sake of an extra 30 minutes on your trip you should really make a proper stop on that journey.

      --
      const int one = 65536; (Silvermoon, Texture.cs)
      SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
    41. Re:We should have a choice by itsdapead · · Score: 1

      265 miles isn't far enough for you? You also get *free* charging at their stations.

      265 miles then recharge at the nearest filling station would be fine. Hell, after 265 miles I'd be ready for an hour's break.

      The reality, though, is 265 miles (assuming you're starting fully charged from your mains-equipped garage), minus x miles if you need air con, lights or heating, minus y miles detour to take in the nearest supercharger, minus z miles extra safety margin (because if you run out its a tow to the nearest supercharger) isn't quite there yet. From the map on Tesla's website, there are plenty of US states with no superchargers at all. According to the same map, there are 0 in the UK (which may be out-of-date).

      Looking at the UK, there's an OK-looking network of non-super chargers (still nothing like the filling station network), but they're typically 1 regular (13A) bay + one fast charger bay. If you turn up and the fast charger is in use (with the occupants off somewhere having a meal or shopping) then you better have enough charge to get 50 miles to the next station...

      Also, since the battery size is determined by the size of the car (unless you fill all the luggage space with battery), having to buy a full-size sedan just to get a > 100 mile range is a problem if you really want a compact. Personally, the Tesla is the sort of car I'd only consider if I was making regular long trips.

      There's also a huge scalability problem with charging stations - a regular gas pump can fill one car every few minutes, an EV charging bay can only top-up one car every half hour but by that time the occupants will probably be staring their third Big Mac or in the mall trying on shoes. While EVs are a rarity you can get away with a couple of charging bays every 50 miles, which will probably pay for themselves by attracting wealthy Tesla owners to shops and restaurants. If they take off, you'd be talking about wiring up half the bays in the main parking lot.

      I think its great that Tesla are working hard on some of these problems... I wish people wouldn't pretend that they were all solved.

      (Actually, I've seen a video of Tesla's robotic quick battery swap procedure, which seems more viable for on-the-go recharges, and would be particularly sensible combined with a battery-leasing scheme).

      --
      In a survey of 100 programmers, 111111 thought that duck-typing was a good idea.
    42. Re:We should have a choice by jratcliffe · · Score: 1

      My wife and I can drive half-way across the country in the same amount of time we can fly

      Hogwash, for all but very specific itineraries (i.e. small place A served only by carrier X to small place B served by only carrier Y).

      Let's take a VERY conservative example, tilting all the assumptions in favor of driving.

      Take New York to Chicago, for example (which, at about 750 miles, is only about 1/3 of the way across the country).

      Leave home at 7:30AM three hours before your flight, ample time to get to the airport two hours before your flight (that's an hour more than you need).

      Take a 10:30AM flight from Laguardia, arrives O'Hare at noon.

      You'll be in downtown Chicago by 1:30PM, even if you're slow through the airport, and you take public transport downtown.

      That's seven hours, door to door, with a LOT of cushion. When I do the trip, it's about five hours, door to door.

      If you're driving that same route, it's 794 miles, or 12 hours (without traffic or breaks) - more likely 13 or 14.

      So, for this trip, which is a lot less than "halfway across the country," driving takes essentially 2x as long as flying.

    43. Re:We should have a choice by gauauu · · Score: 1

      Well for those long distance trips catch a sleeper on a train and rent on location, hell with high speed rail, oh wait the Republicans killed those, I was going to say you wouldn't even need the sleeper, just a seat and luggage space and quicker than the car without all of the fuss of a plane.

      And unfortunately, with a family, it's still more expensive than driving.

      I live a half-mile from an amTrak station, so I almost always check amTrak before a trip to see if it would save me money or time or both. So far, it's never been cheaper OR faster for any trip that I've investigated. If you're traveling alone, the price is comparable to driving. Once you get to 2 or 3 people (let alone a family of 5), driving is significantly cheaper. And you get to go directly to your destination, as opposed to ending at a train station. And you have a car when you get there. I keep hoping that the train makes sense someday, but today is not that day.

    44. Re:We should have a choice by Anonymous Coward · · Score: 0

      What if you have multiple drivers who can take shifts? Swapping seats doesn't take 30 minutes.

    45. Re:We should have a choice by Lab+Rat+Jason · · Score: 1

      Make no mistake... if trains were that good... they'd be EXACTLY as much fuss as a plane.

      --
      Which has more power: the hammer, or the anvil?
    46. Re:We should have a choice by TWX · · Score: 1

      I put 550 miles on a rental car on an island that was 32 miles wide, so I would expect that rentals used for leisure/vacation driving would see a lot more miles than rentals used for business (ie, airport to hotel to worksite to hotel to airport), but if the hotel one stays at on a vacation has the ability to charge rental cars then this shouldn't be too much of a problem.

      With as much as some urban hotels charge just park the car, they should allow one to charge the car for free. Probably won't, but they should.

      --
      Do not look into laser with remaining eye.
    47. Re:We should have a choice by Anonymous Coward · · Score: 0

      I wanted to catch a sleeper car on my cross country trips to visit family since TSA annoys me. However, I found out that it costs a LOT more than a plane ticket and takes as much time as it would to drive. I imagine high speed rail would be faster but even more expensive.

    48. Re:We should have a choice by Anonymous Coward · · Score: 0

      My wife and I were recently in the market for a smaller refigerator since it's just the two of us. We went to Sears and spoke with a salesman about the size we were looking for (about 10 cu ft.). Well since they didn't have any of those on hand he gave us a song and dance about how hard it would be to find one that size and started trying to show us other refrigerators. I was so disgusted that I immediately went home and ordered one on the internet. Good price and works great. No haggling. These guys are going to put themselves out of business with that kind of attitude.

    49. Re: We should have a choice by Anonymous Coward · · Score: 0

      It's not a solution for everyone.

      Here most cities welcome no-smog cars so they cooperate with anyone who wants to have an electric car. Often if you buy an electric car (and have no driveway or somesuch to park it) the city will restrict a parking spot right in front of your house to electric only and allow the charger installing company to rip up the sidewalk to install the thing. In some cases they even pay for the electricity.

      Portland Oregon is very much this aggressive. I'm not saying it's a bad thing, the aggressive attitude in favor of biking and walking makes this city a great place to live for people, as opposed to most cities, which are great places for cars to live.

      Charging stations with free electricity are already all over, the spots are often better situated than even handicapped spots. I wish I had a car that could take advantage of it, but I run a 20 year old car that I paid 1400 for 4 years ago. I'm not exactly in the market for a 70k car...

    50. Re: We should have a choice by torkus · · Score: 1

      What I don't understand...is why people are so focused on these long road trips. How often does everyone drive cross country? Even considering the semi-common trips I'd make - from NYC up to Boston or down to DC - they're all well within range and I could hit one or more superchargers along the way. A 20 minute stretch half way through a 4 hour drive? Yes please. Oh, and I get free 'gas' too?

      Besides that ... if I'm taking a (rare) very long road trip I'll rent a car anyhow to avoid putting the extra miles on mine.

      Even the interminable road trips for vacation when I was little (checks google maps) were only about 200 miles. Maybe I'm the minority here but if I could afford a Tesla I'd pretty much never have problems with it's range limit. Forgetting to plug it in is another story though :)

      --
      You can get rich if you own a politician, but you have to be rich to buy one in the first place.
    51. Re:We should have a choice by kwbauer · · Score: 1

      or you live in zip-code 54494 and are travelling to Dallas, TX or Salt Lake City, UT. You must be one of those people who have never realized that not every one lives in a metro area.

    52. Re:We should have a choice by jratcliffe · · Score: 1

      or you live in zip-code 54494 and are travelling to Dallas, TX or Salt Lake City, UT. You must be one of those people who have never realized that not every one lives in a metro area.

      In both those cases, flying wins by a mile. The difference is even greater than for the NY-Chicago example I gave. For Dallas, you'd save nearly 8 hours by flying. For Salt Lake City, you'd save 10 hours. You must be one of those people who have never looked at a map.

      Zip code 54494 (rural Wisconsin) to Dallas, TX: 7.5 hours door to door flying, 15 hours driving.
      Driving: 1,058 miles, 15 hrs 48 minutes per Google Maps. Say 15 hours, assuming you can average 70mph including all breaks.
      Flying: Leave at 7:20AM, drive to Madison, WI (1 hr 50 per Google Maps), arrive 2 hours early (again, excessively early). Catch 11:20AM flight to Dallas. Arrive at 1:40PM. You're downtown by 3PM.

      Zip code 54494 to Salt Lake City: 8.5 hours door to door flying, vs. 18.5 for driving.
      Driving: 1,397 miles, 20 hrs 20 mins per Google Maps. Say 18.5 hours, assuming you can average 75mph, including all breaks.
      Flying: Leave at 2:30PM, drive to Madison, WI (1 hr 50 per Google Maps), arrive 2 hours early (again, excessively early). Catch 6:40PM flight to Salt Lake City. Arrive at 8:50PM. You're downtown in 30 minutes at most, but let's call it 10PM to add some padding.

    53. Re:We should have a choice by Anonymous Coward · · Score: 0

      You fail to take into account that all of their patents are now free to the world.

    54. Re: We should have a choice by jxander · · Score: 1

      True, they don't have full coverage yet.

      So if your use case is many road trips to/from the middle of Montana, then buying a Tesla probably isn't an option for you.

      Yet

      --
      This signature is false.
    55. Re:We should have a choice by mattack2 · · Score: 1

      Though as a reply to my own message, I saw someone say they did a long drive in a Tesla.. 11 hours driving plus 3 hours charging. I don't recall if they were using the highest speed chargers, but that's an awful long time of charging.

    56. Re:We should have a choice by Trailer+Trash · · Score: 1

      Frankly, I don't know what he meant. My looney left friends on facebook really think that crony capitalism represents "free markets" and then blame free markets and capitalism for the problems caused by crony capitalism.

      So forgive me if I have no idea if the parent poster of my original post meant that.

    57. Re:We should have a choice by rtb61 · · Score: 1

      Don't forget to add in a years worth of savings of an electric car, basically 1 tenth the cost in electricity compared to buying gasoline. There is the fun factor, a toss, up, freedom to stop anywhere vs the driver get to chill for the whole trip, there and back. Safety. If something goes wrong with the hire car, meh, get another one, if something goes wrong with your car in a distant city, crap, crap, crap, crap, crap. I did mention high speed rail, shame about that. Airlines of course have lobbyists and they killed that idea, regardless of social benefits. Of course the biggest question of all, does your family like trains or prefer driving, don't be cheap ;).

      --
      Chaos - everything, everywhere, everywhen
    58. Re:We should have a choice by PopeRatzo · · Score: 1

      No, but a hybrid Audi R18.

      Not enough trunk space.

      --
      You are welcome on my lawn.
    59. Re:We should have a choice by jwhitener · · Score: 1

      Battery swap station, faster than filling a tank of gas: http://www.teslamotors.com/batteryswap

      80% of your needs? I bet it is higher than that.. if you are the typical worker: 1 vacation a year, 2 trips out of State each year once for Thanksgiving and once for Xmas. So you rent a gas car 3 times per year, not a big deal, and that is only assuming you aren't traveling to areas that having the charging stations with the battery swap... and/or you are unwilling to charge during a 1 hour lunch while on the road.

    60. Re:We should have a choice by Anonymous Coward · · Score: 0
    61. Re:We should have a choice by Anonymous Coward · · Score: 0
  4. Local Dealerships by suso · · Score: 5, Funny

    Wow, local dealerships sound AWESOME!

    1. Re:Local Dealerships by Austerity+Empowers · · Score: 1

      What a joke. Check out my local dealership here in Texas: http://www.penskeautomotive.co...

      Bet they're local to quite a few people in the US. And Germany. And Italy. And the UK. And Puerto Rico.

    2. Re:Local Dealerships by Anonymous Coward · · Score: 0

      Not to mention that in my area, all three Chevrolet dealers are owned by the same company but have completely different names that sound like FirstName Lastname Chevrolet. They also own all the Ford, Toyota, Honda and a few others whose names I cannot remember. I'd have to go 50 miles to get one that isn't and this is a metro of 600,000 people.

    3. Re:Local Dealerships by stedlj · · Score: 2

      Yep, and no matter how good of a deal you got, you still drive off feeling you got screwed..

    4. Re:Local Dealerships by Anonymous Coward · · Score: 0

      One of those Penske dealer service places tried the ol' "squirt liquid on a part and claim it's leaking and needs repair" trick. It was on my Honda Civic... I had been planning to get another Honda in a few months.

      I'm driving a Subaru now. Fuck Penske. (Yes, I know it's just the Subaru dealers' turn to fuck me over...)

    5. Re:Local Dealerships by Anonymous Coward · · Score: 0

      That's because, no matter how good of a deal you got, you still got screwed.

      Friend of mine used to sell cars. You're never going to not get screwed.

    6. Re:Local Dealerships by Dunkirk · · Score: 1

      Yep, and the "local" Penske Honda dealership in Carmel, Indiana was one of the top-3 worst dealership experiences of my life. All the usual tricks, but the best one was when the salesman actually got offended when I asked about one of the cheapest cars on the lot, which was advertised on their web site. He said I was trying to buy a hamburger at a steak house, and got up to leave. So I got my keys, and left.

      I wound up buying a used Civic for thousands less than book at a REAL local Honda dealership, where it turns out that I knew the manager, the sales manager, the office manager, and 2 of the salesman, and I just didn't know it. I know that's cheating, and not many people have such an option, but I'll likely try this again soon.

      --
      Acts 17:28, "For in Him we live, and move, and have our being."
  5. Slow News Day? by Anonymous Coward · · Score: 2, Funny

    So far it seems that NADA has happen.

  6. selling cars directly from consumers by Anonymous Coward · · Score: 0

    I'd be afraid of consumers selling tesla too. Be afraid of the used car market! /s

  7. Change is coming for car dealers by sasparillascott · · Score: 4, Insightful

    Not specifically Tesla, but electric cars don't have alot of things that car dealers make money with (oil changes, engine work, transmission work and on and on). Alot of dealerships make much of their profits from such things, so what Tesla represents is scary change - of course that change is coming whether driven by Tesla or someone else.

    So the dealers have alot of money, alot of friends and will do what they can to gum up the works for (or kill) Tesla and what it represents if they can. JMHO...

    1. Re:Change is coming for car dealers by fisted · · Score: 4, Informative

      a lot

    2. Re:Change is coming for car dealers by Charliemopps · · Score: 4, Funny

      pendant

    3. Re:Change is coming for car dealers by sumdumass · · Score: 1

      Tesla can do all that right now. All they need to do is place a generator on a trailer and tow it with them.

      I know what you meant though. And with Tesla opening up the charging patents and trying to get a standard going, it won't be long before you won't need the trailer. Well, it will still be long but not in my life time probably went out the window.

      Now, I'm not a Tesla fan by any means. At least not until I heard that they were working to solve some of my biggest complaints about EVs by actually sharing and creating a standard that can be easily implemented around the country. Right now, the only EV I actually would own is a Golf Cart but the gas and propane versions seem to be much better. That may change soon.

    4. Re:Change is coming for car dealers by Anonymous Coward · · Score: 1

      How often do you drive back roads coast to coast? Does anyone?

    5. Re:Change is coming for car dealers by Anonymous Coward · · Score: 0

      It's not about Tesla or electric cars. They don't want the regular automobile manufacturers selling directly to people via the internet.

    6. Re:Change is coming for car dealers by inode_buddha · · Score: 2

      I think you mean "pedant"

      --
      C|N>K
    7. Re:Change is coming for car dealers by onkelonkel · · Score: 2

      pendant - a hanging ornament. I can't tell if you are being subversively sarcastic or just can't spell pedant.

      --
      None of them can see the clouds; The polished wings don't care.
    8. Re:Change is coming for car dealers by FridayBob · · Score: 1

      ...electric cars don't have alot of things that car dealers make money with ... . Alot of dealerships make much of their profits from such things, ... . So the dealers have alot of money, alot of friends ...

      Just between you and me, "alot" is not a word, although it could be a misspelling of the verb "allot". In this case, you mean "a lot" (two words), as in many. As for style, it may have been deliberate, but generally it's distracting when a word or phrase is needlessly repeated so often in just a few sentences, especially when there is so much else to choose from, e.g. "many", "plenty of", "large numbers of", "(is/are) flush with (cash)", "lots of", etc.

      But, now that you have my attention, I agree with your opinion. That's crony capitalism for you; it's the downside of deregulation and industry knows it (which the best way I can think of to fight in general is to get money out of politics). Let's hope other vehicle manufacturers follow Tesla's example.

    9. Re: Change is coming for car dealers by binarylarry · · Score: 4, Funny

      Mormon.

      --
      Mod me down, my New Earth Global Warmingist friends!
    10. Re:Change is coming for car dealers by denzacar · · Score: 1

      "alot" is not a word

      Sure it is.

      --
      Mit der Dummheit kämpfen Götter selbst vergebens
    11. Re:Change is coming for car dealers by Anonymous Coward · · Score: 0

      It's Charlie Mopps. Trolls always be trollin.

    12. Re:Change is coming for car dealers by Anonymous Coward · · Score: 0

      I can't tell if you are being subversively sarcastic or just can't spell pedant.

      'Tis better to remain silent and be thought a fool than to flex one's fingers and remove all doubt.

    13. Re:Change is coming for car dealers by Anonymous Coward · · Score: 0

      If he bothers to reply to you at all, he'll tell you "all day every day" and when you call him out on that, he'll reply with "well when it can drive from Thule Greenland to Antarctica without fear blah blah" and when you mention that you can't do that with any car made today, he'll come back with "well it's just shit then and we don't need them." I've already argued endlessly with these guys. Goalpost moving and Perfection fallacies are their primary weapon. Well, goalpost moving, appeals to perfection, and an almost fanatical devotion to dismissing counterpoints are their 2 main weapons. I'll come back in....

    14. Re:Change is coming for car dealers by Anonymous Coward · · Score: 1

      [citation needed]

    15. Re:Change is coming for car dealers by CohibaVancouver · · Score: 1

      I've already argued endlessly with these guys

      Waste of breath / pixels. After all, this is Slashdot, where perfect is the enemy of good and the edge use case wins every time.

    16. Re:Change is coming for car dealers by NormalVisual · · Score: 1

      All they need to do is place a generator on a trailer and tow it with them.

      If you don't mind spending thousands of dollars on a generator that can keep up with the car's power drain, and the snickers of everyone around you when you pull into a gas station with your $100K EV to fill up the tank. :-)

      --
      Please stand clear of the doors, por favor mantenganse alejado de las puertas
    17. Re:Change is coming for car dealers by Anonymous Coward · · Score: 0

      but generally it's distracting when a word or phrase is needlessly repeated

      So is a douche that writes an entire paragraph with way too many ", (), and / in it to complain about the wrong spelling of a word. Its too bad you can't comprehend or that you get distracted on anything other than 100% correct grammar. Did my use of "its" above distract you? Sorry.

    18. Re:Change is coming for car dealers by TClevenger · · Score: 1

      If you don't mind spending thousands of dollars on a generator that can keep up with the car's power drain, and the snickers of everyone around you when you pull into a gas station with your $100K EV to fill up the tank. :-)

      Hey, if it's just occasional cross-country use, there's always a pusher trailer.

    19. Re:Change is coming for car dealers by afidel · · Score: 1

      Well, even with the future state Tesla supercharger map it will be nearly impossible to drive a Tesla from Cleveland Ohio to Cincinnati Ohio, there are no planned supercharger stations between the two cities and the distance is too far for even the largest battery pack version of the Model S to cover. Likewise there are no planned supercharger stations within range along south I77 from Cleveland. So, for my most frequent long distance trips, from home to the Florida Keys (we go every 2 years for xmas) both of the major north south corridors are out if you want to use a Tesla.

      --
      There are 4 boxes to use in the defense of liberty: soap, ballot, jury, ammo. Use in that order. Starting now.
    20. Re:Change is coming for car dealers by Paradise+Pete · · Score: 2

      The remaining Monty Python members are doing their last live shows in London. Among other things, they announced that for the first time they will be doing the Spanish Inquisition sketch live. The only drawback to that announcement is that now everyone expects the Spanish Inquisition.

    21. Re:Change is coming for car dealers by Demonantis · · Score: 1
    22. Re:Change is coming for car dealers by Firethorn · · Score: 1

      If you don't mind spending thousands of dollars on a generator that can keep up with the car's power drain

      I did the figuring quite a while ago, but you only need about a 15 kW generator assuming you're going to plug in at night.

      Target range: 720 miles (60 mph average speed over 12 hours)
      Model S range: 265 (85 kWh battery)
      Necessary extension: 455
      Mileage: 38 kWh/100 mi
      Generation capability: 173 kwh/12 hours = 14.4 kwh, or a 15 kW generator. You can buy them for around $3k.

      Add a couple thousand for putting it into a trailer form with extra storage, larger gas tank, and such and you're looking at around $5-6k for a generator trailer.

      --
      I don't read AC A human right
    23. Re:Change is coming for car dealers by Firethorn · · Score: 1

      Oh yeah, and if you get an efficient diesel generator you're looking at using 14 gallons for that 455 miles of range, giving you 32.5 mpg, which while it isn't great, isn't bad either. You're also 'getting' 51 mpg over the entire day, which is excellent, and you can reduce consumption further if you can do ANY electrical charging.

      --
      I don't read AC A human right
    24. Re:Change is coming for car dealers by Firethorn · · Score: 1

      between the two cities and the distance is too far for even the largest battery pack version of the Model S to cover.

      Google maps says the distance between the two is 249 miles, which is less than the 265 miles of EPA range for the Model S 85 kWh vehicle.

      Going to plug share, I'm seeing 7 public charging stations within a few blocks within Columbus. Assuming you stop for lunch to give yourself a 'top up', just park at 52 W Gay St, paying $.75/hour for parking and use the J1772 plug. You'll either get 7.7 kW or 19.2 kW. Even the 'low power' case works out to less than 10 cents/kWh and gives you another 27 miles of range. If it's a higher power outlet it would give you 68. It takes a 120kW+ supercharger to give you near-gasoline level 'fillups', all you need is a range boost.

      --
      I don't read AC A human right
    25. Re:Change is coming for car dealers by NormalVisual · · Score: 1

      Oh yeah, and if you get an efficient diesel generator you're looking at using 14 gallons for that 455 miles of range, giving you 32.5 mpg, which while it isn't great, isn't bad either.

      The shipping weight on the first generator you gave was over 400 pounds, so we'll be conservative and call it 350. Fuel is another 7 pounds per gallon, which adds another 100 or so pounds (or more with a bigger tank, although this will go down as the fuel is consumed), and the trailer will likely weigh in the neighborhood of 150 pounds, with the hitch adding another 30 pounds or so. The upshot of this is that with the extra weight the car will be pulling (600+ pounds or so, plus whatever the passengers weigh), you're not likely to get the advertised 265 miles of range, plus if the generator is running at 85-90% of capacity to charge the car it's going to burn fuel at close to twice the advertised rate (which usually assumes a 50% load), both of which will substantially reduce the effective MPG.

      It's doable, but not practical. To me it seems kind of silly to spend thousands of dollars in addition to the rather steep cost of the car itself just to turn it into an expensive, jury-rigged hybrid when any $30,000 ICE sedan will give roughly equivalent if not better range, and you have to buy a LOT of fuel to make up that $40,000 price difference (minus whatever tax credits, etc. come into play). And yes, if you happen to have any charging stations along the way you can mitigate the financial cost, but the charge time is far from trivial, even for the Superchargers. For an ICE car that gets 30mpg, it takes about a minute to fill it with enough energy to go 300 miles. For a Tesla on a Supercharger, it takes an hour or so to load not quite 90% of that much energy, and far longer at most other stations.

      --
      Please stand clear of the doors, por favor mantenganse alejado de las puertas
    26. Re:Change is coming for car dealers by Firethorn · · Score: 1

      I looked up the fuel consumption for 100% power. But you're right about the trailer, though I'd say that the extra wind resistance matters more than weight for highway travel.

      Also, yes you're crazy if you're buying the generator yourself unless your usage pattern is really, really weird. Something along the lines of you're going to use it as a generator where you're going as well.

      For an ICE car that gets 30mpg, it takes about a minute to fill it with enough energy to go 300 miles.

      Takes closer to 5 actually. But if you take breaks like recommended by the experts to prevent the human side from becoming exhausted at superchargers and take sit-down meals you'll have more than enough charging time to make it.

      --
      I don't read AC A human right
  8. Everyone loves car dealers! by hsmith · · Score: 5, Funny

    They are great, they protect the consumer, ensure fair prices, charge fair prices for repairs, ensure you don't get ripped off, the list goes on! Good for them, Tesla deserves a beat down for trying to get rid of these middle men.

    Oh, jk.

    1. Re:Everyone loves car dealers! by Anonymous Coward · · Score: 0

      If we didn't have car dealerships, I don't know *where* I'd buy a car from! /s

    2. Re:Everyone loves car dealers! by Anonymous Coward · · Score: 0

      Amazon?

    3. Re:Everyone loves car dealers! by egranlund · · Score: 1

      What would I do with all the extra time if I didn't have to spend hours at a dealership while the salesperson artificially inflates the amount of time it takes to pay so they hope I won't notice the $5k extra they tacked on!?

      Not to mention what this will do to the vehicle undercarriage coating industry!

    4. Re:Everyone loves car dealers! by Darinbob · · Score: 1

      I love the point they make of "New-car dealers simplify an otherwise complex car-buying experience."

      My god, have these new-car dealers ever had the experience of trying to buy a new car from a dealer? It's an extremely complicated thing, ranking up there with doing calculus with stone and chisel. This is one main reason people loved the dealers with fixed prices or with internet sales where they can get a quote without talking to a huckster in person. If NADA thinks the public will be swayed by such a claim then they're seriously out of touch with the public.

    5. Re:Everyone loves car dealers! by NatasRevol · · Score: 2

      You'd have to buy their phone first. To take a picture of the car you want to buy.

      --
      There are two types of people in the world: Those who crave closure
    6. Re:Everyone loves car dealers! by Anonymous Coward · · Score: 0

      Oh god! At a Toyota dealer I purchased a Tacoma truck at the end of the day and it took 30min and I got $5000 off the MRSP. :) At another Scion dealer it took 6 hours and I was passed on to 3 sales people who sold undercoating, warranty, life insurance, warranty plans on top of the car purchase. I got the paint and undercoating for free and got $1000 off but it took a while to get them to move on the price.

      I watched this show about customer service and basically it says, "what is the customers time worth?". If someone is waiting then pay them for that time. One company gave a gift card for a free meal while they waited for a warranty repair. Canadian tire was out of generators during an ice storm and they treated the customers to dinner. I lost service for a day with my Wind Mobile cell phone and they refunded me $50.

      That Scion dealer owes me about $300 in wasted time.

    7. Re:Everyone loves car dealers! by Strider- · · Score: 1

      My god, have these new-car dealers ever had the experience of trying to buy a new car from a dealer? It's an extremely complicated thing, ranking up there with doing calculus with stone and chisel. This is one main reason people loved the dealers with fixed prices or with internet sales where they can get a quote without talking to a huckster in person. If NADA thinks the public will be swayed by such a claim then they're seriously out of touch with the public.

      Buying my car took more paperwork than buying my home, which is ludicrous given the order of magnitude difference in price. In the end, I bought my condo by faxing back a piece of paper with one signature on it, while on a trip in Europe. Buying my car? I had to sign a dozen different pieces of paper, and it took far longer.

      --
      ...si hoc legere nimium eruditionis habes...
  9. Yeah right by Anonymous Coward · · Score: 0

    "The current franchised new-car dealer model has benefited consumers, manufacturers and local communities for nearly a century"

    Said nobody ever.

    1. Re:Yeah right by Anonymous Coward · · Score: 0

      "The current franchised new-car dealer model has benefited consumers, manufacturers and local communities for nearly a century"

      Said nobody ever.

      That is wrong. They have provided our culture with a go-to slimy salesman image. What would the story of Matilda be without her father stuffing sawdust into transmissions? I wouldn't be surprised if Harry Potter's uncle was a used car salesman.

    2. Re:Yeah right by dcollins117 · · Score: 1

      Vernon's a director of the Grunnings drill manufacturing company.

  10. Its the margins they are scared of losing. by Anonymous Coward · · Score: 0

    The margins for dealer sold cars are HUGE, thousands and thousands of dollars in commission for the better sales guys per car. Now imagine if Tesla ruined that market made cars cheaper for everybody.. of course these guys are scared of Tesla, if they are a success doing this nobody will want to use a dealer and the price of all cars will go down so they lose out on that margin.

    1. Re:Its the margins they are scared of losing. by sexconker · · Score: 2

      The margins for dealer sold cars are HUGE, thousands and thousands of dollars in commission for the better sales guys per car. Now imagine if Tesla ruined that market made cars cheaper for everybody.. of course these guys are scared of Tesla, if they are a success doing this nobody will want to use a dealer and the price of all cars will go down so they lose out on that margin.

      Uh, Tesla wouldn't be making anything cheaper for consumers. They'd Apple it up and charge comparatively more, while keeping all the profits to themselves.

    2. Re:Its the margins they are scared of losing. by Anonymous Coward · · Score: 0

      Tesla might not, but what about Kia, Hyundai, Ford, GM, Toyota, Honda, etc?

    3. Re:Its the margins they are scared of losing. by ShanghaiBill · · Score: 5, Insightful

      They'd Apple it up and charge comparatively more, while keeping all the profits to themselves.

      Good. Tesla spends far more than most companies on R&D, and healthy profits will allow them to continue doing that.

    4. Re:Its the margins they are scared of losing. by beltsbear · · Score: 2

      The margins are huge. Part of the thing dealers love is preying on people who just don't know about buying a car. Either a full sticker priced sale, or dealer add ons that are insane such as $2000 running boards are a great way to make money off a sucker. Just one item like that can be much more then the normal profit made on a car.

      It took me a week to buy my last vehicle. I felt dirty and angry after several of my purchase attempts because I was quite clear on the phone before visiting what I wanted and did not want to waste time going to a dealer who was not willing to do it. I wanted to pay invoice and get fair market value for my old vehicle. Some of the dealers tried to cheat (keeping rebates), others did a good deal but then offered be well below market for my old vehicle. It was a very frustrating process. In the end after failures at 4 dealers I found one that was at least honest. They still made dealer 'holdback' plus other incentives which is enough profit.

    5. Re:Its the margins they are scared of losing. by Zynder · · Score: 1

      Sad troll attempt- 0/10. Corporations exist to make money. Given the opportunity to do so with little effort, you can bet your ass they ALL would. I can't even believe you'd throw GM, Ford, and Toyota in that list. Those guys have had so many recalls for cheaping out on parts I couldn't even list them all. I don't mention Honda or the Koreans because I don't know anything off the top of my head but I'm sure you can find plenty of problems with them as well. When you have a demonstrable habit of cutting corners why would you ever think they'd start behaving without someone cracking the whip on them? As far as I can remember, the price of a new car has only ever went up. Cutting out those middle man dealers is just a great way to get the bigwigs a bigger bonus! You'll still pay more for next year's model and they'll still use some plastic clips where 4 real screws should have been! Keep hatin' hater!

    6. Re:Its the margins they are scared of losing. by Darinbob · · Score: 1

      I bought my first car from a dealer (new or used) from Saturn. Fixed price, no haggles, absolutely loved it. I considered Honda at first but the salesman was so extremely aggressive that I quickly gave up that idea. And Saturn with a fixed price was not more expensive than the competition. Sure, SOME people are good at negotiating the price down but most people are not. Haggling means that the person with the most experience at it wins, and the sales team who do this every single day will have the most experience compared to the average customer.

      So the Tesla way of offering a price and the customer can choose to accept it or go elsewhere works. If it's too expensive then they'll have to lower the price to get the customers in the door. Just about every single thing you buy in the US has a fixed price with no haggling, except for cars and houses.

    7. Re:Its the margins they are scared of losing. by NormalVisual · · Score: 1

      Haggling means that the person with the most experience at it wins

      No, haggling means the person that's least willing to walk away loses. It's not hard, you just have to say, "okay, no deal then", get in your car, and drive away if they won't sell for what you're willing to pay. Plus you get the bonus of knowing the salesman is going to be sweating as he explains to the sales manager why he lost the sale.

      --
      Please stand clear of the doors, por favor mantenganse alejado de las puertas
    8. Re:Its the margins they are scared of losing. by Darinbob · · Score: 1

      But you never know if you could have gotten the better deal even when you do agree. You may indeed get a price that you agree on but you never know how low the dealer might have gone. This is like poker and the sales person knows how to read the customer better than the customer can read the sales person.

      There's also the case that you can be in a situation where the dealer knows you're much more ready to give in quickly and you're sort of at their mercy. Ie, my last car died and the sales person knew that my car was in the shop next door and that bad news was soon to arrive, and probably could deduce easily that I was in no position to just drive away without the hassle of getting a taxi to take me to an auto rental service. On the other hand you can time it so that the dealer is the one that's in desperate need to make a quota before end of the month.

      There's also the sleazy business (done everywhere, not just auto dealers) where you can not get any information without being given the sales pitch. Ask about how a hybrid works and you're not going to be told that, you're going to be told how great the car is and that you need to buy today etc. Whereas my experience with Saturn was great and the sales people actually gave me decent information that turned out to be reliable over time, and surprisingly would actually leave me alone to read stuff or do research and they actually let me leave the lot without being hassled about it!

      I know there are some people who think they really are great hagglers, and sometimes they're right. Sometimes they get fleeced though. A lot of people just like to think they're smart enough to handle it all, just like the people who think they're smart enough to go gambling and win. But I think many people just totally despise the whole process and would gladly pay more money to avoid the process, all the bs of "haggling is easy" won't change their mind.

    9. Re:Its the margins they are scared of losing. by NormalVisual · · Score: 1

      But you never know if you could have gotten the better deal even when you do agree. You may indeed get a price that you agree on but you never know how low the dealer might have gone.

      You're absolutely right, of course, but in my case, I placed a non-trivial value on my free time, and given that what I was offering was a couple thousand dollars under the researched "invoice price" (which of course is bogus, given the nebulous value of the dealer's holdback and other potential dealer incentives) and *many* thousands under the MSRP, I felt that it was at the very least a fair price and that it represented a case of diminishing returns to pursue anything lower.

      If it helps any, I hate the car. It's what my ex wanted to get, not me.

      --
      Please stand clear of the doors, por favor mantenganse alejado de las puertas
    10. Re:Its the margins they are scared of losing. by TubeSteak · · Score: 1

      Uh, Tesla wouldn't be making anything cheaper for consumers. They'd Apple it up and charge comparatively more, while keeping all the profits to themselves.

      A Fair Price
      http://www.teslamotors.com/blog/fair-price

      Below is the exact math for 734k CNY [Chinese Yuan]:
      $81,070 US price
      $3,600 Shipping & handling
      $19,000 Customs duties & taxes
      $17,700 VAT
      734k CNY @ 6.05 exchange rate

      This pricing structure is something of a risk for Tesla, but we want to do the right thing for Chinese consumers. If we were to follow standard industry practice, we could get away with charging twice as much for the Model S in China as we do in the US. But we're doing things differently, even if it means that some people might look at the price and mistakenly think it must somehow mean the Model S has less value than its competitors.

      Tesla already had the opportunity to "Apple it up" and chose not to.

      --
      [Fuck Beta]
      o0t!
    11. Re:Its the margins they are scared of losing. by jmauro · · Score: 1

      No, the dealer margins on new cars is actually very small. Used cars are higher, but not that much. Most of the margin is actually taken by the manufacturer. It's the reason they are so slimy when selling them, they make next to nothing on them.

      Most of a dealer's profit is on servicing and on any kickbacks from financing. The car its self, not so much.

    12. Re:Its the margins they are scared of losing. by Anonymous Coward · · Score: 0

      All of those companies still compete against each other on price for similar models and they all have a set of "entry level" models that they aren't going to "Apple up". Odds are that unless ales are down, consumers are always going to be paying MSRP from the manufacturer. Direct sales from those manufacturers are what NADA is trying to stop by keeping Tesla bottled up. That's the point, dumbass.

    13. Re:Its the margins they are scared of losing. by jratcliffe · · Score: 1

      The margins for dealer sold cars are HUGE, thousands and thousands of dollars in commission for the better sales guys per car.

      Seriously? I'm certainly no fan of car dealers, but if you think salesmen are getting several thousand dollars per new car in commission, you're kidding yourself. Average commissions are around $500 per vehicle.

  11. Benefits by Dega704 · · Score: 5, Funny

    They forgot to mention the free leg massages from leg-humping auto salesmen.

  12. What I want by Anonymous Coward · · Score: 0

    The problem is that dealer are just so so so terrible to 'deal' with.
    Who here has actually had a 'good' experience when buying a car from a dealer?

    What I want:
    1) Buy online
    2) pay the _advertised_ price. Not hundreds(thousands) more
    3) pay by credit card / direct deposit / or bitcoin!
    4) next day delivery - on the back of a truck - dumped off on my driveway, nice and clean, brand-spanking-new within 24 hrs.

    1. Re:What I want by viperidaenz · · Score: 1

      I found my last car online (used card)
      I paid over the phone, deposit (subject to independent mechanical inspection report) by credit card, full balance by direct deposit (or I would have had to pay credit card fee)
      It was delivered outside my work on the back of a truck nice and clean

      Quite happy with it actually. It was much cheaper than buying a similar car in my local city.

    2. Re:What I want by NormalVisual · · Score: 1

      Who here has actually had a 'good' experience when buying a car from a dealer?

      The last car I bought was pretty much trouble-free. I researched the vehicle, determined what I was willing to pay for it, and called the dealerships with my out-the-door price. Three of them balked, the fourth faxed me a quote with my price, and I picked the car up later that day for exactly that amount. They weren't real pleased to find out I already had financing in place through my bank, but that wasn't my problem. :-)

      --
      Please stand clear of the doors, por favor mantenganse alejado de las puertas
  13. Talk about a tall order! by DriedClexler · · Score: 4, Funny

    Imagine being the marketing team that had to make car dealers seem like a good thing to have!

    --
    Information theory is life. The rest is just the KL divergence.
    1. Re:Talk about a tall order! by Anonymous Coward · · Score: 1

      Big Tobacco staff had to go somewhere.

    2. Re:Talk about a tall order! by Anonymous Coward · · Score: 0

      Persuasive speech class (where you had to defend positions you disagreed with) probably came in real handy for them.

    3. Re:Talk about a tall order! by Anonymous Coward · · Score: 0

      "Change is bad for the economy". Now everyone on the site can be a marketing exec.

  14. Tesla's Mars Mission by mfh · · Score: 1

    Cool science fiction opportunity here is that when we colonize Mars we get to have a Mars vs Earth civil war. My bet is on Mars winning. Time for a hollywood movie deal!!

    Another multiverse version of Elon Musk develops a slew of super-viruses under his manufacturing plants in a deep-core Earth super lab. His 2020-ish journey to Mars assembles a team of top candidates for population of Mars now that he has perfected his global terraforming technology. Musk detonates super-virus technology as soon as his crew is safely on Mars. Earth is utterly destroyed and unable to support any life for 300yrs. Musk's new colony thrives in a totally Utopian society with their own laws where each citizen is given enough food and shelter to survive and they can earn the ability to undertake scientific projects that will benefit the colony.

    Colonial Mars expands to other planets with the Utopian political system essentially consisting of a Technocracy. Greed and religion are outlawed punishable by death. No person is in charge. Robots are programmed to rule.

    Twenty thousand years later Muskites are still populating the universe and expand into super beings. Eventually they are contacted by the Provost Utermina, a group of billion year old beings, evolved from non-carbon life forms, societally grouped into inhabiting several connected and infinite multiverses, also founded upon unwaivering Technocratic principles of kindness, alleviation of suffering and the expansion of consciousness, knowledge and wisdom.

    --
    The dangers of knowledge trigger emotional distress in human beings.
    1. Re:Tesla's Mars Mission by c6gunner · · Score: 1

      Colonial Mars expands to other planets with the Utopian political system essentially consisting of a Technocracy [wikipedia.org]. Greed and religion are outlawed punishable by death. No person is in charge. Robots are programmed to rule.

      So ... Mars becomes the USSR?

      Talk about the Red Planet ....

  15. Nada by Anonymous Coward · · Score: 0

    Never has an acronym been more apt.

    1. Re:Nada by Adriax · · Score: 1

      Wouldn't surprise me if, after their attempts to enforce their middle man monopoly by law fail, they change their name to the National Automotive Sellers Association and try to claim some of the federal budget for themselves.

      --
      I don't suffer from insanity, I enjoy every minute of it!
  16. My Anecdotal Evidence by 1000101 · · Score: 0

    'Everyone' hates the car dealership, and I do too. But, in my recent, personal experience, they have provided me the benefit of price competition. I needed to lease a car and found the lowest price I could find. I then simply called the 'Internet Department' at each of the local dealerships for this particular model, and just asked if they could beat that price. One guy said he could, and I went to him. I don't know if this is possible with purchasing a Tesla. Can different dealerships set their own prices, or, since the dealership is the manufacturer, is the price the same across any 'dealership' within a given geographical area?

    1. Re:My Anecdotal Evidence by aristotle-dude · · Score: 1

      'Everyone' hates the car dealership, and I do too. But, in my recent, personal experience, they have provided me the benefit of price competition. I needed to lease a car and found the lowest price I could find. I then simply called the 'Internet Department' at each of the local dealerships for this particular model, and just asked if they could beat that price. One guy said he could, and I went to him. I don't know if this is possible with purchasing a Tesla. Can different dealerships set their own prices, or, since the dealership is the manufacturer, is the price the same across any 'dealership' within a given geographical area?

      Don't know. Can your boss set your salary on a whim after asking a bunch of random strangers what he should pay you?

      --
      Jesus was a compassionate social conservative who called individuals to sin no more.
    2. Re:My Anecdotal Evidence by Anonymous Coward · · Score: 0

      Hard to speculate what your car would have cost with no dealer markup at all...

      Tesla doesn't have much price competition currently, filling a fairly unique niche in the market. One has to imagine a future market where multiple vehicle manufacturers vie for your business selling vehicles direct from factory to consumer, It's hard to see that the dealers will add much value in that scenario, aside from providing the opportunity to see, touch, and try the vehicle before purchase. Not sure that will be worth it or not.

    3. Re:My Anecdotal Evidence by viperidaenz · · Score: 1

      I find car dealers are a great resource.
      They're a good place to go to test drive cars and compare different models in person.

      Not a good place to buy cars from though.

    4. Re:My Anecdotal Evidence by brunes69 · · Score: 5, Insightful

      You are looking at this from the wrong point of view. The way you should be looking at is, if you ALSO had the option of calling up Ford or GM or whoever your car maker was directly, and asking THEM if they could beat the dealer's price, could they? Of course they could, they make the damn car.

      The idea that dealers create pricing competition for cars is total baloney because dealers don't make cars in the first place, they just mark them up and sell them. Ford competes with Honda and GM, they don't compete with Honda dealers and GM dealers. The thing that keeps the features and functions progressing for Ford while keeping costs low is not their dealer network, it is competition from other auto makers. The only competition dealers are having is who can mark up your car the least.

    5. Re:My Anecdotal Evidence by Anonymous Coward · · Score: 0

      With our matrix management setup, my boss IS a random stranger.

    6. Re:My Anecdotal Evidence by roc97007 · · Score: 5, Insightful

      'Everyone' hates the car dealership, and I do too. But, in my recent, personal experience, they have provided me the benefit of price competition. I needed to lease a car and found the lowest price I could find. I then simply called the 'Internet Department' at each of the local dealerships for this particular model, and just asked if they could beat that price. One guy said he could, and I went to him. I don't know if this is possible with purchasing a Tesla. Can different dealerships set their own prices, or, since the dealership is the manufacturer, is the price the same across any 'dealership' within a given geographical area?

      The problem is, all the different prices you got were different amounts of markup from the manufacturer's price. You settled for the least amount of markup you could find. I suspect that all of them would be more expensive than buying directly from the manufacturer, which in the case of Tesla, you essentially are.

      It only seems like a good deal in comparison to worse deals, not because it's actually a good deal.

      "You paid WHAT!!" "But it's ok honey, it was 50% off! Think of the money we saved!"

      --
      Oliver's law of assumed responsibility: If you're seen fixing it, you will be blamed for breaking it.
    7. Re:My Anecdotal Evidence by Anonymous Coward · · Score: 0

      The dealerships are there To Serve Man.

    8. Re:My Anecdotal Evidence by Anonymous Coward · · Score: 0

      Most likely yes. Barring a written contract of course.

    9. Re:My Anecdotal Evidence by drinkypoo · · Score: 2

      The only competition dealers are having is who can mark up your car the least.

      don't you have that backwards? the competition is to see who can get away with marking it up the most. it's an endless quest to find new ways to screw the customer.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    10. Re:My Anecdotal Evidence by Excelcia · · Score: 1

      Sure, local dealerships can fight over the scraps over who will take the lowest cut. And the manufacturer, who sets the "cost" price that the dealerships pay, is who laughs all the way to the bank. So while dickering on a price isn't possible with Tesla, it's also not possible with the existing dealership model. You can't go to ten dealerships and tell them, ok, which of you is going to more aggressively call up Ford and get me a better price from them?

      So yes, you can negotiate for a dealership that adds less markup on top of what they pay, why introduce that layer at all anyway?

    11. Re:My Anecdotal Evidence by Anonymous Coward · · Score: 0

      Are you suggesting that the car manufacturer would not want to get that markup themselves? That they would screw over their channel partners, lower the value of their product, and leave money on the table at the same time?

      There are plenty of products you can buy directly and from a third-party vendor, and I'm sure you'll find that you rarely save more than a few dollars buying direct. Compare the price of a Dell at your local computer store to the price on Dell's web site. Compare the price of Progressive auto insurance from an agent to the price on Progressive's web site. Compare the price of a flight on Travelocity to the same flight on the airline's web site.

      dom

    12. Re:My Anecdotal Evidence by roc97007 · · Score: 1

      > Are you suggesting that the car manufacturer would not want to get that markup themselves?

      Of course not. Some, almost certainly. But what is Tesla's goal? Really?? It's to drive everyone else out of business. And the way to do it is to lowball the price. And the reason they can do that is that they don't have to pay for dealers. This is not rocket science.

      --
      Oliver's law of assumed responsibility: If you're seen fixing it, you will be blamed for breaking it.
    13. Re:My Anecdotal Evidence by Anonymous Coward · · Score: 0

      Yup, the manufacturer could beat the dealer price, but guess what? If you're not a dealer, you can't buy from them. More free market.

    14. Re:My Anecdotal Evidence by havana9 · · Score: 1

      You are looking at this from the wrong point of view. The way you should be looking at is, if you ALSO had the option of calling up Ford or GM or whoever your car maker was directly, and asking THEM if they could beat the dealer's price

      If you want a Fiat and are in Turin the number to call is 011-004-2000. The price they make are a bit lower in respect of other car dealer, especially on cars in the park lot, but they're not the market killers you could think: i suppose that the mak up goes in the Fiat shareholders pockets instead of the car dealers pocket.

    15. Re:My Anecdotal Evidence by jbmartin6 · · Score: 1

      Retailers compete on price all the time.

      --
      This posting is provided 'AS IS' without warranty of any kind, implied or otherwise.
    16. Re:My Anecdotal Evidence by jittles · · Score: 1

      But what is Tesla's goal? Really?? It's to drive everyone else out of business.

      Tesla's goal is to make Elon Musk and the other shareholders money. They don't care how many competitors they have, as long as they are making money. If driving other competitors out of business makes them more money, it is because they are able to charge higher prices with less competition. They don't make money by low-balling their price, unless that decreased price causes an increase in overall sales to compensate for the lower margin per sale.

    17. Re:My Anecdotal Evidence by Anonymous Coward · · Score: 0

      This is a right to work state; yes he can. If he can find someone willing to do the job for less than me, he can lay me off, hire the new guy and pay less. Keep your head up your ass while your job heads to India or Bangladesh.

    18. Re:My Anecdotal Evidence by Anonymous Coward · · Score: 0

      not to mention that if they had a single price, they wouldn't have to deal with the cost of salaries for all of those sales people wheeling and dealing. You have some sales folks who are closer to marketing types show off the car and it's features, and let customers know the price from Tesla is not negotiable.

  17. Irony by AK+Marc · · Score: 1

    NADA mentions price competition, consumer safety, local economic benefits, and added value.

    Yes, the "added value" of $500 for a $2 3M spray on the seats, and $1500 for an underbody treatment that often isn't even applied.

    Yes, those dealers sure know how to extract value. I almost bought a Toyota once. But I couldn't get one that didn't have $5000 or more of unwanted markup for such scams. Gulf States Toyota Distributors should have been taken down for fraud and such. But NADA and others support such unethical and borderline illegal practices. And demonize Tesla.

  18. "price competition"? by roc97007 · · Score: 1

    Isn't price competition based on who has the lowest dealer markup?

    Doesn't eliminating the dealer franchise also eliminate dealer markup?

    Wouldn't we all be buying the same wholesale price?

    That being the case, how is price competition (in this case!) a good thing?

    --
    Oliver's law of assumed responsibility: If you're seen fixing it, you will be blamed for breaking it.
    1. Re:"price competition"? by RabidReindeer · · Score: 2

      p>Wouldn't we all be buying the same wholesale price?

      No, we'd be buying at retail, so the price is by definition the retail price.

      As to whether it's the same price for everyone depends on whether the manufacturer wants to haggle like dealers do or go with a fixed price a la Saturn. A fixed price is more likely though. Otherwise you'd end up paying for what amounts to an in-house dealership employing the people who did the haggling.

    2. Re:"price competition"? by roc97007 · · Score: 2

      Yes, in this case it would be retail, by definition. I think we're getting tied up in terminology. It's only called wholesale with other car companies because consumers can't buy from the company directly -- the purchase must be done from a middleman, at a brick and mortar store, with usually a pretty large number of employees. All that ultimately adds overhead costs plus dealer profit margin, which is why the car costs more than if you (could) buy it from the manufacturer.

      In the case of Tesla, you *are* buying from the manufacturer. Without dealer overhead (and profit), all other things being equal (which they never are, but bear with me), wouldn't this result in cheaper prices to consumers? I chose to call it "buying wholesale", but I suppose the terminology depends on your point of view.

      --
      Oliver's law of assumed responsibility: If you're seen fixing it, you will be blamed for breaking it.
    3. Re:"price competition"? by Anonymous Coward · · Score: 0

      How does Tesla not have overhead? Don't they still have to pay rent and utilities for the store/service center, pay the salaries of the managers, "salesmen", and mechanics, pay for whatever diagnostic/repair equipment is needed, and so on?

      The only real difference compared to a regular car dealership is that they don't have an inventory of cars on-hand that you can purchase because right now all their products are made to order. That's actually quite a significant overhead, and once they catch up with production enough to have on-hand inventory, Tesla will have to pay for that too.

      dom

    4. Re:"price competition"? by rahvin112 · · Score: 1

      That dealer markup isn't negotiable in the sales price. How it works is there is a wholesale price the dealer pays, this is typically $3-6K less the second "wholesale" price that they sometimes show the customer in the form of an "invoice" price (you will never ever see the real wholesale price). On top of this there is an MSRP markup that adds anywhere from 5-20% more to the price on top of the wholesale price and on top of dealer markup.

      When you negotiate a price on a car you are negotiating between the "invoice" (wholesale + dealer markup) and MSRP. Salesman commission comes out of this extra markup, the higher the price above "invoice" and the more the salesman gets (I've seen salesmen that get a price close to MSRP take a $3000 commission on a single vehicle). As an individual purchaser you under no circumstances will ever get offered a price less than the "invoice" price (wholesale + dealer fee). If you buy a fleet of vehicles you might get as much as 50% off that dealer fee but you would need to be buying triple digit numbers of cars from the dealer every year to reach that kind of price concession.

      In summary, even if you are the best negotiator on the planet you will never pay less than a $3-6000 markup on the wholesale price of a car using a dealer. So when that NADA guy claims it fosters price competition he's outright lying through his teeth. There is NO price competition, there is a significant markup for a middleman mandated by law. This is why the people that own car dealerships are often the wealthiest person in any moderately sized city. The more dealership they own the wealthier they are. They make several thousand dollars on the sale of every single car. Get rid of the dealer and you can shave that markup off the table because the manufacturer doesn't need it because they aren't getting it.

      Car dealerships are the perfect example of a middle man taxing every sale.

    5. Re:"price competition"? by roc97007 · · Score: 1

      Every company has overhead. But there's a significant difference between paying one company's overhead, and two company's overhead. (Which is why, incidentally, outsourcing fails. The only question is by how much.)

      --
      Oliver's law of assumed responsibility: If you're seen fixing it, you will be blamed for breaking it.
    6. Re:"price competition"? by RabidReindeer · · Score: 1

      In the case of Tesla, you *are* buying from the manufacturer. Without dealer overhead (and profit), all other things being equal (which they never are, but bear with me), wouldn't this result in cheaper prices to consumers? I chose to call it "buying wholesale", but I suppose the terminology depends on your point of view.

      No, the elimination of the middleman wouldn't automatically result in cheaper prices to consumers. The price presented to consumers is whatever price the seller wishes to present. Case in point: the price of an old-time IBM mainframe had virtually no relationship to its manufacturing cost. It was simply whatever price IBM thought they could extort from the buyer. Oracle still does this, and I'm sure so do many others.

      Commodities have price competition, but even in the case of a commodity such as an automobile, if I have a way to shave $5000 off a vehicle's price relative to other sellers, I may or may not pass those savings on to the customer. I may just pocket the difference.

    7. Re:"price competition"? by RabidReindeer · · Score: 1

      Yes, there's a lot of smoke and mirrors, but they do buy wholesale - meaning in bulk, so the manufacturer may offer some sort of quantity discount relative to the price presented to other, smaller dealers who don't buy as many vehicles at a time. And why they hate people like me who do custom orders, where there's no bulk to discount.

      The price competition is between dealers, and it's real. It may not be $3000-6000, but I did manage to shave off a couple of hundred even on a custom order of a specific vehicle by hitting every dealer in town and playing them against each other. One almost got the sale, but tried to cheat on features and thus not only lost the sale, but was then underbid by $600 by a dealer who provided the supposedly "unavailable" features.

      Middlemen do have their uses sometimes. It's just that auto dealers are scum.

    8. Re:"price competition"? by rahvin112 · · Score: 1

      And had you been buying directly from the manufacturer you would have paid less, significantly less. No matter how good of a deal you think you got the dealer still make that non-negotiable markup on top of the manufacturers wholesale price. What price concession you negotiated against was the cream profit on top of all that, and that isn't real price competition. That's the pretend circus on top of the purchasing that allows you to think you got a good deal, when in fact you didn't.

    9. Re:"price competition"? by RabidReindeer · · Score: 1

      And had you been buying directly from the manufacturer you would have paid less, significantly less. No matter how good of a deal you think you got the dealer still make that non-negotiable markup on top of the manufacturers wholesale price. What price concession you negotiated against was the cream profit on top of all that, and that isn't real price competition. That's the pretend circus on top of the purchasing that allows you to think you got a good deal, when in fact you didn't.

      Only if the manufacturer wants you to.

    10. Re:"price competition"? by Firethorn · · Score: 1

      Which is why, incidentally, outsourcing fails. The only question is by how much.

      That depends on the scale of the outsourcing. Let's say a company owns or leases 3 cars. It doesn't make sense for them to do the maintenance themselves, so they outsource it to another company for less because THAT company enjoys economy of scale by maintaining hundreds of cars, from dozens of different companies and individuals.

      Now expand the company and change it's field of business. Rather than 3 cars, it has over a hundred. Let's say a police department or taxi company of fair size. Now it makes sense to have it's own maintenance garage for at least the common stuff. Due to the miles these professionals put on a vehicle, each one is being pulled in for at least an oil change every couple weeks. When you're doing 10 oil changes a day, you're looking at a full time employee doing just that*. Time to look at hiring somebody.

      *Now yes, a full time employee would be expected to do far more cars at a lube joint, but I'm picturing said employee doing everything - keeping track of miles and maintenance schedules, pulling the vehicle from the lot to the maintenance area, changing the oil, clean & wash it, then return.

      --
      I don't read AC A human right
  19. No such thing as maintenance free car by TrollstonButterbeans · · Score: 1

    "Not specifically Tesla, but electric cars don't have alot of things that car dealers make money"

    Electric cars need tires. Electric cars need brakes. Electric cars will have safety recalls. Electric cars can be in accidents. Electric cars can be broken into.

    I don't claim to know much about electric cars, but if it has moving parts it will be need to be serviced at some point.

    I don't think you thought your post through.

    --
    Priest: "Universe from nothing, no laws of physics, sped up time"+ huge discrepancies. Creationism? No. Big Bang Theory
    1. Re:No such thing as maintenance free car by Anonymous Coward · · Score: 0

      Nobody has claimed that there will be no need for auto mechanics and tire stores. None of the things you mention are services that necessarily have to be performed by a dealership...

    2. Re:No such thing as maintenance free car by Anonymous Coward · · Score: 0

      All issues that can be dealt with by either the manufacturer, or an auto mechanic.

      I don't think you thought your post through.

    3. Re:No such thing as maintenance free car by TrollstonButterbeans · · Score: 1

      I had said: Electric cars will have safety recalls.
      You said: None of the things you mention are services that necessarily have to be performed by a dealership...

      Safety recall fixes have to be done at a dealership. Like when GM issues a recall for the ignition switch that can catch a car on fire.

      --
      Priest: "Universe from nothing, no laws of physics, sped up time"+ huge discrepancies. Creationism? No. Big Bang Theory
    4. Re:No such thing as maintenance free car by Anonymous Coward · · Score: 0

      Yes there is. They're called "lawn ornaments".

      Someone once confused them with lawn darts.

    5. Re:No such thing as maintenance free car by Firethorn · · Score: 2

      Safety recall fixes have to be done at a dealership. Like when GM issues a recall for the ignition switch that can catch a car on fire.

      No they don't. That's just mostly how the current companies handle it. Safety recalls have happened with Tesla. They've simply used company techs to do the work by picking the vehicle up from your house/work if the fix can't be done on the spot, sometimes delivering a loaner vehicle.

      Also, much like repair shops working with lots of insurance companies, there's nothing except laws preventing a car manufacturer from simply paying any qualified shop for doing the work.

      --
      I don't read AC A human right
    6. Re:No such thing as maintenance free car by gnupun · · Score: 1

      All issues that can be dealt with by either the manufacturer, or an auto mechanic.

      But dealer mechanics are more reliable than general auto mechanics. Suppose you live somewhere where there is no Tesla maintenance shop, how do you get your car serviced then?

      Tesla may decide it is not cost-effective to have more than X maintenance shops in a given city. So if you live far away from them, you get no coverage without a lot of travel. With dealerships, there is bound to be one close to you.

      When you cut down the number of competitors for auto maintenance to one company, your service quality and cost are likely to suffer.

    7. Re:No such thing as maintenance free car by tlhIngan · · Score: 1

      "Not specifically Tesla, but electric cars don't have alot of things that car dealers make money"

      Electric cars need tires. Electric cars need brakes. Electric cars will have safety recalls. Electric cars can be in accidents. Electric cars can be broken into.

      I don't claim to know much about electric cars, but if it has moving parts it will be need to be serviced at some point.

      I don't think you thought your post through.

      Yeah, but a lot of cars require maintenance on a regular schedule - say every 3-6 months on average.

      Tires? Usually every 5 years.
      Brakes? Well, depending on how you drive, 2-3 years is achievable. Heck, with an electric, if you do it right, you can minimize brake wear and maximize mileage by taking advantage of regenerative braking.

      Accidents? Well, if you're having them every year, perhaps consider taking a refresher course. Plenty of people don't get into accidents more often than once every few decades.

      If you go Tesla, they offer a bumper-to-bumper service plan that covers everything except tires (including other consumables like washer fluid, brakes, etc), for $600/year. For a lot of cars, the annual cost of maintenance can be, double, or triple, that. (Except maybe brand new where you usually get a 6 month oil change and then a more thorough service a year later).

      Heck, for Tesla, they recommend people come in for a service annually because there is VERY little that needs actual routine maintenance - no oil changes, no air filters, no spark plugs, coolant, timing belt, sensors, exhaust, etc. Well, an electric car does have coolant for the batteries and inverters, but it's usually just a completely sealed system.

      Most of the stuff that's done on a regular ICE car service simply doesn't happen on an electric. And dealers know it. Low maintenance indeed.

    8. Re:No such thing as maintenance free car by Rich0 · · Score: 1

      "Not specifically Tesla, but electric cars don't have alot of things that car dealers make money"

      Electric cars need tires. Electric cars need brakes.

      Even if they didn't the dealership would convince some percentage of the population to buy a plan that will replace them anyway.

    9. Re:No such thing as maintenance free car by Anonymous Coward · · Score: 0

      *That necessarily* have to be performed at a dealership.

    10. Re:No such thing as maintenance free car by JBMcB · · Score: 1

      That's just mostly how the current companies handle it. Safety recalls have happened with Tesla. They've simply used company techs to do the work by picking the vehicle up from your house/work if the fix can't be done on the spot, sometimes delivering a loaner vehicle.

      This works great when you have a few thousand vehicles on the road. When you have a few hundred-thousand cars all over the country, sending techs out to everyone's home is going to bankrupt you.

      --
      My Other Computer Is A Data General Nova III.
    11. Re:No such thing as maintenance free car by JohnFen · · Score: 1

      That's funny -- I just took my car in to my independent mechanic a couple of weeks ago and while it was there, he called me to say that a recall was issued for the air bag system. He performed the recall fix at no charge to me. I think you're wrong about recall fixes having to be done at a dealership.

    12. Re:No such thing as maintenance free car by Firethorn · · Score: 1

      sending techs out to everyone's home is going to bankrupt you.

      Can you explain how economy of scale allows for this to be profitable with 'a few thousand' vehicles, but not with a hundred times that? Assuming that Tesla remains a premium car brand, of course. The model E(or whatever it's name ends up being; I understand Ford forced them to change it's name) might not get quite as good service.

      --
      I don't read AC A human right
    13. Re:No such thing as maintenance free car by AaronW · · Score: 1

      I have a Tesla model S so I know a thing or two about not dealing with dealerships.

      As for safety recalls, the Tesla recall involved an over-the-air software update for one, and mailing out a new NEMA 14-50 adapter for the other. In neither case did I have to go to the Tesla service center. They later added a titanium shield to better protect the battery but there is no urgent need to bring the car in to have it installed and it can be installed in a matter of minutes.

      As far as maintenance, there's also many things electric cars don't have. They are extremely simple mechanically, with vastly fewer moving parts. There are only about a dozen moving parts in the entire drivetrain, including the electric motor.Dealers will lose a lot of money on service because there are far fewer things to break or the parts are more reliable due to being fully electric.

      While the tires and suspension are the same, most other things are not and service makes most of its money off of the big periodic service changes at 30, 60, 90 and 120K miles where things like timing belts are replaced and other big maintenance items. It should be far more reliable and there's far less maintenance to perform with an EV.

      1. Brakes on electric cars will last far longer since most braking will be regenerative. On my Tesla I use the brake pedal far less than with any other car I've driven.
      2. No oil changes or oil filters
      3. No belts to change
      4. No spark plugs
      5. No complex transmission. No clutch, torque converter, transmission fluid, radiator, etc. No transmission fluid or filters to change.
      6. No engine air filters
      7. Much lower chance of an oil leak since there are far fewer components that need oil.
      8. Air conditioning system is completely sealed, no compressor/clutch mounted to the engine block and required flexible hoses. Much lower risk of it leaking or the compressor failing.
      9. No oxygen sensors, exhaust systems, catalytic converters or smog equipment
      10. No valves, camshafts, piston rings, timing belts or chains
      11. No spark plugs, distributors, ignition coils and associated hardware
      12. No throttle body, mass airflow sensors, etc.
      13. No fuel injectors, fuel pump or fuel filter, no fuel tank, charcoal canister.
      14. No belt-driven alternator with brushes to wear out
      15. No starter motor and solenoid to wear out
      16. No hydraulic power steering pump or fluid (though many cars are now moving to electric power steering).

      Instead, my Model S has:

      1. water-cooled induction motor. The induction motor contains no permanent magnets or brushes, simplifying assembly/disassembly if it should ever have to be done. There are no friction points other than the bearings on each end of the shaft and those are sealed and lubricated for 12 years. The 416HP 443 ft-lb torque motor is the size of a watermelon, far smaller than any ICE engine of comparable power. An induction motor is stupidly simple in design and should last forever.
      2. water-cooled inverter for driving the electric motor. Again, these tend to be extremely reliable with no moving parts.
      3. water-cooled charging inverter(s) under the rear seats, easily accessible. Again, these should be extremely reliable.
      4. water-cooled/heated battery pack, hot swappable and easily accessible. Again, this should last a long time. Warranty is for 8 years, unlimited miles for 85KWh battery. In the case of the Nissan Leaf they are having a lot of issues in hot climates because of the lack of proper battery cooling support, other car manufacturers are not having issues. Even at 50,000 miles people are finding the loss of range to be fairly minimal.
      5. single speed 9.73:1 gear reduction transmission between the motor and differential consisting of only two gears internally. Part of the same module that holds the inverter and electric motor. This is as opposed to the many mechanical and hydraulic parts in a typical transmission.
      6. heat pump system with a sealed compressor with sealed tubes, no flexible hoses carrying freon. T

      --
      This post is encrypted twice with ROT-13. Documenting or attempting to crack this encryption is illegal.
    14. Re:No such thing as maintenance free car by AaronW · · Score: 1

      They do a lot of stuff that a typical dealership won't do for that $600/year. You get a free loaner car and your car comes back washed and vacuumed (my Toyota dealership would only wash the car and there was no loaner). In my case I declined the loaner and they just dropped me off at work and when my car was ready they delivered it to where I work.

      --
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    15. Re:No such thing as maintenance free car by TrollstonButterbeans · · Score: 1

      Thanks for the detailed information.

      --
      Priest: "Universe from nothing, no laws of physics, sped up time"+ huge discrepancies. Creationism? No. Big Bang Theory
  20. I have no interest in a Tesla by Salo2112 · · Score: 1

    but I would love their business model to be used by all auto manufacturers.

  21. Change is coming for car dealers by mOzone · · Score: 1

    tesla will be something when it can go coast to coast down back roads w/o fear of where we gonna charge this at right now its a cod peice for people who have a range rover or benz setting next to it in the driveway

  22. Broken window fallacy by tepples · · Score: 1

    PDF.js is being dog slow at rendering the PDF. So first I had a look at the article on The Car Connection. "Fiercely compete for your business" just means that Chevy, Ford, and the like have failed to compete with Tesla. "Create good-paying local jobs" sounds like a broken window fallacy. "and significant tax revenue for local communities" is true whether or not the factory owns the dealer, as the local branch of a factory-owned dealer likewise pays property, income, and sales tax. "If automakers themselves were in charge of repairs...well, we don't want to cast aspersions, but it would be easy to see the incentive to cut corners." Still, this would hurt only Tesla. If NADA thinks Tesla would be willing to kill its own brand, let it.

    Once the "Fact Sheet" finally rendered, nothing I wrote above was invalidated. Plus: "profits generated by factory-owned dealerships flow up a vertical ladder to out-of-state shareholders." So do the profits of the factory itself, no matter who owns the dealer. "Local dealers will be there for consumers in good times and bad." I've seen local dealers close up shop. "A new-car dealer serves a consumer for the entire ownership experience." Just as true of factory-owned dealers.

    1. Re:Broken window fallacy by viperidaenz · · Score: 3, Insightful

      "Local dealers will be there for consumers in good times and bad."

      Yep, I bought a car 6 years ago from a dealer. They closed down 5 years ago as soon as the "GFC" hit.
      I probably would have been a little sad, except they were ass holes to me as soon as I drove it off the lot.

    2. Re:Broken window fallacy by R3d+M3rcury · · Score: 1

      "and significant tax revenue for local communities" is true whether or not the factory owns the dealer, as the local branch of a factory-owned dealer likewise pays property, income, and sales tax.

      Car dealers take up more property than, say, Tesla showrooms. Figure that a Tesla showroom usually has a few cars on display in the nice, climate-controlled, showroom and a few cars parked in the lot for test drives. You aren't walking into a Tesla showroom and driving out in a brand new Tesla. Since your property tax relates to how much property you have, these showrooms pay less property tax.

      I remember there was some local pain when GM closed down Pontiac and Saturn dealerships and, suddenly, some nice property taxes stopped coming in from those dealerships.

    3. Re:Broken window fallacy by Firethorn · · Score: 1

      Car dealers take up more property than, say, Tesla showrooms.

      That's mainly because Tesla has all of ONE model of car with 3 trims and the ability to make you wait for your vehicle to come from the factory. Most of the major automakers have at least ten models with at least one line where you have more than three engine choices. Heck, I've seen vehicles where they offered more than six different trims(and a pain in the butt system for figuring out the differences).

      On the other hand think about how wasteful the dealer model is with Dealers having to *guess* what kind of vehicle and options you want, then stocking that. Good luck in the USA if you like Manual transmission vehicles in anything but sports cars or econoboxes, and it's tough even there.

      If car manufacturers were capable of being more agile, the two month wait for a new car that completely fits the customer's wants could be the norm, with used car lots and slightly longer term rentals satisfying those who find themselves in need of a different vehicle quickly.

      --
      I don't read AC A human right
    4. Re:Broken window fallacy by Neil+Boekend · · Score: 0

      They have 2 models, the S and the X.
      But your argument stands.

      --
      Well, I might have a way, but it only works on a semi spherical planet in a vacuum.
    5. Re:Broken window fallacy by Anonymous Coward · · Score: 0

      Most of them are. I had a dealership in Nampa, ID (Tom Scott Honda) order the wrong parts for me and refuse to allow me to return them. I went up the chain to their corporate office and finally got a call back from their manager who offered to take the parts on return if I promised to never do business there again. Since I had already made that decision that wasn't really a problem, but the arrogance was astounding. Haven't been back since. Some dealerships need to up and blow away. They are one of them.

    6. Re:Broken window fallacy by AaronW · · Score: 1

      One big difference is that with Tesla you typically do not buy a car on the lot. You go to their web site and select exactly which features you want and they build it. If you don't want a certain option, you don't get it. You aren't limited to which choices are available on the lot.

      If you don't want parking sensors and fog lights you wont' get them nor will you have to pay for them.

      If you want a blue car with a black interior with the panoramic roof, that's exactly what you'll get.

      --
      This post is encrypted twice with ROT-13. Documenting or attempting to crack this encryption is illegal.
    7. Re:Broken window fallacy by Firethorn · · Score: 1

      One big difference is that with Tesla you typically do not buy a car on the lot.

      Like I said "make you wait for your vehicle to come from the factory"

      With emphasis on 'YOUR' vehicle with the options you want.

      --
      I don't read AC A human right
  23. Buying a car by MpVpRb · · Score: 5, Interesting

    ..in the traditional sales system is not a thing that most people enjoy

    Some people falsely believe they are "players" but they still get screwed

    Most people are "sheep" and they get screwed faster and harder

    I am not a master negotiator..I just want a car at a fair price

    I always feel like a lamb in a roomful of tigers when I deal with a traditional car dealer

    I'm a really good engineer, and I have many other talents..but cutthroat negotiation is not one of them

    I really, really want a better system

    1. Re:Buying a car by Anonymous Coward · · Score: 1

      I'm a really good engineer, and I have many other talents..but cutthroat negotiation is not one of them

      I really, really want a better system

      Any market resembling a medieval bazaar in its negotiation framework is probably due for a revamp.

      After cars, real estate is overdue for a similar revolution.

    2. Re:Buying a car by cosm · · Score: 1

      You know there is a used market right? Craigslist? Autotrader? Etc. Why pay book value for new models when the 3 year old model will last you as long ...

      --
      'We are trying to prove ourselves wrong as quickly as possible, because only in that way can we find progress.' RPF
    3. Re:Buying a car by Pulzar · · Score: 2

      Why pay book value for new models when the 3 year old model will last you as long ...

      No, I'm pretty sure that, on average, it will last you about 3 years less.

      --
      Never underestimate the bandwidth of a 747 filled with CD-ROMs.
    4. Re:Buying a car by Anonymous Coward · · Score: 0

      Because the used market is intentionally gimped by the industry/"competition".

      The cost involved in hiring a mechanic to perform a top-to-bottom inspection costs THOUSANDS. Why? Because the mechanic knows that you either pay up, sell to a used car dealership that can bargain a cheaper deal through volume or the seller will have to find a really gullible buyer willing to buy a used, non-inspected car.

    5. Re:Buying a car by Cbs228 · · Score: 2

      Craigslist can get you a great deal on a used car: if you're going to buy one as-is, there's no need to pay the dealership markup. With that said, in my area the Craigslist listings for vehicles is packed mostly with unlicensed dealers who are masquerading as private parties. Some of them are even blatant enough to line up several cars they have for sale and photograph them all at once.

      I would be wary of this sort of activity, since there's no telling where these people get their cars. For all I know, they could be buying junkers, putting a coat of paint on them, and flipping them. The best way to avoid these dealers is to:

      • Run a search on the phone number / email address and see if it appears in any other for-sale listings
      • Look for listings with similar wording
      • Check an NVMTIS provider to see how long they have owned the vehicle
      • When you call, inquire about "the car" they have for sale—if they ask, "which one?" walk away.

      With that said, the existing dealership industry has every incentive to try and block smaller competitors. A major campaign to eliminate these unlicensed dealers is backed by a group which "manages access" to wholesale auctions to shut out buyers who aren't licensed car dealers. Presumably, if a smaller outfit could buy cars from one of these auctions, they'd be just as good as the ones a car dealership would sell.

      When you get down to it, a car is a major purchase which carries with it an amount of financial risk that is difficult to quantify, or know, before you buy. They're typically sold by scum of all flavor who don't really care what you get stuck with. After all, why would someone sell a perfectly good car? If I was given a choice, I would rather not own a car.

      --
      At our school, we don't earn a degree when we graduate—we earn pi/180 radians
    6. Re:Buying a car by Anonymous Coward · · Score: 0

      Why pay book value for new models when the 3 year old model will last you as long ...

      It's amazing how people will say and believe the most ridiculous things, provided that they support their opinion.
      It's no secret that a slightly used car is on average a better deal financially than a new car. But don't follow that with the logical absurdity that one that's three years old will last as long as a new one.

    7. Re: Buying a car by Anonymous Coward · · Score: 0

      I feel ya. Even if you were a journeyman negotiation engineer, would you even have the desire to battle it out for a large personal purchase like this? Anything the dealer makes on top is basically what you pay for the "delight" of their service.

      Sure, there's a place for dealers but their aggressive stance against direct-to-buyer sales has been anti-competitive and monopolistic behavior. In Washington state for instance, these dealership assholes have carved out non-Tesla sales effectively eliminating other manufacturers from the direct sales model.

    8. Re:Buying a car by __aarzwb9394 · · Score: 1
      Surely lots of people get a different car when they feel like a change rather than when they run the present one into the ground, especially people who are buying new or nearly new.

      If it takes you x years to get fed up, then it takes x years. Whether you start from brand new or from 2nd hand in good condition

    9. Re:Buying a car by Anonymous Coward · · Score: 0

      Three years less than 40 is 37, still a good long time to have the car.

  24. Devil's advocate? by Anonymous Coward · · Score: 0

    OK, lots of people think we should ban car dealers, and let auto makers sell directly to consumers. If that's the case, do you really think we'd be better off if GM sold cars directly? If you didn't have a local dealer to go to for a recall fix, how well do you think GM would handle it from a centralized facility? At least as well as they did the original ignition switch design?

    1. Re:Devil's advocate? by Anonymous Coward · · Score: 0

      No offense, but you're a fucking idiot. From whom do you suppose the local dealer gets that new ignition switch he puts in to fulfill the recall?

  25. Just one purchase away by Krishnoid · · Score: 1

    Won't there still be a need for dealers, and aren't all the video's arguments still valid, for used cars?

    1. Re:Just one purchase away by Anonymous Coward · · Score: 0

      I only buy used cars directly from their owners. I go to dealers only for repairs that independents cannot do because the means are withheld for anti-competitive purposes.

  26. forewarned is forearmed by epine · · Score: 3, Insightful

    "There will always be a need for car dealerships,..."

    But everyone knows what that conveys, even the dealers themselves:

    We've been printing money for a long time by bilking our customers for costly extras, and even though they often know this and resent it deeply, until now there hasn't been a credible alternative, so they just squeal to silently to themselves, then come back for more. With recent developments, that's going to change real darn fast if we don't (A) somehow force the competition out of business, or (B) do a prompt about-face in our shifty business practices, or (C) both at the same time with the intent of achieving the first option ASAP.

    Of course, this divides ranks with the dealership community itself, as the old guys close to retirement are going to continuing milking their cash cow by any means available, as the younger guys start to worry about their long term futures when the backlash strikes, which the old guys are doing nothing whatsoever to abate sooner rather than later.

    They say that society is "only" three square meals from anarchy. That's a lot, actually. I estimate that the fraternal order of the car dealership is only two snifters of brandy and one Cuban cigar's worth of suggested forbearance away from king-sized flop house crossfire.

  27. Your Daily Tesla Ad Brought to You by /. by Anonymous Coward · · Score: 0

    Because the world is out to get Tesla, and only Tesla.... and Tesla is our savior.

  28. Go away NADA by darronb · · Score: 1

    Car dealerships have got to be about the worst consumer facing industry there is.

    Most of the 'local' revenue is from fleecing other locals with borderline (and some not so borderline) scams. I'm amazed there's not some big undercover expose showing all the crap they do on a regular basis. (Maybe there is and I just haven't seen one... ?)

    Die already.

    If they somehow magically pulled a 180 on the entrenched shitbaggery that permeates that whole industry and turned into normal retail sales outlets maybe I'd start to listen to whatever the hell they're saying here.

    (I guess I should disclose I've got some Tesla stock, but that has zero bearing on my opinion of car dealers)

    1. Re:Go away NADA by JohnFen · · Score: 1

      There have been numerous such expose's over the past 50 years or so.

  29. Waste of time by skaag · · Score: 1

    I think the NADA is wasting their time, if they are indeed "scared" of Tesla, or even really actively fighting Tesla. The number of people currently buying a Tesla is so insignificant compared to regular car sales, that the NADA has nothing to worry about for at least another 5 years (which is when all-electric vehicles hopefully become cheap enough to actually compete, price wise, with gas fueled vehicles).

    --

    All those moments will be lost in time, like tears in rain... time... to... die...

  30. But often the dealers are all owned by one family by EmperorOfCanada · · Score: 1

    In many communities you will find that the major dealers for a given brand are owned by the same family. So you cross town for a better price and oddly enough it is identical.

  31. Added value by Deadstick · · Score: 1

    ...I love it. There are Nissan (at least) dealers hereabouts who have occasionally priced cars over MSRP. Now that may be annoying, but it's basically legitimate, considering that "suggested" means just that. I can understand a dealer saying "We're charging you over MSRP because we can, so take it or leave it".

    But these guys take it to a different level. The window sticker lists the MSRP and all the usual add-ons, and then an entry that says "[Dealername] Added Value $500". It doesn't include any of the silly crap like Scotchgarding the seats -- those are saved for the sales manager to try to force on you.

    1. Re:Added value by whoever57 · · Score: 1

      an entry that says "[Dealername] Added Value $500".

      I remember seeing one car that the dealer was even more forward about markup. The item was "Additional dealer profit". The sticker was on a TC by Chrysler, which probably sat on the dealer's lot until the dealer realized that the "Additional profit" needed to be negative in order to sell the car.

      --
      The real "Libtards" are the Libertarians!
    2. Re:Added value by Neil+Boekend · · Score: 1

      "Added Value" is marketing speech for "Added Cost".

      --
      Well, I might have a way, but it only works on a semi spherical planet in a vacuum.
  32. too bad the dealers are REALLY slow by WindBourne · · Score: 1

    If they had a real brain, they would approach Tesla to see about getting frame with drive train. In doing that, they could put their own body on it and start their own companies. From there, down the road, they could switch from dealer, to auto makers.

    --
    I prefer the "u" in honour as it seems to be missing these days.
  33. Good riddance. by 50000BTU_barbecue · · Score: 1

    Let's get rid of realtors next. Another bunch of useless parasites.

    --
    Mostly random stuff.
    1. Re:Good riddance. by iggymanz · · Score: 1

      did you mean real estate agents, or really meant only those that paid the $140 dollars to join a particular trade association?

    2. Re:Good riddance. by DigiShaman · · Score: 1

      You can, not me. I've seen both sides of selling and buying a home. I wouldn't want to be without a good real estate agent. And yes, I've fired many in the past. Sometimes you have to go through a few before you find the one that makes a good partner in the deal making. That, and they help you from getting screwed. The good ones do anyways.

      --
      Life is not for the lazy.
    3. Re:Good riddance. by Vellmont · · Score: 1

      Odd. I can see someone helping you price a house, and giving advice. Is that worth thousands of dollars? Not really.

      Most of the "work" that real estate agents do has been replaced with internet searches. I bought a house several years ago, and found the house I bought through open houses and searches. Why do I need to hire someone to do that? Why should a seller accept losing 7% of the value of a house (a LOT of money) just to pay a middleman who has a trade industry group (MLS) that keeps a monopoly on the listings?

      The real estate market is a scam for the service they provide. They're generally nice people and not exactly trying to screw you over, but like all middle-men, they aren't nearly as necessary as they used to be in an information age. Travel agents were nice people too, and they went away. Some people are still convinced they need insurance agents as well. I've never used one and never will. Why would I? I can't figure out insurance on my own? A lot of the agency jobs are being automated away. Searching for a house that meets your needs used to be "hard", now it's simple.

      If you want to sell your house, you can't list it on MLS, since you need to be an agent. Though I think there's cheap listing agents now that'll list your house for you, I think you might still have to pay off the other parties agent. There's a cultural change coming as people get more and more used to self-service. I see real estate agents morphing into a far smaller, and far well less paid role.

      --
      AccountKiller
    4. Re:Good riddance. by Neil+Boekend · · Score: 1

      Here in the Netherlands you can sell or buy your house all on your own. And you know what? Real estate agents are still active.
      They do add value or save cost in many cases:
      Sell:
      They know what the maximum is that you can ask while keeping people interested. That is separate from the taxation.
      A good one helps you to make proper pictures that really show off the good sides of the house.
      They know what you should inform the buyer of (in writing) to prevent lawsuits for hidden but known flaws.
      Buy:
      They have experience in seeing the problems of a house. Trouble some people wouldn't see until it's too late.
      Often they have already seen a few houses in the area and in your budget and they may be able to hint at interesting houses once they know what you want.
      They can help you on your offer. You don't want to pay too much but you don't want to close negotiations either.

      If a real estate agent costs you E1000 but saves you E 5000 then it is money well spend. A few percent on a house can easily be thousands of euro's.

      Why don't you start a real estate agency that is simply the cheapest around and do only just enough to let the seller or buyer confirm to that foolish law that requires them to have a real estate agency? Undercut them by 90% if they add no value!

      By the way, I am in the process of buying an apartment. I do not use a real estate agent for my buying because I do not feel I would save more than I would spend.

      --
      Well, I might have a way, but it only works on a semi spherical planet in a vacuum.
  34. Car Dealerships and the Free Market by Anonymous Coward · · Score: 0

    Of course there really isn't a free market, the car dealership requirement is just one example.

  35. Used Cars by Anonymous Coward · · Score: 0

    People always seem to jump right to new car dealerships when this is brought up when the reason most of these laws exist is because of predatory used car dealers.

    1. Re:Used Cars by Snufu · · Score: 1

      These laws (passed 50 years ago) predate the capability of buyers to easily browse and purchase used vehicles from the supply outside their immediate vicinity.

  36. Obsolete middlemen in panic mode. by Snufu · · Score: 1

    Dealerships losing government supported business model.

    1. Re:Obsolete middlemen in panic mode. by Anonymous Coward · · Score: 0

      Let's think about an analogous situation. The internet store, such as Amazon, compared with the brick-and-mortar store, such as Barnes and Noble or Borders. Each has its benefits. Amazon tells you that they provide efficiency which helps the consumer with a lower price. B&N provides a space where you can meet with your friends, maybe meet new friends, and their bookshelves provide plenty of browsing for serendipitous discoveries.

      Obviously, Borders, for whatever reason (their heads were in the sand?), didn't survive. Barnes & Noble's situation is still undetermined. But if the brick-and-mortar stores all go away, what will the consumer be left with? Brick-and-mortar fulfillment centers? And then one day, Amazon will open their own retail outlets, and they will have just-in-time deliveries of the best selling books. You can brag that the internet is supreme, but that's not likely how it will play out. The internet is just one part, albeit a very important part, of the overall equation.

    2. Re:Obsolete middlemen in panic mode. by Anonymous Coward · · Score: 0

      Amazon's customers were not forced to pay sales taxes for several years. That's a government supported business model.

    3. Re:Obsolete middlemen in panic mode. by Anonymous Coward · · Score: 0

      Amazon's customers were allowed to avoid sales taxes for several years. That's a government supported business model. Taxes should be as low as possible, preferably non-existent, and fairly enforced.

  37. Re:...Except when they're owned by Republicans. by beltsbear · · Score: 1

    GM management wanted the closures, not the government because their business DID NOT SUPPORT all of the extra dealers. GM's sales were down to almost half of what they were and they still had almost all of the dealers. They definitely needed to downsize the network.

    Basically you made the whole political angle up to serve your petty DEM vs REP crap.

  38. by Price Competition by Anonymous Coward · · Score: 0

    they mean who can sell it as high as possible overtop of the dealer price.

  39. I still dont understand... by nurb432 · · Score: 1

    How there can be laws to prevent you from selling to an individual in any industry. I know they were purchased, but still how can a law like this ever get passed with out SOMEONE getting in its way?

    --
    ---- Booth was a patriot ----
    1. Re:I still dont understand... by Anonymous Coward · · Score: 0

      How there can be laws to prevent you from selling to an individual in any industry. I know they were purchased, but still how can a law like this ever get passed with out SOMEONE getting in its way?

      There is a mass delusion here that manufacturers are just dying to sell directly to the consumer.

      Note the 'fuck you' prices on this page:

      Apple... just like a FORD!

      They don't want to deal directly with us. This might change, little by little, but it is not a great conspiracy like the AMA. Most auto manufacturers are like Apple. They don't give a fuck and won't discount to sell direct. End of story.

  40. How does NADA compare to other free market champs by Anonymous Coward · · Score: 0

    Comcast
    Time Warner
    Microsoft
    AT&T
    Sprint
    Verizon
    Patent trolls
    MPAA
    RIAA

  41. "Benefits" by Dereck1701 · · Score: 1

    "touting the benefits of dealer franchises"

    Then let them compete with other sales methodologies in a free market basis. Creating an artificial market environment usually only exists to maintain an unsustainable market for a select group of people who have influence with those in power.

  42. Fail Troll is FAIL by Anonymous Coward · · Score: 0
    And if I had mod points I'd still mod you down as a douche bag. Look, old timer, alot has changed since you went to school. "Alot" is now common usage and it will end up the officially recognized form of usage any year now. Just like anywhere, everywhere, anytime, and so many other types of combined words. Since you want to be a pedantic grammar Nazi, let's see how you scored. Shall we?

    verb "allot". In

    You placed your period outside of the quotation marks. Alot of people type words this way now, so it's common usage, but it isn't officially recognized. -10 points

    In this case, you mean "a lot" (two words), as in many

    When you place a phrase inside commas as you did, it must make sense if it were to be removed. "In this case as in many" does not make sense. -10

    The next sentence is 52 word run-on sentence. -10

    But, now that you

    You NEVER start a sentence with a conjunction. -10

    That's crony capitalism for you; it's the downside of deregulation

    Incorrect semicolon usage. This required an em-dash. -10

    Your final grammar Nazi score is: 50%. That's an "F" grade in case you forgot. It should be lower, really, since that run-on sentence made my head hurt. 52 words is quite a feat. I'm feeling generous today so I just knocked the standard 10 points off.

    By the way, you are the blackest fucking kettle I have ever seen!

    1. Re:Fail Troll is FAIL by Anonymous Coward · · Score: 0

      You placed your period outside of the quotation marks. Alot of people type words this way now, so it's common usage, but it isn't officially recognized. -10 points

      Idiot. That might not be so typical in the US, but it's typical in other English-speaking countries. In fact, it makes much more sense.

  43. ugh by Anonymous Coward · · Score: 0, Funny

    You know the smallest of details about Harry Potter, but I bet you couldn't tell me who the 7th US President is or who your own House members are. I just have to point this out because I'm an asshole and I hate Harry fucking Potter with a passion. TOLKEIN OR DIE BITCHES!

  44. Doublespeak at its' finest! by Anonymous Coward · · Score: 0

    Price Competition - Meaning Dealer Gouging.
    Consumer Safety - Like with all the GM Recalls?
    Local Economic Benefits - I can't think of one.
    Added Value - See Item #1

  45. Stealerships by Trachman · · Score: 1

    There is a reason dealerships are popularly referred to as stealer-ships. While people there are trying to make money, the selling practices are universally despised and not liked by many. As such, I say that we should welcome Tesla and all other manufacturers. The more the merrier. Dealerships are welcome to compete with the quality of their service in free market

  46. NADA is nothing more than Yada Yada Yada .... by Amando13 · · Score: 1
  47. Please specify. by Anonymous Coward · · Score: 0

    Countless times? I can think of one case in New Jersey and I thought it was pending.

  48. manucturer dealers could be worse by Eravnrekaree · · Score: 5, Insightful

    Most things are not sold directly by the manufacturer but by retailers. The variety of things that can be bought is too large to have a seperate store for each manufacturer out there, its nice to have product catagories in one place. With smaller objects of lower value, it seems this is strongly preferred. Cars are a very large, expensive item so there is more of a tendancy to have stores that specialize in just them. This sort of reduces the natural retailer/manufacturer seperation.

    The fact is dealers do provide added value, however. The value comes from of course, the lot, of being able to actually see a car before you buy it. The cost of running this will be there whether the manufacturer runs the lot, or whether an independent dealer does. The market does operate to regulate prices for dealers, since its a part of the car price, it can be argued that having independent dealers may give people more choice regarding who has a more efficient lot operation.

    Many aspects of the dealership people find unpleasant will still be there with a manufacturer run dealership. One of them is the credit checks for the loans. Bargaining is not necessarily exclusive to independent dealers but could also occur at a manufacturer dealer. A lot of the qualities of the independent dealer will still be there with a manufacturer dealer, therefore. Since you have no choice of dealers to work with, it could even be worse.

    Maybe people should have the option of a direct buy from a manufacturer, but, a manufacturer locking out independant dealers from providing an alternative is also not a great idea. The vertical integration could be anti-competive and lead to overly monopolistic qualities.

    1. Re:manucturer dealers could be worse by jjo · · Score: 1

      If a manufacturer wants to screw itself by preventing its customers from experiencing the orgiastic joy of buying their cars from a dealer, why stop them? It's not 'monopolistic' since sensible customers can pass up the cars sold by the evil direct-sales model and flock to other manufacturers who let them buy through their fair, pure, and utterly ethical car dealerships. :-)

    2. Re:manucturer dealers could be worse by 140Mandak262Jamuna · · Score: 1
      Right the policies, laws and contracts of auto dealerships allow for only two models: Direct sale by manufacturer without any dealerships or All sales via dealership without any direct sales.

      If NADA believes dealers are great let them relax the contracts and allow direct sales by manufacturer and also sales through dealerships. It is the auto dealers who seek monopoly and misuse the term competition and choice.

      --
      sed -e 's/Chuck Norris/Rajnikant/g' joke > fact
    3. Re:manucturer dealers could be worse by JohnFen · · Score: 1

      Many aspects of the dealership people find unpleasant will still be there with a manufacturer run dealership. One of them is the credit checks for the loans.

      I seriously doubt that the credit check for a loan even appears on list of things that people find unpleasant about dealerships. If it does, it's certain to be dead last. At least, when I hear people complaining about dealerships (and in my own complaints about them), "the credit check" has never, ever been mentioned.

    4. Re:manucturer dealers could be worse by AaronW · · Score: 1

      In the case of Tesla they have showrooms. They give you a chance to see the car before you buy it and ask questions. The people who work there are not on commission. You can still test drive the car. When you're ready to actually buy the car you go on to their web site and order exactly what you want and they build to order. There's no incentive for the people working in the showroom to push features you don't want.

      There is no added value by dealerships. My experience with them is they try and push you to buy a bunch of unnecessary crap.

      My father bought a Fisker Karma. The dealership offered no protection from when the manufacturer went bankrupt. The warranty was suddenly null and void. Many Fisker dealerships just disappeared, leaving owners to completely fend for themselves for service and parts. For those that continued to support their customers, any pre-paid maintenance and warranty work now was out of pocket for the owner.

      I own a Tesla model S. I have zero complaints about their service. It is better than anything I have seen from any dealership. They don't try and push any unneeded service. They include a loaner car and if a Tesla model S isn't available you can get a BMW, Mercedes or other luxury loaner car, all completely covered by Tesla. In fact, for the warranty they don't require that you have the yearly 12K service done.

      When I got my car back from the yearly service, it was washed and vacuumed. They did not have any loaner cars available. I opted to just have them drop me off at work since it was just a few miles away. When they were finished they delivered my car right in front of where I work. My car is a fairly early VIN number.

      Tesla also supports independent shops for a number of things. For example, if you need a tire fixed, they won't do it. You go to any tire shop to have that work done. Same thing for body work, though in this case you really want to go to a body shop that has been certified to have the appropriate training, especially since dealing with an aluminum body is different than sheet metal.

      For general maintenance you really don't want to go to an independent mechanic for most stuff since they won't be trained. There are a lot of differences between a Tesla and a normal car. The drive train has nothing in common with other cars. Even if Tesla doesn't have a service center nearby, for $100 they will come to you, no matter where you are. If your car failed, they will usually even wave the $100 fee. Many things they can diagnose remotely over 3G or WI-FI so they know exactly what they need to do before they arrive.

      For example, my car was one of the earlier VINs that received a defective 12V battery. Tesla contacted me about having it replaced before it failed from their remote monitoring They push out software updates and fixes over the air.

      All of the problems I have had with my car were rattles and other issues that have all been addressed in manufacturing for newer cars, yet they will proactively go and upgrade my car to fix these problems or won't ask any questions and just make the changes if I bring it in. My car has a VIN in the low 5000s. Many of these issues require a lot of real-world experience to discover so I give them some leeway there. They have always come through and fixed every issue, no matter how minor it is. Also, they don't wait for mid-year or the next year to update their assembly line. They address the problems immediately. A common problem with the early cars was that the panoramic roof would creek during hot weather. They discovered a shim is required and immediately made the ECO change for manufacturing and went back and fixed all of the cars that experienced the problem. Even if customers don't experience the problem, when the car is brought in for service they proactively fix issues discovered in the early VINs.

      No dealership that I'm aware of even comes close to this level of service. Dealerships are leaches left over from a bygone era. There is no reason why one shouldn't be able to just hop on a w

      --
      This post is encrypted twice with ROT-13. Documenting or attempting to crack this encryption is illegal.
  49. Easy target by Anonymous Coward · · Score: 0

    Distributes, dealers and other middlemen are are often subject to rather mindless criticism. Middlemen serve a real economic need which is why so many industries make use of them. Here's a few
    Dealers have more flexible terms and conditions like trade ins, extended warranties, custom options, etc.
    Dealers support a market in used cars.
    Dealers stock product.
    Dealers reduce sales fluctuations for manufacturers.
    You may have more leverage in a dispute situation.
    etc...

    Tesla is a niche product and hardly a threat to auto dealers so and the only reason NADA objects is their PR flacks have to justify inflated salaries.

  50. This comment brought to you by... by Anonymous Coward · · Score: 0

    your local automobile dealer. bringing you higher prices, fake smiles, and broken promises.

  51. It Sucks by cyberzephyr · · Score: 1

    To be NADA.

    Just like the rest of the auto makers. Don't forget Tucker.

    --
    I'm here for the experience, not the Hyperbole.
  52. Slashdot editors are terrified of ElonMusk's cock. by Anonymous Coward · · Score: 0

    But they suck it every day, just the same.

    How does that Musk cock taste, Slashdot editors ? Does it taste better than the pustule-ridden
    HIV-inflamed nigger cock you usually suck ?

  53. Whose OX Gets Gored? by JimSadler · · Score: 1

    In the last few weeks taxi drivers are in a fuss over technology possibly eliminating their trade. Now we see car dealerships in a hissy over the potential elimination of their livelihoods. I can recall when movie theaters were in a state claiming that cable TV would ruin the theater industry which really did occur. Taxi drivers will not get much public sympathy as they are not powerful nor particularly well liked. The car dealers will shrivel up much more slowly as they have money and a bit of status as well as a public that is slow to adopt new products. But the fact is that the Tesla vehicles simply will not need mechanics. Swapping out a battery pack or an electric motor can be done by any small shop. Glass is already normally handled outside of dealerships as is paint and body and half the garages already provide break maintenance. Brokers can handle the sales unless Tesla sells directly to the public so what is there for a dealer to do? Frankly as each trade falls away we will see protests and warnings of dire consequences. The trucking industry will soon fall to robotics and perhaps the commercial airlines as well. The construction trade is in serious danger as 3D printing can build superior homes. I'll bet money that 3D printed boats start to appear soon. I know that one canoe was already built as an experiment. The books about Future Shock were pretty much dead on target.

  54. Should we feel bad for buggy whip salesmen? by Chas · · Score: 1

    Seriously.

    The auto industry has had pretty much unlimited rein to revolutionize themselves for the last 70+ years (Tucker Preston, ring a bell?). But they, and their predatory salesforce, have turned up their noses and outright torpedoed each and every opportunity to do so. All so they can give us pathetically miniscule changes on a yearly basis and charge us ever greater sums of money to do so.

    Fuck them and the buggy their rode in on.

    --


    Chas - The one, the only.
    THANK GOD!!!
  55. One example by Anonymous Coward · · Score: 0

    "Car dealers are SCUM. They are leaches. Their goal is nothing but to separate you from as much money as they can."

    There is a Toyota dealer that is so hostile even calling to ask a question gets an unpleasant response.

    1. Re:One example by TWX · · Score: 2

      I had to drive through a hedge row to leave a dealership once. I was eighteen and shopping for my first car, driving my folks' old '86 Isuzu Trooper. I had driven in to look at a car up on the pedestal that I wanted to know the price of, and they blocked the driveway and wouldn't move. I shifted into four-wheel-high, jumped the curb into the landscaping, drove through a shallow, landscaped water retention basin, through a short hedge of oleanders, out on to the flat landscaping next to the street, shifted into two-wheel, and pulled out onto the street. I only saw the facial expression of one of the salesmen that blocked me, but it was absolutely priceless...

      I do not have a problem with the end of the dealer franchise system. It's one thing if they were honest about the price and all of the associated costs so that one could actually negotiate with them, but it's fighting tooth-and-nail to get them to that point. When we tried to buy a truck in September 2008 and the prices just didn't align with what we expected, and finally after more than an hour they brought out the complete price breakdown, under duress that we were going to walk out if they didn't. Still couldn't reach a price, still walked out.

      If franchise dealers would negotiate on an out-the-door price (especially when one is going to pay cash or bringing in one's own financing, effectively a cash transaction from the dealer's point of view) then I wouldn't be calling for their end, but with all of the crap they pull I see nothing redeeming about them, no value added.

      --
      Do not look into laser with remaining eye.
    2. Re:One example by Anonymous Coward · · Score: 0

      I had a salesman tell me anti-lock brakes were a scam. I was trying to compare prices at two different dealers and the second place offered me the same price but with less options. It took me about 4 hours to get to that point of actually getting a price and I'm sure there were hidden charges that we still to be added. The last 3 cars I've bought new *, I had cashiers check already made out from my bank to cover the price, no trade-in, I know the incentives and the rebates and a good idea of the average selling price or a good price. It still takes many HOURS of awkward back and forth before finally getting a price.

      I've only found one dealer in the last 10 years that will actually give you a price over the phone or online. I bought the car there. Most places have a thing that you select a specific car and say quote me a price. All that happens is someone calls you and I ask, what's the price? They say we have bunch in stock, come in and look. I even ask them, what's the purpose of the online price quote charade then? Why not just say, don't bother with a quote, just come in.

      * Everytime I say I'll never buy another black car because they are a so nice the day you wash them but not soon after and I'll never by new again because of the experience and the value compared to one 1-2 years old but anyway. I still buy new and I still buy black ones although my last one was white.

    3. Re:One example by epyT-R · · Score: 1

      So why did they block the driveway? That has to be quite a story..

    4. Re:One example by Anonymous Coward · · Score: 1

      I only saw the facial expression of one of the salesmen that blocked me, but it was absolutely priceless...

      Yeah, he was probably thinking "Why didn't that clown use the other driveway? The one that's wide open?"

    5. Re:One example by Hodr · · Score: 1

      Admittedly I have only purchased two cars new, but my experience was that you can negotiate on an out the door price. My process was to find a model I was interested in, wait until they were motivated to sell, then started e-mailing.

      I e-mailed all 7 of the dealers within 60 miles of me and asked for a no kidding out the door price, and told them not to figure in a single incentive that the general public wouldn't qualify for (good student, military, etc.).

      Then I took the best price and e-mailed those who were close to that price and told them they had one more chance.

      In both cases I came out with a price that was well below what truecar says is a good price, and when I wen't in to buy it was easy. I had financing in hand and when I got to their closer (the guy who upsells you) I just said no to every single thing he offered and walked out with the keys 20 minutes later.

  56. dealer experience. by Anonymous Coward · · Score: 0

    I found the cheapest honda in 500 miles up the road and it was the end of the month. I talked them down and then popped out a web coupon for $500 off. They made me sit and then set over a guy that I never spoke to before to talk me down. He said that I had to pay $100 more in order for the deal to go through. I asked if $100 was worth me leaving and he said that it was the only way. Thanks!

  57. The secrecy IS scary. by Anonymous Coward · · Score: 0

    Mod Fuzzy Fuzzy Fungus up! He is an excellent fungus.

    Quoting: "Tesla ... [is] about as far in the 'secret knowledge' direction as anybody in the business..."

  58. I'm the SCUM by Anonymous Coward · · Score: 0

    I've never had a decent car buying experience and no I never was able to get a "killer deal" on a vehicle purchase.

    Well not even a half way decent deal either.

    In the future i'll use a broker from now on.

    If Tesla is forced to run through a dealership I better have to visit a dealership to buy a loaf of bread!

    Don't go partial stupid, go FULL Stupid!

    1. Re:I'm the SCUM by kwbauer · · Score: 1

      Depending on what brand of bread you buy, you are already visiting a dealer, so what is your complaint again?

  59. Good Riddance by Anonymous Coward · · Score: 0

    Most dealers are scum. This is why I bought a Dacia: they don't negotiate on price. Only time I've not felt ripped off buying a car.

  60. From... to... by Anonymous Coward · · Score: 0

    "trying to block Tesla from selling cars directly from consumers,"

    Directly TO consumers, you mean...

  61. Where do Teslas get repaired? by swb · · Score: 1

    Even with less mechanical stuff to break, I'm sure the usual malfunctions can occur.

    Lacking a dealership, how do you get things fixed on a Tesla? Does some guy come to your house?

    1. Re:Where do Teslas get repaired? by bluefoxlucid · · Score: 1

      Tesla has service centers.

      The arguments given are insane. Price competition? We can all look up the inventory price; salespeople try to talk you up to the MSRP, and you try to talk them down to inventory. Consumer safety? No more than any other sales method. Local economy? That's always been a bogus argument; this is simply rent-seeking behavior making the local economy poorer. Added value? You buy a car, the warranty they sell you is from the manufacturer, the parts are from the manufacturer, you have to pay for anything like an upgraded stereo if you want them to add one; what added value?

    2. Re:Where do Teslas get repaired? by swb · · Score: 1

      They're a relatively small company now, so it's hard to make comparisons but I wonder if at the end of the day there will be a meaningful difference between a Tesla with physical sales offices and physical service centers and a dealership that rolls them into one unit.

      Unless they stay a very niche player selling only a small number of cars, it's hard to see them having only one service center unless its a really big one.

      I drive a Volvo which is kind of a niche car and there's two dealerships in the entire metro area, one of which has two locations and all three shops are usually pretty busy. One I wouldn't use at all because it's 30 miles away and a pain to get to but I've called a couple of times when I needed something more time-consuming done and couldn't get in at the closer location.

    3. Re:Where do Teslas get repaired? by bluefoxlucid · · Score: 1

      Your situation with the Volvo dealership is similar to Tesla. There are not many Tesla cars on the road, and so there would not be thousands of dealerships in your city.

      There would be as much support for Tesla as any other car with similar market share.

    4. Re:Where do Teslas get repaired? by JohnFen · · Score: 1

      Right now, Tesla will send technicians to you. Once there are enough electric cars on the roads, though, independent mechanic will certainly be able to repair them as well.

  62. Devil's advocate? by Anonymous Coward · · Score: 0

    That just means people won't buy GM again. No biggie. There are other car makers. I don't see why you can't have both dealers AND direct from factory orders. There are many products you can buy directly from manufacturers (or, mmm, brand owners) webpage, or you can walk into a store and get it from there. If someone prefers to have the dealer as a backup plan if something goes wrong let them. This would force dealers to actually add some value to the deal to justify the higher price. This would also neatly tell the real bottom price to people. I'm sure manufacturers would still give wholesale price to dealers who can order 100 cars in one go, as it does cost something to the manufacturer to clean up, finish, package and deliver the cars.

  63. Ya, these guys are giving us great deals. by Anonymous Coward · · Score: 0

    A popular dealer in Connecticut bought a house for $1.5 million and tore it down to build his dream house. Which has a $20K cupola on it.

    Ya, I definitely get good deals when buying my cars! Anyone want to explain why they bill mechanics out at $90/hour?

  64. Dealers could help themselves here by DrXym · · Score: 2
    People hate car dealers for a reason. They are generally deceitful, money grubbing scum who conjure all kind of fees and charges, who "negotiate" merely to upsell customers with expensive upgrades, financing and insurance policies. And then when the car needs to be serviced they'll rape the customer again for the time & parts.

    That isn't to say Tesla will solve all these problems (I'd be especially worried about the cost of servicing what's essentially a computer on wheels), but at least they charge a price and you know what you're getting. No negotiations. No oily salesman pitching stuff you don't need.

  65. Added value? by DaveV1.0 · · Score: 1

    Tell me again how removing the plastic seat covers and washing the car is worth the $600.00 dealer fee. Remind me how having to haggle over price for an hour or more so I don't get cheated is a good thing..

    --
    There is no "-1 offended" or "-1 you don't agree with me" mod options for a reason.
  66. Editing by Anonymous Coward · · Score: 0

    "National Automobile Dealers Association has been trying to block Tesla from selling cars directly from consumers".

    Perhaps they can get around that by selling cars directly TO consumers.

  67. added cost by Xicor · · Score: 1

    there is really no reason for tesla(or any car manufacturer) to sell to dealerships if they care about the consumer. in most cases, the manufacturers make x copies and sell them all to the dealerships. they dont really care if the end user likes them or even buys them because theyve already made their money.

    in the best case scenario, everyone buys every car... but it costs the end user 10-20% more than the cars cost the dealerships. if tesla cuts out the middle man, they can charge the normal dealership price, but for everyone and still make the same profit.(this also makes their cars cheaper than the competition).

    dealerships are outdated and are in need of destruction.

  68. It's because NADA is a Union and Tesla refuses UAW by nefus · · Score: 0, Offtopic

    The UAW wants Tesla to join their union. And NADA wants Tesla to join their union. Tesla doesn't want to play ball. So the unions are flexing it's muscle to make Teslas join their unions. Really guys, it's that simple. It has nothing to do with the fact their car is electric. Seriously, just google for `tesla car union` and you'll find stories about the UAW. http://insideevs.com/uaw-looks... http://www.teslamotors.com/sv_...

  69. Different Business Model by ks*nut · · Score: 1

    Inernal combustion vs. electric motor. The electric motor just runs. Internal combustion engines need maintenance. That is why the dealership exists. Remember those ink-jet printers you could buy for a hundred bucks and then pay close to that for a thimble-full of ink? Internal combustion vehicles have become more dependable over the years, but they will never beat the electric motor for reliability. Which car manufacturer was featured in a movie about killing something years ago? It name has two letters and it is involved in an extended recall mess...

  70. Thank you counselor by cloud.pt · · Score: 0

    Thank you for pointing out something totally trivial criticizing the cancer of slashdot: interesting articles related to important technological and political matters. We really needed a hero to save us from the truth, or we might make more theories than our small intellects can cope with.

    But hey, if fallacies like this work in courts, they must also give great comment points here.

    And you probably also helped your local fire department and schools by lobbying for a group of people who is socially accepted to be pathologically inclined to scam you. Because, unlike the video says, competition-pricing only works when people have full disclosure of a specific product condition, which is impossible in new and "previously-owned" cars. Not even the dealer knows what went on during the shelf and road life of a car. At least factories are sure to have better information than someone whose only job is to market (read: pitch) an insecure commodity at an inflated AND ____commissioned____ price.

  71. Are there any pluses remaining? by Anonymous Coward · · Score: 0

    One thing I object to in particular about dealers lately is that rarely can I find a part at the dealer's parts counter. They have to retrieve it from an area warehouse. They still charge outrageous prices for parts, as if they were trying to cover the cost of inventory, but they're not bearing the cost of inventory anymore. One area warehouse bears lower inventory costs than multiple dealers, and dealers still apply high markups to parts they get from the warehouses anyway. So I have to wait a day for something common to many models that should be sitting on the dealer's shelf. In that case, there's no reason I shouldn't be able to order it myself and pay a price that doesn't include dealer markup. Another thing is the pile of annoying add-on charges that aren't included in their quote for repair cost. "Shop fee", "environmental fee", etc. You and I and repair shops in the past would include the paper towels and garbage collection in overhead. Recyclables such as used motor oil and batteries are mostly break-even, as they have some residual value that the shops can collect or at least it reduces the cost of "disposal".

    I wouldn't be surprised if dealers are upset that direct parts sales threatens them more than direct car sales.

  72. Rake it in while you can by vandamme · · Score: 1

    Someday all our cars will be bought like everything else. Off the internet. And from China.
    Sped along by the greed of the US car companies, unions, and dealers.

  73. Clearing house, inventory risk by mpercy · · Score: 1

    Dealers buy cars from manufacturers, and have certain contractual obligations to do so. This allows the manufacturers to level out their production and offload inventory risk to the dealers. Dealers have been very good for manufacturers for a long time. In early years of car sales, manufacturers believed that an independent dealer (who is carrying the inventory risk and is highly motivated to sell cars) was more likely to sell inventory than an employee of the manufacturer sitting in a company-owned store. Manufacturers *want* independent dealerships.

    And not everyone wants to specify their next new car and then wait months for it to be built and delivered.

    Every other retail seller--like Amazon--is also a middleman, just like car dealers. Sure middleman profits increase overall costs, but they provide selection, one stop shopping, etc. that would be impossible if I had to go to a manufacturers outlet for each different item purchased.

    Not a fan of car dealers and their tactics, mind you, but they do serve a purpose.

    1. Re:Clearing house, inventory risk by Firethorn · · Score: 1

      Not a fan of car dealers and their tactics, mind you, but they do serve a purpose.

      I don't object to what you're saying, just that I object when the dealers get laws enshrining their business model. If Tesla doesn't want to play that game, they should be free to do so.

      Tesla might eventually be forced to go to the independent dealer model, but I think we need to let them try their experiment. Hell, restaurant chains like McDonald's works with a mix of franchise and corporate owned stores, why not car dealerships?

      Also, with places like Amazon I'm a lot less likely to be buying only 1 thing from 1 manufacturer while I'm there. A car purchase(other than accessories) is likely to be the only thing I do at the dealership. The scale is just so much larger there.

      --
      I don't read AC A human right
  74. "True price" ?? by mpercy · · Score: 1

    The true price is a number that both parties agree upon. For a seller, of anything, it is in their best interest to sell at as high a price as they can without alienating customers. For a buyer, it is in their best interest to pay as little as they can. For any item being bought/sold, there exists a range of numbers at which both parties find the price to by acceptable and the transaction made.

    In a haggling situation, it is not uncommon to hear something like this *after* the sale of say a $100 marked item: "$75 was a good price for me, I was really willing to pay up to $85. Oh yeah, I'd've sold it to you for $65". Obviously the sale could have been done at anywhere between $65 and $85 and both parties got what they wanted, albeit with less satisfaction for the seller at a lower price and less satisfaction for the buyer at a higher price.

    There is no one true price for anything.

    1. Re:"True price" ?? by BasilBrush · · Score: 1

      The true price is a number that both parties agree upon. For a seller, of anything, it is in their best interest to sell at as high a price as they can without alienating customers. For a buyer, it is in their best interest to pay as little as they can. For any item being bought/sold, there exists a range of numbers at which both parties find the price to by acceptable and the transaction made.

      This is simply not true for the vast majority of retail situations. In almost all cases there is a sticker price that is what you pay. You can easily compare different stores for price and choose the cheapest, or accept a higher price because you prefer the store for some reason.

      I spelt out the issue in my first paragraph, The issue is transparency.

      Most people don't enjoy haggling, and even if they do the battle is never equally matched. The salesman does this every day, and knows the financial facts: the cost price of the car from the manufacturer. And he's trained to lie, which means he has an unfair advantage over honest people.

      The requirement to haggle to get a fair price for a new product is simply unacceptable.

      Haggling has its place - for one off or second hand items, where there is no basis for price. But retail reseller haggling is for sharks and charletans. A true and healthy consumer market requires price competition via transparent pricing.

  75. Haggle anywhere by mpercy · · Score: 1

    I've haggled at Best Buy. I've haggled at furniture stores. Generally the higher the price of an item, the more likely it is that there is room to get a lower price or a better deal somehow. What you see at McDs and other places is simply an increased willingness to trade low-cost items in volume sales against the potential inefficiencies of higher markup that can lead to haggling situations. But you have no idea what McD's markup is, do you?

    1. Re:Haggle anywhere by BasilBrush · · Score: 1

      I don't need to know what McD's mark up is, because their prices are clearly displayed, as are the prices at all the other fast food joints, so it's a healthy market* with proper price competition.

      (* even if the product is unhealthy.)

      As to Best Buy, I don't know them, as I'm not American. But I've been told that it's similar to Dixon's, a UK electronics retail brand that was in every city for decades, but was closed down a couple of years ago. The high markup on sticker prices was no longer possible when the Internet had given people a better way to find competitive prices. I understand Best Buy is also on it's way out.

      Furniture, for sure it was traditionally a lesser version of the car dealer situation. Not only with haggling, but forever advertising fake "Sales". And they too are finding things hard going in recent years against IKEA, who offer proper transparent pricing, and don't pretend to have sales when they are not.

  76. Lots of car purchasers *only* care about monthly by mpercy · · Score: 1

    Dealerships know that a significant portion of their customers are predisposed to car less about overall costs than the monthly payment. They know that they can only afford $300/month payment, so a deal that gets them a lower overall price but monthly payments of $350 will be rejected.

    When you walk into a dealership and say "I'm going to pay cash for a car today if you can give me what I want at a price I find reasonable. And I've done my homework, so I have a particular number in mind. I've also checked your inventory online this morning and know you have a car matching my specs on your lot right now." you find that a lot of the rigmarole goes away.

    P.S. I got the car I wanted at about $100 more than the rock-bottom price I went in with plus 0% three-year financing so I could keep my cash longer. Also got free normal service (oil changes, etc.) for three years, have had two such appointments so far with pleasant waiting room, etc. Plus they wash the car after they service it.

  77. It's not Tesla, it's WalMart by Anonymous Coward · · Score: 0

    Tesla is tiny and relatively speaking will be insignificant for decades. But if Tesla breaks the dealer mandatory requirement then the door is open for those companies that have the money, management and distribution to impact the auto sale market. And that company is WalMart. If the option for direct sales of cars was available to WalMart, they could take 10 to 20 percent of the USA market in 5 or so years. And double the size of WalMart (sales and profits). Banking and cars are the two domestic areas of opportunity for WalMart that have the size to be impactful for them. NADA knows where the problem is and knows that they will eventually lose...but delay can be an effective strategy and that is the plan.

  78. Re:...Except when they're owned by Republicans. by Anonymous Coward · · Score: 0

    GM management that was under the thumb of President Obama. GM management didn't want to shut down the Pontiac division, but the order came down from the White House: terminate Pontiac or you get no bailout. Every detail of the bailout was dictated. Your assertion is so ludicrous it's basically a bald-faced lie. How many other areas have we seen the overreach of this petty vindictive man? Scores of high ranking Pentagon officers forced into retirement because they don't agree with the Democrat party. The IRS scandal, all about the White House using the IRS to silence opposing political speech, is a currently running thread here on Slashdot.

    John McCain told the nation back in 2008 that Obama was the most left-wing extremist in Congress, and so how could a President Obama be expected to deal constructively with the opposing party? It's a prediction that has become catastrophically true in so many appalling ways.

  79. No it is true by mpercy · · Score: 1

    "This is simply not true for the vast majority of retail situations. In almost all cases there is a sticker price that is what you pay. You can easily compare different stores for price and choose the cheapest, or accept a higher price because you prefer the store for some reason."

    All that you have going here is that the sticker price is almost always *already* in the range both parties are willing to accept, so there's a much smaller incentive to work to get a lower price as a buyer or a higher price as a seller. That sticker price is offered *because* it almost always avoids haggling, which is important in high volume situations.

    As for not caring about McD's prices, that's probably because you understand at some level that McDs is probably not a high markup situation, where volume is preferred over optimizing per-customer pricing. And you probably have an understanding of the price of the raw materials and labor: you know you could go the store, buy ground meat, buns, condiments, and make your own burger for less, but not *that* much less. And again, the sticker price falls within your tolerance level. If McD's started selling a Big Mac for $22 sticker price, you probably would be unwilling to buy it even though the price is "transparent" what with being right there on the big board and all and with store personnel absolutely unwilling to sell for less.

    1. Re:No it is true by BasilBrush · · Score: 1

      As for not caring about McD's prices, that's probably because you understand at some level that McDs is probably not a high markup situation, where volume is preferred over optimizing per-customer pricing. And you probably have an understanding of the price of the raw materials and labor: you know you could go the store, buy ground meat, buns, condiments, and make your own burger for less, but not *that* much less. And again, the sticker price falls within your tolerance level. If McD's started selling a Big Mac for $22 sticker price, you probably would be unwilling to buy it even though the price is "transparent" what with being right there on the big board and all and with store personnel absolutely unwilling to sell for less.

      What are you finding so complicated? I didn't say any price is acceptable so long as its transparent. I said transparency allows proper price competition. So if McDonalds price up a Big mac at $22, I don't have to waste time haggling, I just go and get a burger elsewhere, or maybe a pizza. Somewhere else that's offering a more reasonable and equally transparent price.

      The car dealerships on the other hand conspire to all do secret real prices, and sticker false prices, such that proper price competition is impossible and furthermore competition in a number of jurisdictions appears to be limited by protectionist laws. (As evidenced by restrictions on Tesla selling direct.)

      There is nothing normal about it. It's a clusterfuck. It's not the same as other retail situations.

      If you think the opportunity to haggle is a good thing, then you're mistaken. Haggling only comes up as a chance to not get ripped off as badly as they were going to rip you off. But you'll never know who badly you were ripped off even if you did haggle. Only proper transparent pricing allows you the opportunity to be sure you're not being ripped off.

    2. Re:No it is true by mpercy · · Score: 1

      Every car I've ever bought has a sticker price right there on the window, and you don't have to haggle. If I was inclined to think that price was reasonable, I'm *certain* the dealership would be happy to sell the car for the price as written on that tag stuck to the window. And the MSRP is advertised endlessly for cars. It's as transparent as any price posted anywhere else for any other goods, if "transparent" means posted for public viewing as the price you can purchase the goods for. You can absolutely buy a car for the sticker price and avoid the whole negotiating process just like you do at McDonald's.

      It may not be the *lowest* price at which it is possible to purchase the car for, just like McDonald's posted price is may not be the lowest price I could buy the burger for. In that fashion, they are both equally transparent: there's an advertised price which may not be the lowest possible price. Sure there's a difference in the variability of the final price, i.e. a lot more burgers are sold at the advertised price than cars are sold at MSRP, but its a matter of degree not kind.

      Why don't people negotiate prices at McDonald's? Perhaps because even getting a 10% reduction in price on a $3 burger isn't worth the time it would take to negotiate. On the other hand getting 10% off of the $30K sticker price on a car is worth an hour of my time.

      I've gotten 10% off a large order at Pizza Hut (like 10 pizzas for a big party) just by asking for a "volume discount", so even a place like Pizza Hut with "transparent" and apparently fixed pricing has some variability under the right circumstances.

    3. Re:No it is true by mpercy · · Score: 1

      "Only proper transparent pricing allows you the opportunity to be sure you're not being ripped off."

      Advertising a price and selling goods at the marked price, a la McDonald's, does not provide the necessary information to let me know if I'm being ripped off. First, being "ripped off" is a matter of degree, but I figure a 10% profit margin is fair. You may think more or less is fair.

      To know if that burger is fairly priced, I need to know the wholesale costs of ingredients, labor costs, and fixed costs. If their cost per burger is about $2.75 and they sell it to me for about $3.00 I'm going to rate it as a fair transaction. If I were to discover that McD's costs are 10 cents per burger and they're selling it for $3.00, then I start to feel ripped off. Same for a car, sell me a car that costs $27.5K to build at a price that's around $30K and I won't feel ripped off. If I find out that the cost to build the car was $1000 and I paid $30K for it, I'm gonna feel ripped off.

      Despite being able to see the advertised the price "transparently" and knowing I can actually purchase for that price (as a maximum), without knowing or at least having some instinctual unconscious basis for the sellers costs I cannot form the "ripped off" opinion. Neither McDonald's nor the car dealership is likely to post their actual costs for a "transparent" evaluation.

      An advertised no-haggle fixed price is "transparent" only in the sense that I can compare to other vendors for the same item. It is not "transparent" in the sense of avoiding being ripped off.

    4. Re:No it is true by BasilBrush · · Score: 1

      Every car I've ever bought has a sticker price right there on the window, and you don't have to haggle. If I was inclined to think that price was reasonable, I'm *certain* the dealership would be happy to sell the car for the price as written on that tag stuck to the window. And the MSRP is advertised endlessly for cars. It's as transparent as any price posted anywhere else for any other goods, if "transparent" means posted for public viewing as the price you can purchase the goods for.

      I'm fine with us having a difference of opinion. But I'm getting bored of having to repeat myself over and over again as you ignore what I've said.

      Again, from sentence 2 and 3 of the very post you are replying to: "I didn't say any price is acceptable so long as its transparent. I said transparency allows proper price competition."

      As you yourself clearly know the sticker price is not what the dealer expects to do the deal for, and they won't tell you the price they expect to do the deal for without a couple of hours argument. That is not transparency, and no matter how you keep trying to reframe it, it can never be transparency.

      Furthermore, if you think you can just pay the sticker price without any haggling you have vastly underestimated dealers. Take the sticker price, and then they add on a bunch of other charges that they say weren't included in the price. Delivery charge, keys, number plate etc. Or they'll play the trick of saying that the particular car you want is unavailable for some reason, but you can have this other one that's got a couple of extra options, for only an extra...

      There is no way of buying a car from a dealer without haggling, even if you were prepared to pay sticker price.

      I've gotten 10% off a large order at Pizza Hut

      Right. So you're someone who enjoys haggling, as some sort of sport. Most people would prefer transparent pricing. And in the internet age it's inevitable that they are going to get it. Protectionist laws for car dealers can only resist the changes in the world for so long.

    5. Re:No it is true by BasilBrush · · Score: 1

      An advertised no-haggle fixed price is "transparent" only in the sense that I can compare to other vendors for the same item. It is not "transparent" in the sense of avoiding being ripped off.

      I've explained what transparency means over and over again. Transparent pricing does mean you can avoid being ripped off, because other than in an illegal cartel, if an industry is grossly overcharging, someone else will come along and see the opportunity to undercut them.

      Indeed that's the very reason that dealerships have restrictive practices, both in their contracts with the car dealers, and where possible in legislation. To try to stop other companies undercutting them.

      Note I didn't say that you can't be ripped off with transparent pricing. Of course you can if you don't look at the competitor's pricing. My point is that it gives you the information to avoid being ripped off.

      And not you can and probably will be ripped off with non-transparent pricing even if you haggle. Because it's an unfair fight, and you never know the real price.

      And there *IS* a real price. When the car salesman says he's going to check with the manager if he can get you a special discount, it's just bullshit. There is a hard and fast price minimum price that they will sell at. The salesman knows it and you don't.

      And don't say that you also have your price. It's not symmetrical. The dealer has to pay the manufacturer a certain price for that car, and that plus a profit margin makes for a hard price. There is no such hard price on the buyers side, other than one they set themselves, and from which they are usually swayed. They have facts, you have gut feel or emotion.

  80. added value for whom by drteknikal · · Score: 1

    it's not absurd to suggest that dealer networks add value. the question is, for whom? not the consumer, generally.

    --
    http://drteknikal.blogspot.com/
  81. Buying a car by Anonymous Coward · · Score: 0

    The thing to always remember is that they want to sell you a car. Do your research. Never buy a car on impulse the day you go to look at it. Tell them you want to shop around. If they pressure you don't give in. They'll try and say stuff like "this price is good for today only". Tell them to get real and shop around. Get the wholesale value that the dealership paid for the car. Then when they try to tell you they're not making any money on the deal you can call them a liar to their face. If the markup is $2000 and you offer to give them $500 markup or you're walking it doesn't take a genius to do the math there. If you walk they make nothing. 0 500. An engineer understands that. A car salesman understands that. They might like $2000. They might whine. They might even tell you to walk and call you a week later to ask if you're still interested (I've personally had this happen after I had already negotiated another deal). But at the end of the day you shouldn't have to pay their rent for the whole month just for the priviledge of buying a car there. The other thing is to have cash, or have your financing when you walk in the door. Never, ever, under any circumstances allow the dealer to coordinate your financing. You'll get screwed every time. Go to a lender and get pre approved for 10-20% more than you're willing to spend. Do not buy their aftermarket warranty. They never cover anything that breaks anyway. Do not upgrade your sound system, or let them tack on extras. Markup on those things is sometimes as much as 500%. You're almost always better off getting that stuff added elsewhere. The only exception to that is if the dealer is going to give you a deal that is comparable to what you can get elsewhere.

    You too can successfully negotiate a fair deal, but only if you have knowledge going in. Again, do your your research. This advice comes from 25 years of car buying experience. I've bought many cars, I have friends who work in dealerships (who would probably be pissed if they saw this).

  82. Tesla Models by Firethorn · · Score: 1

    They have ONE model currently in production, the S. The X has been delayed while issues with the door are worked out, to my knowledge you can't find any on display in common areas. They probably have a few prototypes on display, but that's it. They also have the historical roadster, which isn't really compatible with their current technology.

    --
    I don't read AC A human right
  83. vacuum cleaners by spongman · · Score: 1

    there was a time when vacuum cleaners were sold by door-to-door salesmen. imagine if we had corrupt politicians still propping up that ridiculous practice today and the only way to buy a vacuum cleaner was to wait for some schmuck to turn up at your doorstep and throw a bunch of dirt at your feet when you opened the door.

  84. Actual competition.... [FTFY] by GPS+Pilot · · Score: 1

    Actual competition is terrifying to "free market capitalists".

    Actual competition is nirvana to free market capitalists; those who oppose it, like NADA, are not free market capitalists. FTFY.

    --
    That that is is that that that that is not is not.
  85. Dealers by Anonymous Coward · · Score: 0

    I've worked for dealers for 28 years in service.
    Years ago I wondered if a idea like teslas would mature.
    It is much harder for dealers to profit from anything due to the required transparency and internet competition.
    Please think of your career , business, could you survive with constant never ending negotiations ?
    Think about it , because it's coming .
    Takumi.

  86. Dealers by JamesHorning · · Score: 1

    I've worked for dealers for 28 years in service. Years ago I wondered if a idea like teslas would mature. It is much harder for dealers to profit from anything due to the required transparency and internet competition. Please think of your career , business, could you survive with constant never ending negotiations ? Think about it , because it's coming . Takumi.