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Court: Car Dealers Can't Stop Tesla From Selling In Massachusetts

curtwoodward writes: Many states have laws that prevent car manufacturers from operating their own dealerships, a throwback to the days when Detroit tried to undercut its franchise dealers by opening company-owned shops. But dealers have taken those laws to the extreme as they battle new competition from Tesla, which is selling its cars direct to the public. In some states, dealers have succeeded in limiting Tesla's direct-sales model. But not in Massachusetts (PDF): the state's Supreme Court says the dealers don't have any right to sue Tesla for unfair competition, since they're not Tesla dealers. No harm, no foul.

155 comments

  1. hahaha by weiserfireman · · Score: 5, Interesting

    I love the courts logic.

    Dealer Franchise Laws were prevented to promote the Franchise model.

    If a car company sells franchises in the State, it can't then open Company Stores and undercut their Franchises.

    But if the Car Company has no franchises, there is no one being hurt.

    Car Dealerships can't sue because they don't like a new Car Company's Sales Model.

    Reality is the Franchise owners were licking their chops thinking of all the money they would make selling Teslas in their dealerships. They got butt hurt when they found out Tesla wasn't going to sell them Franchises.

    1. Re:hahaha by UnknownSoldier · · Score: 5, Funny

      Agreed. Beautiful logic!

      /oblg. car salesman jokes

      Q. What are lawyers good for?
      A. They make used car salesmen look good!

      Q. What does molds, ooze, pond scum, lawyers, and used car salesman have in common?
      A. They're all slime.

      Q. What's the difference between a car salesman and a computer salesman?
      A. The car salesman knows he's lying!

    2. Re:hahaha by SternisheFan · · Score: 4, Interesting

      You 'aint kidding, brother. I worked for a car dealership years ago, the games being played on customers by the finance guy were outrageous. Taking money from the contract front end, the back end. I eventually got disgusted working there and quit. Not before I saw one wife trying to get to the finance guy on the showroom floor to strangle him after she called him on forging her signature to paperwork that added $2000 to the agreed upon price.

    3. Re:hahaha by germansausage · · Score: 4, Insightful

      I had a friend who worked in the finance dept of a car dealership. People would spend 2 hours trying to wangle the best possible deal from the salesman, beat him down, get free floor mats, whatever. Then they would walk into my friends office. How does $400 a month sound for payments? OK sure. And in 2 seconds they would agree to a loan at 12% where the banks would have given them 5%. And the dealer would earn an extra $3k on the car loan.

    4. Re:hahaha by Anonymous Coward · · Score: 1

      Agreed. Beautiful logic!

      /oblg. car salesman jokes

      Q. What are lawyers good for?
      A. They make used car salesmen look good!

      You got that one backwards bro.

      Sad thing is: new car salesmen are bigger scum than new car salesmen are.

    5. Re:hahaha by seven+of+five · · Score: 2

      new car salesmen are bigger scum than new car salesmen are.

      pschoooooommmm... my head just asploded.

    6. Re:hahaha by Rich0 · · Score: 2

      Yup. The last time I walked into a car dealership I brought a TVM calculator with me. I didn't care what they told me about the price, interest, whatever. I punched in the terms into my calculator along with what I determined to be a fair price, calculated the effective interest rate, and decided if it was good enough. For my lease they ended up making it work by bumping up the residual value considerably. Whatever - just means I pay less now and we can play lets make a deal in 3 years when I've paid them way less than the loss they've taken from depreciation.

    7. Re:hahaha by MightyYar · · Score: 4, Funny

      Well, you certainly save money on blinker fluid but you end up paying out the nose for voltage grease.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    8. Re:hahaha by Nidi62 · · Score: 3, Informative

      I had a friend who worked in the finance dept of a car dealership. People would spend 2 hours trying to wangle the best possible deal from the salesman, beat him down, get free floor mats, whatever. Then they would walk into my friends office. How does $400 a month sound for payments? OK sure. And in 2 seconds they would agree to a loan at 12% where the banks would have given them 5%. And the dealer would earn an extra $3k on the car loan.

      I went into a dealer just about 3 weeks ago, told the salesman I wanted a new car, was trading in my truck, and wanted to spend no more than $130 a month over 3 years. He almost fainted and then basically called me crazy. The sales manager even tried to get me to lease a car instead of buying. Ended up walking out of there with a new car(end of the model year) for $125 a month for 3 years with $10,300 trade in on my truck (KBB value around $9900 and needed about $2k worth of work-not including some cosmetic body work) and $2k down. Think I end up paying about $300 in interest if I take all 3 years, but plan to pay it off sooner. I save more in gas than my monthly payments cost. The trick was knowing what we wanted and refusing to budge from it.

      --
      The only thing necessary for evil to triumph is for it to be pitted against a slightly greater evil
    9. Re:hahaha by Anonymous Coward · · Score: 1

      I had a friend who worked in the finance dept of a car dealership. People would spend 2 hours trying to wangle the best possible deal from the salesman, beat him down, get free floor mats, whatever. Then they would walk into my friends office. How does $400 a month sound for payments? OK sure. And in 2 seconds they would agree to a loan at 12% where the banks would have given them 5%. And the dealer would earn an extra $3k on the car loan.

      I had a similar issue with the finance guy when I bought my car last year. He did his thing on the loan and came back with over 5% interest. I told him that I saw the promotions online for the manufacturer's financing and that I wanted the 1.9% rate. He stepped out and asked some other guy if he had checked to see if I qualified? As if I couldn't see through the game that they were playing. He was going to try to stick me with the highest rate he could, even though he knew I qualified for a much better loan.

      He also then sold me on an aftermarket service plan. When I went back a few days later to cancel it, you would have thought that I had just shot a loved one. He got angry at me and tried to talk me out of cancelling it for a good 20 minutes and only gave up after I finally told him in a clear firm voice to cancel it NOW! The funny part is that I was patient and calm as a cucumber through the whole thing, while it looked like he was about to give himself a heart attack. I can't imagine staying in a job where you take normal business personally...

      That being said, I have had nothing but a good experience with the rest of the dealership.

    10. Re:hahaha by jeepies · · Score: 3, Informative

      It actually makes a lot of sense if you think about it in historical context.

      The car manufacturers originally offered a franchise model. Only after the franchisees had successfully set up the market did the manufacturers try to come in and eat their lunch with corporate stores. The anti-competition laws were put in place to prevent the car manufacturers from undercutting those who had built their client base for them. In the case of Tesla this issue doesn't exist because Tesla has never franchised.

      A more modern example is companies like RoadRunner and @Home. They built out most of the cable modem infrastructure under contract to companies like Comcast and Time Warner who thought there was too much risk involved. Once the cable companies saw how easy it was, they refused to renew the licenses to use their lines and set up their own cable modem service. The laws in the automotive space are designed to prevent this kind of scenario.

    11. Re:hahaha by cdrudge · · Score: 2

      The anti-competition laws were put in place to prevent the car manufacturers from undercutting those who had built their client base for them.

      Does any other industry have similar legal restrictions? Or is it just an antiquated law that hasn't kept with the times?

    12. Re:hahaha by Anonymous Coward · · Score: 3, Informative

      For anyone out there reading this: Not saying Nidi62 got a bad deal but generally you want to negotiate the price of the car, not the payments. If you negotiate price then you can figure out financing /payment separately. You can still walk in knowing you only want to spend 130 a month, and it is very easy to know the price that 130 a month is equal to. A common trick is for car sales people to negotiate you a monthly payment but you are still missing a) the down payment and b) the term of the payment and c) what you actually paid for the car (cash price) d) real or implied interest rate.

      For example, who cares if $125/mo is below budget if the car you are buying is not worth that. OR if they would sell it to you for at a lower "price" and you obtain outside financing to make the payments work. The point is - if you negotiate on price then you can use your outside financing or the dealers financing if it is better. If you negotiated payment then you either a) wasted time negotiating interest rate, term, monthly payment, down payment separately all to arrive at something that equals a price or b) those variables are not nailed down and the dealer can use the final variables to screw you in what you thought was a done deal.

      Nidi62 may have got a good deal - who knows - but what he/she did is not the optimal way to negotiate with a dealership.

    13. Re:hahaha by Anonymous Coward · · Score: 0

      Last time I had to play the game, I went to the bank first, and paid with a cashiers check. The finance guy tried to get me to "look at" their financing. He was offering "0.9%" interest, and the payments were $330/month. The bank was offering 6.9875% interest on a standard auto loan, and the payments were $295/month. Both of these were for the exact same principal amount. I explained the bank's loan terms to him, then laughed out loud at his offer. He was less than amused and quickly moved things along to get me out of his office.

      He was visibly unsettled by someone being wise to his bullshit.

    14. Re:hahaha by Anonymous Coward · · Score: 0

      Q. What's the difference between a car salesman and a computer salesman?
      A. The car salesman knows he's lying!

      Don't count on it. You don't become a car salesman because you know anything about cars (or sales) any more than you become a Best Buy jockey because you're a computer expert. Guy that sold me my last car didn't know half the things he could have learned by reading the window sticker.

    15. Re:hahaha by kilfarsnar · · Score: 1

      Yeah, but they don't have muffler bearings!

      --
      "What the American public doesn't know is what makes them the American public." -Ray Zalinsky (Tommy Boy)
    16. Re:hahaha by geekoid · · Score: 1

      I lawyers is needed if you have been wronged, to need to defend yourself.

      A car salesman is needed when...well. never anymore.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    17. Re:hahaha by jmauro · · Score: 1

      On RoadRunner I think you're confused, this was always a marketing brand name of Time Warner Cable Internet. At some point they stopped using the brand name, but the same people\ownership are still in place, even if it uses a different brand name now.

      @Home was also different, in that Comcast and others paid them to build out their network and once it because big enough they just took the network back that they already paid for. This was in the original agreement with @Home and @Home still runs Internet services for other smaller ISPs (though it's now part of the Excite family).

      There was no cancellation of franchise rights in either case.

    18. Re:hahaha by Quirkz · · Score: 1

      I'd mod you up if I had points. Total money out of pocket is the most important factor, and focusing on monthly payment is either going at it bass ackwards, or risks allowing some shenanigans to slip in.

    19. Re: hahaha by Anonymous Coward · · Score: 0

      Umm...you missed the point, entirely. He was probably laughing becuase you were paying the "same principled amount", with a higher interest rate, for a lower monthly payment - which means that you took a longer payment term with the bank, and thus you paid significantly more in interest to the bank than you would have if you just took the loan with the lower rate, over a shorter period of time.
      Bravo, you skewed yourself over, thought you were smarter than the finance guy, and bragged about it, to boot. Someone get this man a Darwin Award.

    20. Re:hahaha by Hadlock · · Score: 1

      I doubt there are many similar industries, cars are the second most expensive item most people will buy in their lives, after their house. Cars also need specialty tools and parts (and with them a specialty parts warehouse).

      --
      moox. for a new generation.
    21. Re:hahaha by ygtai · · Score: 1

      So true. What I do is getting a loan pre-approval from my bank with a sound interest rate I can get before going to a dealer. The dealer either beats my bank's interest rate or earns no interest from me. Monthly payment is an outcome of the variables (price, down, interest rate), not a variable itself.

    22. Re:hahaha by bazmail · · Score: 1

      Is it just me or have tag nut adapter costs gone through the roof lately.

  2. No standing, no case by mveloso · · Score: 1

    Interesting tack by the court. Did Tesla try that argument in the other states as well?

    1. Re:No standing, no case by NatasRevol · · Score: 1

      You might want to go re-read FTS.

      --
      There are two types of people in the world: Those who crave closure
    2. Re:No standing, no case by magarity · · Score: 2

      Each state is going to have differently worded laws in this area. The Mass one sounds like the first case where it was worded to prohibit company owned outlets of specific manufacturers to protect only dealers of the same brand.

    3. Re:No standing, no case by mark-t · · Score: 2

      Then why is it still illegal for Tesla to sell in at least 3 states where the decision by a court has been different?

    4. Re:No standing, no case by Anonymous Coward · · Score: 0

      I don't think you understand what a state Supreme Court is. Hint it's not even the highest court in the state.

    5. Re:No standing, no case by Anonymous Coward · · Score: 0

      "the state's Supreme Court says"

      It's not SCOTUS, it's state supreme court, not federal.

    6. Re:No standing, no case by sumdumass · · Score: 1

      State SCOTUS. The op is mistaking which court it actually is.

    7. Re:No standing, no case by tanderson92 · · Score: 4, Informative

      More like just State Supreme Court. SCOTUS stands for (S)upreme (C)ourt (O)f (T)he (U)nited (S)tates.

    8. Re:No standing, no case by Anonymous Coward · · Score: 0

      I'm seeing no mention of SCOTUS in the article, only the MA Supreme Court.

    9. Re:No standing, no case by sumdumass · · Score: 1

      Yup.. I realized that after I posted but thanks for making it clear.

      So lets see, SSCOM

      (S)ate (S)upreme (C)ourt (O)f (M)assachusetts

      Has sort of a gaming sound to it.

    10. Re:No standing, no case by Anonymous Coward · · Score: 4, Informative

      actually, Supreme Judicial Court is the highest court, the highest "appeals" court in Massachusetts; whereas Trial Court is the ordinary court in Massachusetts and General Court is the legislature; and wherease, Supreme Court of New York is the ordinary trial court, and Court of Appeals is the highest NY State appellate court.

      This terminology all varies by state (and/or by commonwealth or provident plantation)

    11. Re: No standing, no case by Anonymous Coward · · Score: 0

      Supreme court of the Commonwealth of Massachusetts

    12. Re: No standing, no case by adamstew · · Score: 2

      so...SCOTCOM? Sounds like a nuclear missile satellite

    13. Re: No standing, no case by cpt+kangarooski · · Score: 2

      Well, actually it's the Supreme Judicial Court, or SJC.

      --
      -- This and all my posts are in the public domain. I am a lawyer. I am not your lawyer, and this is not legal advice.
    14. Re:No standing, no case by Anonymous Coward · · Score: 0

      Maybe in those States the lobbyists own the courts? The logic in the MA court makes perfect sense by somehow the others had the court protecting the dealerships as one large entity instead of as group of entities bases on their manufacturer/partners.

    15. Re: No standing, no case by fuzzyfuzzyfungus · · Score: 1

      Something has to provide coordination and theatre-level intelligence for all deployed Highlander batteries, no?

    16. Re:No standing, no case by aestrivex · · Score: 1

      No mod points, but +1 for recognizing provident plantation as a type of governing body.

    17. Re: No standing, no case by badkarmadayaccount · · Score: 1

      Beam me up!

      --
      I know tobacco is bad for you, so I smoke weed with crack.
  3. Car Dealers should ask why they're being bypassed by Karmashock · · Score: 5, Interesting

    If they were offering Tesla what they wanted or needed maybe tesla wouldn't see a need to bypass them.

    Tesla for example likes to have their dealerships in normal store fronts where they have ONE car in the middle of the store and a lot of information. They sort of look and feel like apple stores. Very minimalistic, hip, modern. If the dealerships were willing to do that then maybe Tesla wouldn't have needed to do this.

    Tesla points out that new car companies in the US tend to fail and they blame the dealership system for this because they say they're invested in existing auto companies and brands.

    For Tesla to be comfortable the existing dealerships would have to be willing to commit themselves to Tesla in the same way that Tesla's company run dealerships are committed to Tesla.

    And even then... Tesla doesn't have to deal with the dealerships. That whole model of sales is obviously going to come under challenge from all the other car companies now that will all ask "why do we have to deal with you when Tesla can do what they want?"

    Maybe Toyota or Ford will want to have their own stores. And the dealerships are going to have to justify themselves to those organizations.

    --
    I've decided to stop wasting my time responding to AC trolls/sockpuppets... so if you want a response from me... login.
  4. STATE supreme court, not SCOTUS by raymorris · · Score: 1

    Quoting TFS for your enjoyment:

    > but not in Massachusetts. The state's supreme court says

  5. Re:Car Dealers should ask why they're being bypass by TheGavster · · Score: 4, Insightful

    Tesla points out that new car companies in the US tend to fail and they blame the dealership system for this because they say they're invested in existing auto companies and brands.

    I blame the dealerships too. The last time I went shopping for a car, I told the salesman I was looking to replace my Chevy Malibu, and wanted something small to midize that was good in the snow. Despite the bevy of options on the lot, he walked me over to a Challenger SRT ... a rear-wheel drive boat that most likely isn't even particularly good in the rain. Looking around, though, the dealer had invested in a lot of special edition models of sports cars (2 Mustang Roushes, a GT500, the Challenger, etc) and that was what he needed to sell that day. If I was the guy making midsize sedans, I wouldn't want that guy involved in selling my cars either.

    --
    "Because Science" is one step from "Because old book". Try "Because of my experiment testing my falsifiable assertion".
  6. Re:Car Dealers should ask why they're being bypass by Anonymous Coward · · Score: 1

    I figure, much like Apple, Tesla wants to control the experience, from the product to the showroom and the sales people and the after sales support. If there is a problem Tesla can deal with it directly, not leave it up-to some middle man with their own agenda.

  7. Re:Car Dealers should ask why they're being bypass by sumdumass · · Score: 3, Interesting

    And even then... Tesla doesn't have to deal with the dealerships. That whole model of sales is obviously going to come under challenge from all the other car companies now that will all ask "why do we have to deal with you when Tesla can do what they want?"

    Maybe Toyota or Ford will want to have their own stores. And the dealerships are going to have to justify themselves to those organizations.

    They would have to cancel all their franchises first. The State Supreme Court ruling said they couldn't sue Tesla because Tesla were not franchised Tesla dealerships. So if Ford or Toyota had franchised dealerships- they would have to get rid of them first in order to sell direct.

    Tesla could open franchised dealerships and sell in the states they are restricted in. But my guess is that margins are paper thin and they do not think the markup necessary for franchised dealerships would be attractive enough to sell the cars.

  8. Re:Car Dealers should ask why they're being bypass by Anonymous Coward · · Score: 4, Interesting

    Dealers are their own worst enemies.

    Recently a co-worker of mine went shopping for a car and the local dealer treated her like shit. (She made the mistake of knowing what she wanted, and what she was willing to pay.) At one point the sales slime flat told her "Can I talk to your husband? I don't think you understand buying cars" - This did not fly well with the single, divorced professional woman who's been buying cars longer than that young prick has been alive.

    The above scenario would not fly at a chain owned by a national or international auto outlet. One phone call to a news station and the media would be all over said auto maker for how they treat their female customers. On the other hand, people sort of expect local dealers to be corrupt, sleazy middle men. And they are. They're nothing but entrenched middlemen hiding behind old laws and inherently corrupt local politics. (Car dealers are infamous for greasing the palms of mayors, county clerks, governors, etc)

  9. good news by supernova87a · · Score: 1

    Good for Tesla. And justly bad for entrenched sleazy car dealer interests.

    The auto dealer protection laws were put in place to prevent local dealerships / franchisees from being screwed by automotive manufacturers at one time in history. Now they themselves wield that law to screw automotive manufacturers and the consumer.

    Let them be screwed by a more innovative company again, and the tables be turned to the side of the consumer for once...

  10. What are dealers for, anyway? by Anonymous Coward · · Score: 0

    I mean, what do they do for me, as a customer, when I want to buy a car?

    1. Re:What are dealers for, anyway? by Em+Adespoton · · Score: 2

      A good dealer can integrate a variety of aftermarket add-ons, have alternative financing and insurance packages on-site, provide extra customer services such as roadside assistance and no-hassle inspections and initial tuneups. Not much of a reason, but it's what they give for their existence.

    2. Re:What are dealers for, anyway? by anagama · · Score: 1

      You're right -- not much of a reason. Financing: credit union. Roadside assistance: my friends. My state doesn't do inspections so: irrelevant. Initial tuneups? It doesn't come properly configed from the factory?

      --
      What changed under Obama? Nothing Good
    3. Re:What are dealers for, anyway? by Anonymous Coward · · Score: 1

      > It doesn't come properly configed from the factory?

      That, in fact, is a good reason for car dealers, though most attempt to avoid it. Cars do NOT generally come properly configured by the factory. Even ignoring the fact that you can't get the car you want, most of the time, because the dealers only sell what they decide to order for their own stock, the ones they do get usually need at least some basic cleanup and checking when they come off the truck - factories aren't perfect and stuff happens. Some makers are worse than others that way. IMO, you shouldn't have to pay for "dealer prep" but it's hard not to even if it's not "dealer pack" with a bunch of stuff you don't need. Tesla avoids that by 1) being very expensive; 2) being essentially a custom-build operation; and 3) having a quality control system that works. Ford doesn't have that.

    4. Re:What are dealers for, anyway? by Anonymous Coward · · Score: 0

      To bleed the customer. Come to Australia - see how cars are so expensive.
      Dealers will refuse to give you an all in price - to prevent you price matching somewhere else. $1600-2500 Dealer delivery fee (Car wash, check oil, some paperwork) Factory service $120 per hour (book fee, not actual time) - Dealers make the most on
      1) Spare parts, 2) Dealer 'servicing' - and factory recalls. (a spare key can be $400 and up).
      The parts racket is so hot, repairers are now tearing down 'new' cars for bingles.

      Things are a little better of late - Capped service fees are nearly, mostly in, Car Vendor finance is semi in. 2nd hand cars ex Japan still have extreme trade barriers. Cars are still too dear, and car maker insurance still a racket. Our dealers are still needed to store the cars, as the lazy importers don't have the brains for to your door delivery(yet). Dealers are under pressure, but only because rent is way too high, and prices paid are easier to find on the internet.

      I speculate fewer dealers will drive prices down and volume up.
       

    5. Re:What are dealers for, anyway? by ruir · · Score: 1

      What prevents you from buying 2nd hand, australian or japanese? Japanese 2nd hand cars normally are in excellent condition.

    6. Re:What are dealers for, anyway? by jp10558 · · Score: 1

      I have found most dealers in my area are willing to order a car how you want it. You just have to wait, and may have to put down a down payment towards purchase of the car. Whether they actually order the correct car or not apparently varies.

      --
      Opera, Proxomitron-Grypen,GPG 0x0A1C6EE3
    7. Re:What are dealers for, anyway? by Anonymous Coward · · Score: 0

      I speculate you're on drugs, nothing in that rant rings true of any experience I've ever had buying a car here.

  11. Re:Car Dealers should ask why they're being bypass by bogaboga · · Score: 2

    ... if Ford or Toyota had franchised dealerships- they would have to get rid of them first in order to sell direct.

    Why then is it that there are no manufacturers who sell directly to customers? Or, put it another way, why do all manufactures have dealerships?

  12. Re:Car Dealers should ask why they're being bypass by ProzacPatient · · Score: 1

    I don't have a particularly high opinion of car dealerships; since all the used dealers in the area were inflexible run by a bunch of sleaze balls I went to a Ford dealership that had been advertising how flexible they were and willing to work with anyone.

    I was merely considering the possibility of getting a car in the future and since I didn't have any credit (but a rock solid job) I was merely evaluating what kind of car I wanted (not necessarily new), what would be involved and what kind of down payment would be necessary. I even told the salesman this and he absolutely insisted I talk to the manager if a deal could be worked out despite this so the manager looked at some papers the salesman had typed up, looked at me and at the papers again then literally laughed. I felt humiliated.

    When I finally got in a better financial position to actually buy a car I ended up buying a Volkswagen instead but ultimately I will never go to a dealership if I can help it because I feel dealerships are there just to make car buying more expensive and complicated than it should be and any services dealerships offer tend to be an overpriced ripoff.

  13. Here in Massachusetts by Anonymous Coward · · Score: 0

    We have some strange anti-competitive laws. Another is that no single company can operate more than 3 liquor stores in the entire state (I think it might be up to 5 now). Guess who's pushing that... good ol' mom and pop running family package stores all over the state.

    But that means that Whole Foods and Trader Joe's have to carefully choose which of its dozens of stores will have wine marts, and shoppers have to find and remember where they are (they're both very popular because they've managed to find many drinkable sub-$10 wines).

    1. Re:Here in Massachusetts by Tablizer · · Score: 2

      I think part of that is also from a "morality hurdle" mentality. Many religious people don't want the alcohol market to be efficient in order to squelch consumption. It may not merely be old-fashioned protectionism of mom-and-pop stores.

    2. Re:Here in Massachusetts by ClickOnThis · · Score: 1

      I think part of that is also from a "morality hurdle" mentality. Many religious people don't want the alcohol market to be efficient in order to squelch consumption. It may not merely be old-fashioned protectionism of mom-and-pop stores.

      I can imagine that explanation being plausible in a Jesus-belt state, but not Massachusetts.

      --
      If it weren't for deadlines, nothing would be late.
    3. Re:Here in Massachusetts by Dragonslicer · · Score: 1

      Massachusetts was the home of the Pilgrims, that group that got kicked out of England for being too religious. As liberal as most of the northeastern US, and especially Massachusetts, is, there are still a few of these unusual laws floating around.

    4. Re:Here in Massachusetts by Shompol · · Score: 1

      It will take more effort to squelch consumption than screwing free market: Once upon a time a Russian Tzar passed a law of selling vodka exclusiely in large bottles to prevent people getting drunk and passing out on the street. This gave birth to a tradition of buying a bottle for a group of three and passing out collectively. This tradition is still alive today.

    5. Re:Here in Massachusetts by CrimsonAvenger · · Score: 2

      You ought to try N'Awlins, then. Drive-Through Daiquiri Shops FTW.

      --

      "I do not agree with what you say, but I will defend to the death your right to say it"
    6. Re:Here in Massachusetts by Rich0 · · Score: 1

      Yup. Mass was the place that brought us the Salem witch trials, The Scarlet Letter, and plenty of similar themes. They made the Westboro Baptist Church look like a gay pride parade, though perhaps only because all that stuff had the full force of law.

    7. Re:Here in Massachusetts by anagama · · Score: 1

      As someone who is presently drunk on slivotiz -- fuck those puritans! Without condoms. In the eye. On Sunday.

      Seriously, slivovitz is awesome: http://en.wikipedia.org/wiki/S...

      Better than god. And the name is vaguely kinky.

      --
      What changed under Obama? Nothing Good
    8. Re:Here in Massachusetts by Richard_at_work · · Score: 1

      Interesting to see that version of history making the rounds - the pilgrims weren't kicked out of England for anything, they left because they felt they didn't have the freedom to oppress their group members under English law. So they went somewhere with no laws.

    9. Re:Here in Massachusetts by geekoid · · Score: 1

      Close.
      The illegal broke fro the Church of England, because the Church of England was extreme* enough) and went to the Netherlands.
      Then they started to fears the would loose the English language, and went to America, landing on Plymouth Rock.
      After which the people from the new world and the local natives lived happily every after.

      I might have made up that last bit.

      *eXtreme!

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    10. Re:Here in Massachusetts by RavenLrD20k · · Score: 1

      I've had both the Maraska and Jelinek brands (only two I've been able to find anywhere in GA, and I grew up on Maraska in CT) and I've found that the Maraska tends to go down a bit smoother while leaving the internal temp feeling like you're parked next to a nuke reactor.

    11. Re:Here in Massachusetts by Anonymous Coward · · Score: 0

      you do know they weren't kicked out, but left on their own because the rest of England refused to live by their oddball fanatic rules?

  14. Re:Car Dealers should ask why they're being bypass by Karmashock · · Score: 1

    I'd generally agree. Another issue is why we have so few car companies. We could have smaller car companies that make few cars and are perhaps regional brands. Look at restaurants or ISPs or whatever that only exist in one part of the country. We could have the same thing with cars. The dealerships make getting into the car making business more complicated. They can't directly sell their cars. They can't put an AD in the paper saying "this car, with these specs, at this price, to your door... call this number." And that's wrong.

    If no one has to deal with the dealerships then I think they'll be more reasonable companies because they'll understand that if they're unreasonable they'll be bypassed.

    --
    I've decided to stop wasting my time responding to AC trolls/sockpuppets... so if you want a response from me... login.
  15. hahaha by Anonymous Coward · · Score: 0

    they weren't really licking their chops that much. dealerships make most of their money on maintenance/repairs. electric cars require far less of either than IC cars.

  16. Re:Car Dealers should ask why they're being bypass by Rhyas · · Score: 1

              Clearly, you went to the wrong dealer. This highlights one of the benefits of the dealer model, there are almost always a *lot* of dealers to choose from and try to get a better deal/experience/vehicle from. You've got a single place to go to get a Tesla. If you don't like them, or they don't like you, you're outta luck unless you find one on the used market.

  17. Rules for fat cats versus rules for smallbies by Tablizer · · Score: 2

    I believe it's reasonable that if a company is too large relative to the market, then restrictions on dealership ownership & control make sense to prevent collusion and killing seller competition.

    However, for a smaller car company, such rules work against it, protecting the big boys from competition, which was allegedly the reason for the dealer restrictions to begin with.

    Thus, cross-sector collusion rules should be tuned to mostly apply to companies with a large market share of car manufacturing. Maybe a way can be made to make the restrictions incrementally higher per market share percentage rather than have blunt cut-off points, which is one of the criticisms of ObamaCare in relation to employee count and work-hours.

  18. Re:Car Dealers should ask why they're being bypass by PPH · · Score: 3, Informative

    Historical reasons. Manufacturers could book a sale when they shiped a car to a dealership. Want to keep your dealership franchise? You'll accept X cars per month. You figure out how to sell them. So now manufacturers have stable 'sales' figures to make investors happy.

    After some time, laws were passed against these abuses. But the same laws protected dealership franchises, so they persist.

    --
    Have gnu, will travel.
  19. Carma is a beautiful thing by Dereck1701 · · Score: 3, Insightful

    The big car manufacturers have been trying to use the dealership laws to prevent a competitor from bring a product to market, dealerships have been trying to use the laws to force Tesla to cut them in on their sales. This court ruling bloodies both of their noses for their foolishness, now if only more courts follow in this ones footsteps. I wonder how these laws even came into being in a society that claims to embrace free market mentality in the first place. I realize that Ford once tried to bypass the franchise model, but if they were able to provide their product to customers cheaper then what was the issue? Replace "car manufacturer" with any number of other products (corn, light bulb, TV, desk) in these laws and it becomes quite clear how foolish the whole thing is.

    1. Re:Carma is a beautiful thing by Anonymous Coward · · Score: 0

      I look forward to the day when I can buy my car directly from the manufacturer and have it delivered to my front door. Imagine going to Amazon and clicking options to order up your new BMW at a price that beats everyone else. Prime shipping! haha

      You can already do it with many Chinese motorcycles and scooters. Order off Amazon and have it delivered to your door. It's awesome except for the quality of these vehicles. Why can't I order a Honda motorcycle off Amazon... Dealer bullshit, that's why. They have to siphon off their cut before we can get anything. They're nothing more than leeches.

    2. Re:Carma is a beautiful thing by Anonymous Coward · · Score: 0

      Let me give you something you might not have thought about. Warranty work. Manufacturers pay for it, the dealers collect the money for it. Its in the dealer's best interest to do as much warranty/recall work as possible and in the manufacturer's interest to not do it.

      Tesla may handle this correctly, or they may not. I think how they deal with that will make or break thier sales model.

    3. Re:Carma is a beautiful thing by Anonymous Coward · · Score: 0

      And Amazon just became the replacement for your dealership (only with even less service)... no change whatosever, except the classic "on the internet"

    4. Re:Carma is a beautiful thing by jp10558 · · Score: 1

      Its in the dealer's best interest to do as much warranty/recall work as possible

      Sure doesn't seem that way to me... At least with Subaru it's the local dealer always trying to weasel out of doing *anything* under warranty and central Subaru 1-800 getting them to do the *damn* work they are supposed to do under Warranty.

      Why not just work like the aftermarket warranty companies where they pay local shops by credit card over the phone for warranty work? Has to be cheaper than setting up garages if your Tesla... Or however Geico etc do the mechanical breakdown coverage, but without the deductible. There are *plenty* of local shops that I trust to know what they're doing much more than the dealers, and they are often cheaper as well!

      --
      Opera, Proxomitron-Grypen,GPG 0x0A1C6EE3
  20. #suddenoutbreakofcommonsense by Anonymous Coward · · Score: 0

    ^Subject

  21. Re:Car Dealers should ask why they're being bypass by Patent+Lover · · Score: 1

    Think of Tesla as the Apple of cars.

  22. Footnote mania by sk999 · · Score: 2

    19 footnotes for a 24 page opinion, including one so long that spills over from one page onto the next. Ouch! Detracts from what is otherwise a great read, including delving into papers from the file of the acting governor at the time that the legislation at issue was passed.

    1. Re:Footnote mania by AthanasiusKircher · · Score: 1

      19 footnotes for a 24 page opinion, including one so long that spills over from one page onto the next.

      You obviously haven't read many legal opinions. Such footnote practice is commonplace.

      Ouch! Detracts from what is otherwise a great read

      Uh, you do realize that footnotes are optional to read, right? That's why they are footnotes, as opposed to part of the main body of text.

      I've never understood people who complain about excessive footnotes -- either they're so ADD that they get distracted by the numbers and the text so they can't stay focused, or they're so OCD that they can't resist reading words at the bottom of the page, even if they are tangential to the argument.

      Don't get me wrong: footnotes in legal arguments are often important. But they're not generally essential to the main argument. That's the point. If you just want to read the core argument, read the text, and don't read the footnotes. (If the text is not understandable without the footnotes, that's a different writing problem, which should be criticized.)

      Complaining about footnotes from distracted readers who can't focus on the text is what leads to monstrosities like endnotes -- which basically makes the notes unusable. (Or even worse, the current publishing trend where endnotes don't even have numerical references on the page -- so you have to match up the endnote with some phrase of text to find out there even is supposed to be a note there.)

      If you don't want to read footnotes, just don't. I certainly don't if I'm just reading the main argument. But there's often a reason why they can be helpful to SOME readers, and forcing writers to either turn them into invisible endnotes or incorporate them into the text just makes things worse.

  23. Re:Car Dealers should ask why they're being bypass by khallow · · Score: 4, Informative

    I see you can learn something from this example.

    The original post indicates he didn't go in uninformed. A classic negotiation tactic is to let the other side go first. Asking a salesman to show you something is a good opening move for an expensive purchase even if you know exactly why you are there and what you want to buy. When the salesperson went immediately to the product of the day, that gave away that they were acting in bad faith.

  24. Right ON!!!!! by Anonymous Coward · · Score: 0

    Finally some legal body has pulled its proverbial head out of it's arse..
    moving past that, isnt there a Law in that state where its forbidden to engage the court system with issues of frugality? (perhaps wroing word)(friviolous)
    ok isn;t there some law that states if the subject material is really not substantial (such as this, I mean comon people we are in a place where free enterprise is encouraged, competition, etc.) that being said, because this BS seems unconstitutional, isn't there penality imposed for wasting the courts time,
    I would rather see the court system convict: rapists, pedophiles, molesters, and extensively abusive individuals that need a high level of supervision.

    why waste the money on BS.. Lets really focus on whats important for the communiity at large, not who's pockets are full enough..

    I find it amusing, in America we are free to do what we can,, but in the end we try to find ways to "phoq" others the Best we can. :(

    what a shame. :( cant we all just get along?

    1. Re:Right ON!!!!! by Anonymous Coward · · Score: 0

      Yes, in free place, we have nothing better to do, so lets find some way to make thing difficult for others.
      We have conquored the moon, run out of money, so whats left.. Let us focus our eyes on our fellows and see what can be stirred up.

      I find it interesting how everyone is working together when there is money, but no money we work to screw one and other :(

  25. No standing, no case by Anonymous Coward · · Score: 3, Informative

    A number of other states modified their laws. Most of them started with wording stating that companies could not compete with their own franchises, but the franchises in a number of states had the wording changed so that all car companies have to sell through franchises rather than branches.

  26. Re:Car Dealers should ask why they're being bypass by PopeRatzo · · Score: 3

    They sort of look and feel like apple stores.

    I do not want to buy my expensive Tesla from a smelly "genius" walking around with a corporate-logo polo shirt snug around the belly that hangs over his belt, which sports an iPhone holster. I'd rather just order the damn thing on-line and have USPS deliver it to my front door.

    --
    You are welcome on my lawn.
  27. Re:Car Dealers should ask why they're being bypass by Teancum · · Score: 2

    Tesla doesn't have dealerships, which is part of the problem though. They have stores... like stores which sell soap or drugs like aspirin. That is also the point of the ruling as they are trying to tell these mega-dealerships who own the rights to every automobile brand that they simply can't add Tesla to their list.

    The reason why Tesla doesn't want these dealers to have their cars is primarily because they are afraid that these dealers will throw a couple of Tesla cars in the corner of their showroom and be pushing the other brands instead. Elon Musk has explicitly stated this as his primary objection, and why he felt it was necessary to go outside of the dealership model.

  28. Re:Car Dealers should ask why they're being bypass by Teancum · · Score: 3, Insightful

    You are the one who made the first mistake.

    If you do that kind of research by looking stuff up on-line, reading Consumer Reports, and digging up information about the automobiles before you show up to the dealer.... what is the point of the dealer in the first place?

    I agree with you so far as that is the best way to avoid getting screwed over by incompetent salesmen, but you can intelligently use sales reps to get more information about their products. This is not strictly about the automobile industry either, and I've done that with electronics, software, and even groceries.

  29. Re:Car Dealers should ask why they're being bypass by Teancum · · Score: 2

    The point of the dealership is to have a local representative who can help with compliance with local regulations. A hundred years ago, selling stuff was a whole lot more complicated in terms of trying to keep track of things each state wanted or didn't want, not to mention often even different laws for each city even in the same state. Communication was also a bit slower as well... and more importantly the system simply worked for almost everybody.

    The problem is that once you have the franchisee in place, getting rid of them is nearly impossible, even if the situation has changed. This is why several historic systems still stick around years, decades, or even centuries after they are obsolete. Some places in Europe still use Roman aqueducts for their water supply... because they still work. There may be more efficient ways to get the same thing to happen now, but why change if it still sort of works?

  30. The dealer profit model by Anonymous Coward · · Score: 0

    depends on selling routine maintenance services. Teslas don't need such things. This is why GM and the other auto makers killed their electric cars in the late 1990s. How many spare parts are sold for a Tesla?

  31. Re:Car Dealers should ask why they're being bypass by Harlequin80 · · Score: 5, Insightful

    You are right about historical reasons but I believe wrong about the ones you have supplied. I believe the primary reasons are more likely to do with distance and communication.

    When you were a factory in the 40s and 50s pumping out cars you were focussed on the manufacturing aspects and your business was located in a single location - ie Detroit. The idea of trying to manage a network of stores across the country when communication was by post or expensive phone calls just simply didn't make sense. It was more cost effective to outsource that work, in exactly the same way it makes more sense to outsource things like accountancy, IT services and legal in many organisations.

    Selling cars is a different business to making cars. And there is no guarantee that if you are good at making cars you will be good at selling them. The original idea was that these dealer were to be your customer interface, and ideally do a better job than you could.

    The fact that manufacturers obviously decided that wasn't working at some point in the past and tried to open dealer owned stores is a sign that that system broke down.

    Today, communication is almost instant, manufacturing processes and methodologies are more flexible than ever before and there is far more information available to your average consumer. A lot of what were "meant" to be the value adds of dealers are gone. Dealing directly with the customer allows you better control of your brand and if done well will increase profitability by removing a stage in the process.

    But it can't work for every product. You still won't be buying your softdrinks direct from Coke or your shampoo from Unilever. Because in these situations the dealers (ie supermarkets) still make more sense.

  32. Re:Car Dealers should ask why they're being bypass by Teancum · · Score: 1

    Some of the issue with automobile manufactures is that the vehicles are so complex and need so much capital that almost everybody who tries to build a new manufacturing company in this industry usually goes bankrupt. Tucker and DeLorean are really good examples of this, in spite of conspiracy theories that suggest ulterior motives of existing manufacturers.

    The other issue is simply complying with government regulations in the industry. Some of those regulations certainly have been established because of major screw-ups in the past, but many of them (in spite of the manufacturers complaining about them) are enacted explicitly to discourage new entrants into the industry. At the very least the existing manufacturers only offer token resistances to things like seat belt and safety laws that add complexity as long as it hits everybody in the industry equally... and keeps new companies busy trying to catch up if they tried. If somebody built an exact replica of the Ford Model T, it couldn't be driven today except as a historical re-creation for off-road usage and certainly not something for mass production.

  33. I was prepared by tquasar · · Score: 2

    I used Consumer Reports and other sites to find out what the dealer pays for the truck I bought. The dealer gets money back from the auto maker on every sale too. I was polite but firm in negotiating with the salesman, and the "Let me check with my manager" isn't just a line of BS. It is so the dealer doesn't take a loss from a sales person increasing their commission by making more sales.

    1. Re:I was prepared by jzilla · · Score: 2

      "let me check my manager" is just one a many tactics to slow the process and ultimately wear your down. The longer they make it take, the more likely you are to just give in. Car salesman 101.

  34. Re:Car Dealers should ask why they're being bypass by ShaunC · · Score: 5, Insightful

    This highlights one of the benefits of the dealer model, there are almost always a *lot* of dealers to choose from and try to get a better deal/experience/vehicle from.

    I'm of the opinion that it highlights one of the disadvantages of the dealer model, you often have to go from one dealer to another, haggling and bullshitting, before finally settling on the car you want at a price you feel comfortable with. I'd rather have one place in town that sells what I want, with a clearly marked price, skip the haggling, and do a transaction. Maybe some people enjoy the car buying "experience" but I look at it like any other purchase. I want to do some research ahead of time, walk into the store, buy the product I came for, and leave. It's 2014, it's no longer reasonable to expect consumers to waste an entire weekend trying to buy a car.

    --
    Thanks to the War on Drugs, it's easier to buy meth than it is to buy cold medicine!
  35. Re: Car Dealers should ask why they're being bypas by Anonymous Coward · · Score: 0

    No, you're wromg. You can reasearch the abuses by, say Ford, during the Depression. Manufacturers dabbled with direct sles early on, but decided that dealerships worked better for them for many reasons. But there came a time when dealers, representing the Little Guy, needed to be protected from the Big Bad car makers because the manufacturers ran through a series of abusive practices against their own dealers. You're theory about communications speed is a nice one, but doesn't track with history.

  36. Re:Car Dealers should ask why they're being bypass by Karmashock · · Score: 1

    Same. Though assuming you were Musk and were putting some stores out there for people to look around... how would you structure it?

    One thing that might be a reasonable compromise is if the Tesla franchise had to be exclusive. Consider fast food franchises... they're exclusive. You can't sell subway sandwiches and Quiznos sandwiches in the same restaurant.

    What is more, the corporate office can set policy, set prices, etc. Do that and you can let dealerships sell the cars while at the same time controlling how it is done.

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  37. Re:Car Dealers should ask why they're being bypass by Rich0 · · Score: 2

    Agreed. If I want to comparison shop just about anything other than a car I can just do an online search by model number, see all the asking prices, and purchase one in 5 minutes. A car turns into a high-pressure negotiation on my day off. With anything else if it turns out to be defective I just return it and get my money back - not so with the car.

    I can understand that it has to work this way with houses since they aren't mass-produced. The car sales model is a dinosaur, and half the tactics that are used should be illegal.

  38. Tesla's taking a cue from Apple by RogueWarrior65 · · Score: 3, Insightful

    For those of you old enough to remember a time before Apple had their own stores, the Apple fan would go into most electronics stores and be lucky to find an Apple-related product. Finally, Apple basically told the Cramp-USA's of the world to take a hike and opened their own stores where people could go to get an untainted look at Macs, iPods, etc. The plan worked like a charm. IMHO, Tesla is looking at the market and the fact that many car dealers have multiple brands under the same corporate umbrella and they know they're not going to get the attention they need. Tesla wants a stage that they don't have to share with other cars or even fight for a share of the sales staff.

    1. Re:Tesla's taking a cue from Apple by linuxguy · · Score: 2

      This is only partially true. You have to remember that Apple products used to suck. People did not want them.

    2. Re:Tesla's taking a cue from Apple by ClickOnThis · · Score: 1

      This is only partially true. You have to remember that Apple products used to suck. People did not want them.

      In my modest experience with older Apple products, I have found that they were about the same as others in quality. They didn't "suck" any more or less than their competitors.

      --
      If it weren't for deadlines, nothing would be late.
    3. Re:Tesla's taking a cue from Apple by Megane · · Score: 1

      One word: Performa

      But there were still some pretty bad models sold without the Performa mark of crapulence. I once got a Power Mac 4400, one of the ten worst Macs ever, from a CompUSSR and realized how bad it was, so a few weeks later I sold it to a friend. I still feel bad about that.

      --
      #naabhaprzrag, #sverubfr-000, #agi-fcbafberq, negvpyr[pynff*=' negvpyr-ary-'] { qvfcynl: abar !vzcbegnag; }
    4. Re: Tesla's taking a cue from Apple by Anonymous Coward · · Score: 0

      Iirc apple used to only sell through authorized retailers

    5. Re:Tesla's taking a cue from Apple by Megane · · Score: 1

      Ah yes, now I remember the rest of the story... I seem to recall that a few weeks later I got a good deal on a Power Computing Power Tower Pro, which was a quite nice clone (except that 8.0 locked up all the time, so I downgraded to 7.6 until 8.1 came out), and that's what motivated me to sell the 4400. I hadn't really had the 4400 long enough to know just how bad it was. I kept the PTP as my main non-laptop long enough to get it running (actually more like walking) OS X. I long ago downgraded it to 9.x for when I need the retro (floppies and SCSI), and it's been a few years since I last powered it up.

      The PTP basically let me hunker down during Apple's worst years of the PPC, the pre-G3 years.

      --
      #naabhaprzrag, #sverubfr-000, #agi-fcbafberq, negvpyr[pynff*=' negvpyr-ary-'] { qvfcynl: abar !vzcbegnag; }
    6. Re:Tesla's taking a cue from Apple by Anonymous Coward · · Score: 0

      Hmm... Before the advent of USB thumb drives, it was pretty stupid of Apple to remove the floppy drive (and only keep rewritable CD-RW). That was the era of slow internet... so it was a shitty machine that you couldn't get data out of except via unreliable CD-RW mechanism. I can't think of *anyone* who willingly bought one (I know my school purchased an entire section of those, that no student could use, since... well... they couldn't take their work with them after using the public machine---unless the student was carrying around a CD-RW drive for that stuff). So yah, Apple products used to suck quite a lot before they rebranded unix, and usb-drives and fast internet made it easier to work with. They were shiny and cooler looking than PCs though... but that's all they had.

    7. Re:Tesla's taking a cue from Apple by Anonymous Coward · · Score: 0

      I have fond memories of my PTP. I got it because, really, I couldn't afford a 9500. If I recall Apple intentionally made OS8 run like crap on the clones. Or maybe it was OS9. I remember calling Apple about something and them telling me they wouldn't support me if I had an unapproved OS installed.

    8. Re:Tesla's taking a cue from Apple by Anonymous Coward · · Score: 0

      This is only partially true. You have to remember that Apple products used to suck. People did not want them.

      Meh. Apple has always made products that don't suck. It's just that those products have always been expensive.

      For a while, it also made a range of cheap, crippled computers to try to compete on price for the mass market. These did suck, and one of Steve Jobs' "brilliant" decision was to just drop the cheap crap and focus on the high end.

      HP has the same problem right now.

  39. Re:Car Dealers should ask why they're being bypass by drinkypoo · · Score: 1

    I believe the primary reasons are more likely to do with distance and communication.

    But there's no reason to believe that.

    The idea of trying to manage a network of stores across the country when communication was by post or expensive phone calls just simply didn't make sense.

    What? Why not? Cars are expensive items, phone calls are minimal by comparison. If you have an order for a car, you drop the form in the post. At least, they did back then.

    In fact, the reasons are as stated. The manufacturers want to make cars at X dollars, which requires building Y cars. Right now there are cars which can't be sold piled up all over the world, for reasons like these and others (e.g. "the economy, stupid")

    --
    "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
  40. Re:Car Dealers should ask why they're being bypass by Rick+in+China · · Score: 1

    From what I see about Musk through interviews, articles, etc.. I can imagine that there is one obvious reason why Tesla would never enter a dealership model:

    'Cause they don't want to get customers' shit on their dicks while they fuck them repeatedly for every penny they can.

  41. Re:Car Dealers should ask why they're being bypass by Anonymous Coward · · Score: 0

    You're missing one of the big downfalls of car dealers - they're middlemen who take a cut of the sale. Tesla wants to sell direct to public - not just so they can control the sales experience (which is important to their brand) but so they can have better margins than their competition.

  42. Re:Car Dealers should ask why they're being bypass by silas_moeckel · · Score: 1

    Some parts are complex and successful company's often part out things to others. To bad most of the changes that drive up the price are cosmetic. Does every model year need new headlights and thus slightly different body panels? A different but otherwise the same stereo?

    Frankly cars should be a platform. More like a piece of farm or construction equipment where refinements are made to efficiency, durability or safety. Upgrades are made where it makes sense, engine blow well might as well get the new one 15% better mileage.

    --
    No sir I dont like it.
  43. Throwback by Frankie70 · · Score: 2

    a throwback to the days when Detroit tried to undercut its franchise dealers by opening company-owned shops.

    This seems to indicate that the same laws were good then & not good now. How?

    1. Re:Throwback by ClickOnThis · · Score: 3, Interesting

      a throwback to the days when Detroit tried to undercut its franchise dealers by opening company-owned shops.

      This seems to indicate that the same laws were good then & not good now. How?

      Back then, Detroit was trying to pressure their own retailers to sell their cars at a lower markup. The law was Good (TM) for the retailers because it protected them from their suppliers. There were plenty of retailers to drive prices down through competition; they didn't need the suppliers to compete in the retail market.

      Now, Tesla doesn't distribute to independent retailers, and they want to keep it that way, because they're not keen on having their products in the same showrooms as retailers showing other products. As far as they're concerned, Tesla is revolutionary, and would look queer and out-of-place amongst other vehicles with internal combustion engines.

      Tesla doesn't trust retailers to present their product fairly in this context. And I can see their point: if their only contact with the consumer is the conventional auto retailer, you can bet all the other car manufacturers would freak out at having to share the showroom with Tesla, and would put pressure on the retailers to sing their own song.

      In short, Tesla doesn't think the market will be fair to them unless they sell their product through their own stores. And since the retailers aren't selling their product, they're not competing with them, and so the law is an anachronism in this context.

      --
      If it weren't for deadlines, nothing would be late.
  44. Re:Car Dealers should ask why they're being bypass by Anonymous Coward · · Score: 0

    why should i research a car that i'm not interested in? why would it be my fault if a salesman tries to sell to me more than my clearly stated needs?

  45. Re:Car Dealers should ask why they're being bypass by dbIII · · Score: 3, Interesting

    The reason why Tesla doesn't want these dealers to have their cars is primarily because they are afraid that these dealers will throw a couple of Tesla cars in the corner of their showroom and be pushing the other brands instead

    Apparently that is exactly what happened when Japanese cars first came onto the US market, until some very unsubtle bribes and buyouts changed things. Skills used when doing deals with organized crime such as the Yakuza were applied - that really say something about car dealerships doesn't it? The Japanese treated them as crooks and it worked.

  46. Re:Car Dealers should ask why they're being bypass by Anonymous Coward · · Score: 1

    When the salesperson went immediately to the product of the day, that gave away that they were acting in bad faith.

    It's a car salesman - THEY'RE ALWAYS ACTING IN BAD FAITH! Duh!

  47. Re:Car Dealers should ask why they're being bypass by Anonymous Coward · · Score: 0

    You should have been completely informed about the entire lineup of cars and their inventory before you even set foot in the dealership. It doesn't take much.

    Yep, not much at all. Just assume that the dealership gets a single base vehicle of any given model (typically in puke green) so they can advertise that they have it for $x, then load out their remaining allotment with [insert state here] Editions and sport upgrades with tons of useless bullshit that all add thousands to the base price. Then when you ask for the base version they'll either tell you they don't have it in stock, or they show you an ugly-as-fuck car. If you balk, they tell you that they don't "do" special orders and they can't tell you when they'll get a new shipment or if they'll get it in white or some other sane color.

  48. Re:Car Dealers should ask why they're being bypass by TechyImmigrant · · Score: 1

    My algorithm for buying a new car is:
    1) Spend about a year deciding what I want and/or need.
    2) Simultaneously, start saving the cash.

    It's not like you can't tell when a car is nearing the end of time, relative to whatever your own level of love for car maintenance is.

    When the time comes, you know what you want and you've got the cash, which makes the bargaining rather trivial.

    --
    I should use this sig to advertise my book ISBN-13 : 978-1501515132.
  49. Opportunity here for MA / Tesla by Anonymous Coward · · Score: 0

    So now if they're canny MA can set itself up as a Tesla distribution centre. If your local state forbids direct sales, call the Tesla store in MA and get your car from there. Sure, there'd be a delivery charge but if they send the cars out on full car transporters it probably wouldn't be too bad (not compared with the price of the actual car anyway) and MA gets the sales tax. Perhaps once other states see all the lost sales tax flowing out of state to MA it might provide the incentive they need to change their state laws to something a bit saner.

  50. Re:Car Dealers should ask why they're being bypass by dave420 · · Score: 1

    You've just highlighted the problem - what is there for them to not like about someone, and vice versa? Do shoe shops have these problems, too? Or delis? Of course not. It's some weird thing specifically to do with car salesmen, and precisely to do with their weird way of bargaining and the "dance" that must be played just to purchase some hardware.

    You do realise that it's simply not normal for how a person feels about a salesperson or vice versa to affect anything.

  51. Re: Car Dealers should ask why they're being bypas by fuzzyfuzzyfungus · · Score: 1

    In addition, Tesla(whether or not you see this as an improvement is a distinct issue, it simply is so) sells cars much more like an enterprise IT hardware vendor sells hardware: at least within the warranty period, there is very much an ongoing interaction between the hardware and the vendor. System health information gets sent directly back, on site techs with specialized parts and firmware get sent out and so on. More traditional car companies are closer to buying a PC: the dealer will offer (often absurdly priced; but available) maintenance; and the vendor may become involved with certain warranty or recall cases; but they are otherwise largely out of the loop, with third parties handling the ongoing interaction with the hardware.

  52. Re:Car Dealers should ask why they're being bypass by Rich0 · · Score: 2

    Unfortunately, the last two times I bought a car it was following a collision, so I didn't really have the luxury of picking and choosing the time that I made the purchase.

  53. Re:Car Dealers should ask why they're being bypass by PopeRatzo · · Score: 1

    Though assuming you were Musk and were putting some stores out there for people to look around... how would you structure it?

    Keep his idea of the slick showroom, but leave out the Apple geniuses.

    Put all the data online and populate the store with the equivalent of well-trained booth-babes from both genders. Have a kiosk for payment. Low overhead. Have a couple of cars for test driving.

    By the way, I finally drove a Tesla a little bit. They're really nice. The chair of my wife's department at the University bought one and he had us out to the house for a BBQ a few weeks ago. Let me cruise around his tony suburb for a little bit. I love driving a car without engine noise.

    --
    You are welcome on my lawn.
  54. Re:Car Dealers should ask why they're being bypass by Savage-Rabbit · · Score: 1

    I do not want to buy my expensive Tesla from a smelly "genius" walking around with a corporate-logo polo shirt snug around the belly that hangs over his belt, which sports an iPhone holster. I'd rather just order the damn thing on-line and have USPS deliver it to my front door.

    Same. Though assuming you were Musk and were putting some stores out there for people to look around... how would you structure it?

    One thing that might be a reasonable compromise is if the Tesla franchise had to be exclusive. Consider fast food franchises... they're exclusive. You can't sell subway sandwiches and Quiznos sandwiches in the same restaurant.

    What is more, the corporate office can set policy, set prices, etc. Do that and you can let dealerships sell the cars while at the same time controlling how it is done.

    Putting the condescension aside that is positively dripping off of the GP post, why should there have to be a compromise? Where the hell do car dealers get off whining about this? As far as I can tell Tesla went for these Tesla stores because the good hard working folks of the car dealing industry put very little effort into selling their cars so it's the car dealers own bloody fault Tesla went for this solution in the first place and as far as I can tell Tesla is well within it's rights to do so. I don't see anybody legislating against Apple for selling their stuff directly in Apple stores owned by Apple, and the same goes for Sony and their Sony centers, I distinctly remember reading that Microsoft has Microsoft stores and now Samsung is starting to set up Samsung centers in Europe where this manufacturer owned or franchised retail store model is just as well known as in the US. You don't see electronics retailers whining about Apple, Sony and Samsung having their own retail stores, perhaps because they, unlike US car dealers, don't have any hangups about selling Apple, Sony and Samsung products with as much vigor as the rest of their inventory. Why can't there be a chain of Tesla centers without every car dealer in the USA whining about it like petulant child? We all know what the answer is, the car dealers are hopelessly corrupt and are into the bargain in the pockets of certain companies who feel threatened by Tesla.

    --
    Only to idiots, are orders laws.
    -- Henning von Tresckow
  55. Re:Car Dealers should ask why they're being bypass by jp10558 · · Score: 2

    I've been trying to buy a new car. It may just be the southern tier of NY, but finding a Subaru dealer that
    a) knows even close as much about the car I want as what I know *from the Subaru web site* and the *Subaru Drive Magazine* is basically impossible.
    b) Is willing to quote me a price (why can't I call, e-mail or even walk in and just list the car + options and GET A PRICE? This is as bad as the phone companies.). Granted, many have prices on what they have in stock...
    c) Will actually order what I want.

    I had one dealer order a car (that didn't have the Eyesight feature that I made clear was the *REASON* I wanted this car), and try and sell it to me. When I walked when it didn't have the Eyesight feature, they didn't understand why I didn't want the car. Hello? I came to you and listed specific features I wanted, you got a car without them (after I waited 2 months) and wonder why I didn't buy it?

    I wish I could just order from Subaru like I do from Lenovo... Hell, I wish there was a pricewatch for cars and it was easier to get one delivered...

    --
    Opera, Proxomitron-Grypen,GPG 0x0A1C6EE3
  56. nerds, please! by lamer01 · · Score: 0

    Let a car guy clue you in. You should never buy a car in an apple-like store. Cars are not computers. You need to take the car out. More than once. Especially if it costs $70K or more. You have to be sure of your purchase as you will most likely be using this car for at least 3 years. So, yes, although the idea of an apple store for cars sounds good, how do you do that when your product line has 10+ models and you need to have samples for test drives for people who just walk in? Although we can berate car dealers for their litany of offenses against consumers, their sales paradigm is what it is because it has evolved to service the american consumer. ( I am going to ignore the finance aspect of it as that is plain ridiculous ).

    1. Re:nerds, please! by geekoid · · Score: 1

      Oh, shut up.
      Listen you patronizing jerk, you aren't the only 'car guy', so get over yourself.
      I ave no idea why you think you won't be able to test drive.

      Their sales paradigm is design to grab customers and fleece them for all they can, otherwise everything would be fixed price.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    2. Re:nerds, please! by lamer01 · · Score: 0

      Because I know more than you do about cars. Currently to test drive a Tesla you need an appointment made way in advance. And, they have one model, really. When they turn into a full fledged automobile maker with many models they will have to switch to a dealer network.

  57. Re:Car Dealers should ask why they're being bypass by ruir · · Score: 0

    Dont be a fucking feminist, we males also get to be treated poorly by car dealers. When buying my current car, I asked the car dealer to pay me attention, and give me a rundown, and was there with my girlfriend driving a (very expensive) car. To be fair, I was looking at the cheapest car in the show, that was not what I wanted. He basically ignored me, and handed me a couple of fliers, when I knew exactly what I wanted if he cared to have a 5 minute talk with me. I also did not bother much, I wont pay the salary of a jerk ignoring me and not doing his job. I went to a dealer of the same brand in my hometown, the guy was superb and we made the deal in 15 minutes after having a test ride in the car, and paid full cash. So at the end of the day, a stupid salesman only has himself to blame.

  58. Re:Car Dealers should ask why they're being bypass by Anonymous Coward · · Score: 0

    Face it, every time you walk into a dealership to 'check prices' or 'check customer service', it's a 2-3 hour ordeal. You are lucky to get through 3-4 dealers in 1 day.

  59. Re:Car Dealers should ask why they're being bypass by Lab+Rat+Jason · · Score: 1

    Haha... same here. Last weekend my wife and I set out to test drive the brand new Sequoia. We made a bet before we got out of the car... I bet we wouldn't be able to walk from our car to the new car before being assailed by a hungry salesman, she bet that we wouldn't even see a salesman. She won the bet, and we were ignored for 30 minutes while we poked and prodded the SUV, and then we walked back to our car and drove away without a test drive since nobody gave two shits about us. The dealership model is dead.

    --
    Which has more power: the hammer, or the anvil?
  60. Re:Car Dealers should ask why they're being bypass by Anonymous Coward · · Score: 0

    They sort of look and feel like apple stores.

    I do not want to buy my expensive Tesla from a smelly "genius" walking around with a corporate-logo polo shirt snug around the belly that hangs over his belt, which sports an iPhone holster. I'd rather just order the damn thing on-line and have USPS deliver it to my front door.

    You don't want to deal with a "smelly genius", but you want your sweaty mail carrier to drive your brand new car?

  61. Re:Car Dealers should ask why they're being bypass by kilfarsnar · · Score: 1

    I blame the dealerships too. The last time I went shopping for a car, I told the salesman I was looking to replace my Chevy Malibu, and wanted something small to midize that was good in the snow. Despite the bevy of options on the lot, he walked me over to a Challenger SRT ... a rear-wheel drive boat that most likely isn't even particularly good in the rain.

    Oh come on. It's only got 475 pound feet of torque. It'll be great in the snow! ;-)

    --
    "What the American public doesn't know is what makes them the American public." -Ray Zalinsky (Tommy Boy)
  62. Re:Car Dealers should ask why they're being bypass by geekoid · · Score: 1

    What you just built is a Tesla place you want. Not one good for most people.
    You need to have people on hand to answer the questions, because most people won't research data on line.

    --
    The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
  63. Re:Car Dealers should ask why they're being bypass by Anonymous Coward · · Score: 0

    " The chair of my wife's department at the University bought one"
    I can't imagine why university costs are skyrocketing.

  64. Re:Car Dealers should ask why they're being bypass by geekoid · · Score: 1

    "Dont[sic] be a fucking feminist"
    so... she should just be in the kitchen all day? WTF

    Women get treated far worse them men in dealerships. You were ignored, but where you treated like you where stupid? Talked down to? If you asked about an engine would they change the subject to talk about color? Where you hit on? Did someone imply you would get a better deal if you went to the back room for a bit?

    You're post comes off making you look like a misogynistic idiot.

    --
    The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
  65. Re:Car Dealers should ask why they're being bypass by geekoid · · Score: 1

    Let her go by herself and see what happens.

    --
    The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
  66. Re:Car Dealers should ask why they're being bypass by Anonymous Coward · · Score: 0

    Have a subaru with an eyesight.

    I will say that after dealing with 2 of them, one of whom actually insulted by wife--then proceeded to make excuses and argue with me about it, this is the last Subaru I'm going to buy.

  67. Re:Car Dealers should ask why they're being bypass by Anonymous Coward · · Score: 0

    Everyone gets treated like shit by salespeople, just because women get treated like shit differently doesn't mean that their shit treatment is more or less shitty and it isn't misogynistic to point that out.

  68. Throwback by Anonymous Coward · · Score: 0

    Here's how the setup went back then:
    1) Manufacturers didn't *want* to start up their own sales locations because it was expensive and risky. As a result, they start franchising agreements.
    2) Eventually, various markets are proven, and the manufacturers want to start selling in *those* markets. The franchisees literally *cannot* compete with their own suppliers. They sue with unfair competition claims and lobby to prevent the manufacturers from trying it again.

    Some states ended up with laws requiring franchising for car sales.
    Other states ended up with laws preventing auto manufacturers from direct sales where they had franchisees.

  69. Re:Car Dealers should ask why they're being bypass by ruir · · Score: 1

    Thanks for the sane comment, pity you are posting as AC. The political (in)correctness bores me and frankly, it is annoying.

  70. Opposite effect by Anonymous Coward · · Score: 0

    What the fossil car industry doesn't understand, is that their effort to stop Tesla from selling their cars, actually increases the public's interest in Tesla's cars!

    'What is it about this car based upon new technology, making "everyone else" selling cars based upon old technology, trying to stop them selling it?"

  71. Re:Car Dealers should ask why they're being bypass by replicacobra · · Score: 1

    Have you not heard of Van Bortel?

  72. Re:Car Dealers should ask why they're being bypass by Anonymous Coward · · Score: 0

    No I hadn't, I'm 2.5hrs from Rochester / Victor, and never thought about looking there before. If the sale in Elmira falls through, I'll consider calling there.

  73. Re:Car Dealers should ask why they're being bypass by Anonymous Coward · · Score: 0

    Honestly, I think Subaru *needs* to get their Dealers in line, or it will kill them. Their cars are decent if you want affordable AWD that's awesome, but they're not all that for much else. And bad Dealer experiences will hurt their sales...

  74. Court Sports the latest in Reality Litigation by Anonymous Coward · · Score: 0

    Every bit as complicated as an ESPN special

  75. Mass SJC by Anonymous Coward · · Score: 0

    This is the same court that first said it was legal for two queers to marry. After 3,000 years of human history where no society had ever done that before, the Mass SJC decided the voters of Mass weren't smart enough to make up their own minds. Oddly, the one homosexual judge voted against it.

  76. Re:Car Dealers should ask why they're being bypass by ygtai · · Score: 1

    I'm in northern California and visited several dealers when I was going to buy my Subaru. Eventually I got a quote in the first email response from a dealer's internet sales department -- and the price was better than the price I could get haggling hard in their store. These days some things change. BTW, Eyesight is really a good reason to buy a Subaru...

  77. Re:Car Dealers should ask why they're being bypass by Anonymous Coward · · Score: 0

    When did Slashdot become a hub for whiny MRAs?