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Tesla Pushes Even More States To Upend Auto Dealer-Friendly Laws (arstechnica.com)
An anonymous reader quotes a report from Ars Technica: Tesla is now pressing ahead with lobbying efforts that would allow it to expand its direct dealerships in two more states: Nebraska and Wisconsin. For now, more than 20 states already allow the California automaker to sell its own vehicles, while others have set up a system that at least partially bans manufacturers from direct sales and effectively protects auto dealers. Those states include Texas, Michigan, West Virginia, and Utah, among others. Last year, court rulings and changes in the law in Arizona, Missouri, Indiana, and other states have paved the way for Tesla to sell directly to the public. In Nebraska, the new bill under consideration is known as LB 830. It has been met with opposition from existing dealers who are concerned that other manufacturers like GM or Ford will want a similar arrangement. Similarly, in Wisconsin, SB 605 would carve out an exception in state law for a "manufacturer [whose] motor vehicles... are propelled solely by electric power."
No where else in the world do these types of protectionist laws for car dealerships exist. They were originally intended to protect car dealers from having to compete with a manufacturer if they wanted to start up their own dealership. Manufacturers were pushing less successful models to their dealers. This was all in the 1920 or 1930's.
Now, the dealerships are using this law as a guise to "protect the consumer", but really it should be transparent that they're doing it because it's easier to lobby and legislate your competition away than to actually compete with them by trying to sell cars.
There is a fig leaf of an argument that a car is such a significant purchase that there should have some minimal in state presence for service/support for the customer.
They can keep the showroom and service bays, I just want standardized prices with no need to haggle over stupid stuff. I'd like to just be able to place the order online, even fill out the paper work electronically and place the deposit, only having to show ID and put down the final signatures when I arrive to take delivery.
Last time I was in the market for a car the first place must have caught a wiff of "fell off the turnip truck." I test drove one vehicle, didn't really like it. The salesman hands me a document acknowledging I'd seen the carfax report. Right after that with a casual "and can I get you to sign this?" he pushes the bill of sale in front of me with an absurd 20% interest rate. I tore it up, stood up and started to walk out. Apparently the salesman and manager had planned this in advance because the manager approches me as I'm leaving and shakes my hand and saying "congratulations" as I was leaving. Congratulations on walking out of a dealership? I wonder how many people that trick works on. I'll bet it's more than 0.
The place I did get my car from wanted to charge me *more* for not using financing. They wanted to tack on around $2,500 to the asking price for paying cash. I was like "no" but I've never had to try so hard to get someone to take thousands of dollars from me on the spot. It was totally insane. I didn't have to pay that added price but I had to make a scene to get it.
In conclusion, fuck the dealerships. Their sole job is to fuck over consumers in new and creative ways just on the bleeding cusp of legal.