AR15.Com Archives
 Should car dealers be protected from factory direct sales?
MyakkaVice  [Team Member]
7/1/2013 4:13:33 AM EST
Tesla motors has been selling direct to consumers and running factory sales and service centers, some states protect car dealers from this type of competition.
I know it's not a big deal with tesla because they sell so few cars, but it might change how things are done in the future.

What's Arfcom say, free market or state protection for new car dealers?
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VacaDuck  [Team Member]
7/1/2013 4:14:28 AM EST
No.
callmestick  [Team Member]
7/1/2013 4:15:16 AM EST
Originally Posted By VacaDuck:
No.


outofbattery  [Team Member]
7/1/2013 4:15:24 AM EST
Hell no!
kcobean  [Member]
7/1/2013 4:16:37 AM EST
A manufacturer should be prevented by the government from controlling the distribution of its own product.

No.

Hell no.

ChuckD05  [Team Member]
7/1/2013 4:17:07 AM EST
Originally Posted By callmestick:
Originally Posted By VacaDuck:
No.




Couch-Commando  [Team Member]
7/1/2013 4:18:41 AM EST
Any form of protectionism is wrong.
c0t0d0s0  [Team Member]
7/1/2013 4:18:52 AM EST
No.
raysheen  [Team Member]
7/1/2013 4:19:34 AM EST
Of course not.
Stitches1974  [Team Member]
7/1/2013 4:19:40 AM EST
M4-AK  [Team Member]
7/1/2013 4:19:46 AM EST
Originally Posted By kcobean:
A manufacturer should be prevented by the government from controlling the distribution of its own product.

No.

Hell no.



...but a manufacturer who would circumvent his own dealers, if he has them; is out of his mind.
TheGunCollector  [Team Member]
7/1/2013 4:20:03 AM EST
Originally Posted By VacaDuck:
No.


NM.

Mis-read the original poll question.
Andr0id  [Team Member]
7/1/2013 5:16:46 AM EST
Should not be legislated by law.

If a mfg and dealer want to contractually agree to boundaries or sales regions, they should be able to do so.

DriveNASCAR  [Team Member]
7/1/2013 5:17:30 AM EST
Originally Posted By ChuckD05:
Originally Posted By callmestick:
Originally Posted By VacaDuck:
No.






Qweevox  [Team Member]
7/1/2013 5:18:44 AM EST

Originally Posted By Andr0id:
Should not be legislated by law.

If a mfg and dealer want to contractually agree to boundaries or sales regions, they should be able to do so.


This

It's not an issue for legislation.
sigp226  [Team Member]
7/1/2013 5:19:09 AM EST
Originally Posted By M4-AK:
Originally Posted By kcobean:
A manufacturer should be prevented by the government from controlling the distribution of its own product.

No.

Hell no.



...but a manufacturer who would circumvent his own dealers, if he has them; is out of his mind.


It might also run into anti-monopoly laws at the fed.
AbsolutelyPaca  [Member]
7/1/2013 5:20:17 AM EST
Should blacksmiths be protected from machinists?
ghengiskhabb  [Team Member]
7/1/2013 5:23:12 AM EST
By law, no.



There is a reason salesmen exist and the market will ruthlessly and mercilessly explain it to any factory that sells directly to the public.
Ragin_Cajun  [Team Member]
7/1/2013 5:24:29 AM EST
Just what we need; more fucking laws
MedPig  [Team Member]
7/1/2013 5:25:31 AM EST
I want to see someone drive their electric car home from California. Given the range of a Tesla, how long is THAT going to take, a month to Rhode Island?
fervid_dryfire  [Team Member]
7/1/2013 5:27:06 AM EST
...on a related note, I LOVE being restricted to buying guns from (mostly) FFLs only.


NOT!
Admiral_Crunch  [Team Member]
7/1/2013 5:31:42 AM EST
Hell no.

In the Internet age, new car dealerships are just about obsolete. All we need is a test drive facility that the car makers can operate and maintain, or they can hire those out as they see fit.

Ordering a new car online should be no different than ordering a pizza. Dealerships can buy and sell used cars.

If a dealer can make money by negotiating a lower bulk purchase price from a manufacturer and then flip those cars to consumers, then, of course, they are welcome to do that.
Engineer  [Team Member]
7/1/2013 5:31:55 AM EST
If manufacturer's prices are higher than dealer prices, people will buy from dealer.

If manufacturer undercuts dealers.
Dealers get pissed and stop selling manufacturer's line.
Manufacturer has a diminished dealer/service base to work with.
People stop buying manufacturer's cars because they don't want to drive 3 hours for service and/or warranty work.
Manufacturer goes out of business.

MyakkaVice  [Team Member]
7/1/2013 5:34:51 AM EST
Originally Posted By MedPig:
I want to see someone drive their electric car home from California. Given the range of a Tesla, how long is THAT going to take, a month to Rhode Island?


Car delivered to your door by car carrier truck.

dcs12345  [Team Member]
7/1/2013 5:35:00 AM EST
Originally Posted By MedPig:
I want to see someone drive their electric car home from California. Given the range of a Tesla, how long is THAT going to take, a month to Rhode Island?


There are these things...I think they are called trains and trucks, IIRC, that can deliver things from far away places....
paadams  [Life Member]
7/1/2013 5:37:06 AM EST
Originally Posted By VacaDuck:
No.


FPNI
NoVaGator  [Team Member]
7/1/2013 5:38:28 AM EST
Originally Posted By Admiral_Crunch:
Hell no.

In the Internet age, new car dealerships are just about obsolete. All we need is a test drive facility that the car makers can operate and maintain, or they can hire those out as they see fit.

Ordering a new car online should be no different than ordering a pizza. Dealerships can buy and sell used cars.

If a dealer can make money by negotiating a lower bulk purchase price from a manufacturer and then flip those cars to consumers, then, of course, they are welcome to do that.


Yup... You should be able to get a typically-configured car delivered to your door in a day from every major manufacturer.



NoVaGator  [Team Member]
7/1/2013 5:40:22 AM EST
Originally Posted By MedPig:
I want to see someone drive their electric car home from California. Given the range of a Tesla, how long is THAT going to take, a month to Rhode Island?


You know, some Americans take delivery of their new Porsches from the factory in Germany. Howdafuq does that work?
Choking_Hazard  [Team Member]
7/1/2013 5:42:38 AM EST
No. I should be able to goto the manufacturer's website, fill out/send in the proper paperwork, and have it delivered or schedule a place for pickup.
VBC  [Team Member]
7/1/2013 5:44:14 AM EST
I think Wal-Mart should begin selling Chinese made cars.
rfm05  [Team Member]
7/1/2013 5:46:29 AM EST
Hell no.

Am I in before some butt hurt car salesman with no other marketable skills goes on a tirade?
SS109  [Team Member]
7/1/2013 5:49:46 AM EST
Originally Posted By M4-AK:
Originally Posted By kcobean:
A manufacturer should be prevented by the government from controlling the distribution of its own product.

No.

Hell no.



...but a manufacturer who would circumvent his own dealers, if he has them; is out of his mind.


I have been a buyer for 20+ years and so many of my dealers and distributors have been replaced by factory direct sales. It is a new age, time to catch up.

Besides, I always hear car dealers complain that they don't make enough off new care sales, used car sales and service are the real money makers.

LanXang  [Member]
7/1/2013 5:52:00 AM EST
This is how its done in Japan. They have sales rep who meet you at your home.
BWG81  [Member]
7/1/2013 5:53:45 AM EST

So is it a fair enough guess to say the 2 people so far who voted that its good to have dealership protections probably work at dealerships?

Could be wrong... but... well, obvious is somewhat obvious.
BillofRights  [Team Member]
7/1/2013 5:54:58 AM EST
. Why is that even a question?
HRomberg  [Team Member]
7/1/2013 5:59:50 AM EST
The customer is always right.
HDRshootist  [Team Member]
7/1/2013 6:01:39 AM EST
If a manufacturer has entered into a dealership/business partner agreement that restricts direct sales to the consumer by the manufacturer, they should respect that and not compete with their business partners by selling direct to the consumer. Most manufacturers regardless of industry find their business partner relationships far more valuable than the minimal profit margin increases to be had on a direct sale.

Also, why would a dealer invest in training, marketing and inventory of a product when their vender directly competes against them? Why would I warranty a product I didn't sell? Doesn't make good business sense.
Visionary  [Member]
7/1/2013 6:03:29 AM EST
Absolutely not. If I want a custom car delivered to my door and the manufacturer is willing to provide the service that should be my right.
NotAFudd  [Team Member]
7/1/2013 6:04:49 AM EST
Originally Posted By MedPig:
I want to see someone drive their electric car home from California. Given the range of a Tesla, how long is THAT going to take, a month to Rhode Island?


Choking_Hazard  [Team Member]
7/1/2013 6:05:01 AM EST
Originally Posted By HDRshootist:
If a manufacturer has entered into a dealership/business partner agreement that restricts direct sales to the consumer by the manufacturer, they should respect that and not compete with their business partners by selling direct to the consumer. Most manufacturers regardless of industry find their business partner relationships far more valuable than the minimal profit margin increases to be had on a direct sale.

Also, why would a dealer invest in training, marketing and inventory of a product when their vender directly competes against them? Why would I warranty a product I didn't sell? Doesn't make good business sense.


Dealers can move into the used market or simply go away. Manufacturers could offer better prices since they're cutting out the middle man.
Top_Secret  [Team Member]
7/1/2013 6:06:02 AM EST
Originally Posted By BillofRights:
. Why is that even a question?


Guessing the OP works at a dealership or is in a union.
NotAFudd  [Team Member]
7/1/2013 6:06:18 AM EST
Originally Posted By NoVaGator:
Originally Posted By MedPig:
I want to see someone drive their electric car home from California. Given the range of a Tesla, how long is THAT going to take, a month to Rhode Island?


You know, some Americans take delivery of their new Porsches from the factory in Germany. Howdafuq does that work?


Big ramp...+ Treadmill to get launched and a magnet to guide you in for landing.
speedracer422  [Team Member]
7/1/2013 6:09:41 AM EST
I would imagine that most manufacturers do not want to open their own dealerships and deal with all the hassle; better to let somebody else take the risk of the retail sales.


Speed
AnvilUSMC  [Team Member]
7/1/2013 6:10:54 AM EST
Originally Posted By Couch-Commando:
Any form of protectionism is wrong.


This.
HDRshootist  [Team Member]
7/1/2013 6:15:22 AM EST
Originally Posted By Choking_Hazard:
Originally Posted By HDRshootist:
If a manufacturer has entered into a dealership/business partner agreement that restricts direct sales to the consumer by the manufacturer, they should respect that and not compete with their business partners by selling direct to the consumer. Most manufacturers regardless of industry find their business partner relationships far more valuable than the minimal profit margin increases to be had on a direct sale.

Also, why would a dealer invest in training, marketing and inventory of a product when their vender directly competes against them? Why would I warranty a product I didn't sell? Doesn't make good business sense.


Dealers can move into the used market or simply go away. Manufacturers could offer better prices since they're cutting out the middle man.


Sure they can...on both points. Dealers can go away and manufacturers can offer better prices. But, the purpose of business is not to offer better prices to the consumer, it is to generate maximum profit for the business. Lower prices don't always acheive that.

That said, both dealer and manufacturer benefit from the business partner relationship. Dealership are required to turn over "x" amount of inventory, market and provided quality service and proper representation of the manufacturers product. In return for their investment, dealerships are generally guaranteed the manufacturer isn't going to come in to a market and cut their legs out from underneath them,

HellifIknow  [Team Member]
7/1/2013 6:18:22 AM EST
Hell no!

Dealerships aren't called STEALERSHIPS for no reason.

I've been buying cars for 30yrs and have yet to meet a "salesman" that has done a damn thing for me except add to the cost of the vehicle.
dttheliman  [Team Member]
7/1/2013 6:21:19 AM EST
Originally Posted By HellifIknow:
Hell no!

Dealerships aren't called STEALERSHIPS for no reason.

I've been buying cars for 30yrs and have yet to meet a "salesman" that has done a damn thing for me except add to the cost of the vehicle.



LOL .... "Have you any idea how selfish you sound?"

NO
Choking_Hazard  [Team Member]
7/1/2013 6:22:06 AM EST
Originally Posted By HDRshootist:
Sure they can...on both points. Dealers can go away and manufacturers can offer better prices. But, the purpose of business is not to offer better prices to the consumer, it is to generate maximum profit for the business. Lower prices don't always acheive that.

That said, both dealer and manufacturer benefit from the business partner relationship. Dealership are required to turn over "x" amount of inventory, market and provided quality service and proper representation of the manufacturers product. In return for their investment, dealerships are generally guaranteed the manufacturer isn't going to come in to a market and cut their legs out from underneath them,



That protectionism benefits us how exactly?
NoVaGator  [Team Member]
7/1/2013 6:22:57 AM EST
"Floorplanning" is such an incredible misuse of resources that I'm amazed it still continues to hang on.

I suspect that dealerships with full inventories were necessary in the early days of automobiles because acquiring one was as much an educational experience (for the buyer) as it was a transactional experience.



planovet  [Team Member]
7/1/2013 6:23:17 AM EST


What he said
SirSqueeboo  [Life Member]
7/1/2013 6:24:09 AM EST
Originally Posted By HellifIknow:
Hell no!

Dealerships aren't called STEALERSHIPS for no reason.

I've been buying cars for 30yrs and have yet to meet a "salesman" that has done a damn thing for me except add to the cost of the vehicle.


So you fell for the undercoating?
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