[VApeople]

We bought a new car last week. We decided what kind of car we wanted to buy and calculated the out-the door price we wanted to pay. Then we went to a local dealer and offered that price.

After talking to a salesman, we agreed to increase our offer by $700. They accepted our offer and we signed a document specifying the out-the-door price we will pay.

They didn't have the car we wanted but it is supposed to be in in a few weeks. When it comes in, we will see if they are still willing to sell the car for the exact price we specified.

We and a car dealer have one thing in common. They don't trust us and we don't trust them.

Our salesman was very nice and we enjoyed dealing with him.

[twoplanekid]

Originally Posted by Aces4

So much effort, I'd rather have a purchasing situation like Tesla buyers have available. Laws can be changed, citizens need to speak up for their rights. If Tesla can do it, so can ICE vehicles. We all, as a whole, need to fund elections at a greater rate than dealers and bingo! Wishes granted!

I agree. The purchase of a Tesla using their app is done with ease (straight forward) and a lot less stress with no "well, let us adjust the price" again and again.

[ResQme]

After you think you've worked out a deal, they have you meet the Finance guy. These guys are sleazier than the sales reps. Unless you really want the extended warranty and all other extras he'll try to sell you, just say no to everything he offers.

[retiredguy123]

Originally Posted by VApeople

We bought a new car last week. We decided what kind of car we wanted to buy and calculated the out-the door price we wanted to pay. Then we went to a local dealer and offered that price.

After talking to a salesman, we agreed to increase our offer by $700. They accepted our offer and we signed a document specifying the out-the-door price we will pay.

They didn't have the car we wanted but it is supposed to be in in a few weeks. When it comes in, we will see if they are still willing to sell the car for the exact price we specified.

We and a car dealer have one thing in common. They don't trust us and we don't trust them.

Our salesman was very nice and we enjoyed dealing with him.

Did you pay a deposit? If so, did you sign anything? If you did, does it say they will deliver the car you ordered or equivalent? If you did these things, there is a good chance that you will not get the car you ordered, and you will never get your deposit back. I hope that I am wrong, but that is what a lot of dealers do.

[biker1]

The Tesla buying process is easy. I ordered the car, received a trade-in price offer after submitting photos, paid for the car via a bank transfer, and scheduled the pickup all through the Tesla app. It did take about a month for them to build the car in Austin. The bank transfer to pay for the car via the Tesla app was a pleasant surprise as I wasn't expecting that. The pickup took about 15 minutes as there were a few additional papers to sign with the trade-in. The difference with Tesla is you are dealing with the manufacturer and not third party dealerships.

Originally Posted by Aces4

So much effort, I'd rather have a purchasing situation like Tesla buyers have available. Laws can be changed, citizens need to speak up for their rights. If Tesla can do it, so can ICE vehicles. We all, as a whole, need to fund elections at a greater rate than dealers and bingo! Wishes granted!

[Indy-Guy]

In the late 90's Ford tried retailing Fords inTulsa by purchasing the majority of the Ford dealerships in the area. This experiment failed badly. GM also tried it and failed. See link below.

Also of the people who have purchased Teslas from Tesla direct on the web let us know if you had a car to trade in and how the transaction went with a trade. 65 % of auto transactions involve a trade in and doing this over the web is not an exact process. Yes they can give you and estimate but then your trade has to be seen to get a exact value.


Ford gets out of the dealership game; leaves dealerships to dealers

[biker1]

I submitted a series of pictures of my trade-in via the Tesla app and they came back with an offer. They did not look at my trade-in, except for the time they went out to remove the license plate. The offer was honored and all of the paperwork had actually been signed before they pulled off the license plate.

Originally Posted by Indy-Guy

In the late 90's Ford tried retailing Fords inTulsa by purchasing the majority of the Ford dealerships in the area. This experiment failed badly. GM also tried it and failed. See link below.

Also of the people who have purchased Teslas from Tesla direct on the web let us know if you had a car to trade in and how the transaction went with a trade. 65 % of auto transactions involve a trade in and doing this over the web is not an exact process. Yes they can give you and estimate but then your trade has to be seen to get a exact value.


Ford gets out of the dealership game; leaves dealerships to dealers

[retiredguy123]

Originally Posted by biker1

I submitted a series of pictures of my trade-in via the Tesla app and they came back with an offer. They did not look at my trade-in, except for the time they went out to remove the license plate. The offer was honored and all of the paperwork had actually been signed before they pulled off the license plate.

I would never trade in a car with a dealer. The only thing you save is a small amount on the sales tax, but the dealer will try to rip you off on the trade. I think you can get a better deal by selling it to Car Max, Carvana, or to a private party. A friend recently sold an old car to Carvana. It took about 10 minutes to get a price online, they picked it up the next day, and provided a check. I once sold a car to Car Max. They inspected the car and gave me a written offer that was good for 7 days. I delivered the car a few days later and they handed me a check. Personally, I don't see how a dealer can compete with Car Max and Carvana.

[BrianL99]

Originally Posted by NoMoSno

They can't. It would violate the contracts the manufacturers have with the dealers.

Originally Posted by Aces4

I don't believe there's such a thing as a forever contract.

Originally Posted by NoMoSno

It is currently a franchise law.
why can't car manufacturers sell directly to the public - Google Search

Originally Posted by Aces4

So much effort, I'd rather have a purchasing situation like Tesla buyers have available. Laws can be changed, citizens need to speak up for their rights. If Tesla can do it, so can ICE vehicles. We all, as a whole, need to fund elections at a greater rate than dealers and bingo! Wishes granted!

This is an interesting subject.

Tesla has been able to get waivers from all the states that essentially prohibit the direct sale of automobiles. Many states have strong Franchise laws, that not only apply to auto dealers, but also protects the guy who invests $2.5M to open a McDonalds. Most states regulate how many "franchises" are allowed in a specific area. In MA, if another dealer wants to move their facility, they can't encroach on another dealer's geographic protection ... that's protected by state law and a Dealer's franchise agreement.

Franchise agreements are generally 10 years, but depend on a lot of factors. If your facility doesn't meet current standards, a manufacturer may only renew your franchise agreement 1 or 2 years at a time. I'm currently building a $28M facility. In exchange for that investment, we'll get a 10 year extension on our agreement.

The reason major car manufactures don't sell directly, is the current business model is too entrenched and unwieldy for the manufacturers to take over. Who the hell is going to service and provide warranty work for all the UIO (units in operation)?

Tesla represents less than 1% of the automobiles on the road in the USA. That, and EV's need significantly less service/warranty work than ICE vehicles.

It's entirely possible that the business model will change in the future, but I doubt it will happen in our lifetime.

[BrianL99]

Originally Posted by retiredguy123

I\ Personally, I don't see how a dealer can compete with Car Max and Carvana.

Because a franchised new car dealership, can sell used cars at a significantly higher price than someone like Car Max or Carvana and provide factory trained personnel to service them.

A new car dealer will generally have used cars of significantly higher quality than CarMax or Carvana and have the opportunity to offer warranties (or Certification) from the original manufacturer.

CarMax and Carvana are minor competitors to franchised dealers.

[twoplanekid]

Originally Posted by biker1

I submitted a series of pictures of my trade-in via the Tesla app and they came back with an offer. They did not look at my trade-in, except for the time they went out to remove the license plate. The offer was honored and all of the paperwork had actually been signed before they pulled off the license plate.

I also did that at Tesla. easy-peasy

[Aces4]

Originally Posted by Indy-Guy

In the late 90's Ford tried retailing Fords inTulsa by purchasing the majority of the Ford dealerships in the area. This experiment failed badly. GM also tried it and failed. See link below.

Also of the people who have purchased Teslas from Tesla direct on the web let us know if you had a car to trade in and how the transaction went with a trade. 65 % of auto transactions involve a trade in and doing this over the web is not an exact process. Yes they can give you and estimate but then your trade has to be seen to get a exact value.


Ford gets out of the dealership game; leaves dealerships to dealers

Really? 30 years ago we didn't have technology and capabilities that are now available for manufacturers to sell cars directly to buyers. If nothing else, they can use the Tesla role model and learn from them.

[Aces4]

Originally Posted by retiredguy123

I would never trade in a car with a dealer. The only thing you save is a small amount on the sales tax, but the dealer will try to rip you off on the trade. I think you can get a better deal by selling it to Car Max, Carvana, or to a private party. A friend recently sold an old car to Carvana. It took about 10 minutes to get a price online, they picked it up the next day, and provided a check. I once sold a car to Car Max. They inspected the car and gave me a written offer that was good for 7 days. I delivered the car a few days later and they handed me a check. Personally, I don't see how a dealer can compete with Car Max and Carvana.

A family member has vehicles through Carvana and recommends them.

[VApeople]

Originally Posted by retiredguy123

Did you pay a deposit?

Yes, $1000.

Originally Posted by retiredguy123

did you sign anything?

Yes, a statement that they will deliver the car and we will pay a specific amount for the car.

Originally Posted by retiredguy123

If you did these things, there is a good chance that you will not get the car you ordered, and you will never get your deposit back. I hope that I am wrong, but that is what a lot of dealers do.

Usually we buy a car that is sitting at the dealership. In 1988, we had to order a car, but everything went smoothly.

[BrianL99]

Originally Posted by Indy-Guy

Also of the people who have purchased Teslas from Tesla direct on the web let us know if you had a car to trade in and how the transaction went with a trade. 65 % of auto transactions involve a trade in and doing this over the web is not an exact process. Yes they can give you and estimate but then your trade has to be seen to get a exact value.


Ford gets out of the dealership game; leaves dealerships to dealers

Originally Posted by twoplanekid

I also did that at Tesla. easy-peasy

There is software to appraise trade ins and many dealers use it, I suspect Tesla is one of them. The software uses real time data from auto auctions all over the country. Some dealers use it like a bible, some use it as a guide. Unless a car is vastly misdescribed, they usually have enough margin to live with minor discrepancies.

If you have a trade in that's in particularly great condition for the mileage, the software will often under-estimate value.

If your trade in is in a condition that's worse than typical for the mileage, it's likely to over-estimate.

It all comes out in the wash.