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Originally Posted by Angrybird 12
So if you get rid of the middleman, (dealers) who do you take your car to for warranty work? Where do you go for test drives, or just to look at the different models or colors in person?
I can see more issues being a problem than it would solve.
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You should watch the interview with Elon Musk (CEO of Tesla). He specifically addresses those worries. Effectively, there would still be brick-and-mortar stores to go to and talk with sales reps (there would also be licensed technicians for servicing and warranty work) but all of the employees would work directly for Tesla, not a franchise.
It would be almost identical to the way Apple products are sold at an Apple Store. As a customer, the process would be very similar to a normal car-buying experience at a franchise dealership, but the sales reps don't work off of commission so they're only concerned with getting you into the car that you really want.
Quote:
Originally Posted by DGthe3
Dealership franchise laws get in the way of that. Tesla is only barely managing to tip-toe around them, and at least one (Texas) has banned them from selling cars.
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Dealership franchise laws are archaic and have outlived their usefulness. At this point, the only purpose they serve is to prevent newcomers from threatening the major players in the automotive industry.
I cannot think of any legitimate and logical reasoning as to why an auto maker cannot sell vehicles directly to the consumer. The only reason those laws are still in place is because the big dealerships don't want to have to change the way they do business.