New Jersey Bans Direct to Consume Car Sales (Tesla)

[chrisberb]

- Many states prohibit the sales of cars on Sundays, it has nothing to do with "wanting a day off". Also, banks are closed on Sundays which greatly complicates potential sales transactions.

- Dealerships are actually supposed to ENCOURAGE competition and the economy as a whole. A manufacturer selling directly to a consumer cuts a lot of working people out of the equation. That may sound appealing, but it has many adverse effects (mostly that the local economy has little to no benefit and now ALL of the revenue is with the manufacturer)

A Tesla store, much like the apple store, doesn't run itself.

[Dubalicious]

A Tesla store, much like the apple store, doesn't run itself.

I'm unsure of what you mean by this.

While a "Tesla store" may not run itself (I'm guessing you mean that dealerships are franchised and don't necessarily make all of their own business decisions, which is correct) it does provide jobs in the LOCAL market of where the product is actually being sold.

Apologies if that's not what you meant at all =)

[Saxtorph]

You own a car dealership. Potential car buyer comes to your establishment and takes up the time of your salesman talking about and test driving a few cars. Potantial buyer leaves and buys at a discount direct from manufacturer. Yep. Sounds fair to me.

[THE Bigzoman]

So a firm can't sell a car unless it's done via dealership? A firm can't just sell it off the production line?

That's just silly.

[Garnier Fructis]

You own a car dealership. Potential car buyer comes to your establishment and takes up the time of your salesman talking about and test driving a few cars. Potantial buyer leaves and buys at a discount direct from manufacturer. Yep. Sounds fair to me.

I don't see anyone bitching about Amazon and this exact same scenario plays out with Best Buy being a de facto showroom for Amazon.

[oxymoronic]

You own a car dealership. Potential car buyer comes to your establishment and takes up the time of your salesman talking about and test driving a few cars. Potantial buyer leaves and buys at a discount direct from manufacturer. Yep. Sounds fair to me.

already happens with many other products - my guess the future will have showcase "booths" in stores instead of selling their products there. no longer will you actually take anything home from the mall, and whatever you purchased will most likely be at your house before you even get home. brick and mortar stores are a thing of the past, we just havent made the full transition yet, but we will.

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I don't see anyone bitching about Amazon and this exact same scenario plays out with Best Buy being a de facto showroom for Amazon.

really? you dont? might want to move that rock u been hiding under.

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- Many states prohibit the sales of cars on Sundays, it has nothing to do with "wanting a day off". Also, banks are closed on Sundays which greatly complicates potential sales transactions.

makes no sense - what of the many states that do allow it on sunday - how do they possibly manage... its a stupid archaic law that needs to be removed. simple, dont defend it.

[THE Bigzoman]

already happens with many other products - my guess the future will have showcase "booths" in stores instead of selling their products there. no longer will you actually take anything home from the mall, and whatever you purchased will most likely be at your house before you even get home. brick and mortar stores are a thing of the past, we just havent made the full transition yet, but we will.

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really? you dont? might want to move that rock u been hiding under.

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makes no sense - what of the many states that do allow it on sunday - how do they possibly manage... its a stupid archaic law that needs to be removed. simple, dont defend it.

To be fair; when a revolutionary model comes to light People are going to be impacted negatively (In this case dealers losing their jobs) and it has a chance to become a monopoly, which isn't good for consumers.

[dejaa]

You own a car dealership. Potential car buyer comes to your establishment and takes up the time of your salesman talking about and test driving a few cars. Potantial buyer leaves and buys at a discount direct from manufacturer. Yep. Sounds fair to me.

It's fair and would force dealerships to be more competitive. The consumer, for a change, wins.

The franchises, in turn, could:

1. Lean down their operations to be competitive.
2. Negotiate franchise agreements that preclude retail sales in the region.
3. Negotiate lower wholesale costs.
4. Change to a different manufacturer with different policies. (If it's hard to get a test drive in the area, direct sales stop being a good idea.)

[Garnier Fructis]

really? you dont? might want to move that rock u been hiding under.

Ok, I haven't seen anyone other than Best Buy complaining about it.

That being said, your diagnosis is correct. I practically live under a rock.

[Saxtorph]

It's fair and would force dealerships to be more competitive. The consumer, for a change, wins.

The franchises, in turn, could:

1. Lean down their operations to be competitive.
2. Negotiate franchise agreements that preclude retail sales in the region.
3. Negotiate lower wholesale costs.
4. Change to a different manufacturer with different policies. (If it's hard to get a test drive in the area, direct sales stop being a good idea.)

Oh you mean compete with an entity that does not have to employ a standing sales force, or purchase and maintain a location which enables them to capitalize on drive-by interest? Maybe you should take a trip to the real world, where real people have to do business. I won't bother rebutting any of your other comments because they have no semblance to the way auto dealership is actually contracted and enacted. You're just another child spewing idealism.

[Garnier Fructis]

Oh you mean compete with an entity that does not have to employ a standing sales force, or purchase and maintain a location which enables them to capitalize on drive-by interest?

Like this store on the corner of a street which employs people and is at a location designed to attract interest?


Perhaps I'm subtly misinterpreting your point (by does not have to, do you mean do not or need not), which is a very real possibility because not all my mental processes are running atm.

[Dubalicious]

makes no sense - what of the many states that do allow it on sunday - how do they possibly manage... its a stupid archaic law that needs to be removed. simple, dont defend it.

I didn't defend it all, merely explained WHY those dealerships are closed (ie. not necessarily by choice, complications with financial institutions, etc. - certainly not "for a day off" as another poster suggested)

I personally think it's an outdated and unnecessary regulation, but preference doesn't change the actual reasons the laws/regulations exist (or were originally put in place anyway)

[chrisberb]

I'm unsure of what you mean by this.

While a "Tesla store" may not run itself (I'm guessing you mean that dealerships are franchised and don't necessarily make all of their own business decisions, which is correct) it does provide jobs in the LOCAL market of where the product is actually being sold.

Apologies if that's not what you meant at all =)

What I meant is that there are Tesla stores (physical locations), that do employ people in the local community to sell their products, much like an Apple Store employs people locally to sell the companies products.

You own a car dealership. Potential car buyer comes to your establishment and takes up the time of your salesman talking about and test driving a few cars. Potantial buyer leaves and buys at a discount direct from manufacturer. Yep. Sounds fair to me.

The difference here being that the Tesla company, as far as I know, does not have franchised dealerships. So if you visit a Tesla dealer, you ARE still buying directly from the manufacturer. Which is the center of the issue in NJ. NJ wants to require Tesla to franchise to 3rd party Dealers to sell their products, essentially just erecting a middle man between the manufacturer and the consumer.

[oxymoronic]

To be fair; when a revolutionary model comes to light People are going to be impacted negatively (In this case dealers losing their jobs) and it has a chance to become a monopoly, which isn't good for consumers.

cant stop innovation cause of that - full steam ahead

[Wildtree]

Oh you mean compete with an entity that does not have to employ a standing sales force

That sales force.....
It doesn't cost you a dime.. Car Salesmen earn their income reliant on actual sales.

Manufacturer sales are standard business, all over the world, and across all kinds of businesses. From clothing, to electronics, to vehicles.
This is nothing new at all, and always existed.
It's the manufacturers that have the HUGE storage lots where their goods are waiting for the dealerships to order them.
In the case of cars for example, the manufacturers rely on the dealerships to order the cars and sell them for a commission on the sales price. Now every year, around late September, beginning of October the new models go on the market. In October 2014, you can get the 2015 model of a car. Around that time, the manufacturers need room for the new merchandise. Even though you can buy from the car manufacturer all year long, but at that time they even advertise it.
Plus certain vehicles you can actually buy from the manufacturer only. The "one year" vehicles, that have been used by the management as business vehicle for a year, and are replaced with the newest model now. Those old ones which usually have barely any mileage on them. You can buy those from the manufacturer. They do not go to dealerships. The car is already heavily discounted, why spending transportation costs on them in addition?

[Ave07]

NJ is such a backwards state when it comes to cars like its illegal to pump your own gas because of the "unions" or for "safety" reasons.

[ugotownd]

I do think a manufacturer should be allowed to sell direct to consumers.

Of course, I don't understand why people in NJ don't just go to DE when buying a car, but w/e.

What would be the point of that. You would still need to pay the sales tax when you register it in NJ.

[Warpaladin]

I'm really sick of this politically based shit. It's all about the "free market" until the market sells something that is against the beliefs of those that champion it.

Well put, I agree.

Basically this.

[v2prwsmb45yhuq3wj23vpjk]

I'm really sick of this politically based shit. It's all about the "free market" until the market sells something that is against the beliefs of those that champion it.

I'd wager it has more to do with all of the vested interests in dealerships and the money that they carry.

But yeah, I feel like this will be struck down.

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Oh you mean compete with an entity that does not have to employ a standing sales force, or purchase and maintain a location which enables them to capitalize on drive-by interest? Maybe you should take a trip to the real world, where real people have to do business. I won't bother rebutting any of your other comments because they have no semblance to the way auto dealership is actually contracted and enacted. You're just another child spewing idealism.

So are you saying that it's unfair that dealerships are a poor business model?

[Stormspellz]

"free market" at play.

where are those screaming for small government in all this? this seems like a great rally cry for them, oh wait I know....