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Posts Tagged ‘dealer franchise laws’

Tesla Moves Ahead While Keeping an Eye Out for a Ghost

May 22nd, 2014

Fisker Karma

Tesla has reached its tipping point.

How do I know this? I can feel it. I can sense it. I credit my finely tuned sense of the automotive industry.

Well, that and I’m hearing about Tesla everywhere. In the news, in blogs, on drives with friends and coworkers, and while working in my front yard. Tesla has infiltrated the auto world, and things are looking great for the California automaker.

Unless Fisker’s rebirth poses as much of a problem as its new owner promises.

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Car Industry News, Car Minded, Domestic Cars, Electric Vehicles, Exotic Cars, Foreign Cars, General Chat , , , ,

Tesla Challenging Dealer Franchise Laws, and Winning

March 24th, 2014

2012-Tesla-Model-S

The American dealer franchise system might be on its last tank of fuel.

Since the advent of the mass production of cars, their sales have been filtered through a system of dealerships not affiliated with the carmakers. By acting as the middleman between the factory and the consumer, the dealer is free to negotiate and attempt to maximize profits. The downside for consumers, of course, is that uneducated people can be taken advantage of and charged more than necessary. The upside is that car buyers have local sales people and reliable service.

Tesla wants to change things up by selling directly to consumers in a retail model that could, and probably will, revolutionize how we buy cars.

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Tesla Could Change How Cars Are Sold

August 23rd, 2013

Tesla Model S

The dealer franchise system has worked for selling cars in the United States for nearly as long as there have been cars in the United States.

By requiring new vehicles to be sold through private dealers not associated with the automakers, the market has been able to determine fair prices based on the MSRP. That’s been mostly good for consumers, at least the ones educated enough to research and negotiate a fair price.

It’s also allowed dealers to make gobs of money by acting as the middlemen between automakers and consumers.

Tesla thinks that model should change.

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Car Industry News, Car Minded, Car Politics, Car Shopping, Domestic Cars, Electric Vehicles, General Chat , , , ,