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Should all cars sold in the United States be forced to do so through a dealership?

Should all cars sold forced to operate through a dealership?

  • Yes. Any car commercially sold should done through a dealship as a matter of law

    Votes: 0 0.0%
  • If there's a willing buyer and wiling seller government should not interfere in car sales

    Votes: 26 92.9%
  • other...

    Votes: 2 7.1%

  • Total voters
    28

Smeagol

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I ran across this new report today that among other things, reported that in Texas its illegal for Americans to buy cars directly from the manufacturer. A third-party dealership MUST be used in auto sales in Texas, which of course, will drive up the cost to consumers? Is it the government's business to force car buyers and sellers they must have a middle-man in their transaction? Is it appropriate for the government to step in an help "maintain a level playing field" so that all cars are bought and sold under identical conditions? If and when government steps in in such cases, does that disrupt the free market and restrict pricing models that ultimately harm consumers? Should the same automobile sales model apply to all auto purchases in the interest of fairness? If yes, should similar sales models apply to all consumer purchases such as a requirement to buy electronics from an electronics store and never online unless the seller also has brick and mortar stores in the same sales region?


 
Re: Should all cars sold in the United States be forced to do so through a dealership

I ran across this new report today that among other things, reported that in Texas its illegal for Americans to buy cars directly from the manufacturer. A third-party dealership MUST be used in auto sales in Texas, which of course, will drive up the cost to consumers? Is it the government's business to force car buyers and sellers they must have a middle-man in their transaction? Is it appropriate for the government to step in an help "maintain a level playing field" so that all cars are bought and sold under identical conditions? If and when government steps in in such cases, does that disrupt the free market and restrict pricing models that ultimately harm consumers? Should the same automobile sales model apply to all auto purchases in the interest of fairness? If yes, should similar sales models apply to all consumer purchases such as a requirement to buy electronics from an electronics store and never online unless the seller also has brick and mortar stores in the same sales region?




When's the last time you ever bought a car direct from the manufacturer?
 
Re: Should all cars sold in the United States be forced to do so through a dealership

When's the last time you ever bought a car direct from the manufacturer?

Never. However, I would consider it if it made sense for me and was an available option.

BTW: I've purchased quite a few computers for work and after considering all of the options, most were purchased directly from the manufacturer of a specific brand.
 
Re: Should all cars sold in the United States be forced to do so through a dealership

I can't imagine a manufacturer actually wanting to sell to anyone other than a dealer. Dealers are the sales, support and service arms of the manufacturer, so selling only to dealers makes life less expensive and less complicated for the manufacturer.

That said, I don't think it's the government's to force purchases to go through a dealership for new cars.
 
Re: Should all cars sold in the United States be forced to do so through a dealership

The dealership network for new car distribution probably saves the manufacturer money. Manufacturers by nature are not sales people and they don't have the infrastructure to sale or service their vehicles so they engage in others to do it for them. They can do this at practically no cost by enabling those others to profit from the effort.

People hate car dealers. I get it. I worked on the edge of that industry for a short period of time and its an ironic game. The more informed, hateful and spiteful the public gets at a "dealer" making a buck the more bucks they make in sneaky, cut throat and despicable ways. Saturn tried to cut through that - look at them now - GONE.

The government should not require anyone to go through a dealer or third party though. If a manufacturer wants to take it on - let them - it should be a FREE country. I think Tesla would be fine while it sales $100k energy gobbers but if they ever reach mainstream levels they will likely find that going the route of re seller / dealer isn't the wrong route after all.
 
Re: Should all cars sold in the United States be forced to do so through a dealership

Is it the government's business to force car buyers and sellers they must have a middle-man in their transaction? Is it appropriate for the government to step in an help "maintain a level playing field" so that all cars are bought and sold under identical conditions?

No, but why would the manufacturer want to sell directly to the consumer?
 
Re: Should all cars sold in the United States be forced to do so through a dealership

Maybe they can't find a dealer willing to assume the risk.

Maybe the established dealerships have contracts with manufacturers that prevent them from taking up another line of vehicles.
 
Re: Should all cars sold in the United States be forced to do so through a dealership

I believe car manufacturer employees can also buy directly from the manufacturer.

Would they be restricted on that also?
 
Re: Should all cars sold in the United States be forced to do so through a dealership

No, but why would the manufacturer want to sell directly to the consumer?

I don't know? Maybe as part of their overall marketing strategy they have data that shows sales would be more robust if they sold cars directly to consumers.

BTW: Apple Computer and Dell both manufacture and sell directly to customers.
 
Re: Should all cars sold in the United States be forced to do so through a dealership

Tesla does not want to sell thru dealerships because if it had it then it who underline how little support for repairs and servicing there is for them.

Requiring dealership sales limits small scale production car/vehicle manufacturers from developing a market.
 
Re: Should all cars sold in the United States be forced to do so through a dealership

I don't know? Maybe as part of their overall marketing strategy they have data that shows sales would be more robust if they sold cars directly to consumers.

BTW: Apple Computer and Dell both manufacture and sell directly to customers.

Never mind. This thread explains it very well.
 
Re: Should all cars sold in the United States be forced to do so through a dealership

I think as far as buying direct from the manufacturer, I have no problem with it as along as there is some restriction that the manufacturer has to have an appropriate service center affiliate within say 30 miles of where the car is sold for warranty work or the manufacturer has to be able to pick up a car under warranty and drop off a loaner within 12 hours of being reported of the problem. I have known people to end up with a lot of warranty issues related to minor things like the battery constantly going dead.
 
Re: Should all cars sold in the United States be forced to do so through a dealership

The sole relevant question in this is: Is it the government's legitimate role to dictate when and where and how vehicles are sold?

The correct answer is: No, it is not.
 
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Re: Should all cars sold in the United States be forced to do so through a dealership

When's the last time you ever bought a car direct from the manufacturer?
If buying direct is prohibited by law, then the answer is obviously "never".

Side note: I never knew it was prohibited until a couple months ago when I first read about this Tesla issue.
 
Re: Should all cars sold in the United States be forced to do so through a dealership

I think as far as buying direct from the manufacturer, I have no problem with it as along as there is some restriction that the manufacturer has to have an appropriate service center affiliate within say 30 miles of where the car is sold for warranty work or the manufacturer has to be able to pick up a car under warranty and drop off a loaner within 12 hours of being reported of the problem.

Shouldn't that be the buyers decision and not the Governments?
 
Re: Should all cars sold in the United States be forced to do so through a dealership

I think as far as buying direct from the manufacturer, I have no problem with it as along as there is some restriction that the manufacturer has to have an appropriate service center affiliate within say 30 miles of where the car is sold for warranty work or the manufacturer has to be able to pick up a car under warranty and drop off a loaner within 12 hours of being reported of the problem. I have known people to end up with a lot of warranty issues related to minor things like the battery constantly going dead.

I'd personally be okay for a newer company like Tesla to not have its own service center but farms out service issues to trained and qualified contractors and/or a fleet of mobile service trucks that have the ability to travel around the country to where a car needs servicing.

I just found this. Stores & Service Centers | Tesla Motors Not everywhere yet but you have to start somewhere. If buyers are made aware of the locations of their nearest service center prior to purchase and they're okay with it, I think that's perfectly fine.
 
Re: Should all cars sold in the United States be forced to do so through a dealership

I don't know the history in great detail, but I'd be willing to bet that in the early days of automobile manufacturing that many were available through mail order and/or catalog order... some probably exclusively... and there wasn't an official service facility within 500 miles of the buyer.

I'd also bet that the laws regarding dealership requirements were actually protectionist laws lobbied for by groups of dealers and/or some manufacturers under the guise of a level playing field, but really solely to keep their foot in the market by restricting other more efficient competition.
 
Re: Should all cars sold in the United States be forced to do so through a dealership

Shouldn't that be the buyers decision and not the Governments?

No because the seller has a duty to honor their warranties.
 
Re: Should all cars sold in the United States be forced to do so through a dealership

I'd personally be okay for a newer company like Tesla to not have its own service center but farms out service issues to trained and qualified contractors and/or a fleet of mobile service trucks that have the ability to travel around the country to where a car needs servicing.

I just found this. Stores & Service Centers | Tesla Motors Not everywhere yet but you have to start somewhere. If buyers are made aware of the locations of their nearest service center prior to purchase and they're okay with it, I think that's perfectly fine.

As long as there is a way for no hassle warranty service.
 
Re: Should all cars sold in the United States be forced to do so through a dealership

I ran across this new report today that among other things, reported that in Texas its illegal for Americans to buy cars directly from the manufacturer. A third-party dealership MUST be used in auto sales in Texas, which of course, will drive up the cost to consumers? Is it the government's business to force car buyers and sellers they must have a middle-man in their transaction? Is it appropriate for the government to step in an help "maintain a level playing field" so that all cars are bought and sold under identical conditions? If and when government steps in in such cases, does that disrupt the free market and restrict pricing models that ultimately harm consumers? Should the same automobile sales model apply to all auto purchases in the interest of fairness? If yes, should similar sales models apply to all consumer purchases such as a requirement to buy electronics from an electronics store and never online unless the seller also has brick and mortar stores in the same sales region?




In the immortal words of Gunnery Sargent Hartman....Only two things come out of Texas steers and queers. So Not surprise....

That is one of the big fight of car dealers with Tesla because Tesla does business factory direct to keep the cost down..... Legislation in Texas is pretty much a joke to begin with. They only meet twice a year and they are basically are the bitches to all industries that can pay them regardless whether it benefit Texans or not....for example they have very strict food liable laws which means if you say anything bad about meat, pork milk, or complain about the high level of mercury in your food or water or even when you show the industry is poisoning you, you can be sued by the manufactures for your worth. The legislative branch in Texas is for basically a prostitution in most basic and vile form. They are for sale and would pass whatever laws you want if you just can pay them. So I'm not surprised...actually I would expect nothing less from Texas.

Diving Mullah
 
Re: Should all cars sold in the United States be forced to do so through a dealership

No because the seller has a duty to honor their warranties.

What does having local service have to do with honoring warranty? We sell equipment all over the world in places where we have no authorized service centers. We honor our warranties. It's not hard to do.
 
Re: Should all cars sold in the United States be forced to do so through a dealership

As long as there is a way for no hassle warranty service.

Aren't the details of the warranty set by the company and doesn't the buyer have the right to accept them? What does the amount of 'hassle' have to do with anything?
 
Re: Should all cars sold in the United States be forced to do so through a dealership

Aren't the details of the warranty set by the company and doesn't the buyer have the right to accept them? What does the amount of 'hassle' have to do with anything?

The amount of hassle has to do with how many lawsuits will be filed in federal court over crappy warranty service.
 
Re: Should all cars sold in the United States be forced to do so through a dealership

The amount of hassle has to do with how many lawsuits will be filed in federal court over crappy warranty service.

No it doesn't. As long as you fix them following the procedure in your warranty policy there is no problem.
 
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