Is it time to rid of the dealership?

Discussion in 'Off-Topic' started by Driver72, Mar 15, 2015.

  1. Driver72

    Driver72 Gold Member

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    Is Tesla's way the better way?

    We all hate dealerships, and hate dealing with most of the people at dealerships. Plus nothing makes people more mad than when dealerships rip you off, hence the name "Stealerships".
    It's nothing short of infuriating that dealerships add $5-10k for cars over MSRP for what? Doing the paperwork?
    At MSRP they are already making a nice profit, why do they feel they deserve more, for doing paperwork?
    The manufacturer does all the work, all the design, R&D and building/assembling the vehicles, there is no way a dealer should make more on a car than the manufacturer.

    So do consumers start to demand manufacturers have their own "outlet stores" as it would?
    Run and control the stores.
    MSRP is top dollar paid, and it's supply and demand based. High demand, pay MSRP, lower demand, negotiate down.

    Dealerships would become manufacturer authorized parts and service centers only.

    Thoughts?
     
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  2. Harley88

    Harley88 Gold Member

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    If we had all "company owned" stores, wouldn't they be able to fix/set the prices across the board? some might say the store manager could tell you to go screw yourself because there's no one to sell you one cheaper..?
    I guess we could have our government run the show. But why stop with just the car business?
     
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  3. Driver72

    Driver72 Gold Member

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    Harley, is there another business that sells manufacturer's products that sell them above the maker's listed retail price and is allowed to do that? IIRC, there are laws against price gouging by sellers of products. So how are car dealers legally able to get away with it? My thought would be because MSRP means "suggested" retail price instead of "retail" price?
    But still I can't think of (off the top of my head) another business that sells manufacturers products that are allowed to price gouge like that?
    As for the government running the show, I guess people who are part of the party who likes big government and red tape for everything, they'd be in favor of that. I tend not to agree with the federal government sticking their noses into everything. But that's a different story all together. :)

    And Tesla seems to be doing just fine doing it that way.
     
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  4. Harley88

    Harley88 Gold Member

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    Home Improvement would be the first off of the top.
    yes, many others set there own prices.
    The local family owned restaurant would be another.
    The only difference I see is just in the mindset of the buyer.
    if indeed something is only worth what someone will pay. And, we ALL wheel and deal with the Dealership (first time I've paid MSRP) over pricing to beat the price down, I feel hypocritical hettibg upset with the dealership when he finds himself with the upper hand and charges ADM. Gatta have rain for sunshine. Gatta have the downs to enjoy the ups!
     
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  5. Harley88

    Harley88 Gold Member

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    Also my Gov Ment remark was total being a d***! I get nervous when folks talk about what they see as right/wrong and want to "control" something. Seems when this gets started Big Bro figures a way to protect me and charge me to take care of me! ...We agree on that brother!
     
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  6. fnkychkn

    fnkychkn swollen member Gold Supporting Member

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    not sure about the hellcats but Chrysler has been known to force dealers to buy slow selling models in order to be allocated the high demand models.
    back in 2008, when there were only 500 challengers available for the Canadian market, we had to buy quite a few pacificas and convertible PT cruisers for each of the 3 challengers we were allocated. the mark ups were just to offset the money lost on the pacificas and PTs that took forever to sell.
     
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  7. MoparProud

    MoparProud Silver Member

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    Well, because they can. Everyone harps about how great the free market system is, up until someone else tries to capitalize on it, then they are "evil" dealers.

    I don't get it. Never will. Simple economics; you want the Hellcat, and you want it now? Open your wallet REAL wide. Easy as that. It's just not hard to understand.
     
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  8. Driver72

    Driver72 Gold Member

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    ^^No it's not hard to understand, that wasn't the question, I think we all understand why they do it (greed mostly). The question was, since the way the Tesla dealers are selling cars, it's working, is it time for other manufacturers to do the same?
     
  9. DrBuick

    DrBuick Gold Member

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    Who's going to take your trade in ?????
     
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  10. MoparProud

    MoparProud Silver Member

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    I guess you could call it greed....depends on what side you're on. As a consumer, do I like it? No. If I were a dealer or salesman at a dealer, would I like someone dropping $20k over? DAMN right I would!

    Tesla...how are they selling cars? I don't keep up on the latest electro-wizard cars, as they simply aren't a viable option at this time. Was it Tesla that you ordered and went to the factory or thereabouts and picked it up? Or was that the other company that went under? Fiskar.
     
  11. Fast cat

    Fast cat BANNED Hellcat Car Club

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    It is supply and demand that simple.i'm an industrial painting contractor and It is my responsibility to try to make as much money as possible for my company,employees and family yes and that is what the dealer is doing. My last truck I bought had a MSRP of $63,000 I pad $49,000 I was not complaining then I won't now.
    The hellcat is a special car . It is worth having now and not later!
     
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  12. Profezzor X

    Profezzor X Silver Member

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    As good an idea it would be to sell directly from the manufacture, we would essentially put hundreds of thousands of people out of work that run, operate, and sell from those establishments. As a consumer would I care, hell no. But as someone that cares about our steadily growing economy getting back on its feet, yes, I do care.

    I think there could be a healthy medium by way of doing both. For those that want to kick the tires, go for a test drive, and buy it on the spot, there could be designated dealerships for that. But have only a handful of them in each major metropolitan area - like a super center that has tons of inventory. And for those that would rather order online, keep that side of the business constantly available. I know that's kind of how it is now, but it gives people options not to go through what we're experiencing now with insanely high mark ups.
     
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  13. SRThellkitty

    SRThellkitty Silver Member

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    Who actually profits from the dealership mark up? If it's Dodge then there's no reason they would want to control what the dealerships charge over MSRP.
     

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