The battle between Tesla and your neighborhood car dealership

I've been looking for one of these, but everywhere I could find was much more expensive than this.

If the dealer doesn't add any value, then this is essentially a tax on local car consumers, and those 220 employees are essentially on welfare. It's just all disguised as busywork.

I think this is a relic of the past. My last two car purchases have been straight forward: I walked in and told them what I was willing to pay for the car. One dealer couldn't do it, another could. In fact, this dealer showed me their little spreadsheet of costs associated with the car and said, "This is what we'll make on this car at this price. If I go any lower than this it is no longer worth it for us to sell to you." I make the purchase and pick the car up the next day. The car dealer business is pretty competitive, at least where I live.

There is so much information available to consumers that there's no longer any reason for the process to be very complicated or opaque. Sure, you might not want to "negotiate", but then you're welcome to go pay retail ("sticker price") like you would anywhere else, including Tesla. If you do that you'll be out of there in a heartbeat at that price (and the dealer will love you).

I don't car what happens to car dealerships, honestly. I just don't find them to be such a problem.

1. Cars were a lot crappier than currently. 2. Shipping replacement parts was slow and expensive. 3. Communication was expensive, long distance calling, or slow, post. 4. Mass marketing was not fined tuned as now.

Dealers thus provided a service. They stocked parts performed quality warranty work. Sold and marketed the manufacturers cars.

Gasoline powered cars tend now to be very reliable, especially if you stick with manufactures that specialize in low cost of ownership cars. cough Toyota cough. The advent of electric cars will likely push reliability even further.

The other thing that's happened with cars as well is price transparency. Dealer could make work for themselves by specializing in getting better prices for the manufacturers cars then they could if they had a unified price list.

Paying twice the taxes on a new car is not a cheap thing.

The states cannot prevent you from importing a car, but they can make it a huge pain in the butt. Multiple days of having to take off work, getting the run around and misinformation from bureaucrats, spending hundreds of dollars on fees and inspections to get to what is free if bought in-state. They can be very nasty about it.

(don't ask me how I know. This is based on personal experience)

How unpleasant it gets depends heavily on the state and how much of a vendetta key politicians will be willing to go on when they have a corporation thumbing their nose at their laws.

It's not just registration. Most people buy new cars on credit. Which means they don't have the title. You'll have to provide a out of state title, which you don't actually own, to the state. You'll need insurance that is accepted by the state and your creditor. You'll have to make sure that the insurance agency can communicate this correctly to the state and provide them the right information, or it may be multiple trips to government buildings until it gets sorted out.

And it's not like the state you are buying from is going to be all that happy about losing out of probably will amount to several hundred dollars in sales taxes.

Each of these things is just another thing to go wrong. Another day waiting in lines and getting bad information from people who would rather spit in your face then talk to you.

All of this stuff is very doable, of course. Probably take just a week or two of screwing around at the most, etc. And I am sure that Telsa would help streamline the process as much as possible, but they would still lose customers because of it. Getting dragged through the mud for what really is just a luxury car is nobody's idea of a good time.

I was thinking more just refusing to sell to any dealership in a state that doesn't allow Tesla to make their own. That way no new sales of Teslas would happen in that state and Tesla could show stats from their stores in neighboring states near the border showing how many people from the Tesla prohibition state are crossing over to buy. Considering this is one of those black and white cases where one side of the legislators(those who oppose direct to consumer sales) are against it for purely corruption reasons, it should take long or be hard to get the public to turn on the idea and demand the law act in the interest of the people as opposed to artificially jacking up prices for kickbacks.

Then again they could just set the price for their cars at one value that they will sell it for in all of their direct to consumer dealers. They should then make ads using this value so that everybody knows damn well that the latest Tesla costs $X. Then they could simply work with the middlemen dealerships but jack up the price they sell to the dealership for so that the dealerships have to charge a very noticeable amount more than $X. Then everybody sees the ads, which btw should mainly be played in states that are fighting Tesla and realize the dealerships are screwing them. Imagine seeing ads that clearly say a big mac is $2 yet when you go it actually cost about $3.50 in your state because your gov't gets kick backs from big beef to have a law that keeps it that high. Again the public will turn since they want the cheap Teslas that come from the official source rather than the expensive ones from some worthless middleman.

Which strategy is better I don't know for sure, but the former is what I hope they do, it seems more respectable and more effective since in the second way the corrupt states still get some revenue from the overpriced sales.