Michigan could be another state to ban direct car sales.

[Knotical]

http://www.capitalotc.com/michigan-under-the-process-of-joining-states-banning-tesla-sales/24418/

Among other companies, this affects the automaker, Tesla, significantly as they have been looking to offer their vehicles directly to consumers without going through the traditional sales channel of dealerships.

Aside from the obvious reason, that dealerships do not want to see their niche taken away by a new avenue of auto sales, I do not see a downside to offering to sell vehicles directly to consumers without having to go through a dealership, who generally marks up the vehicle by thousands of dollars to earn their commissions and pay for overhead.

Anyone have any other reasons why direct car sales to consumers would be a bad idea?

Personally, I applaud this new avenue, even though I probably will never be able to afford a Tesla, but if the way cars are sold is changing, then I only see an upside where vehicle prices could drop due to increased competition.

From what I have seen in my surrounding area is that dealerships are more and more being owned by fewer companies, which means you are forced to buy a new, and sometimes used, vehicle from one company.

 

[jasonc]

http://www.capitalotc.com/michigan-under-the-process-of-joining-states-banning-tesla-sales/24418/

Among other companies, this affects the automaker, Tesla, significantly as they have been looking to offer their vehicles directly to consumers without going through the traditional sales channel of dealerships.

Aside from the obvious reason, that dealerships do not want to see their niche taken away by a new avenue of auto sales, I do not see a downside to offering to sell vehicles directly to consumers without having to go through a dealership, who generally marks up the vehicle by thousands of dollars to earn their commissions and pay for overhead.

Anyone have any other reasons why direct car sales to consumers would be a bad idea?

Personally, I applaud this new avenue, even though I probably will never be able to afford a Tesla, but if the way cars are sold is changing, then I only see an upside where vehicle prices could drop due to increased competition.

From what I have seen in my surrounding area is that dealerships are more and more being owned by fewer companies, which means you are forced to buy a new, and sometimes used, vehicle from one company.

I know that the wealthy here don't even go to a dealer for purchasing a car and have bought the car directly from the maker or via the dealer and had it shipped to their home.

 

[Gary]

It's funny what greed does to people.

 

[reba]

Get government out of business .. what make any one think government can operate business when we clearly see they can govern.....

 

[Knotical]

Seriously, is there something I am missing, or is just all about greed?

 

[jasonc]

Seriously, is there something I am missing, or is just all about greed?

you have a greater concern looming with your state and that gas tax.

 

[Pizza]

I have only bought one new car in my lifetime. I would have bought more than one, but new car dealers as SO sleazy.
The truck I bought new, I only bought new because of the dealer -they sold, back then, primarily to the only customers there were - farmers. (You CANNOT screw around with farmers - they simply won't tolerate it.) Because of this, the dealership dealt honestly with me (and I got 21% off sticker price).

I see no reason for dealers to exist - their service departments are the WORST place to get your car worked on. Of course, I do a lot of the service on my car myself (helps that it is rear wheel drive and German built - makes it WAY easier to work on than the junk build by Ford/Chevy/Nissan/etc.)

And, of course, leave it to MICHIGAN to interfere in the free market.

 

[jasonc]

I have only bought one new car in my lifetime. I would have bought more than one, but new car dealers as SO sleazy.
The truck I bought new, I only bought new because of the dealer -they sold, back then, primarily to the only customers there were - farmers. (You CANNOT screw around with farmers - they simply won't tolerate it.) Because of this, the dealership dealt honestly with me (and I got 21% off sticker price).

I see no reason for dealers to exist - their service departments are the WORST place to get your car worked on. Of course, I do a lot of the service on my car myself (helps that it is rear wheel drive and German built - makes it WAY easier to work on than the junk build by Ford/Chevy/Nissan/etc.)

And, of course, leave it to MICHIGAN to interfere in the free market.

I am NOT impressed by german engineering. they think to much of themselves. I know soldiers who buy german cars and ship them to America and still save with the 5k tariff and taxation over 20 grand depending on the car.