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Publicity Kills Anti-Tesla Acts : News

Are car dealers winning battles against Tesla Motors, and its direct-sales model, that will set them up to lose the bigger war?

For almost five years, state dealer associations have lobbied legislators to change laws to make Tesla's direct-sales model illegal, requiring that all new cars be sold solely through franchised dealers.

Win or lose--there have been some of each--the dealers are alerting the public to something that most never knew or considered: Carmakers can't legally sell new cars to buyers.

With consumers mostly disliking the experience of dealership car purchases, and largely feeling like they've been taken advantage of--even if, statistically, they haven't--each new Tesla battle likely makes more people wonder: Why can't I buy a car the same way I buy an Apple computer?

Much of America is now comfortable with speccing out and ordering hugely varied types of goods online at a fixed price--some of them quite expensive.

Thus far, the most major drawback for consumers that dealer groups have been able to propose is that Tesla's fixed prices preclude bargaining on the five- or six-figure price of a car.

Some buyers, though perhaps a minority, appreciate the opportunity to haggle. But a large number may ask: Why should every vehicle carry a different price? Why can't cars be sold at fixed prices?

Meanwhile, a recent charm offensive by the National Automobile Dealers Association (NADA) to explain the benefits of the current model doesn't appear to have gained much traction.

In fact, a recent post on the progressive website Alternet neatly summarizes in its headline the deepest fears for dealers and their lobbyists: "How Tesla and New Car Technologies Could Send Auto Dealers the Way of the Dodo Bird."

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Sources : Tesla Store Photo | Anti-Tesla Acts Article


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