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dealerships refusing outside financing

electruck

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bajadahl

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I really am hoping I've stepped into a traditional dealership for the last time....
 

SeaGeo

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I've had really good experiences with dealers recently, but they are *not* innocent, and need some competition.
 

DucRider

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I've had really good experiences with dealers recently, but they are *not* innocent, and need some competition.
There are good ones and bad ones, staffed by people with varying skills and morals.
Whether the dealership is a locally owned franchise, one store of a large chain of franchises, or a manufacturer owned store is not the real crux of the issue. Who owns the dealership is secondary to the business practices instilled from the top down.
Tesla dealers have many of the same issues as other brands. Their salespeople have quotas and similar pressures just like any other dealer (no haggle/non-commissioned at least). When we test drove the Model Y, the salesman was about middlin on cluelessness. I'd give him a "D" on incentives available to the consumer and how they worked.
People forget that Tesla stores are indeed dealers and hold a dealers license in the states that they are allowed to sell.
 

SeaGeo

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There are good ones and bad ones, staffed by people with varying skills and morals.
Whether the dealership is a locally owned franchise, one store of a large chain of franchises, or a manufacturer owned store is not the real crux of the issue. Who owns the dealership is secondary to the business practices instilled from the top down.
Tesla dealers have many of the same issues as other brands. Their salespeople have quotas and similar pressures just like any other dealer (no haggle/non-commissioned at least). When we test drove the Model Y, the salesman was about middlin on cluelessness. I'd give him a "D" on incentives available to the consumer and how they worked.
People forget that Tesla stores are indeed dealers and hold a dealers license in the states that they are allowed to sell.
You're right. I was pretty lazy with my statement. And I didn't intend to imply in any way that I think that Tesla's model is inherently superior to a traditional dealer model. In fact, of the... probably 7 dealers I've visited and numerous I've contact since early 2020, Tesla was by far my least favorite experience.
 

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electruck

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There are good ones and bad ones, staffed by people with varying skills and morals.
Precisely why we need options and why I get so infuriated by the dealerships and their lobbyists trying to stifle competition through legislation by claiming only they have the consumer's best interest in mind.

Yes, historically there were issues when sales were exclusively through the manufacturers but now there are issues because sales are (largely) exclusively through dealerships. The problem here isn't the sales model, it's locking the customer into any particular system. Customers pay the price when there are a lack of options.
 
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DucRider

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Precisely why we need options and why I get so infuriated by the dealerships and their lobbyists trying to stifle competition through legislation by claiming only they have the consumer's best interest in mind.

Yes, historically there were issues when sales were exclusively through the manufacturers but now there are issues because sales are (largely) exclusively through dealerships. The problem here isn't the sales model, it's locking the customer into any particular system. Customers pay the price when there are a lack of options.
I agree, the business model should be the choice of both the manufacturer and the consumer.

The franchise model lends itself to more dealerships in more locations, usually with local inventory and the ability to "take it home today". That also usually means more service locations as well. With multiple dealerships, you can walk out the door if they are playing games and still buy the vehicle of your choice down the road. If you want the Mach-e, as an example, it is available virtually everywhere in the US and consumers have multiple choices on whom to do business with. Having local inventory that the dealership is making monthly payments on creates a different dynamic and it is in the stores best interest to put you into one of the vehicles they already have - and gives you a shot at negotiating a better price - at least in normal times.

Manufacturer owned dealerships are likely to always have fewer locations, and the direct sales model has meant little to no local inventory (at least to date). It seems as that will continue with the plans and business model we have seen from Tesla/Rivian/Lucid/Polestar. If a manufacturer gets to the point of more supply than demand, it may mean a little local inventory (but the stores are not really designed for that), or more likely dynamic pricing will kick in. Tesla has demonstrated the flip side of that coin with consistently raising MSRP - their version of the "market adjustment" we hear about from franchised dealers.

With manufacturer owned dealerships, they have more control over the entire process. Some aspects of that benefit the consumer, but much of the benefit lies with the manufacturer.

I'm not against either the franchised dealer model or the direct sales route. I am against legislation meant to protect franchisees being twisted to limit the way manufacturers and consumers want to interact.
 

Matt D.

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Definitely sounds like a miserable time to buy a vehicle. Here's to hoping that nothing happens to our rides while waiting for our Rivians.
Rivian R1T R1S dealerships refusing outside financing 1629991347624

You mean like this?
 
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electruck

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Trekkie

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So when it comes to buying a vehicle I've bought most of mine from dealers and one from direct sales (tesla)

The Tesla experience wasn't smooth as I'd like. I had a number of challenges and it took much longer than it does inside a dealership. I had one financing fall through 20m before I was supposed to pickup the check they suddenly decided to only fund the loan 90%, causing a reschedule of a week. I was able to find someone else, but the 5 hard inquiries loan shopping that I got that I don't get when I hit up a dealer financing were annoying.
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