Friday, October 07, 2016

Why Can't We Buy Cars From Manufacturers?

Over at Eric Peters Autos, Eric brought something to my attention I hadn't considered before: Why must we always buy new cars through a dealer? Why can't we just buy them direct from the manufacturer? He writes it's ilegal in many states to buy cars direct from the manufacturer. You have to wonder why?

I know it might be more hassle than some of us might want to deal with but it would nice to have to option of going straight to the manufacturer as opposed to having to go though a middle man.

Another impediment to good living given us by government, and it kinda shows how much government regulations are involved in our lives that few of us even realized this imposition upon us.


At 9:52 AM, Blogger Bob Wallace said...

It probably made sense in pre-internet days. And the regulations were sought by the dealers to protect them from direct factory sales undercutting their prices.

Tesla has shown us that there's no longer a need to have a dealer in the loop.

It's the car dealers fighting to maintain the regulations. Not something "the government" is trying use to limit our freedoms. The dealers are trying to protect their business, their profits.

We don't have regulations because "the government" sits around all day creating regulations.

We have regulations because some group of our fellow citizens want something regulated and works to get those regulations established.

At 9:58 AM, Blogger Fred Mangels said...

"We have regulations because some group of our fellow citizens want something regulated and works to get those regulations established."

Which at least in a case like this is considered crony capitalism.

At 10:19 AM, Blogger Bob Wallace said...

Now you're bringing in a different issue. The questionable dealings between lawmakers and some segments of the voters.

I'm not saying that it doesn't happen, I'm sure it does. Business people support candidates that they think will serve them best. The same can be said for most groups of people who have their own issues.

We're going to have that problem until we reform the way we finance elections. You know, until 'we the people' create some better regulations.

At 10:52 AM, Anonymous Anonymous said...

It's not just illegal in some states... some states have recently made it illegal in a direct attempt to stop Telsa Motors from gaining ground. It's the exact opposite of capitalism. They are, of course, failing. People are going out-of-state to buy Tesla cars.

At 10:53 AM, Anonymous Anonymous said...

"some group of our fellow citizens"

I don't count car dealerships among my fellow citizens.

At 10:56 AM, Blogger Bill said...

There are a number of other things that cannot be bought from the manufacturer. Boats, for instance, have to be bought from the dealer in your area. You cannot even buy one from another dealer elsewhere and register it where you live. It makes no sense to me

At 11:12 AM, Blogger Bob Wallace said...

The regulations were already there before Tesla.

In some states which have sales through dealers only regulations Tesla can set up showrooms, give demo rides, open service centers, but can't take orders. But someone who wants to buy a Tesla can go online and order one. I assume you could stand in the showroom and order one using your smart phone, but the Tesla employees can't do it for you.

Tesla is now taking the issue to court in Michigan. Tesla is likely to win as Michigan allows all sorts of factory direct sales, including factory owned outlet stores. And the Federal Trade Commission has spoken out in favor of Tesla.

The car sales business is likely to undergo great changes. Dealers typically make most of their money on maintenance, repairs and parts sales. EVs simply don't have the same needs as gasmobiles. No oil changes, belt replacement, all the stuff one has to spend money on during the lifetime of their car. Clogged injectors, water pumps, oxygen sensors, fuel filters, .....

Electric motors run pretty much forever. (At least far more than 200k miles.) We've just seen the first Tesla S accumulate over 200,000 miles on its odometer using the original batteries. (They lost only ~5% of their capacity.) EVs need no transmission, only a reduction gear where the electric motor connects to the differential.

At 11:34 AM, Anonymous Anonymous said...

Sorry Bob, my statement was correct. Some states have enacted NEW laws to stop Tesla from selling cars in their state.

In 2014, Gov. Rick Snyder signed a bill that can only be described as having been written in direct response to Tesla, to stop Tesla. Yes, direct-to-consumer sales were already illegal, but this NEW law was written to thwart Tesla at any method it might use to sell cars in the state that did not strictly conform to the old business model that car manufacturers cling to.

At 11:54 AM, Blogger Bob Wallace said...

OK, didn't realize that Michigan had tightened up its dealership only regulations, just knew that they had one before Tesla got into business. I've mostly been paying attention to Texas where the "free market" flag flies high.

"We didn’t get into this to upend the franchise dealer system," O'Connell (Tesla vice president of business development) said. "We're in the business of launching new technology and Michigan, as the birthplace of the industry, should be in the vanguard of that movement."

But with heavy lobbying by the Michigan Automobile Dealers Association and General Motors, the Legislature has not welcomed the upstart electric vehicle maker.

In describing one particularly hostile encounter, O'Connell recounted one unnamed legislator who told him, "the dealers don't want you in Michigan. Automakers don't want you in Michigan. So you won't be in Michigan."

"It was like a 'Godfather' moment," O'Connell said."

The story also talks about how many of the suppliers Tesla uses are located in Michigan. I noticed a few days ago something about Tesla planning on moving a lot of its component manufacturing to California.

At 12:32 PM, Anonymous Anonymous said...

"Another impediment to good living given us by government.."

Give me a break. This is spilt milk compared to other things going on.

At 12:41 PM, Anonymous Anonymous said...

Car companies wont even be selling cars in the near future. They will manufacture driverless cars that will act as taxi cabs. No need to own a car anymore. Look it up. Its coming really really soon. You can already call an uber and lyfte in Pittsburgh or san francisco and possibly be picked up in a self driving car....

At 3:31 PM, Anonymous Anonymous said...

12:41 is correct. They are using our tax money to dictate how we will live, eat, sleep, travel, & mingle. All of it will be micromanaged, geared towards those who are strong & young enough to slave. SoCal has dedicated a half trillion dollars to going carless, according to sources following the agenda 2030. Cities everywhere are installing apt complexes without garages. Towns are replacing parking spaces with parklettes and bike lanes. Gas prices will increase to drive the rural people into towns. Cities will sprout taller, with all outleing businesses & residences stopped.
Don't fall for any tax measure, no matter how many free beers they put on offer.

At 3:42 PM, Anonymous Anonymous said...

Every once in awhile, a city council member earns my respect. Eric is one.
This is the half trillion dollar scheme that Eric & Munzing opposed. (Unsuccessfully).
Quality of place replacing quality of life, through micromanagement. .

At 4:49 PM, Anonymous Anonymous said...

"Don't fall for any tax measure, no matter how many free beers they put on offer. "

Starve the government. Let's make sure our schools and infrastructure continue to deteriorate. Let's destroy Medicare and Social Security so that when we get old we can enjoy crawling off into the bushes to die.

Work toward making the United States a third world country.

Excellent thinking.

At 8:51 AM, Anonymous Anonymous said...

Fearmonger much 4:49?

At 9:51 AM, Anonymous Anonymous said...

8:51 - know anything about the Republican party and their ambitions?

At 1:35 PM, Anonymous Anonymous said...

5:51 they're exactly the same as the progressives. That's why I won't vote for either corporate party.
The GOP does have a few gems, like when Ron Paul ran, Justin Amash, Thomas Massie, maybe Rand Paul.. all of whom were mostly various camps of Libertarian.
The majority, however, are just as commie as the dnc.
They wear the same suit & tie, but volly for which "party" will be in charge, to keep the donations pouring in.
The only one worth voting for, imo, is Darrell Castle, who is of no camp but the Constitution's camp.


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