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The other key insight of the Tesla model is recognizing that three three traditional functions of a dealership don't actually benefit much from being colocated—

The other key insight of the Tesla model is recognizing that three three traditional functions of a dealership don't actually benefit much from being colocated— which is why Tesla puts the showrooms in shopping malls, does the sales online with flatbed delivery, and locates service centers on marginal lands in industrial parks where it's easy to have a big parking lot and hold lots of parts inventory. The legacy manufacturers could absolutely copy this approach and would love to do so.

fock 7y ago
I'm not sure, where you live, but here (Europe) car dealers are generally in the kind of urban sprawl, where industry and shopping malls are located as well. And the typical lifestyle brands have a lot of show-rooms in inner cities as well – for all the others I doubt it's necessary... People will buy used anyway...
- Retric 7y ago
  It’s not about suburban shopping malls, it’s about urban ones. Traditional car dealerships need someplace to store all the new and used cars which quickly gets into hundreds of cars sitting around. Showrooms on the other hand can get away with representative samples which requires vastly less space. That means they can afford locations with vastly higher costs per square foot.
- toasterlovin 7y ago
  > I'm not sure, where you live This discussion is about American auto dealerships.
  - geomark 7y ago
    Seems useful to compare the dealership experience to how it works in other countries. In the US, the dealership experience seems to be pretty bad for many people, at least it was for me and everyone I know through several car purchases. It hasn't been the same experience for the several cars I have purchased after moving overseas. Not sure I could pin down the reasons why. It might be the same reasons that the service you get from banks here is so much better.
rootusrootus 7y ago
I bought my Tesla from the showroom collocated with the service center, and picked up the car from the same location.
- mikepurvis 7y ago
  Interesting, where was this? All the showrooms I've seen are strictly that and not even legally able to sell you a car. All they can do is "help" you access the website and buy it yourself online.

fock 7y ago

I'm not sure, where you live, but here (Europe) car dealers are generally in the kind of urban sprawl, where industry and shopping malls are located as well. And the typical lifestyle brands have a lot of show-rooms in inner cities as well – for all the others I doubt it's necessary... People will buy used anyway...

Retric 7y ago
It’s not about suburban shopping malls, it’s about urban ones. Traditional car dealerships need someplace to store all the new and used cars which quickly gets into hundreds of cars sitting around. Showrooms on the other hand can get away with representative samples which requires vastly less space. That means they can afford locations with vastly higher costs per square foot.
toasterlovin 7y ago
> I'm not sure, where you live This discussion is about American auto dealerships.
- geomark 7y ago
  Seems useful to compare the dealership experience to how it works in other countries. In the US, the dealership experience seems to be pretty bad for many people, at least it was for me and everyone I know through several car purchases. It hasn't been the same experience for the several cars I have purchased after moving overseas. Not sure I could pin down the reasons why. It might be the same reasons that the service you get from banks here is so much better.

rootusrootus 7y ago

I bought my Tesla from the showroom collocated with the service center, and picked up the car from the same location.

mikepurvis 7y ago
Interesting, where was this? All the showrooms I've seen are strictly that and not even legally able to sell you a car. All they can do is "help" you access the website and buy it yourself online.