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Maybe it is not very relevant today but car dealers offer a range of service unrelated to building cars, such as dealing with vehicle registration, insurance an
by GuB-42 4y ago
Maybe it is not very relevant today but car dealers offer a range of service unrelated to building cars, such as dealing with vehicle registration, insurance and financing.
In the case of Tesla, it is more accurate to say that they are their own dealer since they provide services like financing and registration. They even have their own insurance. Of course, these services are not free, and neither are test drives and showrooms, they are included in the price of the car.
The difference with the traditional dealership model is that they only sell Teslas, and that they don't want other dealers to sell Teslas. In a sense, they are anticompetitive.
Yes, I am playing devil's advocate here, but that's to say there is a reason for this dealership law.
- klabb3 4y ago> dealing with vehicle registration, insurance and financing. Isn't this just more middlemen they set you up with, and government bureaucracy that ought to be self-evident? From what I hear the average dealership is about the worst option, the typical sales swindle of information asymmetry and other adversarial games? I mean, it's basically right there in the name. Granted, most of my knowledge is second hand..
- adwww 4y agoYeah what I hate about dealerships is that they usually have at least four ways to screw you, and it's pretty hard for a layperson to negotiate fairly on all of them. ie. Trade in price for old car, purchase price for new car, rate of finance, cost of extended warranties.
- martin_a 4y agoYou can do three out of four things by your own. But is it easier if a dealership takes care of that for you? For sure. Will they take a share of everything then? For sure. I don't understand all the complaining about dealerships in this thread, but maybe it's because I'm from the EU.