GOLFMK8
GOLFMK7
GOLFMK6
GOLFMKV

The dealership system, from another perspective

adam1991

Banned
Location
USA
I know people lament the whole dealership setup that's evolved over the years, and some even go so far as to think Tesla's disruptive ways are the way to go.

Maybe not:

https://www.cnbc.com/2018/08/28/tesla-owner-frustrated-so-fixes-his-own-model-s-easy-as-legos.html

Greg Furstenwerth thinks of himself as a Tesla fan. But after months of waiting on parts and appointments for his out-of-warranty Model S, he decided to take repairs into his own hands.

Furstenwerth preordered the Model S, and in 2013 became one of the first people to get the car in the state of Hawaii, he says. He later drove the electric vehicle across the United States before there was a Supercharger network. He did this, he said, to shut down the electric car haters who ceaselessly griped about range anxiety.

"Tesla used to call me," he remembers. "They'd tell me, 'hey we noticed that there's something going wrong with your car.' Or when I had my flat they did their courtesy roadside service. They really took care of me, actually, as an original preorder. But as soon as I exceeded my warranty, the interactions all went away. I was treated like I didn't really own a Tesla."

As an early Model S owner, Furstenwerth is among the first to deal with service needs for this luxury electric car out of warranty. The company recommends all repairs go through its own service centers or authorized providers. But there can be long waits to get an appointment at a Tesla service center or get new replacement parts.

Because he lives on an island outside of Seattle, getting into a Tesla service center for Furstenwerth required a long drive. He wouldn't always be guaranteed to have a loaner car to get him back home, either. Tesla did not offer its Tesla Rangers service, a kind of mobile mechanic that comes to an owners' house, where he lived.

So he looked to independents. He found, unfortunately, a dearth of professional mechanics willing and able to work on his Model S.

That's because Tesla doesn't make spare parts, diagnostic tools and even repair manuals readily available. Aftermarket parts aren't abundant, either. No major player manufactures these today.

The few who can fix a Model S, and even fewer who can fix a Roadster, are left to buy "parts cars," and salvage parts from used Tesla vehicles. Some reverse engineer and make these parts with 3D printers.

Furstenwerth, who says he has always been good at figuring out how to fix things himself, learned how to diagnose and fix his Model S by taking it apart and putting it together several times. While he has taken part in some online forums where Tesla owners discuss their issues and fixes, mostly he was on his own, with no car schematics or manuals from Tesla.

He found parts were available from some small suppliers online. But he had to track them down individually. Among his issues were leaking tail lights, failing door handles, a passenger window behind the driver that fell out of place and faulty wiring in his driver's side door.

He says if he had been able to get a timely appointment, he was looking at a minimum of $14,000 in costs. At one point, he even considered destroying the car.

And everyone thinks out of warranty BMWs are a nightmare.

I wonder if the NADA will catch on to this story and make some hay while the sun shines.
 

Hoon

Autocross Champion
Location
Rhode Island
It's Tesla.

The whole company is a shit show, just like everything Elon Musk touches.

Did you see their earnings report? Another $750M of investor and taxpayer money down the drain this quarter (that's more than double the loss of Q2 2017 BTW), squandered by one of the biggest welfare recipients in history.

Tesla's are super cool cars, existing before their time on taxpayer money and an unsustainable business model.

Musk claimed Q3 2018 they would make a profit...Lol.

I wonder how long it will be before no one can get parts for a Tesla.

Oh, and the dealership requirement is outdated, crony capitalism. Screw dealerships, let the market do what it wants, and let scumbag dealers go down the drain.
 

PLF8593

Drag Race Newbie
Location
Philly
Car(s)
19 Alltrack 6MT
Oh, and the dealership requirement is outdated, crony capitalism. Screw dealerships, let the market do what it wants, and let scumbag dealers go down the drain.

Agreed.

But I'm sad to hear that Tesla's whole business isn't quite working so well. I'm currently reading Musk's biography and I am very intrigued, but you can tell his downfalls from the way he is described in the book. He's an engineer, with a vision, but not a businessman. He only hires engineers. All he values is intelligence, problem-solving, and work ethic. Doesn't value pragmatic business sense.
 

TheWombat

Go Kart Champion
Location
Vermont
. He only hires engineers.

And right there you have it. Engineers are good at...engineering. You would not hire a marketing person to design a battery, and you shouldn't hire a EE to figure out marketing. I'm sure Musk does actually hire people in various non-engineering fields, but the problem really is it seems he does not let those people have any real say in anything. Decision making seems to be all from one, and only one, perspective. That's a recipe for doom.
 

vjmvjm

Drag Racing Champion
Location
Los Lunas, New Mexico
Car(s)
2016 VW GTI S DSG PP
The failures of Tesla do not justify the failures of the US legally-protected franchise dealership system. Why is it that you feel like you need a shower to remove the crap after visiting slick Freddy's new car emporium? Where the price they give you to get in the door is never the price that you "qualify" for. I didn't know it was a test.

I can't wait until I can just order a car on Amazon, and have it delivered to my door in two days. Or even two months. In the meantime, I'll just keep buying from a no-haggle dealer where the sales people don't earn a commission based on transaction price, and actually give you what you ask for.
 

adam1991

Banned
Location
USA
If my choice is either the current Tesla setup or the current franchise dealer setup, I'll take the dealer.

My gut tells me that in 25 years we'll be seeing the movie "Tesla" like we saw "Tucker".
 

TheWombat

Go Kart Champion
Location
Vermont
I can't wait until I can just order a car on Amazon, and have it delivered to my door in two days. Or even two months. In the meantime, I'll just keep buying from a no-haggle dealer where the sales people don't earn a commission based on transaction price, and actually give you what you ask for.

A lot of people feel the same way. I go back and forth, myself. I think this model is a lot more appealing to people who are more educated, more interested in specific vehicles or types of vehicles, more affluent, and more likely to have a lot of choice in their car purchasing. I think that many mainstream purchasers, for whom cars are appliances, or for whom there isn't much choice because of budget, will prefer a dealer lot where you can get at least the sense of choosing from that vast array of nearly identical SUVs. And of course the people who are sort of leery of cars anyhow will not want to go through getting one on their own. Some folks seem to like the salesperson interaction, go figure.
 

Shane_Anigans

Drag Race Newbie
Location
SE MI
Car(s)
2017 GTI Sport DSG
The failures of Tesla do not justify the failures of the US legally-protected franchise dealership system. Why is it that you feel like you need a shower to remove the crap after visiting slick Freddy's new car emporium? Where the price they give you to get in the door is never the price that you "qualify" for. I didn't know it was a test.

I can't wait until I can just order a car on Amazon, and have it delivered to my door in two days. Or even two months. In the meantime, I'll just keep buying from a no-haggle dealer where the sales people don't earn a commission based on transaction price, and actually give you what you ask for.


That'll never happen, since the automakers have no interest in getting rid of their dealer networks. As soon as their cars are off the transporter and on the dealer lot, they're off the books in the manufacturers accounting office as sold product; getting rid of dealers means keeping millions of dollars in red numbers on their ledgers.

Also, your characterization of dealers is an old, outdated trope. Dealers in general have been slow to adapt, but the industry has finally started to wake up and realize that the old ways of doing business are dead. The only haggling I had to do when buying my car was over the trade-in value of my own car, and I got a better deal than I would have at a "no-haggle" dealer, since none of them were going to let me keep $4500 in dealer cash.
 

adam1991

Banned
Location
USA
Full transparency has indeed had a good effect in the dealer world.

Not that there aren't bad dealers, but overall, a good effect.
 

vjmvjm

Drag Racing Champion
Location
Los Lunas, New Mexico
Car(s)
2016 VW GTI S DSG PP
Also, your characterization of dealers is an old, outdated trope. Dealers in general have been slow to adapt, but the industry has finally started to wake up and realize that the old ways of doing business are dead. The only haggling I had to do when buying my car was over the trade-in value of my own car, and I got a better deal than I would have at a "no-haggle" dealer, since none of them were going to let me keep $4500 in dealer cash.

Perhaps you have enlightened dealers in your area, but the VW dealers in the DC area are still old school. Read the threads on where to get the best price. Lots of undisclosed fees, lots of bait and switch, lots of incentives including in the advertised price that you don't qualify for. Why does it take an entire afternoon in the showroom just to get a firm price?
 

PLF8593

Drag Race Newbie
Location
Philly
Car(s)
19 Alltrack 6MT
Also, your characterization of dealers is an old, outdated trope. Dealers in general have been slow to adapt, but the industry has finally started to wake up and realize that the old ways of doing business are dead. The only haggling I had to do when buying my car was over the trade-in value of my own car, and I got a better deal than I would have at a "no-haggle" dealer, since none of them were going to let me keep $4500 in dealer cash.

Perhaps you have enlightened dealers in your area, but the VW dealers in the DC area are still old school. Read the threads on where to get the best price. Lots of undisclosed fees, lots of bait and switch, lots of incentives including in the advertised price that you don't qualify for. Why does it take an entire afternoon in the showroom just to get a firm price?

Agreed. most dealers still suck man. I've been to dealers in Jersey, PA, CO, and DelMarVA(aka DC) and they all suck, even the "good" ones
 

TheWombat

Go Kart Champion
Location
Vermont
Dealers are local businesses. Some are going to suck, some are going to be rock stars. Overall, the Internet has knocked out a huge chunk of the crap we used to have to deal with when car shopping, but Slick Willy is still out there in his plaid coat, for sure.

And I do think for mass-market cars the manufacturers are pretty ok with the dealer network, as the dealers eat the cost of keeping all those cars around on the lot. I would imagine the manufacturers would love to be able to also sell direct to high-end customers, though, the types that would want to configure a $60k+ car on the website, push "Order," and have the credit/cash to sail through online approval, etc.
 

The Fed

Old Guys Rule
Location
Florida
I posted a little of this elsewhere but here's his YouTube channel. He can literally rebuild a Tesla S by himself. On one video he calls Tesla parts and says he wants to buy a set of wheel bolt covers. They ask him what he needs them for. They won't even talk to you without a valid VIN in your name, and if the car has a salvage title you're blackballed, they won't service it. Once you're out of warranty you might as well be. They never sell owners parts under any circumstances. He needed to troll Craigslist and eBay for parts or whole wrecked cars. I think you'll like this guy:

https://www.youtube.com/channel/UCfV0_wbjG8KJADuZT2ct4SA
 

The Fed

Old Guys Rule
Location
Florida
I know people lament the whole dealership setup that's evolved over the years, and some even go so far as to think Tesla's disruptive ways are the way to go.

Maybe not:

https://www.cnbc.com/2018/08/28/tesla-owner-frustrated-so-fixes-his-own-model-s-easy-as-legos.html



And everyone thinks out of warranty BMWs are a nightmare.

I wonder if the NADA will catch on to this story and make some hay while the sun shines.

Tesla will sue them if they try knocking off their parts.
 
Top