Car dealerships are a vestige of the 20th century which, like many outmoded and counterproductive industries, is being kept alive by political machinations. Tesla never wanted anything to do with the dealership model, and neither do any of the 21st century auto startups. One suspects that many legacy automakers would also like to dispense with it if they could. Dealerships add an additional layer of cost and inconvenience to the car buying process, in order to provide services that were once important, but are no longer needed in the internet age. And while many auto salespeople are surely dedicated and skilled workers, because of their commission based compensation structure, over the decades the smarmy, high pressure car salesman has become a stock character in popular culture, mistrusted and unloved.

Source: Summarized from Charles Morris at evannex.

My Take: This is a major reason why the traditional OEMs have a major problem. Get rid of the dealership model or suffer from bankruptcy.

Re Posted From: Another Reason To Like Teslas Direct Sales Model

Auto Helpers

Car dealerships are a vestige of the 20th century which, like many outmoded and counterproductive industries, is being kept alive by political machinations. Tesla never wanted anything to do with the dealership model, and neither do any of the 21st century auto startups. One suspects that many legacy automakers would also like to dispense with it if they could. Dealerships add an additional layer of cost and inconvenience to the car buying process, in order to provide services that were once important, but are no longer needed in the internet age. And while many auto salespeople are surely dedicated and skilled workers, because of their commission based compensation structure, over the decades the smarmy, high pressure car salesman has become a stock character in popular culture, mistrusted and unloved.

Source: Summarized from Charles Morris at evannex.

My Take: This is a major reason why the traditional OEMs have a major problem. Get rid of the dealership model or suffer from bankruptcy.

Re Posted From: Another Reason To Like Teslas Direct Sales Model

Auto Helpers