Death of Dealerships

[CG - All the way]

I just read the following article and found it interesting: Death of the Dealerships:

Opinion: Death to the car dealership — the Tesla sales model is poised to take over America - MarketWatch

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[Decayed]

Good. The market was due for disruption. Not to say dealerships are inherently bad, but having a legally enforced monopoly on sales is never going to be in the consumer's best interest.

 

[Maverstang]

I can see the future being one of franchised “serviceships” rather than “dealerships”, where they mainly exist to deliver and service vehicles bought directly from the manufactures.

But it will be a fight all the way because dealers are politically well connected to lobby for preserving franchise laws, plus their existing franchise agreement’s would be hard to unravel. Ford and GM have both said they have to find a better way to make the existing dealer model work rather than eliminate them.

Tesla and other startups are out in front, but It’s going to a long road ahead to get a better car buying experience from the legacy guys…

 

[CG - All the way]

I can see the future being one of franchised “serviceships” rather than “dealerships”, where they mainly exist to deliver and service vehicles bought directly from the manufactures.

But it will be a fight all the way because dealers are politically well connected to lobby for preserving franchise laws, plus their existing franchise agreement’s would be hard to unravel. Ford and GM have both said they have to find a better way to make the existing dealer model work rather than eliminate them.

Tesla and other startups are out in front, but It’s going to a long road ahead to get a better car buying experience from the legacy guys…

I believe the small dealers would be better off if they became "serviceships". Unless FORD goes with First in-First out, the large dealers will get larger and the small dealer will have relatively larger overheads to meet FORD specs on Showroom design, etc. If they go out of business, then available service becomes further away to get to. Employment in smaller towns is also affected if they go out of business.

 

[Old Hickory Trojan]

Our salesperson told us she was going to classes to certify her as a coordinator between the customer and the ford order and delivery at their site. Also that they will still be handling trade ins and servicing.

 

[cavemold]

I don’t feel bad for a lot these dealerships that mark up price 3k—xxxk … dealerships that do the right thing will be around

 

[cavemold]

Our salesperson told us she was going to classes to certify her as a coordinator between the customer and the ford order and delivery at their site. Also that they will still be handling trade ins and servicing.

The dealerships are still needed ford can’t house all these trucks and SUV’s they make .

 

[CG - All the way]

The dealerships are still needed ford can’t house all these trucks and SUV’s they make .

There will not be large inventories with an order system. When all settles out, including constraints, a person can order and have their vehicle in a month or so... Just like in the 60's!!!

 

[cavemold]

There will not be large inventories with an order system. When all settles out, including constraints, a person can order and have their vehicle in a month or so... Just like in the 60's!!!

And who going service factory warranty stuff?

 

[CG - All the way]

And who going service factory warranty stuff?

Dealers will exist for taking delivery of and preparing vehicles for the buyer. Dealers will be a service center; this is where a lot of the profit is anyway. Dealers will still be able to order stock vehicles; however, because people can order exactly what they want and get it delivered quickly, there will less demand for stock inventory and the price will be less for off- the-lot buyers than it is right now.

 

[Nexus]

My local Ford dealership that had been there for 60 years went belly up two weeks before Christmas. When Covid first hit the owner of the dealership was one of its first casualties. His son tried his best to keep it going, but sales stopped and after surviving a year couldn't go to auto auction sites to buy used cars because the price was too high and nobody really wanted them on his lot.

His service department kept them going, but in a small town there's only so much of that.

Most of the mega car dealerships will survive just because the size. But I agree the system of buying a car through a dealership has always been an agonizing pain to do at least for me.

This serviceable dealership will still survive, but the customer now orders straight from the factory with no middleman salesman to get in the way. I don't mind paying MSRP from the factory. When everybody else is paying the same but look what the dealerships are doing now with the added adjustments to that.

I believe in the free enterprise system It's the American way . But the current auto business in the last few years has gone astray to this. There's got to be a better way to put the customer first and in more control.

 

[ITSATRUCK]

Not sure how the dealers will survive whats going on now. Society has also change and people want a seamless transaction. Call it the Amazon effect. Time is to presiuose to waist.

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