Why do car dealerships still exist?

I think that’s what’s interesting about the Geely model though. They don’t need a proper location, just a warehouse somewhere.

Want to test a car? They’ll drop one off for you. Want to service a car? they’ll come pick it up. Genesis already does this (largely to avoid making their customers have to deal with a Hyundai dealership) but still. I’m not convinced people are that invested in the whole dealership experience.

Most of us will be dead, or close to it, before the dealer model changes.

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For the next generation, the dinosaurs, alas, are the cars themselves…

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Because I don’t want to go back to my old profession!

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I agree with you mostly. Makes me think a company like Amazon would be best positioned to make this work. State franchise laws would take forever to get overturned one by one. You need the :moneybag: to get congress to pass a law allowing online auto sales.

A company like Amazon also has the ability to open up service centers/test drive locations. I would envision Amazon having say 5-7 giant service centers/test drive locations around NYC metro area so no one living within an 30 miles of the city would be more than 45 minutes drive from one. That deals both with the test drive issue and the warranty repair issues. You cover most of the population, and an even greater percentage of the wealthy population, with only 50-75 service centers nation wide.

For more rural areas, franchised dealer model actually is pretty good. Selling cars in a small state is a poor economic proposition. Capital intensive and low return on investment. If dealers are willing to do it, great for them.

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A Gigolo??

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Insurance Sales. kidding.

Here’s an article about how VW plans to sell their ID EVs in Germany. Dealerships still involved but slightly different model. Perhaps this will rollout in more countries if successful?

I will leave a legit reply. I talk about this with sales managers all the time and always want to be on the cutting edge of how people buy (and want to buy cars). Currently I am trying OfferUp however that tends to work better for small pre-owned only stores.

There is another service where everything can be done online through a third-party service that keeps a customer on the dealership’s website. Customer then chooses delivery or shows up to get the keys. The contract, finance paperwork, etc. are all completed. I wanted to sign up for that service however there is another Honda in the area who has an exclusivity contract with them for one year.

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Sounds similar to GMs “shop, click, drive.”

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Yes possibly - I am not sure if that program takes the customer through the entire process including financing.

If you’ve ever tried to buy a Tesla in a state that’s less than friendly with their model, let’s just say it’s a whole lot of “hurry up and wait.”

It does…but it’s a take it or leave it price. No negotiation via the shop-click-drive portal. You’re essentially paying asking price for convenience. I assume Honda works the same in that regard. It does allow you to bring your own financing though, IIRC. In that case, you have to finish the paperwork at the dealer

It isn’t Honda’s program. It is a third-party software that integrates into the website called Roadster. The Internet Team/Internet Director/Fleet Manager still works the lead and negotiates pricing and everything. It allows the customer to do everything online without having a baseball bat taken to said customer in finance.

Instead of Shop. Click. Drive. It is Mooch. Mooch. Mooch. Get A BMW that has a better calculator score.

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Mercedes of San Francisco uses Roadster. It’s a nice looking platform. You can even add F&I products as part of your checkout.

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Yep I mentioned that previously - it has EVERYTHING and then you can either come in for a pick-up or choose delivery. I would have signed up already if Galpin Honda didn’t have 12 months of non-compete with it. I can’t seem to find another vendor like it.

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I love you too.

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Amazon selling cars? Nah thanks. They’ll probably would import them from china like alot things they have on there.

As much as I hate dealing with a dealership, I believe they will stick around. More for used cars than anything else.

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Realistically most people don’t seem to want that. I’m willing to do a transaction 100% online that would take you 20 minutes at most of thinking about it, then just wait for a delivery. You can get the price via email or see what I have posted, do a online credit app and have the vehicle and contract delivered.
I have my pricing set up front, I shop for you, I have years of good reviews, and it can be as easy as you make it.

All this being said only 5 customers ever have taken me up on this. Customers either want to grind me on price and try to negotiate until they are blue in the face (even though I know the market more than them and I don’t work on commission so I’d change my price if it wasn’t already competitive), or they still want to come drive the car, or choose colors, or just see my smiling face. For some reason even Tesla owners won’t do that process when another one exists.

That being said, if anyone wants to make my job easier and get a fast easy process i’m all for it. I like negotiating even less than you guys do, specially when I’ve done so much to be more than fair with pricing right of the bat.

Phil Gileno
415-596-6262
PhilGIleno@gmail.com
Capitol Chevy internet sales director
San Jose C.A.

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These dealers that you are talking about also employ over 3 million people in the US. If you like the Tesla’s sales model just walk in to a dealership and ask them to sell you the car at retail or over retail just like Tesla . I promise you they will bring out the red carpet and bend over backwards for you.

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