In 2019, many car experts say Tesla is making a big mistake in deciding to sell cars only online, arguing that people’s bad feelings towards dealers are essential to the car business. did.
However, the strategy adopted by Tesla CEO Elon Musk, which combines direct sales with a limited number of stores and service centers, seems to prove wrong with the denial. The company dominates the fast-growing electric vehicle market, despite other manufacturers struggling to sell their cars due to a shortage of computer chips.
Tesla’s approach, copied by other young electric car makers like Rivian and Lucid Motors, could ultimately have a huge impact on the automotive industry. Most automakers and car dealers are now making abundant profits as the shortage of new cars has pushed up the prices of both new and used cars. Still, car companies and dealers may eventually have to adopt some of the changes Tesla has introduced in order to beat buyers who are accustomed to buying cars online.
Those who have replaced traditional cars with Tesla or the new company’s electric cars are pleased with the experience and said they would consider buying future cars as well.
Rachel Ryan, who lives near Los Angeles, said of purchasing the Tesla Model Y in 2021, “the easiest big purchase in my life, it’s very easy.” “I bought it when her husband was at work,” she added. “When he got home, I told him I wouldn’t drive my minivan anymore.”
Ryan said the only service problem she had was a flat tire from a nail. “Tesla came to my house to repair it,” she said. “If you have a question, just send an email and you’ll receive it within minutes.”
Buying online is a must for anyone considering buying an electric car manufactured by Tesla, Rivian, or Lucido. These customers can only buy online directly from the manufacturer. However, online car shopping appeals to the vast majority of all car buyers, including those who buy internal combustion engine cars through dealers, said Michelle Krebs, executive analyst at Cox Automotive.
“Our data show that consumers want to go through more processes online, but most of the time they don’t want to completely eliminate dealer visits,” Krebs said. “They just wanted to make the dealer’s experience something else. They focused on the product, the features of the product, and the test drive.”
She said some retailers began to digitize some or all of the purchasing process early in the coronavirus pandemic, where showrooms were closed like other retailers. In Europe, some automakers are even more advanced. Daimler, Volkswagen and Volvo have announced plans to sell or do so directly to consumers.
US car makers have also signaled that they want to make major changes.Ford Motor Company CEO Jim Farley said at this month’s investor conference that the company’s distribution and advertising costs per vehicle will be about. $ 2,000 higher than Tesla..Farley said Ford wanted Sell electric cars only online At a non-negotiable price without keeping a large inventory of cars at the dealer.
He added that dealers remain important, but must be more “specialized”. He likened what’s happening in the automotive industry to retail. There, with the rise of Amazon, established retailers are selling more on the Internet and using physical stores in new ways.
“It’s like what happened between Amazon and Target,” Farley said. “The target may have disappeared, but it wasn’t. They bolted it to the e-commerce platform, then used the physical store to add groceries and returned it much easier than Amazon. I made it possible. “
Established car makers are unlikely to abolish dealers for other reasons. State law often requires cars to be sold through franchise dealers, which can make it difficult or impossible for automakers to deal directly with their customers.
Tesla is urging state legislators to change the law governing car sales, acquiring legislators in many places so that companies and other car makers without dealers can sell cars directly to their customers. I made it.
However, in some states like Texas, where Tesla currently has a factory, companies struggled to convince lawmakers to change the laws and rules that favor dealers. For example, Texas offers a $ 2,500 refund to people who buy electric cars, but Tesla buyers aren’t eligible because those cars aren’t sold by franchise dealers.
The National Automobile Dealers Association, which represents dealers, has long opposed direct sales of cars, arguing that dealers are essential to the auto industry and the local economy, and urged legislators to require Tesla to use them. I’ve been. They also said that Tesla’s approach is far more inconvenient for car buyers and owners.
“We are the faces of manufacturers in every small town in the United States,” said Bill Fox, a former president of the association. Told to AutoGuide.com In 2015.
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The Dealership Association did not respond to requests for comment.
Dealers aren’t the only ones who have criticized Tesla. Some Tesla owners complain that repairing or fixing a car problem can be a challenge.
Operated by an automobile manufacturer About 160 service centers in the United States, This is far less than a more established company — for example, Chevrolet has more than 3,000 dealers nationwide. Tesla promises to send a technician to the customer’s home for minor repairs, but the bigger problem needs to be addressed by a service center mechanic.
James Klafehn of Ithaca, NY hosts a YouTube channel focused on electric vehicles and related topics. He bought Tesla in 2019 and has lived for several hours from the Tesla Service Center, so he has released a video recording how difficult it was to solve various problems.
and October 2019 video, He was keenly aware of the problem with the Model X Sport Utility Vehicle. This included holes in the panel and indentations in the weatherstrip of the door. “I’m not excited about making this video. I was afraid of it, hoping that something positive would happen,” he said. “Unfortunately, after owning the Model X for five weeks, Tesla’s service experience was very poor.”
Tesla did not respond to requests for comment.
Other owners who live far away from the Tesla Service Center say distance was not an issue. This may be because electric vehicles tend to require less maintenance than internal combustion engine vehicles.
Bill McGuire, editor-in-chief of Motor City Garage on Mac, a website for car enthusiasts, drove 99 miles from Toledo, Ohio, home of Clarkston, Mississippi, to test drive at the Tesla store, and then to Ohio. Drive a car at the Tesla Service Center in Columbus, Ohio.
“This was my first online car buying experience. It was a little surprising and mostly fun,” McGuire said. “Some people may want to hold more hands.”
The only problem he encountered with the Model 3 was the condensation of taillights. Tesla sent a technician and the taillights were replaced in his garage.
Other young electric car companies like Rivian and Lucido have even fewer showrooms and service centers than Tesla. There are 19 Rivians in the United States, only 10 Lucido, and seven more will open this year. It didn’t discourage tens of thousands of people from booking cars made by the two companies.
Like Tesla, both automakers offer to send technicians to the customer’s home for minor repairs, and say major repairs are handled at the service center. To alleviate the buyer’s fear that the work of a more substantive mechanic may be a hassle, Lucido promises free shipping to the nearest service center for cars in need of major repairs. I will go to.
