Direct sales model of Tesla An "inspiration" for reports on large cars & # 39; s and consumer reports

1 January 2019 by Matt Pressman

Originally published on EVANNEX.

Buying a car can be a sloppy process. Keith Barry writes Reports from the consumer"In an era of online shopping and instant gratification, the traditional way of buying a car seems a painful setback, some dealers still do business the old way: buyers keep haggering on the price, costs and fees to hide the last minute and let customers wait for hours to sign form after form. "

A look at one of Tesla's own stores (Image via Tesla)

Barry quotes: "an investigation by Deloitte [which] discovered that 60 per cent of car buyers want to completely disable dealership and buy a vehicle online directly from a manufacturer. That is the model used by the electric car manufacturer Tesla, which depends on online orders and showrooms owned by the company. "

"However, traditional manufacturers are tied to franchise contracts with existing dealers, and some countries do not allow direct sales and require the dealer model." And Tesla is still facing significant opposition (depending on the state) for his direct sales approach.

Consumer Reports & Barry also went with Guillaume Saint, global automotive lead at consulting firm Kantar to get his thoughts. While Saint recognizes that the ownership and management of a dealer network can become expensive, he admits that the Tesla system is a "source of inspiration" for traditional manufacturers.

Within the thorny franchise dealership laws that challenge Tesla and other automakers when they try to sell directly (Youtube: Sean Chandler)

Barry notes: "The Deloitte study showed that 57 percent of the car buyers were not satisfied with the paperwork they had to fill in, 42 percent said the whole process took too long and 40 percent hated to negotiate the price. " In turn, Tesla has worked on simplifying the car buying experience and does not negotiate the price.

And when it comes to buying cars, it is clear that Millenials want change. Kathy Gilbert of consultancy firm CDK Global says that her company's internal research shows: "younger buyers are less tolerant to be transferred from vendor to vendor, long negotiations and vague prices."

"Consumers do not want to deal with sales people these days," claims Patrick McMullen, MAXDigital & # 39; s senior vice president of strategy and innovation. "They just want to know that they get a fair deal and if they have questions about the car, that the salesperson has enough knowledge to answer those questions."

Shop staff demonstrate the middle touch screen of Model 3 at the Aventura Mall location of Tesla in Miami (photo: Jorge Sierra)

Perhaps that is why Elon Musk expects a completely different experience for car buyers when buying a Tesla. He says that the store employees are from Tesla Product specialists "Not commissioned and they will never put pressure on you to buy a car, their goal and the only metric of their success is to let you enjoy the experience of so many visits that you're looking forward to returning . "

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Tags: car dealers, car dealers, car manufacturers, big car, car buyers, consumer reports, deloitte, Elon Musk, Millenials, Tesla, Tesla Consumer Reports, Tesla dealers, Tesla stores

About the author

Matt Pressman is all about Tesla. He is a TSLA investor, has ordered the Model 3 in advance and is fond of driving the Model S and Model X company cars of the family. As co-founder of EVANNEX, a family company specializing in Tesla aftermarket accessories, he served as an employee / editor of Electric Vehicle University (EVU) and the Owning Model S and Getting Ready for Model 3 books. He writes daily about Tesla and you can follow his work on the EVANNEX blog.

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