Scout, Honda and other car manufacturers are ready to cut the intermediary and move to direct sales, but Nada is fighting
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- A new report highlights how dealers are concerned about direct sales to consumers.
- Rather than letting customers choose, they want to completely stop direct sales.
- In the end, it seems that the dealers have created the need for direct sales.
The automotive industry is not unrelated to change, but for Marc White, the future seems particularly uncertain. White plans to transmit its network of Volkswagen dealers to his son, just as his father did for him. But there is one thing that keeps it at night: the rise of a direct sales model to consumers.
This is why he recently testified during a hearing of the State Legislative Assembly, warning that if car manufacturers are starting to sell directly to customers, its 150 employees could soon be unemployed.
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Why are the dealers to be afraid of a free market where consumers can choose where they buy their cars? According to at least one estimate, the concessionaire industry collected $ 627 billion last year. Naturally, he doesn’t want this dry silver pipeline, but that might not prevent him from happening anyway.
To try to stop it, the groups of concessionaires continue or threaten legal action against brands like Scout and Honda, which plan to jump dealers and sell directly to consumers, allowing you to book your car online from anywhere.
Dealers are not exactly delighted with the free market
“The concessionaires do not want direct sales to occur because they have no interest in leaving the rupture of this dam,” explains Alexander Edwards, president of the strategic vision based in San Diego Bloomberg. “They want to circulate their money.” Speaking of direct sales and white, he is one of the people who put pressure against a bipartite bill that would allow Scout to sell cars in South Carolina.
“You must be able to buy a vehicle in a few minutes on your sofa,” said Cody Thacker, vice-president of Scout’s commercial operations. “Everything should be as easy as buying a t-shirt on Amazon.” For brand customers like Tesla and Rivian, that’s exactly what the process is like right now.
The case against dealerships
One Executive at Edmunds, Dave Robinson, Who Bough A Tesla Cybertruck Last Summer and Appreciated the Ease and Transparent Pricing Of Buying Online, Put It This Way: “I Liked Not Having To Spend Half My Saturday in Dealership, Feeling Like the Sale The Wizard of Oz Behind the Curtain While I Waied in the Finance Office, ”He Told Bloomberg. “I never set foot in a dealership again.”
Nevertheless, not everyone wants the concessionaire model to disappear completely. Having the chance to go through tests, see a vehicle in person and get more information from an expert is important for some buyers. Of course, there is no reason why automakers cannot just do this for themselves. Tesla has proven that he can build enough exhibition rooms to satisfy customers. In addition to that, he is managed to get his experience of service especially understood.
Rivian has 48 exhibition rooms and even if he is still struggling with the service, he nevertheless sells cars. Scout plans to open 25 locations in 16 major markets when it starts deliveries. All this is just to say that neither car manufacturers nor customers need dealerships. And the craziest part of all this is that they have done it mainly.
A fall in their own manufacture
For years, the groups of dealers have pressure to restrict free markets with regard to cars and have done what they can to stifle the laws that also prevent them from fooled by customers. Rather than making their prices transparent, simple and free of junk food, they are glued to their clever ways.
In January, the National Auto Dealers Association won a case in court to stop the stricter regulation which was to make prices more transparent and could have saved billions of dollars to consumers. Instead, car buyers are always at the mercy of the dealers and shaded tactics that we have reported many times. Direct sales to consumers will solve this problem. And although the Nada may have won the aforementioned case, it is clear that the writing is on the wall: you simply cannot fight the future …
