Hey, Tesla! Trust Us, We’re Car Dealers.

Indeed, Tesla’s business model could threaten their very livelihood. What if every automaker suddenly decided to sell direct to consumers and merely have storefronts where people come to check out the cars and test-drive, then order online? The problem is that the NCADA has couched their argument in altruistic terms that even the most trusting and optimistic observer would have trouble swallowing, “The whole point of the retail system is to protect the consumer,” according to Robert Glaser, president of the NCADA. He then offered all those present underbody rust-proofing for a very low price [editor’s note: not really].

The problem for dealers is: if they fight, they can’t say ‘we don’t want companies circumventing us because we like money.’ So they must pretend to be standing up for poor-little-Mary-the-consumer. But this makes them appear like [shocker!] scummy car dealers. If the NCADA and other states’ car dealers associations decide not to fight, they risk manufacturers (new or old) bypassing the dealer network to move cars. Either way though, dealers lose. With their current strategy, however, they reinforce stereotypes and alienate potential customers. Agree or disagree?