January 1, 2019 by Matt Pressman
Originally published on EVANNEX.
Buying a car can be a cruel process. Keith Barry writes in Consumer Reports "In a time of online shopping and instant gratification, the traditional way of buying a car may look like a painful recall. Some retailers are still doing business in primary school: Insistent buyers bargain over the price, hides taxes and fees at the last minute, and makes customers wait hours to sign form by form. "
|A look inside one of Tesla's companies (19459006)]|
Barry quotes," a Deloitte study [which] found that 60 percent of car purchases will cut out the dealer completely and buy a vehicle online, directly from a manufacturer. That is the model used by the electric car manufacturer Tesla, which relies on online ordering and company-owned showrooms. "
But "Traditional manufacturers are bound by franchise agreements with existing dealers, and some states do not allow direct sales and require the reseller model." After meeting significant opposition (depending on the state) for its approach to direct sales.
Consumer Reports & # 39; Barry also sat down with Guillaume Saint, global management at the consulting firm Kantar for his thoughts. While Saint acknowledges that ownership and control of a dealer network can be expensive, he admits that the Tesla system is "a source of inspiration" for traditional manufacturers.
Inside the thorny franchise dealer who challenges Tesla and other car manufacturers when they try to sell directly (Youtube: Sean Chandler )
Barry notes "The Deloitte study found that 57 percent of car purchases disliked the amount of paperwork they needed to fill out, 42 percent said the whole process took too long, and 40 percent hated to praise the price." Tesla, in turn, worked to simplify the car buying experience and do not negotiate price.
And when it comes to car purchases, it is clear Millenials will change. Kathy Gilbert of the consulting firm CDK Global says that the company's internal surveys show that "younger buyers are less tolerant of being delivered from the seller to the seller, long negotiations and fuzzy pricing."
"Consumers today do not want to deal with sellers," says Patrick McMullen, MAXDigital's senior vice president of strategy and innovation. "They just want to know they get a fair deal, and if they have questions about the car, the seller is knowledgeable enough to answer these questions."
|Large employees demo model 3 center touchscreen at Teslas Aventura Mall location in Miami (Photo: Jorge Sierra )|
Perhaps, therefore, Elon Musk is a completely different experience for car buyers when buying a Tesla. He says that Tesla's store employees are not on commission and they will never push you to buy a car. Their goal and the only metric of their success is to get you to enjoy the experience of visiting. so much so that you look forward to returning again.
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