Much the same as other products today. There's no haggling in retail, and that's how things may turn out. Perhaps with a no-haggle market pricing MSRP will start to look more like what people are getting now.
No argument here. It's surprising how many hoops some people will jump through just to get a deal on a $20 purchase, let alone a $20,000 purchase. But I think those people are not the majority. I believe most people would prefer a more retail-like shopping experience. And factory stores could deliver that better than any traditional dealership.
This is why I think Factory stores are inevitable.
Every dealership now has their own inventory. They have to keep a supply of fast-selling cars on-hand, plus a display inventory. But unlike a retail store that also has on-hand inventory, a dealership's product may not move for months. Ford has to be able to supply all these dealerships with full inventories every year. It's a massive production roll-out that they then have to balance with customer orders and continuing production of the bulk inventory.
Now imagine if they could warehouse the cars. Dealerships would only have to be supplied with display models and a flatbed or two. Customers could buy their car and have it delivered to them in an hour or two. Ford could simplify production as they'd only have to fill out maybe 50%-60% of the inventories they have to now. Small-production models could get greenlit because they wouldn't have to supply a massive number of inventories and there would be more production availability in the plants. Special orders could be completed faster as well.
The factory dealership model is a win for the manufacturers as well. And they have a lot more money to throw around than the dealerships. Tesla has already shown that the model works; that genie is already out of the bottle and no amount of lobbying is going to put it back.
Will we end up with a car salesman that's just another retail employee? Very possible. Though I think the future car salesman will probably be more like one you see at a Verizon store. Somewhat knowledgeable and commissioned, so not much different from today's car salesman. The big difference is that if MSRP becomes RP, there will less need for a salesman that can wheel and deal, and more for one that makes the customer want to buy now.
Incentives, rebates, etc., a.k.a. Sales, are going nowhere. If anything I think they will become more important because people will see the sales are actually coming off the price rather than getting buried in the number-juggling.
So the big question here is, how can Ricart profit from all of this?
It will probably be somewhere in a franchise model with set prices and manufacturer promotions along with an on-demand inventory model that puts the new MY ramp-up costs and year-end overstock losses on the manufacturer's shoulders.