Direct Tesla sales banned in MI

[Gergwheel1647545492]

Way to go Michigan

 

http://www.freep.com/story/money/cars/general-motors/2014/10/17/michigan-verge-banning-tesla-stores/17386251/

[justinwebb]

They should offer a discount for Michigan residents in other states just to make it so other states get the tax revenue and Michigan can see what they missed out on.

[Turbs3000]

The Columbus locations should start advertising in Michigan. Or offering delivery and do the whole thing over the phone.

[jeffro]

Honestly, what good reason is there for them to ban direct sales of automobiles?

 

 

Money hungry pricks.

[zeitgeist57]

Honestly, what good reason is there for them to ban direct sales of automobiles?

 

Because GM's money.

 

It's not even a good reason...it's the ONLY reason.

[Sledhead36]

The dealer networks were set up long-ago to protect the consumers from the manufacturers. The reason being before the advent of unions the manufacture was difficult to contact or deal with, hence a local dealer would help you with purchase and maintenance of the manufactures vehicles. At the time this is a good thing however when Elon Musk decided to go into manufacturing electric cars, he did talk to many of the dealers about selling his vehicles and he believed that they would only use the electric vehicles to get people in the door and then convince them to buy "ice"or internal combustion engine cars. He knew the only way to get a clear shot was to have a dedicated sales force that did not have a gas engine car to sell as an alternative.

 

The reason this scares the dealers is that they are no longer considered valuable to the consumer and only create issues from Price gouging as well as massive profits from servicing the automobiles. If the model works why wouldn't other manufactures go direct in the future to totally control what their stores do and do not provide as well as the quality of service. That's every state has an old law that was written in the 40s as to how a dealership should look. Each state is drawing on those old loss to say that Tesla does not fit the model that was designed and no manufacture may sell direct.

 

This is been overturned in every state other than Texas. You may or may not recall this happened in Ohio, that Germain, ricart, and the Midwestern auto group sued to stop Tesla from selling directly in the state of Ohio. That lawsuit lasted three months and after hundreds of thousands of dollars of taxpayer money, it was proven that it was unconstitutional to block the sale of Tesla cars directly. Keep in mind, the show floors are only a place to look at the cars and demo them, all sales are done online.

 

Thus in the state of Michigan, the only thing that blocked right now is the ability to test drive the car and to talk about pricing. You can still have a store and show the vehicle you just can't test drive it and you can't talk about pricing. However the cars can be ordered and delivered via the Internet and if somebody really needs to try one out they can go to any dealership in the surrounding state and do so. Interestingly enough people do that all the time. Tesla is selling cars as fast as they possibly can make them.

[TTQ B4U]

You can still have a store and show the vehicle you just can't test drive it and you can't talk about pricing. However the cars can be ordered and delivered via the Internet and if somebody really needs to try one out they can go to any dealership in the surrounding state and do so. Interestingly enough people do that all the time. Tesla is selling cars as fast as they possibly can make them.

 

So what are some of the creative ways about getting around the test drive thing? Can they ride as a passenger?

[Turbs3000]

I move to Michigan (ok maybe I'm not that dumb) they give me a Tesla. People looking for a Tesla call me and test drive my personal vehicle. I collect commission on sales, profit.

[Sledhead36]

So what are some of the creative ways about getting around the test drive thing? Can they ride as a passenger?

 

Good guess, that is one way. I also used my personal vehicle, not the demo, for test drives. No one can tell me what I can do with my own car. Lol

[Orion]

Dumb. If I were Michigan, I would be doing everything to encourage any and ALL business in my state. That whole state is hurting, financially.

[Mallard]

Technically, the bill signed yesterday didn't change the law, it just removed one word. The governor said he is open to a discussion on non-franchise dealerships being allowed if that bill were to come across his desk.

 

But yes, dealerships are usually total BS to deal with. I've never trusted any of them.

[zeitgeist57]

Of course, we are talking about Michigan...

 

I'd be upset if I had to buy a loaf of bread there, let alone a Tesla...B'CUZ I'D BE LIVING IN MICHIGAN :no:

[Shmaa]

So what are some of the creative ways about getting around the test drive thing? Can they ride as a passenger?

 

20 minute Rentals?

[nurkvinny]

They should offer a discount for Michigan residents in other states just to make it so other states get the tax revenue and Michigan can see what they missed out on.

 

Except that you pay tax based on your home address, not on where you physically buy the car... at least in Ohio.

[coltboostin]

They should offer a discount for Michigan residents in other states just to make it so other states get the tax revenue and Michigan can see what they missed out on.

 

I believe you pay taxes for the state/county the car will be registered in.

[On3Performance]

Its good advertising for Tesla I think, its going to make people talk. More people will find out about the cars this way just through word of mouth. If they are trying to just protect the big 3 I think whoever made this decision should jump off a cliff.