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re: Do you think car dealerships will become obsolete?
Posted on 2/3/24 at 2:44 pm to ImJustaBoy
Posted on 2/3/24 at 2:44 pm to ImJustaBoy
quote:
You are better off riding the bus before you finance through carvana. They are ruining young, naive people’s credit and it’s sad to see
What exactly are they doing? What’s their broken process?
1
Posted on 2/3/24 at 2:44 pm to auburnu008
quote:
Welcome to the TD OT. Where every job and career is ABSOLUTLEY useless with the exception of off shore oil people.
Don’t forget plant operators
Posted on 2/3/24 at 3:15 pm to Thundercles
It's bullshite. They even tried to get the Tesla service center in Nola shutdown at one point. Can't even take delivery of a car there. Or test drive.
Posted on 2/3/24 at 3:52 pm to CHGAR
quote:
They already are, it just hasn't been realized yet. If it were not for the arcane state laws protecting them, the dealer model would already be dead.
Instead of independent dealers, it will be manufacturers placing delivery/services centers around the country.
LOL. No. Franchise dealerships are huge profit centers for the manufacturers. once a dealer takes a car it's a sold unit. They hold the inventory and the Manuf. gets to charge them interest on the floor plan. As financially astute the OT thinks they are, many many new car sales are impulse items sold through service. "oh you need a $6k transmission and can't afford it, come on over to see the new car salesman he'll get you riding today! Don't worry about that negative equity we'll just roll that in" Manufacturers can push dogs onto dealers. "oh you want those new Shelby mustangs you can mark up well you have to take these doo-doo brown fusions also" Don't forget the dealership tools, service and store front upgrades.
not to mention many of these stores represent huge investments from the dealership owners much of which is pushed on the dealer by the manuf.. If you want to sell the cars you have to build a bigger and bigger store to represent the brand properly. You think the dealers are just going to lay down and let the companies sell cars competing with them after they were pushed into the investment? cmon man! I have a friend whose family is building a new Porsche store in a major area. I asked him will it be the same as the store they already have across town. He says "bigger. it's ALWAYS bigger"
Posted on 2/3/24 at 3:53 pm to LSUFanHouston
quote:
What exactly are they doing? What’s their broken process?
Their cars are going for $2-$5k more than quality used car dealerships, and they approve any type of credit, especially short credit history, so alot of 18-25 years are paying $4k more than they are supposed too with 15% interest. But hey, it’s delivered to your door. Like even if the local ford was scalping $4k because of shortages, carvana would be another $4k over their scalped price.
This post was edited on 2/3/24 at 3:55 pm
Posted on 2/3/24 at 3:54 pm to SaintlyTiger88
Many car manufacturers are moving this direction. They want to direct to customer and user dealership for service only.
Posted on 2/3/24 at 3:57 pm to dlambe5
quote:
The dealerships just need to make the process easier and less time consuming. We can negotiate price, extended warranty, trade in, and financing all thru email or some website (even sign the paperwork). The current process takes way too long. Shouldn’t take 6 hours to walk out with a new car.
this I 100 percent agree with. last couple I have bought have been very quick.
Posted on 2/3/24 at 3:59 pm to Locoguan0
quote:Lol no they are not. They are talking out the side of their mouth. The legacy companies don't want to deal with customers BS directly and the dealer stores are huge profit centers for them in many ways
Many car manufacturers are moving this direction. They want to direct to customer and user dealership for service only.
Posted on 2/3/24 at 4:00 pm to Thundercles
quote:
Dealerships will move to more of a showroom model like Tesla while also offering very small scale selling for people who still want to do it the traditional way.
This is exactly how I imagine it will be - you can go see them, test drive them, and then have one delivered direct to your house.
Future looks bright.
Posted on 2/3/24 at 4:19 pm to Thundercles
quote:
Florida just did this also. Pretty dickhead move; it's purely to protect the dealerships at the detriment of the consumer.
Big government social conservatives. Truly the worst conservatives.
Posted on 2/3/24 at 5:40 pm to achenator
Yeah, everytime there is one of the “all dealerships suck” threads, I get a kick out of it because almost no one has any idea what they are talking about
Posted on 2/3/24 at 5:54 pm to achenator
quote:
the Manuf. gets to charge them interest on the floor plan
The manufacturers rarely underwrite the floor plan. Sometimes it’s white labeled, but they’re almost exclusively underwritten by big banks and insurance companies.
This post was edited on 2/3/24 at 6:00 pm
Posted on 2/3/24 at 5:55 pm to SaintlyTiger88
Hell, Mississippi passed a law a couple of years protecting the dealerships.
Posted on 2/3/24 at 7:00 pm to SaintlyTiger88
Dealerships are dinosaurs that should have went extinct a long time ago
Posted on 2/3/24 at 8:01 pm to billjamin
quote:GMAC and Ford credit aren't doing this? My buddy runs an Audi store and i'm pretty sure he told me VAG did this for them.
The manufacturers rarely underwrite the floor plan. Sometimes it’s white labeled, but they’re almost exclusively underwritten by big banks and insurance companies.
Posted on 2/4/24 at 8:40 am to SaintlyTiger88
We have this discussion every six months. It's kind of dumb. If independent dealerships disappeared, it's not like you'd phone up Detroit and order your F150 and then a month later go down to the rail yard and get the keys when it rolls off a flatcar.
Instead, you would have the "Ford Store" or the "Chevy Store". It would look a lot like a dealership, except the polo shirts would be the same color as teh guys in Shreveport and El Paso and Rochester.
Then you would have a national CRM so if you went to the Ford Store in Shreveport and made an offer on a blue F150, they would know it in Memphis, Atlanta, etc.. and not offer you much different of a deal at the other dealers, as Ford owned them all.
If you hated the service at the Jackson Ford Store, you wouldn't be able to boycot them, as folks often do, becuase it's the same company!
Also there would be hundreds of management types, vice presidents, regional managers, etc... so the car isnt going to be cheaper.
Fun fact, the dealers dont make much money on sales. How would it get cheaper if there is little profit anyway? Cant get blood from a stone.
Instead, you would have the "Ford Store" or the "Chevy Store". It would look a lot like a dealership, except the polo shirts would be the same color as teh guys in Shreveport and El Paso and Rochester.
Then you would have a national CRM so if you went to the Ford Store in Shreveport and made an offer on a blue F150, they would know it in Memphis, Atlanta, etc.. and not offer you much different of a deal at the other dealers, as Ford owned them all.
If you hated the service at the Jackson Ford Store, you wouldn't be able to boycot them, as folks often do, becuase it's the same company!
Also there would be hundreds of management types, vice presidents, regional managers, etc... so the car isnt going to be cheaper.
Fun fact, the dealers dont make much money on sales. How would it get cheaper if there is little profit anyway? Cant get blood from a stone.
Posted on 2/4/24 at 8:50 am to billjamin
quote:The good ones are worth what they are paid. Thats probably 1 out of 10 though.
Same as realtors
Posted on 2/4/24 at 8:51 am to SaintlyTiger88
quote:
Do you think car dealerships will become obsolete?
dunno man... physically seeing and test driving a car is a huge part of the process... hell, yesterday we bought a used vehicle, at the 4th dealership we went to... saw this hell of a deal at a dealership in Mandeville, so we drive out there to go look at it, and thankfully we did, b/c it had undisclosed damage to a party of the door and front fender, which wasn't in any of the photos nor the description of the vehicle, either by the dealership nor Carfax...
car buying, just like most things in life, can be simplified if you just educate yourself on the process, know some basic principles, and do a little homework on the seller and the product...
Posted on 2/4/24 at 9:04 am to SaintlyTiger88
recalls are where dealers make money who gonna be doing those
Posted on 2/4/24 at 9:34 am to MikeAV8s
They add zero value to the consumer
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