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re: Benson vs Bowers shows insanity of car dealership business
Posted on 6/1/26 at 1:47 pm to Purple Spoon
Posted on 6/1/26 at 1:47 pm to Purple Spoon
quote:You take away their protections and they collapse.
I’ve been hearing that dealerships are collapsing since 2020. And yet my local small town dealer is loaded up with fresh 2500s and 4wheel drive Yukon’s
1
Posted on 6/1/26 at 1:48 pm to LSUFanHouston
I hate dealerships.
I hate local governments who listen to their complaints. Benson and chevy should have zero say in where another business locates itself.
Bring back the inventory tax.
I hate local governments who listen to their complaints. Benson and chevy should have zero say in where another business locates itself.
Bring back the inventory tax.
Posted on 6/1/26 at 1:52 pm to LemmyLives
quote:
Are you dumb?
yep ya got me, total idiot here.
Still smarter than you however.
Posted on 6/1/26 at 1:53 pm to Hangover Haven
quote:
Side note: Really Surprised Wal-Mart didn't try to purchase that property, the closest WM to that area is the one in Elmwood,
Well, Rouse's would have a legitimate complaint because they would be sharing parking lots with Walmart.
Posted on 6/1/26 at 2:01 pm to LSUFanHouston
quote:
the protectionism and entitlement in the dealership world is insane.
They have their territories and limitation spelt out and their dealership agreement and Bowers is just trying to get an exception so he can be in a better location on a street with more traffic. The other two dealerships are merely asserting their rights that are spelled out in their dealership agreement.
Posted on 6/1/26 at 2:03 pm to Harvey Vortac
Do you know anyone that has been unable to buy a Tesla?
Posted on 6/1/26 at 2:05 pm to kywildcatfanone
quote:
Do they let fast food restaurants file complaints when another moves in down the street?
If it's the same franchise, absolutely.
Posted on 6/1/26 at 2:28 pm to mdomingue
Who would they complain to?
Posted on 6/1/26 at 2:30 pm to skeeter1106
quote:
Who would they complain to?
To the franchisor. Of course, there are usually barriers in place to stop that before it starts.
Posted on 6/1/26 at 2:39 pm to Scruffy
quote:
You take away their protections and they collapse.
People think that most of the big car companies want to sell direct. Sure maybe on a few high profit, low production models. The dealership system is a huge win for major auto makers and huge profit centers for them. The dealerships hold the inventory and the auto maker can charge interest on the floor plan. They buy expensive tools, training and furnishings and signage from the automaker.I was told the new porsche store had to buy over a million in furniture from porsche. The auto maker tells them how big the dealership needs to be to carry their brand and how many cars they are expected to sell. They make them carry the "dogs" to be able to get the hot models. They are able to insulate themselves from the end consumer and their complaints, especially high interest rate buyers. Many new cars are sold through the service departments. "sorry you can't afford that new $6k transmission but step over here and look at a new car, don't worry about that repair and your negative equity, we can roll that in"
Dealerships can't and won't just "go away" Do you think these dealers that are spending $50mm+ on a facility don't have iron clad exclusivity agreements including that the manufacturer can't sell cars direct in their market?
I know a few dealership GM's and my friend's family owns 17 stores in ATL, there is so much I learn about that business all the time by talking to these people over dinner and drinks. I've never been in the car business but it's always fascinated me.
Posted on 6/1/26 at 2:42 pm to kywildcatfanone
and they still ignore your complaint.
Posted on 6/1/26 at 2:44 pm to Lou Loomis
quote:
They have their territories and limitation spelt out and their dealership agreement and Bowers is just trying to get an exception so he can be in a better location on a street with more traffic. The other two dealerships are merely asserting their rights that are spelled out in their dealership agreement.
I would imagine that part to Benson's gripe with this is that MB would be building a brand new bigger, flashier store that can hold more amenities than her current store which is locked in pretty tightly on all sides. Pretty soon we will see car dealers on veterans with multi story parking facilities like in Houston or ATL.
Posted on 6/1/26 at 2:48 pm to LSUnation78
quote:What if Chevy tells you in your contract how big your store needs to be and how many cars you need to buy for your area in exchange for exclusivity? This is what happens.
chevy should have zero say in where another business locates itself.
Posted on 6/1/26 at 3:16 pm to Lou Loomis
quote:
They have their territories and limitation spelt out and their dealership agreement and Bowers is just trying to get an exception so he can be in a better location on a street with more traffic. The other two dealerships are merely asserting their rights that are spelled out in their dealership agreement.
Sounds like a contractual dispute between several parties
Now tell me, why is the State involved in this?
Posted on 6/1/26 at 3:22 pm to achenator
quote:
The dealership system is a huge win for major auto makers and huge profit centers for them.
Then why do we need a state law in Louisiana forcing the dealer system?
Eventually AI is going to come for the sales process. The big reason why so many “need to go to dealership to fix car because exclusive tools” is because there needs to be a reason for people to still visit dealerships
Posted on 6/1/26 at 3:37 pm to TigersSEC2010
quote:
Dealerships need to collapse. Their use is gone. Set up maintenance shops where they stood and be done.
Isn't that like saying furniture stores should be gone because we want to buy direct from the manufacturer?
If auto manufactures take over the point of sale part of the business, they (and their shareholders) will be looking to profit off of that part of the business.
E.T.A. Dealerships aren't going anywhere unless the manufactures buy them out. Then they will be looking to get paid back.
This post was edited on 6/1/26 at 3:53 pm
Posted on 6/1/26 at 3:40 pm to LSUFanHouston
quote:Because in business you take everything you can get? Why would dealers willingly give that up? They have lobbyists just like Tesla does or any other business group.
Then why do we need a state law in Louisiana forcing the dealer system?
Posted on 6/1/26 at 3:40 pm to lsunutinno
quote:
Isn't that like saying furniture stores should be gone because we want to buy direct from the manufacturer.
1) it’s easier to see a car on the road than a dresser in someone else’s house
2) look at a company like Ashley. You can buy online. You can buy in their store. You can buy third party store.
Posted on 6/1/26 at 3:42 pm to achenator
quote:
Because in business you take everything you can get? Why would dealers willingly give that up?
I understand why they don’t want to lose their advantage. But why are politicians choosing them over consumers
quote:
They have lobbyists
And there it is. And lobbyists carry checks.
Posted on 6/1/26 at 3:43 pm to kywildcatfanone
quote:
Why would this be challenged? Do they let fast food restaurants file complaints when another moves in down the street?
I assume all three are Chevrolet or at least GM, and the complaint is to the parent company.
If it's Ford trying to move in they just have to accept it.
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