State to ban direct sales of Tesla cars

[The_Squid]

It will be illegal to buy a Tesla in North Carolina, if this bill passes.

http://www.geekosystem.com/nc-ban-tesla-motors/

Most states have laws on the books prohibiting car manufacturers from selling directly to consumers. Those laws serve to keep car dealers in business and…oh, actually, that’s about all. Tesla, though, has a different sales strategy, opting to sell their rather pricey, top of the line automobiles to wealthy consumers over the Internet and forgoing dealerships altogether. But car dealers are crying foul, and as local dealers have more political sway than a startup electric car company, their concerns carry a lot of weight.

Free market be damned... consumer choice be damned.... I guess that's what they call "business-friendly politicians"...

http://www.newsobserver.com/2013/05/09/2883125/law-would-stop-tesla-electric.html

“You tell me they’re gonna support the little leagues and the YMCA?” Glaser asked, directing his glance at the Tesla contingent milling about a few feet away in the legislative building.

Read more here: http://www.newsobserver.com/2013/05/09/2883125/law-would-stop-tesla-electric.html#storylink=cpy

Awesome red herring thrown out there by the lobbyists!

[The_Squid]

Here's a great tidbit.... the vice-chair of the senate committee that voted on this in NC owns a car dealership! lol Conflict of interest much???

http://www.ncleg.net/gascripts/members/membersByDistrict.pl?sChamber=S&nDistrict=6

Occupation: Owner of Car Dealership

[Boges]

This is sort of like how the US government keeps defence spending up or incarceration up to preserve jobs.

The public sector drags it's heels on innovation to preserve jobs in Canada too. Nothing new here.

[TimG]

I agree with the op: governments should not allow local cartels to keep out competition.

But this is exactly what happens when a WalMart or other big box store is blocked.

This is also what happens when states/provinces set up local 'credentials' for various professionals (doctors, teachers etc).

So are you arguing that you have a problem with car dealership cartels but have no problem with other cartels?

Or do you reject all cartels?

Edited May 14, 2013 by TimG

[The_Squid]

I agree with the op: governments should not allow local cartels to keep out competition.

But this is exactly what happens when a WalMart or other big box store is blocked.

This is also what happens when states/provinces set up local 'credentials' for various professionals (doctors, teachers etc).

So are you arguing that you have a problem with car dealership cartels but have no problem with other cartels?

Or do you reject all cartels?

This is not like Walmart coming to town at all.... this is more like ma and pa coming to town to compete against Walmart and being banned from doing so.

The Provinces need to align their credentials, or have federal credentials, to avoid the silliness of doctors being allowed in BC, but not elsewhere, and vice-versa.

None of which has much to do with the OP.

The sheer hypocrisy of so-called "free market" Republicans voting for this is amazing. And Democrats who claim to be for consumer protections are equally as full of crap. When was the last time a car dealership ever protected the consumer?

[bush_cheney2004]

Not so fast....motor vehicle sales and registrations are highly regulated and taxed transactions. The state has an interest in such sales.

[The_Squid]

Not so fast....motor vehicle sales and registrations are highly regulated and taxed transactions. The state has an interest in such sales.

So?

Neither of which should be an obstacle to selling a Tesla, just not through a franchised dealership.

Things still would be taxed the same and a dealership is not needed to register a vehicle.

[Boges]

I think we should be able to buy Liqour straight from the brewer and completely sidestep the Liqour Store.

[The_Squid]

I think we should be able to buy Liqour straight from the brewer and completely sidestep the Liqour Store.

I can.... but this is really irrelevant to the OP.

http://www.okanaganspirits.com/order-now/

Edited May 14, 2013 by The_Squid

[Canuckistani]

North Carolina. Right to work, check. Right to buy, not so much.

[TimG]

This is not like Walmart coming to town at all.... this is more like ma and pa coming to town to compete against Walmart and being banned from doing so.

What? Telsa is a billion dollar corporation that wants to compete with local ma and pa operations. They are walmart.

The sheer hypocrisy of so-called "free market" Republicans voting for this is amazing.

I agree. But on this front the guilty parties are most often those on the left.

[Wilber]

Tesla supposedly has "stores" and authorized service centers around the country. Their website says so, anyway. It is a small company and can't be expected to have dealers everywhere. However, I would be very reluctant to buy something that expensive without having adequate access to service and deal with warranty issues. Wanted an Audi for a long time but wouldn't buy one until they opened a dealership in the Fraser valley on the south side of the river. No way I was going into Burnaby or Richmond.

During the sixties I used to drool over the Morgans at GB Sterne's dealership in Burnaby. Too poor to afford one then and used prices today make a good one an expensive toy. Like Tesla, Morgan is a small company. Sterne probably only got around a dozen new cars a year (if that) and they were almost always sold before they arrived. He was one of only two dealers in Canada. The other was in Montreal. Does that mean no one outside of BC or Quebec should have been allowed to buy one? I don't think so.

Think NC would have done the same thing if Tesla was built there?

[Wilber]

Here's a great tidbit.... the vice-chair of the senate committee that voted on this in NC owns a car dealership! lol Conflict of interest much???

http://www.ncleg.net/gascripts/members/membersByDistrict.pl?sChamber=S&nDistrict=6

Occupation: Owner of Car Dealership

Guess who wants to be selling Teslas at his dealership. This isn't about keeping Tesla out, it's about getting a piece of the action.

[The_Squid]

What? Telsa is a billion dollar corporation that wants to compete with local ma and pa operations. They are walmart.

Tesla is a car manufacturer competing with the likes of the luxury brands from GMC, BMW, Mercedes, Ford, etc.... They are certainly NOT the Walmart of car manufacturers.

[TimG]

Tesla is a car manufacturer competing with the likes of the luxury brands from GMC, BMW, Mercedes, Ford, etc.... They are certainly NOT the Walmart of car manufacturers.

But the law is not protecting the car manufacturers. The law is protecting local car *dealers* which are tiny compared to Tesla. Tesla is an out of state WalMart of car *dealers* competing with the local ma and pa shops.

There is no argument that you can use to support Tesla's right to do business that does not apply to WalMart and vice versa.

Edited May 14, 2013 by TimG

[The_Squid]

Tesla simply cannot afford the dealer network franchise model and would like to sell their cars using a different sales model. Should this be banned? Let the market decide what the consumers would prefer.

Your Walmart analogy doesn't work. It would be more akin to banning Amazon because books should be sold at bookstores.

Edited May 14, 2013 by The_Squid

[bush_cheney2004]

I think we should be able to buy Liqour straight from the brewer and completely sidestep the Liqour Store.

Good retort...and this is exactly the point. New (and most used) motor vehicles cannot be presented for sale without compliance with state regulation(s) for clear title, satisfaction of liens, taxes, fees, inspection(s), insurance, etc.

And I bet the provinces have similar regulatory frameworks in place.

[The_Squid]

Good retort...and this is exactly the point.

Except in my next post I showed that I CAN indeed buy liquor directly from the manufacturer. And I can buy beer directly from brewers. I get growlers filled at Hoyne on a regular basis. http://hoynebrewing.ca/

New (and most used) motor vehicles cannot be presented for sale without compliance with state regulation(s) for clear title, satisfaction of liens, taxes, fees, inspection(s), insurance, etc.

None of this needs to be done at a car lot.

And I bet the provinces have similar regulatory frameworks in place.

I can buy a Tesla online.

https://www.teslamotors.com/en_CA/own

Edited May 14, 2013 by The_Squid

[bush_cheney2004]

Tesla simply cannot afford the dealer network franchise model and would like to sell their cars using a different sales model. Should this be banned? Let the market decide what the consumers would prefer.

This is a common problem for all boutique auto, motorcycle, ATV, etc., manufacturers, and the long existing solution was/is to partner with existing dealerships. I specifically remember this happening for Suzuki car sales in the U.S.

Edited May 14, 2013 by bush_cheney2004

[bush_cheney2004]

None of this needs to be done at a car lot.

Many car dealers and brokers do business without a car lot, but do so in compliance with state law(s).

[The_Squid]

This is a common problem for all boutique auto, motorcycle, ATV, etc., manufacturer's, and the long existing solution was/is to partner with existing dealerships. I specifically remember this happening for Suzuki car sales in the U.S.

Why should they have to if they have a different sales strategy? They would like to own their own dealerships. They have a sales office in Texas now... they just can't discuss the price or allow test drives. They do have a sample there that people can oooh and ahh over and then go home and order one.

[The_Squid]

Many car dealers and brokers do business without a car lot, but do so in compliance with state law(s).

New cars.... you should read the articles and links... this is about Tesla new car sales and the barriers to that.

[bush_cheney2004]

Why should they have to if they have a different sales strategy? They would like to own their own dealerships. They have a sales office in Texas now... they just can't discuss the price or allow test drives. They do have a sample there that people can oooh and ahh over and then go home and order one.

Texas is not North Carolina. Title and deliver the cars in Texas if they want. Tesla is not above state law.

[bush_cheney2004]

New cars.... you should read the articles and links... this is about Tesla new car sales and the barriers to that.

How new is "new" ? Car sales are highly regulated in the U.S. with federal and state laws.

Edited May 14, 2013 by bush_cheney2004

[TimG]

Tesla simply cannot afford the dealer network franchise model and would like to sell their cars using a different sales model. Should this be banned? Let the market decide what the consumers would prefer.

I agree that consumers should be given the choice. But the question of whether Tesla can 'afford' to set up a dealer network is immaterial since they could cut a deal with a local dealership. Tesla is choosing to market directly because wants to increase its profits. I suspect the main reason for the proposed ban is the dealers are worried about other car markers getting the same idea which could destroy their entire business model.