Tesla and Direct Sales

December 15th, 2017 by

Elon Musk, CEO, and brainchild of Tesla Motors has been selling his automobiles in storefronts. There is no dealership model for him to follow because he sees his cars as something truly unique. They don’t compare ‘apples to apples’ in his opinion with other manufacturers. There is some truth to this. The Tesla brand has carved a niche like no other automaker in the market today. But should that be enough to sell their vehicles without a dedicated Service and Parts department?

-Tesla and the Sales proposition-

In years past automakers had set rules in place via the government that they could not sell directly to consumers. By doing this it kept franchise dealerships from being undersold by their parent auto group. Tesla argued their case to the FTC last year. They stated that since their vehicles require little Service work (due to being EVs) that they don’t require a dedicated franchise dealer system. And, since they don’t see a need for this then Elon Musk believes he should be able to sell directly to consumers. Both dealers and automakers insist that Tesla’s business model is breaking this long-standing law.

-The value of a dealership-

What you gain by having a franchise dealership model is competitive pricing without automaker interference. Dealerships having a trained and knowledgeable staff in both product and finance. This is a win-win for you, the consumer. Furthermore, having a Service department that can truly repair any issue you have with your car or truck is paramount to good customer service. The last thing you need is to be stranded at the dealership because they cannot service your vehicle.

-Trust is earned-

At Zimmer CDJR we have been apart of our community for nearly 90 years. We understand what our customers want and need because we know you and see you in both Sales and Service. Trust our ownership and our staff to take the best care of you!

Posted in Community, Service