Death to the car dealership — the Tesla sales model is poised to take over America
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2019 E 450, 2016 E350 4matic (retired), 2018 Ford Edge Sport, 2008 Porsche Boxster
Death to the car dealership — the Tesla sales model is poised to take over America
I thought this opinion piece interesting. In the past 15 years, the only car I did not order was my 2016 Mercedes which I bought from stock. In fact on my last four cars, including the 2016 Mercedes, I never went to the dealer. Everything was done either online or by email. The first time I went to the dealership was to demo the car, the second time to pick up the car, the third time for my 10,000 mile A service.
Besides Tesla, the Ford Mustang MachE is ordered online. Options are limited to color, exterior and interiors and wheels. The price is fixed. In the order form there is a provision to name a dealer for pickup - but you never actually go to the dealer until the MachE is ready for delivery.
see: https://www.marketwatch.com/story/de...?siteid=yhoof2
Besides Tesla, the Ford Mustang MachE is ordered online. Options are limited to color, exterior and interiors and wheels. The price is fixed. In the order form there is a provision to name a dealer for pickup - but you never actually go to the dealer until the MachE is ready for delivery.
see: https://www.marketwatch.com/story/de...?siteid=yhoof2
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2024 EQE 500
I always prefer to purchase/negotiate via email. I will test drive at the dealer/showroom and that's that. Whichever dealer model, and recognizing right now negotiation is...different, I never go to the dealer/showroom to discuss the purchase. My time is worth more than that. Regarding the Tesla model, this last weekend I went to a Lucid studio to look at the Air that I put a reservation in for. If I complete the order, I pay the same price as everyone else. It's definitely different. In either case, just picking up (or really having it delivered) the car being the only reason to visit the dealer works for me.
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From: Franklin, TN
2019 E450 wagon: 2019 BMW 430i: 2013 Chevy Traverse: (departed)2013 SL550 & 2019 E450 cab
I always prefer to purchase/negotiate via email. I will test drive at the dealer/showroom and that's that. Whichever dealer model, and recognizing right now negotiation is...different, I never go to the dealer/showroom to discuss the purchase. My time is worth more than that. Regarding the Tesla model, this last weekend I went to a Lucid studio to look at the Air that I put a reservation in for. If I complete the order, I pay the same price as everyone else. It's definitely different. In either case, just picking up (or really having it delivered) the car being the only reason to visit the dealer works for me.
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2019 C63CS
And not a moment too soon. I've said this for a while. Dealerships and particularly the sales staff don't add any value if you are an informed customer. I also have ordered all my cars. I never understood buying off the lot and compromise on what happens to be available. The last two were both European Deliveries, which were a mostly no BS experience because you are actually buying from corporate with a fixed discount. Still had to place the actual order with a dealership and also pay for the car at the dealership, but mostly interacted with the ED departments directly. Unfortunately, ED is no more, but yes we should just be able to order the cars online. I pretty much always interacted with the sales staff through email and just went in to pay and do the paperwork and test drive the car when they actually had one. Typically the cars I order don't actually sit around on the lot, so test driving them isn't even an option many times. While I don't like Teslas, their model on the other hand is great. Have central locations where you can test drive and then just place the order online and pick the car up at the factory, or get it delivered to a local dealer. For service have it done in your driveway by a mobile technician or take it to a service center.
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From: Long Island, NY
2019 E 450, 2016 E350 4matic (retired), 2018 Ford Edge Sport, 2008 Porsche Boxster
And not a moment too soon. I've said this for a while. Dealerships and particularly the sales staff don't add any value if you are an informed customer. I also have ordered all my cars. I never understood buying off the lot and compromise on what happens to be available. The last two were both European Deliveries, which were a mostly no BS experience because you are actually buying from corporate with a fixed discount. Still had to place the actual order with a dealership and also pay for the car at the dealership, but mostly interacted with the ED departments directly. Unfortunately, ED is no more, but yes we should just be able to order the cars online. I pretty much always interacted with the sales staff through email and just went in to pay and do the paperwork and test drive the car when they actually had one. Typically the cars I order don't actually sit around on the lot, so test driving them isn't even an option many times. While I don't like Teslas, their model on the other hand is great. Have central locations where you can test drive and then just place the order online and pick the car up at the factory, or get it delivered to a local dealer. For service have it done in your driveway by a mobile technician or take it to a service center.
I have a friend who also leases and wanted my advice on a new car - this was last year before the chip shortage: I gave him the salesmen's name at the Costco dealership that was 30 minutes away: Long story short he went back to the local dealer, said the salesmen was very friendly (aren't they all) bought the car off the lot and paid several thousand more than at the Costco dealer: What gives? He is 90 years of age!
Today people under 60 are familiar and comfortable buying online. They read the reviews and decide what they want. So many work at home, so if they do not go to a physical office, they certainly are not going to a dealership: they do as I have been doing: everything is online and if a demo is not needed they visit, but otherwise the first time at the dealership is when they pick up the car.
Several years ago we bought a 2015 Ford Edge Sport from a dealer in NJ: we live on Long Island. In this instance we never went to the dealer: All negotiations were either by email or telephone: they delivered the car to us and in the comfort of our driveway they explained how the different functions worked. A most pleasant experience. Never went to the dealer and do not know where in NJ it is located!
Just like full brokerage stock brokers who have been replaced by firms like Fidelity, Etrade and Charles Schwab, imo the handwriting for dealerships is on the wall: they too will be gone and not missed!
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I agree with you 100%:
I have a friend who also leases and wanted my advice on a new car - this was last year before the chip shortage: I gave him the salesmen's name at the Costco dealership that was 30 minutes away: Long story short he went back to the local dealer, said the salesmen was very friendly (aren't they all) bought the car off the lot and paid several thousand more than at the Costco dealer: What gives? He is 90 years of age!
Today people under 60 are familiar and comfortable buying online. They read the reviews and decide what they want. So many work at home, so if they do not go to a physical office, they certainly are not going to a dealership: they do as I have been doing: everything is online and if a demo is not needed they visit, but otherwise the first time at the dealership is when they pick up the car.
Several years ago we bought a 2015 Ford Edge Sport from a dealer in NJ: we live on Long Island. In this instance we never went to the dealer: All negotiations were either by email or telephone: they delivered the car to us and in the comfort of our driveway they explained how the different functions worked. A most pleasant experience. Never went to the dealer and do not know where in NJ it is located!
Just like full brokerage stock brokers who have been replaced by firms like Fidelity, Etrade and Charles Schwab, imo the handwriting for dealerships is on the wall: they too will be gone and not missed!
I have a friend who also leases and wanted my advice on a new car - this was last year before the chip shortage: I gave him the salesmen's name at the Costco dealership that was 30 minutes away: Long story short he went back to the local dealer, said the salesmen was very friendly (aren't they all) bought the car off the lot and paid several thousand more than at the Costco dealer: What gives? He is 90 years of age!
Today people under 60 are familiar and comfortable buying online. They read the reviews and decide what they want. So many work at home, so if they do not go to a physical office, they certainly are not going to a dealership: they do as I have been doing: everything is online and if a demo is not needed they visit, but otherwise the first time at the dealership is when they pick up the car.
Several years ago we bought a 2015 Ford Edge Sport from a dealer in NJ: we live on Long Island. In this instance we never went to the dealer: All negotiations were either by email or telephone: they delivered the car to us and in the comfort of our driveway they explained how the different functions worked. A most pleasant experience. Never went to the dealer and do not know where in NJ it is located!
Just like full brokerage stock brokers who have been replaced by firms like Fidelity, Etrade and Charles Schwab, imo the handwriting for dealerships is on the wall: they too will be gone and not missed!
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From: Long Island, NY
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Tell me in all honesty does a salesmen at a car dealer add anything commensurate with their compensation? When I walk into my Mercedes dealership I see salesmen/women wearing Rolex watches dressed in fancy Italian clothes making six figure salaries. What actually do they add to the process that they should be making the kind of money that they do?
As I posted Tesla and now Ford with the MachE has shown that the salesmen is not needed. This is not like a salesperson at Costco, Home Depot who is paid a salary, actually answers questions and assists you. In my business I had many salesmen who worked on commission and provide a service. They did not control the price - I as the owner did.
IMO, there is a huge difference between a sales person in retail and a sales person in an auto dealership.
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From: Dallas-Ft.Worth,TX
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If car dealerships go the way of the dodo bird in the US -- because of TESLA -- I'm sure Mercedes-Benz will be happy to sell their cars through their dealership networks in Europe, Asia, etc.
That said, I found my current MB on a dot.com website (texascarsdirect.com), but had to go to the dealership to test drive, and purchase.
Negotiating a car price has become a lost art... The willingness of Gen-Xers (et al) to buy cars at a whim at set prices online -- sight unseen -- just makes it easier for the manufacturers to sell cars... Then they feel entitled to moan and groan that they've been taken advantage of after delivery. Go figure...
That said, I found my current MB on a dot.com website (texascarsdirect.com), but had to go to the dealership to test drive, and purchase.
Negotiating a car price has become a lost art... The willingness of Gen-Xers (et al) to buy cars at a whim at set prices online -- sight unseen -- just makes it easier for the manufacturers to sell cars... Then they feel entitled to moan and groan that they've been taken advantage of after delivery. Go figure...
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From: Washington DC
No more MB:(
If car dealerships go the way of the dodo bird in the US -- because of TESLA -- I'm sure Mercedes-Benz will be happy to sell their cars through their dealership networks in Europe, Asia, etc.
That said, I found my current MB on a dot.com website (texascarsdirect.com), but had to go to the dealership to test drive, and purchase.
Negotiating a car price has become a lost art... The willingness of Gen-Xers (et al) to buy cars at a whim at set prices online -- sight unseen -- just makes it easier for the manufacturers to sell cars... Then they feel entitled to moan and groan that they've been taken advantage of after delivery. Go figure...
That said, I found my current MB on a dot.com website (texascarsdirect.com), but had to go to the dealership to test drive, and purchase.
Negotiating a car price has become a lost art... The willingness of Gen-Xers (et al) to buy cars at a whim at set prices online -- sight unseen -- just makes it easier for the manufacturers to sell cars... Then they feel entitled to moan and groan that they've been taken advantage of after delivery. Go figure...
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2019 E300
Negotiation is an art, it is a form of communication and social interaction. The millennials likes one set price for everyone, kind of like a socialist society. Everything will be made easier in the future in exchange for a higher price. There will be service industries that did not exist in the last generation and we will all look back and wonder how we ever survive before those services.
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The way one acquires wealth may dictate the way one spends it. Those that worked hard for it (Gen X here BTW) will scrutinize how they spend it. Crypto and other fast means comes and goes a bit easier. That's a generalization but the point stands.
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From: A Dutchy Living in Marseille, France
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In a way, it's surprising that dealers have lasted this long
Even if In Europe where you pretty much always "order" a car, there is no real need for a dealer to help you with this.
I did all my research myself and think i can honestly say i was better informed than them.
The only real function they have, is that it's a place where you can actually see/test the car.
They are in big buildings, with a "showroom stock" and this needs to be paid for in some way ...
Even if In Europe where you pretty much always "order" a car, there is no real need for a dealer to help you with this.
I did all my research myself and think i can honestly say i was better informed than them.
The only real function they have, is that it's a place where you can actually see/test the car.
They are in big buildings, with a "showroom stock" and this needs to be paid for in some way ...
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From: Long Island, NY
2019 E 450, 2016 E350 4matic (retired), 2018 Ford Edge Sport, 2008 Porsche Boxster
In a way, it's surprising that dealers have lasted this long
Even if In Europe where you pretty much always "order" a car, there is no real need for a dealer to help you with this.
I did all my research myself and think i can honestly say i was better informed than them.
The only real function they have, is that it's a place where you can actually see/test the car.
They are in big buildings, with a "showroom stock" and this needs to be paid for in some way ...
Even if In Europe where you pretty much always "order" a car, there is no real need for a dealer to help you with this.
I did all my research myself and think i can honestly say i was better informed than them.
The only real function they have, is that it's a place where you can actually see/test the car.
They are in big buildings, with a "showroom stock" and this needs to be paid for in some way ...
One major advantage, which I think more car manufacturers will adopt is the dearth of options: color exterior 5 choices, interior 2 choices, wheels 2 choices, FSD yes or no: The Ford MachE is the same process: This is Back to the Future and the way Henry Ford built cars: you can any color you want as long as it black.
Having all the myriad of choices that Mercedes and other high end manufacturers offer, almost dictates to many customers the dealership model to help sort out those choices.
Just my $.02:
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From: Austin TX Area
2020 E450 Wagon
I don't think dealerships are going anywhere any time soon. I think a lot of the valid points made above about a dealerships lack of value and people ordering online are valid. However, people who buy MB, Tesla's etc. are not the majority demographic of car buyers. Dealerships are still very busy on weekend's with walk in traffic and the less educated about best way to buy cars are still shopping and buying in dealerships.
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From: Ohio
'16 C450, '21 Dad Wagon Pilot, '22 Wrangler 4xe
I will preface my thoughts with being transparent that I am a Mercedes-Benz sales associate-
I absolutely hate the dealer model, car shopping, and went into the industry kicking and screaming after what I had known for the last 8 years was wrecked due to Covid.
What I think people here sometimes forget is that we are all on a Mercedes specific forum with a wealth of shared knowledge. I see the same names dotted in forums daily sharing what they know and likely learning something along the way. The average buyer is not that, we're a small percentage of shoppers as to how we think, be it a Mercedes-Benz or I'm sure a Samsung tv. For most, the dealership is still the easiest place for people to learn about the product offerings and the chance to touch and feel.
Some of my best customers I have never met in person. I learned their tastes and will call with information on a allocation or something that sparks their fancy in a used vehicle.
Essentially I act as a broker for a handful of clients to pay the bills then answer questions and walk the lot to fill the time and hit my volume.
Dealerships will die but I think it will take longer than most of us expect.
I absolutely hate the dealer model, car shopping, and went into the industry kicking and screaming after what I had known for the last 8 years was wrecked due to Covid.
What I think people here sometimes forget is that we are all on a Mercedes specific forum with a wealth of shared knowledge. I see the same names dotted in forums daily sharing what they know and likely learning something along the way. The average buyer is not that, we're a small percentage of shoppers as to how we think, be it a Mercedes-Benz or I'm sure a Samsung tv. For most, the dealership is still the easiest place for people to learn about the product offerings and the chance to touch and feel.
Some of my best customers I have never met in person. I learned their tastes and will call with information on a allocation or something that sparks their fancy in a used vehicle.
Essentially I act as a broker for a handful of clients to pay the bills then answer questions and walk the lot to fill the time and hit my volume.
Dealerships will die but I think it will take longer than most of us expect.
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2019 C63CS
At least for a while a hybrid model probably would make sense just like with other retail. Some people do all their shopping online, and others prefer to go to a store. I think at least car manufacturers should start offering online ordering on their website, not just have a configurator and then you have to go to the dealership and repeat the whole process again. Some manufacturers in some markets at least generate a unique code once you've built your configuration online and then you just have to give that code to a dealership and they can place the exact order making sure no option is accidently dropped or the wrong color put in. This is very common in Europe now.
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. Some manufacturers in some markets at least generate a unique code once you've built your configuration online and then you just have to give that code to a dealership and they can place the exact order making sure no option is accidently dropped or the wrong color put in. This is very common in Europe now.
A person at the dealership on salary, not commission, to double check my configuration to make sure there are no duplication or glaring omissions. Many years ago I wanted a heated steering wheel and heated front seats, which I had ordered separately. When I went to the dealership to place the order I was told there was a new package that included both at a lower price than ordering individually.
On my present 2019 E450 which I ordered, I knew exactly what options I wanted, their code number and gave this to several dealers for their best price.
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The Tesla business model is a good one, the sales associates are young and cheap and very few middle management. The service centers are owed by Tesla, the service centers are far and few in between but Tesla could get away with that since EV require little maintenance. Mobile service support is a great idea, I am surprise not all dealers are doing this for routine maintenance.
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MBWorld Fanatic!
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From: Long Island, NY
2019 E 450, 2016 E350 4matic (retired), 2018 Ford Edge Sport, 2008 Porsche Boxster
The Tesla business model is a good one, the sales associates are young and cheap and very few middle management. The service centers are owed by Tesla, the service centers are far and few in between but Tesla could get away with that since EV require little maintenance. Mobile service support is a great idea, I am surprise not all dealers are doing this for routine maintenance.
On an BEV, besides inspections, at 10,000 miles it is basically a tire rotation which can be done very easily with a mobile station. With Tesla, under warranty they would be charging themselves so a lot of unnecessary work is not done. Different model than the dealership who wants to do work under warranty.
Just my thoughts.
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From: SW Desert USA
2014 Jag F-Type vert, 2004 Volvo V70R
Ah, the “dealership experience.” Is there a worse experience anywhere in the world of commerce. First you get to argue/negotiate with the sales person and endure the endless “I have to talk to the sales manager” run around. Worst of all you never know if the sale price is good, bad, or indifferent. Then you have to take on the F&I person who makes the salesperson look like a saint and has more schemes, artifices, and devices to take your money than most people can count. Lastly you are subjected to the service department which charges like a medical center for maybe or maybe not adequately performed work
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From: SW Desert USA
2014 Jag F-Type vert, 2004 Volvo V70R
