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Posted on 10/25/2014 8:35:33 AM PDT by Kaslin
In this case the legislature made it easier for Tesla to sell in Michigan.
“Are Teslas Federally subsidized like other electric cars? Are electric cars still subsidized?”
Are GM and Chrysler still federally subsidized?
Thank you for the web sites.
However, I also never pay MSRP on any new vehicles.
The dealerships will get their money with the maintenance and repair.
Dealers usually cut very good deals on ‘build-it’ models. No hassle in it for them. Customer does all the work on-line. The drawback is the wait!
Good post. Thanks.
“Anybody know why this is?”
If you buy a Ford that is crap do you take it back to the dealer, or haul it to Detroit?
Would you haul that Tesla back to California, or wherever that POS is made?
The law was to protect consumers.
I don’t like the idea of any auto manufacturer being forced to sell through a franchise but that’s longstanding law in Michigan and probably most other states.
Its ridiculous to believe what has become a very de-regulatory legislature under a very liberal “green jobs” republican would suddenly change direction to regulate Tesla out of the state.
My neighbor has a Tesla, bought in California. I’m not aware of any state preventing anyone from buying any brand of vehicle based on dealership location or lack thereof.
Aren’t these laws really about dealer license fees and storefronts with no protection for the buyer?
And Hussein picks who's gonna win, and who's gonna lose!
Yep. I agree.
But I don’t think some lib company should be exempt from the laws everyone else has to live under.
Buying a car here in Florida means talking to some slimey NYCer....generally the most disgusting people on the planet.
Id much rather buy a car direct and cut out the scum.....
I think you misunderstand what Tesla is trying to do. Here is a map of what they have done so far (red is current, gray is “coming soon”... notice the blank space over Michigan):
http://www.teslamotors.com/findus#/bounds/55,-70,15,-115,d?search=service
Tesla wants to run their *own* dealerships (complete with service centers and everything) instead of franchising them out. They believe that a franchisee that might also own other dealerships selling gasoline-powered cars would do a poor job of advocating the benefits of electric cars, since such a dealer would have mostly gasoline-powered inventory.
What this Michigan law has done is prevent Tesla from opening up local dealerships and service centers in Michigan using their manufacturer-owned business model.
“I read the article rather rapidly and maybe my question was addressed and I missed it but how does Tesla handle “trade ins” without dealerships being involved? Not allowed?” -Graybeard58
Tesla wants to run their own dealerships where all that kind of stuff would be handled. As far as you, the customer, is concerned it would be just like any other dealership except that the salespeople would not get paid based on commissions. Tesla is doing this in other states and this new law in Michigan ensures that it can't do it there, unfortunately.
“Prior to the change, automakers were required to sell through their own franchises. Now they can sell through any franchise. Ford can sell through Mercedes, Chevy can sell through a Toyota franchise. (Tesla needs lots of techs to fix the cars before any franchise will sell them)” -cripplecreek
Riiiiiight... so *that* was the point. I'm sure Ford and Toyota and Mercedes were all just waiting to hold hands and sell each others’ cars. /s
Posting images of the governor's baloney explanation proves nothing. Of course he doesn't want to admit that the only reason the law was changed was to ensure Tesla is locked out of Michigan.
“Its ridiculous to believe what has become a very de-regulatory legislature under a very liberal ‘green jobs’ republican would suddenly change direction to regulate Tesla out of the state.” -cripplecreek
It is ridiculous until you look at all the money that Joe Hune and Rick Snyder get in campaign donations from the dealers’ associations.
“I used to work for a major Ford dealership here in Michigan.” -cripplecreek
That explains a lot.
Oh goodie.
The Tesla sales liar has arrived.
It seems to me Tesla could implement a “work around” in about ten minutes.
Step 1 - Form a non-profit corporation in Michigan called “Tesla Automobile Owners Association”
Step 2 - Implement a program where Tesla donates cars to the TAOA for their employees to drive.
Step 3 - TAOA offers Michigan residents the opportunity to see the cars at an Enthusiasts Rally, held at the former site of the Tesla Gallery, which has now been donated to TAOA.
Step 4 - TAOA offers visitors the opportunity to preorder a used car from TAOA at a special discount (90% off with special financing, see below). TAOA informs Tesla of the configuration that TAOA wants donated and Tesla ships the car to TAOA.
Step 5 - TAOA registers the vehicle as new, drives the car 1 mile to make sure it is fully functional, then delivers the “used” car to the Michigan resident, and provides Concierge Service by an attorney to register the used car with the State.
Step 6 - TAOA donates the sales price of the “used car” to charity, minus expenses.
The Clincher - The Michigan resident finances the car through Tesla over 9 years with an interest only loan at 100% APR, or makes a prepayment penalty equal to 10% of the price of a new Tesla for each year left on the loan.
No doubt the plan can\\\ be adjusted to conform with State financing laws, but there should be a way to make this work out.
When you buy an electric car or a Chevy Volt the IRS takes up to $7500 less of your income at the point of gun.
So the claim is that a manufacturer doesn’t get to choose and impose conditions on a franchisee?
Personally, I suspect it’s probably just an attempt to keep hidden Tesla’s financial arrangements.
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