Posted on 08/22/2013 10:01:28 PM PDT by grundle
If it’s true that “direct sales to customers is illegal in Texas”, then how is it that Carmax operates in Texas? Is anyone familiar with this law, does it only apply to new cars and not used cars?
Spend five minutes watching How the Tesla Model S is Made -- Behind The Scenes. It will change your mind. This is a real automobile manufacture with the most advanced technologies.
Hahahahahaaha!
But I just went through a 5 hour ordeal to buy a new truck so I’m a bit prejudiced. I like the truck but hate the buying procees.
I've heard many people have had good luck with contacting all the dealers for the car they are interested in in their area and requesting written bids. Basically telling the dealer "name your price and you get one shot at it". It eliminates the grind. Some dealers blow them off but others give a decent price.
On my last car I negotiated in person but I told the dealer to put away her "4 square" deal sheet because we were haggling only on price (financing was a separate deal and the trade-in was essentially worthless). It only took about a half hour and a couple quick runs back to the manager. Dealing with the finance guy was annoying because he kept ignoring the fact that I already had a line of credit at a better rate. If I told him I already had money available at 3.5% why would he start at over 8% and gradually "find" better deals when I said no. He finally matched my rate after about five tries, but by then I was so annoyed that I didn't want him to get the business.
My previous one was a Saturn with a non-negotiable (but decent) price. There would be no way I would put up with even an hour working on the price, much less five hours.
Impressive!
I am including the financing and the dealer add ons and the extended warranty pitch. They basically tried to regain everything I had negotiated with the salesman/manager.
And it didn’t help me either that I had an account manager from my company calling me every 20 minutes on a problem at work even though I am an hourly guy and it was my day off.
It made the negotiating even harder.
My wife was with me and about an hour into it she was ready to just give the dealership everything they were asking for just to get out of there.
In Texas, car manufacturers are not allowed to directly own car dealerships, but must instead offer dealerships to independently owned dealerships in franchise arrangements.
A reason for this would be to avoid unfair competition, where a car company would sell franchises, but later open their own dealership and undercut the independents.
Of course, it also protects independent franchises from competition, and could be considered “anti-competitive”, especially in a case where a particular company doesn’t do ANY franchises.
In many industries and states, independent franchises co-exist peacefully with company-run stores. I believe gas stations are like that, with some owned by the company, and others independents who purchase franchise rights. Same with fast food locations.
Absolutely!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.