Who is gonna perform your recall? Service maintenance that an independent shop can't. Much of today's electronics require proprietary software programming & updates upon installation of components. OEMs will still need garages.
@mrjim1973 dealerships will likely just be swapped to service locations. Much like how Tesla doesn't have "dealerships" just facilities for repair or to pick up vehicles. (And no, I'm not praising Tesla. It's just the easiest example).
@@DaRealest908 he’s saying from a good place, most dealerships loosing sales will have smaller budgets and that means many will close and not wanna upkeep the service side and just use it until it’s to old. And the other option is shop rates going up in price which long term hurts customers more, most dealers in America are $200hr or more already
Turn dealers into service centers and have salesmen there with a demo to help people decide if they actually want to buy. After they decide that they like the vehicle, the future owner can go home and order online.
That's how it used to be. Car dealers didn't have lots filled with inventory, there were just a few demonstration models. The customer ordered the car they wanted, and then picked it up when it was delivered to the dealership.
Everyone hates going to a auto dealer. Even the most civil dealers treats their customers as fools and manipulate them and take advantage at every turn. I would by-pass the dealer in a heart beat for my next vehicle. Believe it when I see it!
Hidden fees. I was told I'm paying for 5 oil changes. What? I didn't agree to that. I do my own oil changes. I thought i was thorough in the contract signing process but i guess i was tricked. I'm buying used from now on.
I’ve saved $5000 and $2000 on the exact same Toyotas with the exception of color on a highlander just by driving 2 and a half hours to a different dealer. My local dealer doesn’t care to over charge you. They believe the inconvenience of me traveling off sets the price difference.
I found the car buying at the dealer so disgusting , I haven’t purchased a new car in decades. Buying used is a piece of cake vs being railroaded by dealership employees.
Get rid of dealerships! They can become service garages if they choose, but, cut them out of any profit from the sale of a car. In most cases dealerships have always adapted sleeze tactics which harm inexperienced buyers of vehicles. Everyone knows this. Totally divorce the dealers!!!!!!!!!!!
I just bought a Camry today and it was the most pleasurable vehicle purchase I've ever had. The salesman, 2 months ago, was zero pressure and was happy to get us the build we wanted, even potentially removing features if fitted at the factory. He found an allocation that met our wants and today we picked it up. The finance guy asked if we wanted any additional things, like an extended warranty, or other offerings. I said no... and that was it! 15 minutes and we were outside in our new car. If you live in NW PA, go to Palmiero Toyota in Meadville and ask for Jim Britton. Awesome dealership!
I took the extended warranty and it saved me a motor swap after 27k miles. Granted it was a defect that has since been known and fixed based on vin numbers.
Hopefully we can actually buy at MSRP now. Tired of seeing a car that's listed on the manufacturer site at 40k only to go to the dealer to see it's 59k with an additional 5k in fees.
My dealership sells most new vehicles under invoice, like before Covid. We've been there for about a year. It's a Ford dealership, so a few things, like Raptors, are at sticker, but mostly we're at or under invoice.
It's jarring when they tell you how much the value of the vehicle drops when you leave the dealership. But when you see a certified pre-owned vehicle with 60,000 mi almost the same price as a brand new one kind of scratch your head
Dealers have been scamming and over charging for years with impunity? Now it ends and we love it! The dealerships refuse to sell you a car for sticker prices even if the inventory makes it available! So they will soon regret and it long overdue.
Japan's been doing this for a long time now and has worked great. You get exactly what you want, at the advertised price. They sell a whole lot of new cars over there. (also helps their laws heavily incentivize buying new) Dealers upcharging tens of thousands of dollars for highly desirable models is despicable.
The custom car buying experience should allow customers to purchase a barebones basic vehicle. Picture a Jeep Wrangler without upholstery, no carpet, manual locks, manual windows, manual seats, manual transaxle... As basic as possible. That shouldn't cost more than $20K. Having the ability to customize your vehicle should include the option to buy the car without any options whatsoever. Not even the interior door panels, ceiling upholstery, no audio system, absolutely nothing but the basics. Not even factory paint. Just primer.
@Chubby-2shoez whatever tf theyre sayin is insane lmfao. We still dont need salesmen though, he'd walk into a dealership and ask for the "barebones" car he mentioned above and what? Theyll go ahead and take it round back and strip it of everything? Hell no. Factories should have a barebones (doubt they will) and allow people to customize it simple
The more options you have the more expensive the basic model would be. If 75% of people want power locks and windows then the mechanisms for manual go up in price because they are not manufacturing/buying in bulk. That's why the model T was so cheap, it had 0 options at first. You couldn't even pick the color. If you want cheap cars forget about manufacturer options and let the dealership do all the modifications, like they did way back when.
while ideal, a few problems with this ever happening. lobiests making thise pesky anti consumer laws and the manufacturers themselves. i dont see anyone but toyota doing this because they already do with their k trucks
Base on my experience with my last transaction to purchase or lease a new vehicle - I was totally disgusted after more than 50 years of said transactions. I am ready for a new approach!
I look forward to the end of dealerships. However I don’t believe the manufacturers are completely honest in their intentions. They see a huge amount the dealers are making and ask “why can’t those extra money be ours?!” So they’ll use excuses like “better experience”, “no middle man”, “transparency” to cut them out, then keep the cost relatively the same. I believe there is too much money to be made that they don’t care if people know their real intentions. Past example: Downloadable content. No more manufacturers and no more middle man but price stayed the same and we can’t resale.
I'll be honest my past two visits to a dealer left me pissed off and felt cheated. They try to price gouge you or talk you into something you don't want. Ie. I went in to get a truck knew what I wanted and what the price should have been because I looked at this exact model in my home town but waited till I got home then visited them and they had the same truck for 15k more and wouldn't budge much on the price.
Amen, every other country except for the US it’s against the law to sell over MSRP but over here in the states are clown ass government allows it. So it’s about damn time dealerships die out
A lot of dealerships are about to go belly up because they owe money on the cars that are not selling. And their are a lot of new cars out there just sitting in the sun on these car dealer lots.
But the difference is that the manufacturer uses lube, while the dealer uses a barbed wire wrapped in lemon juice soaked sandpaper to fuck us with. If im gonna be pegged, I'd rather chose the least painful way
I used to work for Ford and on some cars not even limited edition ones there would be a mark up of up to 30k and unless I sold it for over 25k I wouldn't get a single penny. Not only does the dealer make 6k on price they the owner gets 100 percent of the mark up 98% of the time and no one else gets any of it.
Dealing with dealership salesmen is one of my most painfull interactions that I come across in normal life. 80% of my experiences are where the sales man is directly lying to me or is trying so hard to make a sales that I can't even check out the car. They are just constantly yapping in my year about features and payment.
a lot of states in the US have laws against the manufacturer selling directly to consumers, so I'd be interested to see how it's handled in those places
If this happens, it should mean lower prices and better customer experiences because there is no sales person to screw you around for a commission and there will always be a used market for them to FEED from! Also, the dealerships can simply be transitioned to service centers. So as far as employment numbers go, there won't be much change in that area. The only problem I see is will the manufacturers do right by their customers and keep the prices low and steady or will THEY become like the dealers and price gouge the hell out of their customers to satisfy the stockholders?
Whether people like it or not, including the manufacture, and the dealership, the direct sale is the trend, it is the future. As I have predicted weeks ago on a separate postings, I do not try to claim a smart guy here, but the most Knowledgeable, and reasonable people will have thought about this direct sell / buy approach, sooner or later.
If Apple falls in knife or knife falls on Apple- it’s Apple that is going to get cut. So customers will not save much. It’s dealers who went rogue during covid and manufacturers are walking away to save their name.
Dealership markups do actually hurt a lot of sales. I've been pre-approved to purchase really nice vehicles and had the dealership put a second application in, double pinging my credit
I'm excited for this change! Total sales, from start to finish...Fixed pricing...and you can see the entire line of cars available, and create your own build!! Take my money!! When will this start?!
that does not let you sit in cars and test drive I have just test driven 10 cars and decided on rav4 ltd driver comfort was no1 then economy you cant do this on a computer
I dont think they should get rid of dealers they should just require dealers to charge msrp on the vehicle. I dont think they realize this will cost them billions in aftersales that the manufacturer themselves is making. Along with the service centers would be greatly affected by this as well in many ways. I dont think they should go this route just make changes to the current model.
The best option would be online purchase from manufacturer and manufacturer warehouses. Delivery service costs considered in overall price, bells and whistle options or lack of, and approximated times for delivery, or customization and delivery...straight to your door OR a mechanic shop or body shop instead of a dealership. Delivery pricing could be included in the total OR the manufacturer could reduce from the MSRP total by whatever the direct shipping cost would be...something along those lines.
The sacrifice of dealing with the dealership and gaining better prices from manufacture is a win i dont care about data on the car if it means better prices and more affordable option of purchase id take it
I’m 6’ 5” and 250 lbs, lots of the smaller vehicles are difficult to fit it. I understand I should go for an expedition or F-150 because of the room but Having a dealership for me helps me choose a vehicle by trying it out first before customizing my vehicle. I can’t fit in the ranger, but I can fit in the bronco sport. I wonder how this internet purchase/ delivery handles returns 🤔 I don’t understand virtural test drives. They would for sure need physical dealership/test drive locations in every city.
Same way tesla and others repairs cars. With service centers and authorized repair shops. The service center has literally never needed the dealership to survive.
the reason to go to the show room in the first place is to see if you fit in the car, what if it doesn’t have enough leg room. that test drive is necessary. they create a test drive center and im sold, they don’t and tall/short people won’t join this hype trend.
I bought my truck i went in to a dealership and told them what i want, they got on a website built it the way i wanted it. They didnt charge markup. I got my truck in a couple of months. It was very easy. I thought to myself, why did i even go to the dealership, i really didnt need them at all if i could have went on the website myself.
Car manufacturers want to sell volumes of cars and options. Dealers upmarking cars heavily hurts that. But also being able to regulate the experience customers get. However you have to remember that these manufacturers will be also taking the brunt of the logistics costs, car prices might go up a bit from the msrp to handle that. However it also makes them directly in control of warranty control and such. I have a feeling it wont be much more different than a dealership except the manufacturer now has more control.
Ford and Toyota are not Tesla, what works for one will not work with the others. People get jerked around at dealerships because they can't afford what they want, so they settle and feel bad about it. People who buy Teslas can usually afford Teslas, and wont stand for settling, so the online model works better for them, they don't have to be 'put on to another car' so they can afford to make payments. The car buying experience between the poor, well enough, and wealthy are vastly different ecosystems. The sick thing happening a lot now is people buying Teslas, then immediately selling them to local dealerships for over what they paid for them. Local dealerships will do this, because it means they can finance the 'used' car through their dealership, and abuse the consumer with high rates and needless add ons. But they're doing it because there are people who can't afford a Tesla from Tesla, but think they can afford to finance one at stupid/predatory rates.
There is a lot of upside to " bespoke" manufacturing. Are we seeing the end of the Ford model of assembly line construction building unit after unit of unsold vehicals while hoping that they will all sell before you have to destroy them to make way for the next years model .
Actually I’m sure they will charge just as much. They want the profit for themselves. Also the build as you order will make a long delay to get your new vehicle. Most customers want instant gratification. Another thing to consider is you won’t get a test drive. My wife and I wanted to get a Venza until we drove it. It was really a dog as far as power was concerned. You won’t get this ability with internet purchase.
Just want to see the vehicles still operating after paying off the loan to obtain it. Tired of the throw away vehicles getting pushed on the consumer. I drive a car from the 60’s and it eats gas but it’s reliable and I can repair it at home. Just build something that lasts and I can pass on to my children to enjoy after I’m gone.
Cutting middle mans in every industry is good for end consumer, there are some jobs in the area that make sense to keep but for cars not really. Sucks for the people who will lose their jobs but it helps the overall industry. The markup from dealership is too high, the car companies won't cut all of the markup so they will still get more money from sales than normal but the end user will save a ton and vehicles are more of a work necessity than nothing else so it helps overall economy to bring cost down
But where else will I get my dealership tint, chrome package. Dealership wax and wash, carpet refresh, and dealership gap?? I like paying an extra 10k for these items that you can ONLY get at the dealer
I wouldn't buy a car I can't test drive. And if I don't like an online car (carvana), returning the car isn't so easy and I still lose a small chunk of money. And if I did a trade in, then I have to wait for the trade in to get back to me a week later.
Iam not necessarily opposed but where will service/repair/warranty work be done? Who will educate the customer on their new car? Who will answer simple questions a few days later? The only thing that sounds worse then dealing with the dealer is dealing with corporate where my calls won't be returned and I'll get a return call 72 days from now. Iam sorry i will never buy a vehicle based on a "vitual test drive".
Thing is...if they go fully digital, those who don't will be the only companies consumers see when driving around. People will see...kia/hyundai...jeep...chevy...etc. They might say...well I normally don't buy these brands but I can't just go and look and touch a toyota or a Ford any more so I'll check out these brands. Then they will see something right there in front of them that they can have that minute and they will impulse buy. Cause most purchases are impulse buys.Itll be great to have the digital option, but people will still want to see these cars in person. Touch them. Test drive them etc. I don't see this going well at least not in the short term.
I feel like manufacturers need to focus on making the quality fit the price or lower prices. Today's vehicle quality doesn't line up with what you are paying for. Everything's been sub grade post -pandemic ,yet the consumer had been paying more for less experienced Labor and cheaper resources all to make a less reliable less durable vehicle. I've worked in this industry for 16 years, and what I've seen post pandemic from all auto makers is overpriced, poorly engineered, overly outsourced junk. Folks are better off buying a 2017 and older vehicle and making the repairs. Stop buying new cars until manufactures produce less planned obsolescence and poor corporate judgment.
Everytime I walk into a dealership I know I'm getting robbed. There's simply too many mouths to feed and straight up greed. Selling cars for 20k-30k over sticker is straight up criminal not to mention how they tack on their own interest and if you bring your own finance they charge you for that too.
You could fix any older vehicle for a quarter if not less amount of money than a brand new one with fewer electronic failures and complications. Including customization and modifications.
it's a Ford employee I understand Ford will not stand behind their warranties this move to eliminate dealers or just make it worse.. it'll be the same thing as buying on the internet... the Union pays hundreds of thousands of dollars to their cronies to help people with warranty service.. that didn't happen.. I shook hands with Jac Nasser once upon a Time.. he promised me he'd take care of it but he never did... Toyota from now on..
Dealers can be helpful, but sometimes the sales staff are not, which can make the decision-making process stressful (as you need to make decisions with them) and misleading (since not all salespeople are well-trained). What we really need is customer service that fulfills our requests related to the car.
I think that the manufacturers will find that they really don’t want direct contact with their customers in short order. They will have to pay of dealers and invest billions to set up a service, warranty and delivery system, with the hiring of thousands of employees to make sure that the customer experience is good. I predict that they will tire of the customer/manufacturer relationship in a hurry, and that they will bring back the dealers in a hurry. Hopefully they will have the dealers limited in how much they can charge for the product to avoid gouging.
Apple makes, sells and services their products directly to the consumer and seems to be doing well. I just bought my wife a car. I knew it was going to be a painful process and it was.
Dealers probably won't mind so much. They've been making a majority of their profit from the service department since the 90's. That's why there's not much motivation to make a truly reliable vehicle.
I’m for it, but how are they legally allowed to do this? I thought there were laws about selling cars directly to people in the states due to for profit lobbyists manipulating government. I remember Tesla had to go through many loopholes in able to do this.
They will have to cover the cost of warranty work instead of screwing the dealer . And no independent shop will work for what they are willing to pay .
I went to a dealership in Houston 5 months ago asking for a price on a Nissan car that had a 40k msrp something around 40 don't remember exactly but at the dealership they told me the car will cost 65k because they "up marked" it 😂 i've only been in the us for a year and 8 months but that was the dumbest thing I have ever heard in my life.
Dealers are unnecessary middlemen. A person should be able to go online at one site, and buy the car, arrange financing, get title and license, trade their car in, get insurance, etc. This cuts out a lot of middlemen (many of whom have no idea what they are doing). Using AI you might not even have to talk to a real person. Buying a car should be no more complicated than buying a loaf of bread at the supermarket.
This is something manufacturers have been trying to do forever and lobbyists for the dealerships have always had the government ear that "dealerships promote jobs!". If I had to guess, someone in our administration who lives among us enough to know what a dealership experience is like decided not to listen to lobbyists? Whatever was holding the manufacturers back seems to have folded, hopefully they all move to sell directly. Dealership markups because they struggle to get inventory is ridiculous, corollas selling for $32,000+ here, camrys at $44,000+ for the 4 banger. It's dumb. I watch my older relatives who have no idea go to chevy dealerships and leave with a 4 cylinder terrain for $60,000. Dealerships should all be converted to direct sales from the manufacturer at msrp.
to be fair, the other concept needed to be taken into though is trade in policies, Ford or Toyota don't have to deal with a trade in aspect, so a dealership here and there will still be needed to house said used cars, then service or a body working shop
If this is going to succeed, Ford and Toyota will need to sell at a Loss for the first few Years and then bring it up to no more than 10% over Manufacturing Cost after that Period. That said, I think this will do very well if implemented properly.
Dealerships in general have always been known to screw over customers in the service department when it comes to warranty items. With that being said it’s time work is taken care of by a trusted mechanic instead of Some high school kid from UTI that doesn’t even know how to repair the vehicle in the first place
So... just copy Tesla again? All the manufacturers needed to do was SET prices, and sell them at only that price, offer MORE individual options not packages, and reduce wasted costs by making as much physical stock and allow people to build their cars like before. Have a handful of models in various trims and models to test driving with a couple to sell as-is. Use the excess room to expand their used offerings and expand the budgets representation on the lots. Bring back the 2k -10k cars on dealer lots that people can trust.
Where do you take your vehicle for recalls, trade-ins, or repairs? Sounds like alot of jobs getting the ax. These new cars require special program resets to accept simple repairs. These special laptops cost a massive amount. Its a shake up, but is it a positive for us really?
Shopping for a car at a dealership is like getting a vasectomy while getting a root canal at the same time, all without anesthesia.
It sounds like you are talking from experience.
It used to be fun to look at cars. Not anymore.
Ouch! But so true
What doctor uses anesthesia for a vasectomy?
Facts
If it brings the customer a better experience and cheaper price, I am for it.
Who is gonna perform your recall? Service maintenance that an independent shop can't. Much of today's electronics require proprietary software programming & updates upon installation of components. OEMs will still need garages.
@mrjim1973 are you suggesting keeping the sales side of a dealership because of recalls handled by the service side?
Same
@mrjim1973 dealerships will likely just be swapped to service locations. Much like how Tesla doesn't have "dealerships" just facilities for repair or to pick up vehicles. (And no, I'm not praising Tesla. It's just the easiest example).
@@DaRealest908 he’s saying from a good place, most dealerships loosing sales will have smaller budgets and that means many will close and not wanna upkeep the service side and just use it until it’s to old. And the other option is shop rates going up in price which long term hurts customers more, most dealers in America are $200hr or more already
Turn dealers into service centers and have salesmen there with a demo to help people decide if they actually want to buy. After they decide that they like the vehicle, the future owner can go home and order online.
You just described Tesla exactly. They're groundbreakers.
That's how it used to be. Car dealers didn't have lots filled with inventory, there were just a few demonstration models. The customer ordered the car they wanted, and then picked it up when it was delivered to the dealership.
Used car dealerships are hoping this happens
@@bams50as much as I don't like the tesla vehicles I will admit I like the way they do business
Saturn
Everyone hates going to a auto dealer. Even the most civil dealers treats their customers as fools and manipulate them and take advantage at every turn. I would by-pass the dealer in a heart beat for my next vehicle. Believe it when I see it!
Hidden fees. I was told I'm paying for 5 oil changes. What? I didn't agree to that. I do my own oil changes. I thought i was thorough in the contract signing process but i guess i was tricked. I'm buying used from now on.
A good dealership youre just sweating the financial parts.
I’ve saved $5000 and $2000 on the exact same Toyotas with the exception of color on a highlander just by driving 2 and a half hours to a different dealer. My local dealer doesn’t care to over charge you. They believe the inconvenience of me traveling off sets the price difference.
And themselves getting a sale obviously
Some paint colors cost $1,000 or more from the manufacturer. If the vehicles are different colors, it could affect the price.
So, how are they going to get around the law?
Oh yes please! I loathe the buying process at stealerships!
Agreed.
Love that new word. So true.
Yeah🎉🎉🎉
I found the car buying at the dealer so disgusting , I haven’t purchased a new car in decades. Buying used is a piece of cake vs being railroaded by dealership employees.
Get rid of dealerships! They can become service garages if they choose, but, cut them out of any profit from the sale of a car. In most cases dealerships have always adapted sleeze tactics which harm inexperienced buyers of vehicles. Everyone knows this. Totally divorce the dealers!!!!!!!!!!!
Their service tends to be overpriced and poorly performed
I just bought a Camry today and it was the most pleasurable vehicle purchase I've ever had. The salesman, 2 months ago, was zero pressure and was happy to get us the build we wanted, even potentially removing features if fitted at the factory. He found an allocation that met our wants and today we picked it up. The finance guy asked if we wanted any additional things, like an extended warranty, or other offerings. I said no... and that was it! 15 minutes and we were outside in our new car.
If you live in NW PA, go to Palmiero Toyota in Meadville and ask for Jim Britton. Awesome dealership!
you got robbed and dont even know it
@@bladeslayer you didnt take more warranty, eww brother ewwwwwww
You do know this is a sales tactic, right.
I took the extended warranty and it saved me a motor swap after 27k miles. Granted it was a defect that has since been known and fixed based on vin numbers.
@@bladeslayerdepends. How much did he buy the camry for?
Hopefully we can actually buy at MSRP now. Tired of seeing a car that's listed on the manufacturer site at 40k only to go to the dealer to see it's 59k with an additional 5k in fees.
My dealership sells most new vehicles under invoice, like before Covid. We've been there for about a year. It's a Ford dealership, so a few things, like Raptors, are at sticker, but mostly we're at or under invoice.
They used to up the price to double the msrp
It's jarring when they tell you how much the value of the vehicle drops when you leave the dealership. But when you see a certified pre-owned vehicle with 60,000 mi almost the same price as a brand new one kind of scratch your head
If there doing away with dealers they should be able to drop the price by thousands.
Agreed, they can get rid of the buffer on the MSRP that allows dealers to still profit. Will they though? Unlikely.
Nope, no chance of that ever happening.
Yea I’m sure their shareholders will love that
Maybe Toyota would at least on its base models
Yeah, because that work so with Tesla
I don't believe that they will lower prices. Not for one damn minute. Wall street greed is what is driving MFGs.
Exactly
Well, you likely won't get the ridiculous markups on "limited" vehicles. Like how broncos were being marked up by like $10k
@@Plague_Rat778Yea but you also won’t get the 20k off sticker prices you get for old age units that dealers need to get off their lots.
They won’t lower prices but I belive they aren’t going to increase prices like they would of
@@Radioghost717 I haven't seen those kinds of deals anyways
Dealers have been scamming and over charging for years with impunity? Now it ends and we love it! The dealerships refuse to sell you a car for sticker prices even if the inventory makes it available! So they will soon regret and it long overdue.
Selling direct like Tesla , its removing a layer that acted as a gatekeepers and sold vehicles way above MRP .
And letting the manufacturers Nickle and dime you with subscription fees😂
Dealerships have been inflating prices with unnecessary options like car mats and crap to inflate the prices of vehicles for years
Japan's been doing this for a long time now and has worked great. You get exactly what you want, at the advertised price. They sell a whole lot of new cars over there. (also helps their laws heavily incentivize buying new) Dealers upcharging tens of thousands of dollars for highly desirable models is despicable.
The custom car buying experience should allow customers to purchase a barebones basic vehicle. Picture a Jeep Wrangler without upholstery, no carpet, manual locks, manual windows, manual seats, manual transaxle... As basic as possible. That shouldn't cost more than $20K.
Having the ability to customize your vehicle should include the option to buy the car without any options whatsoever. Not even the interior door panels, ceiling upholstery, no audio system, absolutely nothing but the basics. Not even factory paint. Just primer.
Some cars used to be offered body in white and on space saver donuts. But it was mostly through a race program and not to the general public
And this is why you need sales men. Sir, you are the only person who wants to do this. This options doesn’t need to exist
@Chubby-2shoez whatever tf theyre sayin is insane lmfao.
We still dont need salesmen though, he'd walk into a dealership and ask for the "barebones" car he mentioned above and what? Theyll go ahead and take it round back and strip it of everything? Hell no.
Factories should have a barebones (doubt they will) and allow people to customize it simple
The more options you have the more expensive the basic model would be. If 75% of people want power locks and windows then the mechanisms for manual go up in price because they are not manufacturing/buying in bulk. That's why the model T was so cheap, it had 0 options at first. You couldn't even pick the color. If you want cheap cars forget about manufacturer options and let the dealership do all the modifications, like they did way back when.
while ideal, a few problems with this ever happening. lobiests making thise pesky anti consumer laws and the manufacturers themselves. i dont see anyone but toyota doing this because they already do with their k trucks
Base on my experience with my last transaction to purchase or lease a new vehicle - I was totally disgusted after more than 50 years of said transactions. I am ready for a new approach!
I look forward to the end of dealerships. However I don’t believe the manufacturers are completely honest in their intentions. They see a huge amount the dealers are making and ask “why can’t those extra money be ours?!” So they’ll use excuses like “better experience”, “no middle man”, “transparency” to cut them out, then keep the cost relatively the same. I believe there is too much money to be made that they don’t care if people know their real intentions.
Past example: Downloadable content. No more manufacturers and no more middle man but price stayed the same and we can’t resale.
I'll be honest my past two visits to a dealer left me pissed off and felt cheated. They try to price gouge you or talk you into something you don't want. Ie. I went in to get a truck knew what I wanted and what the price should have been because I looked at this exact model in my home town but waited till I got home then visited them and they had the same truck for 15k more and wouldn't budge much on the price.
Toyota is too honorable a company to be represented by many of these dealerships
Amen, every other country except for the US it’s against the law to sell over MSRP but over here in the states are clown ass government allows it. So it’s about damn time dealerships die out
A lot of dealerships are about to go belly up because they owe money on the cars that are not selling. And their are a lot of new cars out there just sitting in the sun on these car dealer lots.
Lets be honest not onr dealership wants to honor a warranty. Sell cars at market price. A dealership offers absolutely zero other than a test drive
Just buy it used and avoid that upfront tax and fees,,, go get a bank check and then call the shots........
So, instead of the salesman and finance people screwing us, the company can do it direct. Got it.
But the difference is that the manufacturer uses lube, while the dealer uses a barbed wire wrapped in lemon juice soaked sandpaper to fuck us with.
If im gonna be pegged, I'd rather chose the least painful way
I used to work for Ford and on some cars not even limited edition ones there would be a mark up of up to 30k and unless I sold it for over 25k I wouldn't get a single penny. Not only does the dealer make 6k on price they the owner gets 100 percent of the mark up 98% of the time and no one else gets any of it.
Dealing with dealership salesmen is one of my most painfull interactions that I come across in normal life. 80% of my experiences are where the sales man is directly lying to me or is trying so hard to make a sales that I can't even check out the car. They are just constantly yapping in my year about features and payment.
Unless they drop the price significantly and fix the interest rates it will not work.
Most dealerships will not survive on only service, which means if anything happens to your vehicle while its under warranty its going to be a pita.
a lot of states in the US have laws against the manufacturer selling directly to consumers, so I'd be interested to see how it's handled in those places
Land of the free?
Money in the hands of politicians changes everything.
Dealerships are just a middleman to increase prices. Stop buying!
If this happens, it should mean lower prices and better customer experiences because there is no sales person to screw you around for a commission and there will always be a used market for them to FEED from! Also, the dealerships can simply be transitioned to service centers. So as far as employment numbers go, there won't be much change in that area. The only problem I see is will the manufacturers do right by their customers and keep the prices low and steady or will THEY become like the dealers and price gouge the hell out of their customers to satisfy the stockholders?
Whether people like it or not, including the manufacture, and the dealership, the direct sale is the trend, it is the future. As I have predicted weeks ago on a separate postings, I do not try to claim a smart guy here, but the most Knowledgeable, and reasonable people will have thought about this direct sell / buy approach, sooner or later.
Excellent move to help customers from being ripped off.
If Apple falls in knife or knife falls on Apple- it’s Apple that is going to get cut. So customers will not save much. It’s dealers who went rogue during covid and manufacturers are walking away to save their name.
Dealership markups do actually hurt a lot of sales. I've been pre-approved to purchase really nice vehicles and had the dealership put a second application in, double pinging my credit
Then demanding a bigger down payment, like screw you (dealership).
This is a good thing as long as the customer service and Honesty is 100%
I'm excited for this change! Total sales, from start to finish...Fixed pricing...and you can see the entire line of cars available, and create your own build!!
Take my money!! When will this start?!
Kinda funny how tesla has both dealerships and online ordering. They took notes.
Good following Nike. No more ripping off customers
Thank god the term dealership markup is a complete slap in the face and kept me from getting my dream car. Dealership greed
that does not let you sit in cars and test drive I have just test driven 10 cars and decided on rav4 ltd driver comfort was no1 then economy you cant do this on a computer
Theyll probably do it like Tesla does it. Have service centers dotted around with test vehicles
I dont think they should get rid of dealers they should just require dealers to charge msrp on the vehicle.
I dont think they realize this will cost them billions in aftersales that the manufacturer themselves is making.
Along with the service centers would be greatly affected by this as well in many ways.
I dont think they should go this route just make changes to the current model.
This is great. Dealerships give brands a bad name and I’m thrilled to see my two favorite brands leading the way!
The best option would be online purchase from manufacturer and manufacturer warehouses. Delivery service costs considered in overall price, bells and whistle options or lack of, and approximated times for delivery, or customization and delivery...straight to your door OR a mechanic shop or body shop instead of a dealership. Delivery pricing could be included in the total OR the manufacturer could reduce from the MSRP total by whatever the direct shipping cost would be...something along those lines.
The sacrifice of dealing with the dealership and gaining better prices from manufacture is a win i dont care about data on the car if it means better prices and more affordable option of purchase id take it
I feel this is going to get bogged down in the courts for years before there's any tangible changes.
I’m 6’ 5” and 250 lbs, lots of the smaller vehicles are difficult to fit it. I understand I should go for an expedition or F-150 because of the room but Having a dealership for me helps me choose a vehicle by trying it out first before customizing my vehicle. I can’t fit in the ranger, but I can fit in the bronco sport. I wonder how this internet purchase/ delivery handles returns 🤔 I don’t understand virtural test drives. They would for sure need physical dealership/test drive locations in every city.
I’m all for it if they set up a great network of repair/test facilities
But how will repairs be done if there is no service center that can repair certain things that only the dealership can repair ?
Plus warranty repairs
Ehm, non dealership car mechanic shops!?
Same way tesla and others repairs cars. With service centers and authorized repair shops. The service center has literally never needed the dealership to survive.
the reason to go to the show room in the first place is to see if you fit in the car, what if it doesn’t have enough leg room. that test drive is necessary. they create a test drive center and im sold, they don’t and tall/short people won’t join this hype trend.
I bought my truck i went in to a dealership and told them what i want, they got on a website built it the way i wanted it. They didnt charge markup. I got my truck in a couple of months. It was very easy. I thought to myself, why did i even go to the dealership, i really didnt need them at all if i could have went on the website myself.
Car manufacturers want to sell volumes of cars and options. Dealers upmarking cars heavily hurts that. But also being able to regulate the experience customers get.
However you have to remember that these manufacturers will be also taking the brunt of the logistics costs, car prices might go up a bit from the msrp to handle that. However it also makes them directly in control of warranty control and such. I have a feeling it wont be much more different than a dealership except the manufacturer now has more control.
I hope this get's rid of the dealerships near me, I always felt they were a massive waste of space
Good, greedy dealerships/stealerships F’d up the last 4 years and at current!
Ford and Toyota are not Tesla, what works for one will not work with the others. People get jerked around at dealerships because they can't afford what they want, so they settle and feel bad about it. People who buy Teslas can usually afford Teslas, and wont stand for settling, so the online model works better for them, they don't have to be 'put on to another car' so they can afford to make payments. The car buying experience between the poor, well enough, and wealthy are vastly different ecosystems.
The sick thing happening a lot now is people buying Teslas, then immediately selling them to local dealerships for over what they paid for them. Local dealerships will do this, because it means they can finance the 'used' car through their dealership, and abuse the consumer with high rates and needless add ons. But they're doing it because there are people who can't afford a Tesla from Tesla, but think they can afford to finance one at stupid/predatory rates.
They won't get rid of dealerships. They are just adding a new way of buying a car.. dealerships make too much money in services.
This is how it used to be before dealerships. People are sick of seeing 20-40k+ markup on new cars because of dealerships
There is a lot of upside to " bespoke" manufacturing. Are we seeing the end of the Ford model of assembly line construction building unit after unit of unsold vehicals while hoping that they will all sell before you have to destroy them to make way for the next years model .
Actually I’m sure they will charge just as much. They want the profit for themselves. Also the build as you order will make a long delay to get your new vehicle. Most customers want instant gratification. Another thing to consider is you won’t get a test drive. My wife and I wanted to get a Venza until we drove it. It was really a dog as far as power was concerned. You won’t get this ability with internet purchase.
Just want to see the vehicles still operating after paying off the loan to obtain it. Tired of the throw away vehicles getting pushed on the consumer. I drive a car from the 60’s and it eats gas but it’s reliable and I can repair it at home. Just build something that lasts and I can pass on to my children to enjoy after I’m gone.
Cutting middle mans in every industry is good for end consumer, there are some jobs in the area that make sense to keep but for cars not really. Sucks for the people who will lose their jobs but it helps the overall industry. The markup from dealership is too high, the car companies won't cut all of the markup so they will still get more money from sales than normal but the end user will save a ton and vehicles are more of a work necessity than nothing else so it helps overall economy to bring cost down
But where else will I get my dealership tint, chrome package. Dealership wax and wash, carpet refresh, and dealership gap?? I like paying an extra 10k for these items that you can ONLY get at the dealer
I wouldn't buy a car I can't test drive. And if I don't like an online car (carvana), returning the car isn't so easy and I still lose a small chunk of money. And if I did a trade in, then I have to wait for the trade in to get back to me a week later.
Iam not necessarily opposed but where will service/repair/warranty work be done? Who will educate the customer on their new car? Who will answer simple questions a few days later? The only thing that sounds worse then dealing with the dealer is dealing with corporate where my calls won't be returned and I'll get a return call 72 days from now. Iam sorry i will never buy a vehicle based on a "vitual test drive".
I hope Toyota makes Lexus follow suit
That'd be awesome!
Thing is...if they go fully digital, those who don't will be the only companies consumers see when driving around. People will see...kia/hyundai...jeep...chevy...etc. They might say...well I normally don't buy these brands but I can't just go and look and touch a toyota or a Ford any more so I'll check out these brands. Then they will see something right there in front of them that they can have that minute and they will impulse buy. Cause most purchases are impulse buys.Itll be great to have the digital option, but people will still want to see these cars in person. Touch them. Test drive them etc. I don't see this going well at least not in the short term.
I feel like manufacturers need to focus on making the quality fit the price or lower prices. Today's vehicle quality doesn't line up with what you are paying for. Everything's been sub grade post -pandemic ,yet the consumer had been paying more for less experienced Labor and cheaper resources all to make a less reliable less durable vehicle. I've worked in this industry for 16 years, and what I've seen post pandemic from all auto makers is overpriced, poorly engineered, overly outsourced junk. Folks are better off buying a 2017 and older vehicle and making the repairs. Stop buying new cars until manufactures produce less planned obsolescence and poor corporate judgment.
Everytime I walk into a dealership I know I'm getting robbed. There's simply too many mouths to feed and straight up greed. Selling cars for 20k-30k over sticker is straight up criminal not to mention how they tack on their own interest and if you bring your own finance they charge you for that too.
Dealer mark ups are are a huge problem now. I won't miss them.
You could fix any older vehicle for a quarter if not less amount of money than a brand new one with fewer electronic failures and complications. Including customization and modifications.
it's a Ford employee I understand Ford will not stand behind their warranties this move to eliminate dealers or just make it worse.. it'll be the same thing as buying on the internet... the Union pays hundreds of thousands of dollars to their cronies to help people with warranty service.. that didn't happen.. I shook hands with Jac Nasser once upon a Time.. he promised me he'd take care of it but he never did... Toyota from now on..
Dealers can be helpful, but sometimes the sales staff are not, which can make the decision-making process stressful (as you need to make decisions with them) and misleading (since not all salespeople are well-trained). What we really need is customer service that fulfills our requests related to the car.
Is it actually going to happen though? I'm sick of dealerships and I'm hoping to never deal with them but how and when will we see this?
I think that the manufacturers will find that they really don’t want direct contact with their customers in short order. They will have to pay of dealers and invest billions to set up a service, warranty and delivery system, with the hiring of thousands of employees to make sure that the customer experience is good. I predict that they will tire of the customer/manufacturer relationship in a hurry, and that they will bring back the dealers in a hurry. Hopefully they will have the dealers limited in how much they can charge for the product to avoid gouging.
Apple makes, sells and services their products directly to the consumer and seems to be doing well. I just bought my wife a car. I knew it was going to be a painful process and it was.
Dealers probably won't mind so much. They've been making a majority of their profit from the service department since the 90's. That's why there's not much motivation to make a truly reliable vehicle.
I think this is a good change, all these mark ups are unnecessary and insane.
This won't mean cheaper vehicles, just more profit for the manufacturer.
Not really.
Don't forget about dealer markups, which hurt sales, which hurts the manufacturer.
I’m for it, but how are they legally allowed to do this? I thought there were laws about selling cars directly to people in the states due to for profit lobbyists manipulating government. I remember Tesla had to go through many loopholes in able to do this.
Id buy a new Toyota in a heartbeat
_Screw dealerships, man._
They will have to cover the cost of warranty work instead of screwing the dealer . And no independent shop will work for what they are willing to pay .
I went to a dealership in Houston 5 months ago asking for a price on a Nissan car that had a 40k msrp something around 40 don't remember exactly but at the dealership they told me the car will cost 65k because they "up marked" it 😂 i've only been in the us for a year and 8 months but that was the dumbest thing I have ever heard in my life.
Dealers are unnecessary middlemen. A person should be able to go online at one site, and buy the car, arrange financing, get title and license, trade their car in, get insurance, etc. This cuts out a lot of middlemen (many of whom have no idea what they are doing). Using AI you might not even have to talk to a real person. Buying a car should be no more complicated than buying a loaf of bread at the supermarket.
Oh boy that transition is going to be wild to manage logistically.
This is something manufacturers have been trying to do forever and lobbyists for the dealerships have always had the government ear that "dealerships promote jobs!". If I had to guess, someone in our administration who lives among us enough to know what a dealership experience is like decided not to listen to lobbyists? Whatever was holding the manufacturers back seems to have folded, hopefully they all move to sell directly. Dealership markups because they struggle to get inventory is ridiculous, corollas selling for $32,000+ here, camrys at $44,000+ for the 4 banger. It's dumb. I watch my older relatives who have no idea go to chevy dealerships and leave with a 4 cylinder terrain for $60,000. Dealerships should all be converted to direct sales from the manufacturer at msrp.
Now if Nissan can do the same I'd like to buy a 400z without a 40k markup
I think everyone!
to be fair, the other concept needed to be taken into though is trade in policies, Ford or Toyota don't have to deal with a trade in aspect, so a dealership here and there will still be needed to house said used cars, then service or a body working shop
If this is going to succeed, Ford and Toyota will need to sell at a Loss for the first few Years and then bring it up to no more than 10% over Manufacturing Cost after that Period. That said, I think this will do very well if implemented properly.
Dealerships in general have always been known to screw over customers in the service department when it comes to warranty items. With that being said it’s time work is taken care of by a trusted mechanic instead of Some high school kid from UTI that doesn’t even know how to repair the vehicle in the first place
So... just copy Tesla again?
All the manufacturers needed to do was SET prices, and sell them at only that price, offer MORE individual options not packages, and reduce wasted costs by making as much physical stock and allow people to build their cars like before. Have a handful of models in various trims and models to test driving with a couple to sell as-is. Use the excess room to expand their used offerings and expand the budgets representation on the lots. Bring back the 2k -10k cars on dealer lots that people can trust.
Dealership makes a lot of money
I no longer have to pay 35k more than the msrp to buy a new truck now? I'm game all the way
Good, dealerships are a middle man money parasite that shouldn't exist. No more "market adjustment"
As it should be
Where do you take your vehicle for recalls, trade-ins, or repairs? Sounds like alot of jobs getting the ax. These new cars require special program resets to accept simple repairs. These special laptops cost a massive amount. Its a shake up, but is it a positive for us really?
I'm for them repurposing their dealerships into customer car clubs.
These manufacturers can keep their inflated prices. We know they are using the excess money to fund their EV platforms. I’m not down with that.
If it wouldn't be Ford and Toyota, I would be optimistic...