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Stellantis and Direct Sales

Prange

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#1

Smitty

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Oh yea. Big time. It tells you something when they’re making more money now but selling less vehicles. Shows you how much they were giving back in rebates and discounts which have for the most part disappeared.
 


OP
P

Prange

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Thread Starter #3
BMW and Mercedes recently announced their Direct-Sales programs. It's all for the customer's benefit, enhancing the buyer's experience. The KY jelly is an option.;)
 


Boris

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#4
Many manufacturers are getting plenty pissed off at their dealer networks but they don't have anything to fight them with.

Moving in this direction is the ultimate FU to the dealer network.

Look at that Z06 that some dealer wants 100k ADM for it. Chevy/GM came out and said they want to take away allocations of dealers who do that stuff. So, take it away. Ban that dealer of all Corvette sales until 2024 for the bad press they created.
 


BULL

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Not picking sides, and I'm certainly no fan of most dealerships.

But I think a lot of States have laws that protect Dealerships and essentially require them??

Tesla ran into issues with direct sales didn't they?
 


BULL

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#6
Should have read first, it's right there in the beginning of the article.
 


Boris

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Not picking sides, and I'm certainly no fan of most dealerships.

But I think a lot of States have laws that protect Dealerships and essentially require them??

Tesla ran into issues with direct sales didn't they?
I don't think most states have laws.
There is a Tesla "dealer" of sorts in the Burbs of Chicago. Not sure if its just a spot to pick up your car after you order or not. Really not familiar with Tesla.

I do remember reading that if you lived in Texas, you couldn't buy one unless you traveled out of state to pick it up.

Dealer network has deep pockets and will fight to the bitter end to hold onto this model.


Also, they still need service centers even for EVs. So I am guessing they want to remove the dealer from the sales process to eliminate the bullshit that goes on. In that case, what is stopping them from doing it now?
I'll place down a deposit for a 23 Hellcat S/S right now.
 


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I'm glad my new car buying days are over.
 


1971demon

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Paladin06

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1971demon

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Blown7

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#12
I could see it coming. Less labor costs and fixed, (higher) prices, it's a win for the car companies.


https://www.stellpower.com/news-2022/direct-sales-for-mopars/
Depends.
When I purchased my Trackhawk I had been messaging the dealer for over a year about the same vehicle on the lots for over a year. Finally the dealer/owner messaged me back in May 2019 that if I wanted it he was willing to sell it at his cost...as it sat on the lot for over a year and it cost him more than he wanted in floor plan for over a year.

(The previous sales manager was a total dick and wouldn't oeder it the way I wanted a year earlier...he said if I backed out he needed a vehicle that would "sell")

In a rare moment the dealer/owner showed me exactly what he paid for it because I wasn't paying a penny more.

My Trackhawk Window sticker was a bit over $101K..all options but rear DVD and Block heater(which I wanted and the Pano sunroof which i didn't.

My cost for the vehicle was $79.9K

(Plus taxes, title, registration...etc.) Prices that are fixed.

So that showed me right then and there at the high end of Mopar vehicles there is a 20% margin for the dealer.

If the direct to customer plan works it could help the customer..but if negotiation is taken out..a fixed profit margin is baked into the direct to customer experience.
 


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Paladin06

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1971demon

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#14
Many manufacturers are getting plenty pissed off at their dealer networks but they don't have anything to fight them with.

Moving in this direction is the ultimate FU to the dealer network.

Look at that Z06 that some dealer wants 100k ADM for it. Chevy/GM came out and said they want to take away allocations of dealers who do that stuff. So, take it away. Ban that dealer of all Corvette sales until 2024 for the bad press they created.
In one breath...GM chastises them for ADM...then the say...Its a supply and demand market...let the dealers do what they will with MSRP's...It sucks...I will never pay ADM...but look...2019 ZO6's still are going for over MSRP...It is crazy...
 


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#15
Dealership networks owning stock and setting pricing and having a big chunk of "power" inside the manufacturers is already on the way out with massive global mergers. Long ago the dealer mafia got together with state legislatures to try and protect them (think "local" businesses vs. usually "out-of-state" manufacturer trying to bully us!). Both of these shits are sophiticated businesses. They do not need protection of law from one another. Blatant favoritism. But we cannot get rid of the cesspool set up because its been entrenched for years. And the last stumbling block? That the people, despite all their experience, etc..., can still make straight up stupid decisions. I am for any solution that makes dealers (and manufacturers) more responsive and responsible to the buying public, and more open in their dealings.
 


Jimmy N.

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#16
I will be buying 1970 and older Mopar's from here on out.
I agree, which is why a Charger is now appealing to me. A proper Charger, not a multi-door.
 


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#17
You can weld more doors on when you're ready
 


DavidKFla

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If you look at the Dodge dealer network it looks like certain dealers are being weeded out right now. So many have no inventory and others have plenty.
 


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#19
Death to the ADM? That could be a good thing for cars like Z06, ZR1 etc. That said, I hate losing the power of negotiation. Unlike most, I ENJOY that process. "Dude, I'll go 10 miles away and get the EXACT same car from a dealer who will haggle lower." Of course, most ppl won't do this. (shrug)
 


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#20
Hell, I'll go 400 miles away for a great deal. I have no need to put up with shitty local service from a bunch of country bumpkins who think working for a dealership somehow makes them special. want my money? Earn it.

On point: several weeks ago we got recalls on the brake booster / master cylinder leak from Ford on both the Expedition ELs (as some may recall, I paid to have the units replaced on my wife's because it was a total failure - which is quite alarming - you lose all front brakes when that happens). It was design defect, and Ford is currently "stocking up" on replacement re-designed parts, so they'll get to us who knows when for replacement. Ok; whatever. But we are also eligible for reimbursement of our replacement work before the recall (ok) but we have to have the local dealer inspect (to make sure the parts used were the newly designed part) and handle the paperwork. I went down and arranged to have the black EL with them for inspection the day before we were leaving town. They thought they'd have it back by noon if we dropped it the night before. I was courteous with them and had all my docs and paperwork ready to go. They seemed flustered, but whatever. So the day arrives, and the thing is not done even at 4 p.m., but they told my wife they'd get completed. I take her down and drop her off at 530; she goes in, they say its done, but won't give her any paperwork saying that was the case (I'm not going to drive away and leave her there on the word of these numbnuts). I tell her to get them to give her something in writing that proves the work was done. They know I am an attorney and I had them give me copies of all the paperwork they generated when I was down there last time (the docs tell the story, provide the truth). So she goes back in and tells them that - the service manager throws her hands in there and says "That's an attorney for you!" Besides being unprofessional, bad move in front of my wife. My wife lit her up (she did not raise her voice, there's none of that yelling bullshit). She waved me on and later told me what happened. They provided a signed document and my wife later tells me "we aren't buying anything from them."

My favorite was the service manager (and manager) told me part of the hold up was "we have to have a certified mechanic do the inspection since its warranty work" indicating that the bulk of the work on premises is not handled by certified mechanics. This dealership is generally a cluster - which is sad, considering 35 years ago it was a great place to do business and get work done. I even took cars there for body work rather than to dedicated body shops because they were so good. Never seen better free hand pen striping than came out of that shop. Anyway, nothing is what it used to be.
 


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