This administration may or may not fully support EVs, but one of its key allies definitely backs direct sales channels. Could this mean we might finally see a crack in the stronghold car dealers have on U.S. sales? Would that make EVs more accessible and possibly cheaper?
In most U.S. states, laws make it illegal for manufacturers to sell cars directly to consumers. These laws would have to change state-by-state to allow direct sales.
This is actually up to each state, not the federal government, so a big shift across the board isn’t likely.
kwame said:
This is actually up to each state, not the federal government, so a big shift across the board isn’t likely.
But look at Roe v. Wade—federal laws can absolutely influence state regulations.
@Michael
Roe was about limiting state power. Republicans are about state rights and pushed to repeal it.
If direct sales are a state issue, Trump is likely to keep it that way. So I don’t see this changing anytime soon.
>one of its key allies is definitely supportive of a direct sales channel
Yet, you still can’t buy a Tesla in every state.
Some states have gotten rid of their direct sales bans, but it hasn’t drastically changed how cars are sold there.
I’m not a fan of banning direct sales, but anyone thinking it’s the only reason dealerships survive is overlooking how the industry really works.
EVs are a whole new game compared to traditional cars. They need much less maintenance and could eventually be built more standardized, with shared parts across brands.
Imagine a future where vehicles of the same size are built on an industry-standard wheelbase, with modular options for suspension, motors, and batteries. We might just end up with a few big brands worldwide.
People think automakers want to sell directly, but I doubt it. They wouldn’t want to deal with the logistics and don’t want to upset their dealer network.
Car makers produce the cars, sell them wholesale to dealers, and let dealers handle the rest. Why would they mess with a setup that works well for them?
@emma
The traditional distribution network made sense in the past, but newer technology and better supply chain management mean it’s no longer necessary. Remember when most products had to be bought in physical stores across the country?
@Michael
Cars aren’t like regular products, though. You can’t just return a car the way you would with a shirt or a hammer.
@emma
The dealer model only exists because politicians and consumers put up with it. The success of brands like Tesla, Rivian, and Lucid shows that people are interested in bypassing the middleman.
Edit: I noticed the person defending dealers here is a Hyundai salesperson. That makes sense!
@Kenneth
I saw a report saying Tesla’s customer experience was actually rated worse than the traditional car makers’. I’ll see if I can find the link for you.
emma said:
@Kenneth
I saw a report saying Tesla’s customer experience was actually rated worse than the traditional car makers’. I’ll see if I can find the link for you.
I’m not saying Tesla’s customer service is perfect, just that it’s nice to be able to order a car online and skip the whole dealership sales pitch.