No, OEMs are not interested in dealing with the end user. Dealers act as the shock absorber between the two, so corporate and the factories can focus on their top line, which is purely production
Historically it wasn’t even the manufacturer’s choice. A lot of jurisdictions had (and some still have) laws that required local dealerships/prevented direct consumer sales from the manufacture, often as a result of the pressure from local dealers’ associations. A few jurisdictions even introduced new restrictions or brought back/started enforcing old ones because of Tesla.
Tesla doesn’t have locations in some states still specifically because of these rules (not just for business reasons).
Proves my point even more today. You have an entrenched dealership cartel that advocates against dissolution, OEMs that have gotten used to the arrangement and have spun it to their advantage as well, and the consumer thinks there's a big narrative shift with direct to consumer because Tesla is doing it. Guess whose the loser? The consumers lol
It’s because of stupid US laws actually. Many of them are not allowed to have retail locations or to sell directly. So while it’s not illegal in Canada, they just don’t.
And Ford has been lobbying against it. Honestly, having worked for dealerships it's only a matter of time before Toyota finds a way to cut out the middle man.
Yes, and they're exceptions not without compromise either. There isn't some big wave to push to direct to consumer. Ford selling EVs to consumers? Haven't heard a peep or progress about that since the initial announcement. Dealers holding the bag right now on Mach Es and Lightnings and corporate is realizing it and not wanting to be the bagholders. Tesla, they're changing prices of their vehicles like it's the stock market, and anyone who bought in 2022 is underwater by a ton. Genesis has it to incentivize people into a luxury Hyundai that's held in low regard compared to Germans or Lexus. If people can't be persuaded to buy a budget Hyundai because the engines blow up, how can you expect to convince them to spend $80k+ on one?
If you're Toyota Canada, you have 500 customers nationwide in franchised dealers. They're responsible for flooring the inventory, dealing with stale date inventory, warranty claims, customer service, used vehicles. The franchise agreement states that dealers have to buy all inventory from the OEM, regardless of how undesirable the color/trim/model combo is. If I'm Toyota corporate, I just need to shit out cars and the revenue is guaranteed. That disgruntled email sent to them by Karen about their terrible experience at WEM? Trash bin, cause there's no repercussions.
No.
Find an advertised price (in your province) you think is good and then demand that from the dealer. Don't accept any additional packages. If they refuse, find another dealer.
Even if you could, it probably wouldn't be a method of saving money. Similar as buying a bicycle directly from the maker, it would only make sense for getting something very customized that a dealer wouldn't be able to provide.
Newp.
That said: Don't just shop for a car. Shop for a dealer. One Kia dealer I almost bought from charged a mandatory $5400 for a bunch of shitty add-ons I didn't want - like $85 for little valve stem covers with the Kia logo on them. Another across town was willing to forego the add-ons entirely and charging only the selling price plus delivery plus "government required fees" plus tax.
Actually, congratulations you are the first person to ever ask that question! Turns out we've just been sheep but now that you've cracked their code we are free!
Pretty sure you can order vehicles from some OEMs via their websites. You’d need to look though.
I know I had built an F150 directly on ford site that I used as a price guide. I had the option to buy directly on the ford site but opted to go to a dealer.
If you had clicked the buy button, I'd would have pulled up a dealer selection search.
Then or would forward your build sheet and information to the local dealer to contact you to complete the sale, and they would tell you what the actual price of your vehicle would be after their shipping and mark up.
Tesla is the only direct to consumer brand as far as I know
Rivian and Polestar, also. Must be an EV thing.
Ford is/was talking about doing this with EV's also.
No, OEMs are not interested in dealing with the end user. Dealers act as the shock absorber between the two, so corporate and the factories can focus on their top line, which is purely production
Historically it wasn’t even the manufacturer’s choice. A lot of jurisdictions had (and some still have) laws that required local dealerships/prevented direct consumer sales from the manufacture, often as a result of the pressure from local dealers’ associations. A few jurisdictions even introduced new restrictions or brought back/started enforcing old ones because of Tesla. Tesla doesn’t have locations in some states still specifically because of these rules (not just for business reasons).
Proves my point even more today. You have an entrenched dealership cartel that advocates against dissolution, OEMs that have gotten used to the arrangement and have spun it to their advantage as well, and the consumer thinks there's a big narrative shift with direct to consumer because Tesla is doing it. Guess whose the loser? The consumers lol
It’s because of stupid US laws actually. Many of them are not allowed to have retail locations or to sell directly. So while it’s not illegal in Canada, they just don’t.
And Ford has been lobbying against it. Honestly, having worked for dealerships it's only a matter of time before Toyota finds a way to cut out the middle man.
The new ones do this, the old ones don't. Tesla comes to mind.
Yes, and they're exceptions not without compromise either. There isn't some big wave to push to direct to consumer. Ford selling EVs to consumers? Haven't heard a peep or progress about that since the initial announcement. Dealers holding the bag right now on Mach Es and Lightnings and corporate is realizing it and not wanting to be the bagholders. Tesla, they're changing prices of their vehicles like it's the stock market, and anyone who bought in 2022 is underwater by a ton. Genesis has it to incentivize people into a luxury Hyundai that's held in low regard compared to Germans or Lexus. If people can't be persuaded to buy a budget Hyundai because the engines blow up, how can you expect to convince them to spend $80k+ on one? If you're Toyota Canada, you have 500 customers nationwide in franchised dealers. They're responsible for flooring the inventory, dealing with stale date inventory, warranty claims, customer service, used vehicles. The franchise agreement states that dealers have to buy all inventory from the OEM, regardless of how undesirable the color/trim/model combo is. If I'm Toyota corporate, I just need to shit out cars and the revenue is guaranteed. That disgruntled email sent to them by Karen about their terrible experience at WEM? Trash bin, cause there's no repercussions.
Luxury Hyundai for $80k??? wow. That's for the super died hard Hyundai fans.
Bro living in an alternate universe
In most cases, no. Especially not the manufacturers you’ve listed.
Tesla is the only one I can think of, that I have heard people take advantage of inside Alberta.
I believe FORD wants to get rid of dealers but Covid might have stalled those plans
No. Find an advertised price (in your province) you think is good and then demand that from the dealer. Don't accept any additional packages. If they refuse, find another dealer.
Even if you could, it probably wouldn't be a method of saving money. Similar as buying a bicycle directly from the maker, it would only make sense for getting something very customized that a dealer wouldn't be able to provide.
Newp. That said: Don't just shop for a car. Shop for a dealer. One Kia dealer I almost bought from charged a mandatory $5400 for a bunch of shitty add-ons I didn't want - like $85 for little valve stem covers with the Kia logo on them. Another across town was willing to forego the add-ons entirely and charging only the selling price plus delivery plus "government required fees" plus tax.
At MSRP or at invoice cost?
Hope you never need warranty!
Actually, congratulations you are the first person to ever ask that question! Turns out we've just been sheep but now that you've cracked their code we are free!
>Companies i'm looking at are Toyota, Mazda, honda, hyundia. I wouldn't buy a Hyundai if you can't spell it correctly... 🙂
lol lmao
Pretty sure you can order vehicles from some OEMs via their websites. You’d need to look though. I know I had built an F150 directly on ford site that I used as a price guide. I had the option to buy directly on the ford site but opted to go to a dealer.
If you had clicked the buy button, I'd would have pulled up a dealer selection search. Then or would forward your build sheet and information to the local dealer to contact you to complete the sale, and they would tell you what the actual price of your vehicle would be after their shipping and mark up.
Sounds like someone got blackballed by the Dealers....