I admit that I despise car dealers. Mostly because the majority of the ones I met knew almost nothing cars, didn't listen and talked to me as if I was 6 years old even though I'm 40.
It was a huge relief to buy the Model S online from a real company instead of dealing with people who add no value and waste time.
Nevertheless, I think the Tesla vs dealer debate is a bit sidetracked in regards to service profit.
In the discussion about the dealer model and Tesla's direct sales model we often see the argument that the dealers are afraid of EVs because they would be service free. I don't fully understand this idea.
My Tesla has been in for service more often than my Volvo even though they have been driven similarly. My Volvo generated no dealer profit from its drive train during 60k miles aside form oil service and filters. Some non ICE related parts broke and needed service.
My Tesla during 20k miles had broken door handles, warped rims, replaced 12 V battery, replaced HV battery, broken and replaced louvres, the list goes on. It seems there would have been plenty of money to make for a dealer if they were in charge of these repairs.
The more advanced a car becomes, which they all do, the more parts will break. That goes for EVs and ICEs alike. Okay the engine and transmission in an ICE is complicated, but it is only part of the car. For an EV like the
Model S even if nothing breaks, how about:
tires,
brakes,
brake fluid
coolant,
shock absorbers,
shock mounts
motor mounts
gearbox oil,
wiper blades
cabin air filters
12 V batteries
suspension joints and bushings
If something breaks:
gearboxes (two on a D!).
Hey differentials broke on my old beemers, why wouldn't the gearbox/diff break on Model S, I honestly don't see the difference. Anybody?
HV batteries
Air suspension
coolant pumps
louvers
electronics, for example:
-inverter
-chargers
-touch screen
Aluminum body repairs
Seems like plenty of opportunity to make service money for a dealer.
Then we often hear the argument that manufacturers will make less money on EVs because less service. And therefore they supposedly want to stop the EV revolution from happening. Well, the service profit is for the dealer so I don't understand this argument. If ICEs need more repairs, manufacturers could actually be better of with EVs and less warranty cost.
I think the true and only argument that dealers don't want EVs is because they don't have them in stock so therefore they won't sell them. They want money now, not on a future delivery. Once EVs becomes more common this will change. It is a catch 22. Therefore it is better that all EVs are sold directly, for now.
It was a huge relief to buy the Model S online from a real company instead of dealing with people who add no value and waste time.
Nevertheless, I think the Tesla vs dealer debate is a bit sidetracked in regards to service profit.
In the discussion about the dealer model and Tesla's direct sales model we often see the argument that the dealers are afraid of EVs because they would be service free. I don't fully understand this idea.
My Tesla has been in for service more often than my Volvo even though they have been driven similarly. My Volvo generated no dealer profit from its drive train during 60k miles aside form oil service and filters. Some non ICE related parts broke and needed service.
My Tesla during 20k miles had broken door handles, warped rims, replaced 12 V battery, replaced HV battery, broken and replaced louvres, the list goes on. It seems there would have been plenty of money to make for a dealer if they were in charge of these repairs.
The more advanced a car becomes, which they all do, the more parts will break. That goes for EVs and ICEs alike. Okay the engine and transmission in an ICE is complicated, but it is only part of the car. For an EV like the
Model S even if nothing breaks, how about:
tires,
brakes,
brake fluid
coolant,
shock absorbers,
shock mounts
motor mounts
gearbox oil,
wiper blades
cabin air filters
12 V batteries
suspension joints and bushings
If something breaks:
gearboxes (two on a D!).
Hey differentials broke on my old beemers, why wouldn't the gearbox/diff break on Model S, I honestly don't see the difference. Anybody?
HV batteries
Air suspension
coolant pumps
louvers
electronics, for example:
-inverter
-chargers
-touch screen
Aluminum body repairs
Seems like plenty of opportunity to make service money for a dealer.
Then we often hear the argument that manufacturers will make less money on EVs because less service. And therefore they supposedly want to stop the EV revolution from happening. Well, the service profit is for the dealer so I don't understand this argument. If ICEs need more repairs, manufacturers could actually be better of with EVs and less warranty cost.
I think the true and only argument that dealers don't want EVs is because they don't have them in stock so therefore they won't sell them. They want money now, not on a future delivery. Once EVs becomes more common this will change. It is a catch 22. Therefore it is better that all EVs are sold directly, for now.
Last edited: