Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
Car Dealers Are Terrified of Tesla’s Plan to Eliminate Oil Changes
Car Dealers Are Terrified of Teslas Plan to Eliminate Oil Changes
3 May, 2014
Car dealers fear Tesla. In states across the country, powerful car dealer associations have lobbied to ensure the electric car maker and its direct-sales model are kept out. This movement claimed another victory this week when New Jersey banned Tesla stores in the state.On the surface, the fear is hard to fathom. In New Jersey, for instance, sales of Teslas $70,000 Model S reportedly number in the hundreds. But if you dig a little deeper, it becomes obvious why dealers are worried. They dont just fear Teslas cars. They fear Teslas plan to create a world where you never have to bring your car into the shop again.
The first and most striking way Tesla kills the dealer service department cash cow is downloads. As part of its sales pitch, Tesla says you should think of its Model S sedan as an app on four wheels. That may sound like vacuous Silicon Valley marketing copy, but the company isnt just being metaphorical. Software is at the heart of what keeps Teslas running. These internet-connected cars are designed to self-diagnose their problems. The vehicles can also download software fixes or updates even new features much like an iPhone when Apple puts out a new version of iOS. When fixes happen over the air, theres no need for a shop in the first place.
ITS HARD TO CHARGE FOR AN OIL CHANGE WHEN THERES NO OIL TO BE CHANGED.
The ability to repair a car via software is especially important when the vehicle itself consists of so much new technology that traditional mechanics dont know how to fix. The flip side is that without an internal combustion engine, theres not as much to fix. Ive written before that a Tesla without its outer shell looks like a cell phone on wheels. Its basically just a big battery. That means no spark plugs, no air filters, no fuel pumps, no timing belts. In short, Teslas dont have any of the parts that force you to take your car in for regularly scheduled maintenance services that can cost dearly at the dealer. But its hard to charge for an oil change when theres no oil to be changed.
To be fair, Tesla isnt doing away entirely with bringing your car in. The company recommends an inspection once a year or every 12,500 miles. Its service plans start at $600 per year* or less if you buy multiple years at once. The plans include replacement of standard parts like brake pads and windshield wipers. The company will monitor your car remotely and tell you when there are problems, such as faulty batteries. In theory, there are pitfalls in an arrangement where the company that makes your car is the only one that can fix it. But Tesla would seem to alleviate that concern with its flat-rate plans, rather than fee-for-service gouging for every fix. Whats more, the company says your warranty is still valid regardless of whether you get your car serviced at all.
Yes, these all sound like grand promises. And...
3 May, 2014
Car dealers fear Tesla. In states across the country, powerful car dealer associations have lobbied to ensure the electric car maker and its direct-sales model are kept out. This movement claimed another victory this week when New Jersey banned Tesla stores in the state.On the surface, the fear is hard to fathom. In New Jersey, for instance, sales of Teslas $70,000 Model S reportedly number in the hundreds. But if you dig a little deeper, it becomes obvious why dealers are worried. They dont just fear Teslas cars. They fear Teslas plan to create a world where you never have to bring your car into the shop again.
The first and most striking way Tesla kills the dealer service department cash cow is downloads. As part of its sales pitch, Tesla says you should think of its Model S sedan as an app on four wheels. That may sound like vacuous Silicon Valley marketing copy, but the company isnt just being metaphorical. Software is at the heart of what keeps Teslas running. These internet-connected cars are designed to self-diagnose their problems. The vehicles can also download software fixes or updates even new features much like an iPhone when Apple puts out a new version of iOS. When fixes happen over the air, theres no need for a shop in the first place.
ITS HARD TO CHARGE FOR AN OIL CHANGE WHEN THERES NO OIL TO BE CHANGED.
The ability to repair a car via software is especially important when the vehicle itself consists of so much new technology that traditional mechanics dont know how to fix. The flip side is that without an internal combustion engine, theres not as much to fix. Ive written before that a Tesla without its outer shell looks like a cell phone on wheels. Its basically just a big battery. That means no spark plugs, no air filters, no fuel pumps, no timing belts. In short, Teslas dont have any of the parts that force you to take your car in for regularly scheduled maintenance services that can cost dearly at the dealer. But its hard to charge for an oil change when theres no oil to be changed.
To be fair, Tesla isnt doing away entirely with bringing your car in. The company recommends an inspection once a year or every 12,500 miles. Its service plans start at $600 per year* or less if you buy multiple years at once. The plans include replacement of standard parts like brake pads and windshield wipers. The company will monitor your car remotely and tell you when there are problems, such as faulty batteries. In theory, there are pitfalls in an arrangement where the company that makes your car is the only one that can fix it. But Tesla would seem to alleviate that concern with its flat-rate plans, rather than fee-for-service gouging for every fix. Whats more, the company says your warranty is still valid regardless of whether you get your car serviced at all.
Yes, these all sound like grand promises. And...
http://themindunleashed.org/2014/05/car-dealers-terrified-teslas-plan-eliminate-oil-changes.html
InfoView thread info, including edit history
TrashPut this thread in your Trash Can (My DU » Trash Can)
BookmarkAdd this thread to your Bookmarks (My DU » Bookmarks)
5 replies, 1589 views
ShareGet links to this post and/or share on social media
AlertAlert this post for a rule violation
PowersThere are no powers you can use on this post
EditCannot edit other people's posts
ReplyReply to this post
EditCannot edit other people's posts
Rec (14)
ReplyReply to this post
5 replies
= new reply since forum marked as read
Highlight:
NoneDon't highlight anything
5 newestHighlight 5 most recent replies
Car Dealers Are Terrified of Tesla’s Plan to Eliminate Oil Changes (Original Post)
kristopher
May 2014
OP
NYC_SKP
(68,644 posts)1. I love them, I see them every day. Often I see several on a truck trailer.
It's the future.
I saw one this morning on the way here, it was a red model s, no big.
When I'm not in my old home town, when I'm in my new neighborhood, they are abundant in number.
Last weekend was odd, I saw a Ferrari Dino, another Ferrari, two or three Tesla Sedans, and a Maserati.
Very nice people, they don't care that I'm in a Prius. I hope that they note my larger than stock tires, however!
They will shift and are shifting the paradigm.
Thanks for the post.
djean111
(14,255 posts)2. The Tesla is a disruptor, so of course there will be storm und drang.
Laelth
(32,017 posts)3. Nifty. k&r n/t
-Laelth
rurallib
(62,379 posts)4. I have so been waiting for the day I can drive by
gas stations and repair shops BUT
I have heard that as much as 50% of the jobs in this country depend on the car and its care
IronLionZion
(45,380 posts)5. job killers!
JK
Tesla changes everything, once again.