New Jersey is the latest state to ban Tesla's direct-to-customer car sales

[spookyturtle 9,466]

Where's the outrage?

Tesla's direct-to-customer sales model just hit another big roadblock. New Jersey's Motor Vehicle Commission has voted in favor of a rule banning direct car sales, effectively kicking Tesla out of the state as of this April. For those keeping score, this is the EV maker's third such defeat, following similar moves by Arizona and Texas -- while Tesla won a legislative battle to go dealer-free in North Carolina, it appears to be losing the war. Not surprisingly, the company is furious. It accuses Governor Chris Christie of not just reneging on a promise to delay the rule for the sake of debate, but of speeding things up to please dealerships that fear real competition. Whether that's an accurate representation or just corporate bluster, the ban will undoubtedly hurt Garden State residents who want a wider selection of eco-friendly rides.

http://www.engadget.com/2014/03/11/new-jersey-bans-tesla-direct-sales-model/

[luckytxn 2,264]

I thought it was stupid when Texas did it and I still think it is stupid.

Where's the outrage?

Tesla's direct-to-customer sales model just hit another big roadblock. New Jersey's Motor Vehicle Commission has voted in favor of a rule banning direct car sales, effectively kicking Tesla out of the state as of this April. For those keeping score, this is the EV maker's third such defeat, following similar moves by Arizona and Texas -- while Tesla won a legislative battle to go dealer-free in North Carolina, it appears to be losing the war. Not surprisingly, the company is furious. It accuses Governor Chris Christie of not just reneging on a promise to delay the rule for the sake of debate, but of speeding things up to please dealerships that fear real competition. Whether that's an accurate representation or just corporate bluster, the ban will undoubtedly hurt Garden State residents who want a wider selection of eco-friendly rides.

http://www.engadget.com/2014/03/11/new-jersey-bans-tesla-direct-sales-model/

[spookyturtle 9,466]

Why aren't they allowed to go dealer free? If the consumer has no problem with it, why does the state?

[luckytxn 2,264]

The reasoning is that states want to insure to the consumer that the cars will be able to have their warranties safe. They consider it a contract and that direct sales will mean that warranties could be defaulted if the car maker folds.

Why aren't they allowed to go dealer free? If the consumer has no problem with it, why does the state?

Edited March 13, 2014 by luckytxn

[Dakine10 5,452]

The reasoning is that states want to insure to the consumer that the cars will be able to have their warranties safe. They consider it a contract and that direct sales will mean that warranties could be defaulted if the car maker folds.

Oh good! For a second, I was worried it might be because we are turning into an oligarchic republic run by corporate masters and their lobbies.

[spookyturtle 9,466]

The reasoning is that states want to insure to the consumer that the cars will be able to have their warranties safe. They consider it a contract and that direct sales will mean that warranties could be defaulted if the car maker folds.

If Telsa folds, what good will the warranty be anyway? It's not like you can go to your local parts store for replacement parts. It seems like buyer beware to me.

[luckytxn 2,264]

That is my idea also. Also the dealers in place are very active with political contributions and must be listened to of course.

If Telsa folds, what good will the warranty be anyway? It's not like you can go to your local parts store for replacement parts. It seems like buyer beware to me.