Following New Jersey’s ban on automakers selling vehicles directly to consumers, a decision that mainly affects Tesla Motors and its two dealerships in the state, Consumer Reports has released a video in which it tries to shed light on this issue.
More specifically, the consumer magazine explains the differences between independent car dealerships and dealerships owned by carmakers, as well as their advantages and disadvantages for the customers.
There are several states that ban direct vehicle sales by automakers: Arizona, Texas, Virginia, Maryland and New Jersey. Legislators from Ohio and New York are thinking of adopting the ban too.
So why does Tesla insist to sell its cars directly and not through franchised dealers like everybody else? Well, the automaker says it can provide a better sales experience and is against franchised dealers because it says they may favor gasoline cars over EVs, as dealers also rely on servicing to make money and electric vehicles don’t require much maintenance.
Watch the video to find out more about this subject.
By Dan Mihalascu
VIDEO