zzdcar
Home
/
Reviews
/
Buying
/
The Tesla Model 3 Could Be The Tipping Point For How Cars Are Sold In America
The Tesla Model 3 Could Be The Tipping Point For How Cars Are Sold In America-October 2024
2024-02-19 EST 22:09:59

When is the last time you saw someone to order a car? That’s something you see for an iPhone launch, not a car. Tesla Motors has infused a dose of Silicon Valley into car buying, and the may be the start of a car-buying revolution.

With the Model S, Tesla created an EV like no other that came before. It was a luxury car first and a “green car” second. There were some buyers who bought one because they wanted to reduce their environmental impact, but Elon Musk knew the tree-hugger market is limited.

The reality is most buyers don’t put “low carbon footprint” at the top of their priority list when it comes to buying a car. It may sound shallow, people buy a car because they think it’s cool. And the Model S has proven to be a very cool car.

, is not “cool.” From pickup trucks that will never see dirt in their bed to sports cars whose owners won’t even come close to the car’s performance limits. People buy cars not necessarily for what they can do, but rather how the vehicle makes the owner feel.

Love it or hate it, the Model S is a technological showcase and can demonstrate performance that rivals supercars from legendary manufacturers like Ferrari and Lamborghini. Unfortunately, those cars were out of reach for most people—until now.

Given the hype, deserved or not, that surrounds the Model S and Model X, for your average consumer, Tesla has become an aspirational brand. Not only that, Tesla’s business model of bypassing the outdated dealership franchise system is hugely appealing to your 21st century car-buyer. The average American doesn’t want to hear all that crap about how franchises protect the consumer; all they know is they can buy practically anything in their home online, and they want to do the same for their automobile.

, coupled with a history of sleaziness and ripping off consumers, have made Tesla the poster-child for a generation of consumers fed up with buying cars the old fashioned way.

The average transaction price of new cars sold in the America is about $33,000. The Model 3's will put it within reach of your average buyer. Of course, the big question is whether or not Tesla’s business model can be sustained when scaled to a much larger volume.

If the brand can pull it off, we will likely see a generation of consumers demanding the “Tesla style” buying experience from other brands.

Established luxury automakers have seen the writing on the wall and are adjusting their marketing and product development strategies in anticipation of the Model 3. Audi’s new A4 sedan, which will compete at a similar price point as the Tesla, has an ad campaign that focuses on the technology in the car. Most new cars do the same. Mainstream buyers want technology in their car and Tesla has most of them beat.

Luxury car dealers have been turning into Apple-stores with “product geniuses” and interactive kiosks. However, what is holding all of them back is the fact that they are still shackled to the dealership franchise system.

Lexus has been trying a but this only works if every dealer buys-in. In order for “no haggle” to work you must universally implemented, or buyers will still have to negotiate.

As of now, the other European brands have been fairly ambivalent to Tesla’s fight with the dealerships. However, the entry level luxury sedan segment is hyper-competitive and very crowded. If the big players start to see a drop in market share due to the Model 3, they could pivot their position and desire a direct sales model of their own.

Comments
Welcome to zzdcar comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Buying
For $10,500, Would You Feel This 1976 AMC Hornet’s Sting?
For $10,500, Would You Feel This 1976 AMC Hornet’s Sting?
Today’s Hornet X Sportabout brings some serious seventies sexiness to the table. Let’s see if its asking price gets you all hot and bothered as well. The ability to cross water made yesterday’s custom one of a kind the ultimate expression in off-roaders. Unfortunately, too many of its original parts...
Oct 31, 2024
You Can Get A Dodge Dart For Up To $10,000 Off MSRP
You Can Get A Dodge Dart For Up To $10,000 Off MSRP
The Dodge Dart is not a bad car. It’s just not quite as good as some other offerings in a very crowded segment. Now that Dodge is phasing out Dart, the fire sale has begun and you can pick up a nice compact with crazy discounts and insane financing offers....
Oct 31, 2024
For $2,300, Could This 1988 Acura Legend Be A Legendary Value?
For $2,300, Could This 1988 Acura Legend Be A Legendary Value?
Today’s Legend is claimed to come with receipts for over forty grand in maintenance over the course of its life. Let’s see if its current price might make for a receipt also worth keeping. Do you know what the pirate said when he became an octogenarian? Aye matey! Talking like...
Oct 31, 2024
For $69,500, This 2008 Audi R8 4.2 Might Just Be Great
For $69,500, This 2008 Audi R8 4.2 Might Just Be Great
Audi owns Lamborghini, which has made it possible that you could potentially own today’s R8, a car closely related to Lamborghini’s Gallardo. We’ll just have to see if it’s priced to keep it all in the family too. Look, you don’t have to play golf to drive a golf cart,...
Oct 31, 2024
For $2,500, You Could Play 18 Holes With This GT40-Inspired Golf Cart
For $2,500, You Could Play 18 Holes With This GT40-Inspired Golf Cart
Have you ever seen a Ford GT40 Roadster Golf Cart? Until today’s club hauler, neither had I. Let’s see if this cool little cart’s price could be considered par for the course. According to , the European Hornet was ‘accidentally’ introduced in North America in the 19th Century. Yeah, I’d...
Oct 31, 2024
It's Probably Your Own Fault If Your Car Payments Are Too High
It's Probably Your Own Fault If Your Car Payments Are Too High
The average auto loan payment is almost $500 a month and. Many industry analysts are concerned about the long-term financial consequences of car loans people can’t afford. But if you’re struggling to make your payments, don’t blame the bank or the dealer. According to a report by Experian, Now, all...
Oct 31, 2024
Copyright 2023-2024 - www.zzdcar.com All Rights Reserved