Foolish to block Tesla sales in Connecticut
The Willimantic Chronicle just shared the Day's editorial concerning Tesla still being blocked from selling in Connecticut. After we drove to New York to pick up our Model 3, I spoke to local legislators about paying all our sales tax directly to New York state. The first representative said, “Well, we don’t allow sales of Teslas here, because you’d have nowhere nearby to get service.” That statement was untrue. The Milford Service Center does repairs and provides loaners as well. He was shocked, but unashamed about being so misinformed. Actually, minor service is completed in your own driveway, by a mobile truck. But then again, repairs are rare, and free. We will get back to that later. Representative two said, “I vote against them," since we get huge amounts of revenue from all those cars that sit on dealers’ lots unsold. Do dealers understand that no one is actually working in their interest at all?
The old business plan of dealerships is based on making sure they can compete with each other, lowering their sales price right down to making nothing in markup. Nothing. They are guaranteed that all their future income will come from service plans sold, and actual tune-ups and maintenance that costs more for traditional cars, so independent dealerships that make money off of service will always have an incentive to steer consumers away from electric vehicles.
Tesla warranties their vehicles for 50,000 with no needed annual maintenance. There are basically only two major parts − the motor and the battery, both covered for 120,000, but the anticipated lifetime of each is 300,000 to 500,000 miles.
At 45,000 miles we have only paid for tires. That is pretty tough to compete with. Remember all those car commercials during the first year of COVID? “Stop the haggling, stop the pain of dealing with old-fashioned dealers”.
That time is here to stay.
Mary Campbell Hirsch live Storrs.
Editor's note: To clarify, Tesla can sell its cars in Connecticut, but it would have to do so through a dealership. It seeks a state law change to allow for its direct-sales model.
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