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-November 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 Not only that, Tesla’s business model of bypassing the outdated dealership franchise system is hugely appealing to your 21st century car-buyer.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
Chrysler MyGig Infotainment Center Review, Part 2
Chrysler MyGig Infotainment Center Review, Part 2
Last week, I gave you a to the Chrysler MyGig system in a 2008 300c Heritage Edition, and now I'm here to show how all of this hard drive mumbo-jumbo works. All in all, it's a really, really easy system to use. So easy I would be comfortable letting my...
Nov 14, 2025
2008 Jaguar XKR, Part Three
2008 Jaguar XKR, Part Three
The 2008 Jaguar XKR is a beautiful car. The best angle is probably from the rear. The fenders flare out like a woman's hips to cover the wide rear track and flow into a pinched trunk equipped with the most complementary spoiler ever conceived. It evokes muscular visions of British...
Nov 14, 2025
Chrysler MyGig Infotainment Center Review, Part 3
Chrysler MyGig Infotainment Center Review, Part 3
So you've seen the to Chrysler's MyGig entertainment center and you've watched me setting it all up, so what's the final verdict? Well, watch the talking head above and see. I am very happy to bear witness to Chrysler taking another step towards the future of car entertainment and infotainment...
Nov 14, 2025
2007 Audi Q7 4.2 TDI
2007 Audi Q7 4.2 TDI
326 horsepower, 550 lb.ft. or torque, 0-62 mph in 6.4 seconds, top speed of 146 mph, acres of leather, panoramic sunroof, auto-manual six speed, multi-setting air suspension, power everything, parking assist... the 4.2 TDI practically bribes its occupants into loving it. It's hard to provide an objective review of a...
Nov 14, 2025
Behold the Power of Diesel
Behold the Power of Diesel
In the wake of the diesel tide that was the Detroit Auto Show, we decided to hoodwink talk our friends at Honeywell into providing us with some of the most forbidden fruits of the Euro-spec diesel world. As a result we've been living and commuting with the not-for-the-USA 2007 Honda...
Nov 14, 2025
2008 Jaguar XKR, Part Two
2008 Jaguar XKR, Part Two
The 2008 Jaguar XKR is a fast car. With the added 'R,' the hood louvers inscribed with "Supercharged" and the aggressive body work, however, that probably goes without saying. Those visual cues hint at the added performance. Power is up from 300bhp in the non-R version to 420. It makes...
Nov 14, 2025
Copyright 2023-2025 - www.zzdcar.com All Rights Reserved