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All this moaning about how scummy and awful dealerships are... just don't buy a car there. First and foremost buying a brand new car is a stupid idea from a financial perspective, the depreciation is greatest in the first few years. Buy a used car from a private seller, or if you feel you must have a dealer involved go to a fairly low-scum-factor place like Carmax.

All that aside, I love Tesla's direct sales idea. It is disruptive, but I would think a few forward-thinking states are going to allow it (or not stand in the way of it), and people who want to buy a Tesla direct will just arrange road trips there to pick up their cars. Eventually word will spread, public demand will build, and the political barriers will fall elsewhere.



Many states make it impractical to buy a car from a private seller due to "safety inspection" laws. In Maryland for example you can't get plates for your car until it has been inspected by an authorized inspection location which just happen to be car repair shops and auto dealers who have an interest in selling you repair services and new cars. Used cars you buy from a dealer come already inspected. It's basically a huge racket to make sure you don't buy a car from any place except a car dealer.


Buying a new car isn't necessarily a stupid idea from a financial perspective. It's true that cars depreciate in value at a ridiculous rate (which starts the moment you drive off from the dealership), but buying from a private seller means you have no way to tell if the car has been maintained properly. I've heard that a decent number of car owners don't even get oil changes on time. Is it worth saving, say, 30% up front but risking that the car will drop dead at any moment? Maybe yes and maybe no. It depends on how reliable you need the car to be.


Here's an interesting article from consumer reports which looks into the cost of car ownership. http://www.consumerreports.org/cro/2012/06/what-that-car-rea...

This graphic (from CR) shows how depreciation accounts for most of the cost of owning a car, over time. http://imgur.com/wrOQu


I bought a used car a couple months ago, paid $20 for a experian autocheck report on it and it came back with all the service records and accident history. Took it to a mechanic who ensured the car was in good condition. Since it was private party, i paid less than kbb value for it $22k compared to $28k(dealer price). Thats more than 30% savings. And if car is still under bumper to bumper warranty, you can go get a factory extended warranty for $3k and it will be the same as a certified preowned dealer car.




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