For many years, auto dealerships have been the “middle man” between auto manufacturers and consumers. While some may see middle men as nuisances, when it comes to auto sales, dealerships often act as an advocate on behalf of the consumer.
In Connecticut, around 80 dealerships have rallied against the up-and-coming luxury electric auto manufacturer Tesla Motors, which is seeking to gain the right to sell directly to consumers in the state. These auto dealerships argue that giving Tesla the right to direct sales would not only put numerous dealership employees out of work, but endanger the rights of consumers who purchase the vehicles.
Tesla motors is facing similar resistance in Missouri and other states where franchising laws are in effect.
Auto dealerships in Connecticut argue that they do not have costs associated with warrantees, recalls, or Lemon Law issues under state franchising laws. They are paid to do the work and are therefore consumer advocates. Under a direct sales model, manufacturers would have such costs. Therefore, franchising laws protect consumers who purchase vehicles from dealerships versus buying them directly from manufacturers.
This is not the first time that Tesla has been in a legal dispute with auto manufacturers or lemon law attorneys. One car owner in Wisconsin won a Lemon Law lawsuit against Tesla with the representation of an experienced lemon law attorney. Tesla is also facing resistance of their direct-sales model in Arizona, Michigan, New Jersey, West Virginia, and other states.
Resources:
- Stamford Advocate – “ Car dealers protest Tesla sales proposal”
- Washington Times – “ Missouri car dealers sue state over Tesla’s direct sales”
- USA Today – “ Tesla fingers owner in lemon-law counterattack”
- USA Today – “ ’Lemon-law’ lawyer declares victory against Tesla”
Direct Auto Sales & Lemon Laws
Have you purchased a Tesla Model S that has turned out to be a lemon? Whether you are the owner of a luxury electric vehicle or a practical sedan, you deserve to be compensated if you’ve been sold a lemon.
My firm, Richard C. Dalton, LLC, has been dedicated to protecting consumers’ rights for more than 20 years. I work directly with the dealerships and manufacturers to negotiate a fair resolution, or to litigate the compensation that you deserve.
Call (888) 577-8520 to receive a free no-obligation consultation on your lemon law case.
