That is an opinion column
ComebackTown giving voice to the folks of Birmingham & Alabama.
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“We dare defend our rights.”
Sure, that’s our Alabama motto.
However we don’t appear to be given these rights in Alabama.
As fuel costs surge, I’ve gotten curious about proudly owning an electrical automotive.
And I’m getting sick and bored with the U.S. being pushed round by Russia, Iran, Venezuela, and different oil wealthy international locations.
I actually just like the American made Tesla Mannequin 3—a extra reasonably priced Tesla electrical car.
I’ve discovered, nevertheless, I can’t truly purchase a Tesla or a number of different electrical automotive manufacturers in Alabama– nor can I’ve them serviced throughout the state.
My solely choices look like to purchase a Tesla on line or drive to Atlanta– the closest showroom.
In response to Wikipedia, Alabama is one in every of solely ten states that has applied an entire and complete direct gross sales ban on producers promoting new vehicles to the general public.
And of these ten states, we’re solely one in every of three states that additionally bans producers from proudly owning service facilities.
Though main repairs are uncommon for electrical vehicles, this may power Alabama-based Tesla homeowners to drive or tow their car to Atlanta to be serviced.
Even the Federal Commerce Fee recommends permitting direct producer vehicle gross sales, saving shoppers hundreds of {dollars} on a brand new automotive.
Let’s face it, nobody enjoys the method of shopping for a brand new automotive from a dealership.
And it’s gotten worse with new automotive shortages. Many automotive dealerships at the moment are gouging shoppers by charging hundreds of {dollars} over sticker worth. In response to CNBC, 82% of shoppers are presently paying above sticker worth—in comparison with .3% in early 2020.
Our Alabama conservative state authorities prides itself on particular person rights and restricted authorities interference. That’s true for all merchandise besides the acquisition of electrical automotive (EV) manufacturers like Rivian, Lucid, Tesla and others.
New vehicles are costly and thought of as one’s second-biggest buy after a house. With a lot at stake for shoppers, one would suppose that buyers ought to even have quite a lot of decisions in relation to how they want to purchase a brand new car. They don’t, when in comparison with different merchandise.
Just about any merchandise may be purchased via a number of channels in Alabama. For instance, one can buy Apple merchandise on-line instantly or in individual from an Apple retailer. As well as, these identical Apple merchandise may be acquired from firms like Greatest Purchase, Amazon, Goal and plenty of different locations.
Nike and Levi’s are different examples of firms promoting direct to the buyer and thru different firms. Wineries are allowed to promote direct to the buyer in response to Alabama legislation. Houses and actual property have a number of gross sales channels. Even firms like Carvana and Vroom can legally promote used vehicles direct to automotive consumers.
How did we evolve to this sorry state of affairs?
The dealership mannequin for vehicle gross sales has been round for almost a century. Its unique implementation was applicable and labored nicely. Legal guidelines have been established to guard small fledgling sellers from giant nicely financed producers competing unfairly towards them and placing them out of enterprise.
You would possibly need to make a case in your native automotive dealership, however one after the other, many of those domestically owned dealerships are being bought to multibillion-dollar automotive dealerships. Lots of our dealerships aren’t domestically owned household companies any extra. The dealerships are co-opting the franchise legal guidelines and lobbying state legislatures to make use of outdated seller franchise legal guidelines to restrict the free market and shopper alternative.
The brand new electrical car producers akin to Lucid, Rivian and Tesla have by no means had dealerships. Subsequently, franchisee legal guidelines defending sellers shouldn’t apply. They’re being blocked from promoting their vehicles on to the automotive purchaser.
A number of states like Colorado and Michigan have up to date direct sale legal guidelines or labored out agreements to cease this misuse that’s giving a monopoly to third-party sellers. However not Alabama.
We in Alabama are purported to be about freedom and selection.
We dare defend our rights!
David Sher is the founder and writer of ComebackTown. He’s previous Chairman of the Birmingham Regional Chamber of Commerce (BBA), Operation New Birmingham (REV Birmingham), and the Metropolis Motion Partnership (CAP).
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