Sam Abuelsamid ... the downside

Episode 1710 (22:24)

Sam Abuelsamid

Sam joins Leo to talk about how regular auto companies cannot sell direct to customers without independent dealers. Tesla has no dealerships, so they can sell direct. Sam says it was a good deal in the early days because auto companies didn't have to sit on inventory and dealerships were local businesses offering services. But now, it's more of a challenge because the market has changed, leaving the traditional business model is in flux. 

But the downside of selling direct is that users don't have a nearby service center, like a local dealership offers. And you're not restricted to going to any specific dealer, you can go to another dealer. You can also use dealers against each other to avoid paying mark-ups. You don't like the price one dealer is selling it for, go to another dealer.

But buying directly from a manufacturer may mean only one price. But that price could change day-to-day. So if the price is too much today, it may be cheaper tomorrow.