Ole Miss. embracing the freemarket?

Paratus

Lifer
Jun 4, 2004
16,837
13,762
146
The laws that benefit dealerships do make it easier on consumers to purchase cars.

In Texas if you buy a new car from the dealer you can easily:
  • roll the state taxes into your auto loan
  • Be exempt from state inspections for 2 years from date of purchase
  • Initial vehicle registration lasts for 2 years
  • Immediate access to paper tags good for 2 months.
When I bought my Tesla I had to:
  • Pay all the taxes upfront within a month to register the car or suffer late fees (paperwork processing only gave me 3 days before the month was up.)
  • Get the new car inspected within first month of ownership or delay registration
  • Car arrived during the 72hours it took them to provide me paper tags so had to wait until they arrived before driving
It’s quite the set of perks they allow dealerships to smooth over the state government requirements and make at least that portion of the buying experience easier for customers.

It’s a good way to reduce competition and push people away from EVs by denying them to EV manufacturers without dealership networks.
 

dainthomas

Lifer
Dec 7, 2004
14,611
3,456
136
The laws that benefit dealerships do make it easier on consumers to purchase cars.

In Texas if you buy a new car from the dealer you can easily:
  • roll the state taxes into your auto loan
  • Be exempt from state inspections for 2 years from date of purchase
  • Initial vehicle registration lasts for 2 years
  • Immediate access to paper tags good for 2 months.
When I bought my Tesla I had to:
  • Pay all the taxes upfront within a month to register the car or suffer late fees (paperwork processing only gave me 3 days before the month was up.)
  • Get the new car inspected within first month of ownership or delay registration
  • Car arrived during the 72hours it took them to provide me paper tags so had to wait until they arrived before driving
It’s quite the set of perks they allow dealerships to smooth over the state government requirements and make at least that portion of the buying experience easier for customers.

It’s a good way to reduce competition and push people away from EVs by denying them to EV manufacturers without dealership networks.

I'm curious why a brand new car would need to be inspected? Are they going to catch something Tesla, Rivian, Ford, whoever missed?
 
Reactions: DarthKyrie

woolfe9998

Lifer
Apr 8, 2013
16,189
14,102
136
Politically connected car dealership owners are all over using the state to force everyone to give them their cut.

Indeed, they admit as much.

Sen. Brice Wiggins, a Republican from Pascagoula, said the “protectionist” bill came from traditional car dealers threatened by competition from electric carmakers.

Pretty short sighted I would say.
 

woolfe9998

Lifer
Apr 8, 2013
16,189
14,102
136
Pubs claim EV dealerships have advantages over traditional but don't give one example.

Well they do, actually.

Tesla sells vehicles in person at one facility in Mississippi that is classified as a store, not a dealership. The distinction allows the company to operate outside state laws governing franchise businesses. This exception, and the prospect of other electric companies taking advantage of it, gives these manufacturers special privileges that traditional automakers don’t enjoy, according to Republican Sen. Daniel Sparks of Belmont.

and...

The bill does not restrict the direct sale of electric cars, as people can buy them online. But if they want to buy an electric car in person, they would have to drive to the state’s only Tesla store in Pearl, which would be allowed to remain open under the proposed new law. Tesla or any other electric car company could not open a new brick-and-mortar location to sell cars unless they enter a franchise agreement.


I think this is an issue with Tesla in particular, because the manufacturer is doing direct sales, with no franchise agreement. I think other EV dealers would be franchised anyway because that is the typical business model for dealerships.
 
Last edited:
Reactions: hal2kilo

dawp

Lifer
Jul 2, 2005
11,345
2,705
136
I'm curious why a brand new car would need to be inspected? Are they going to catch something Tesla, Rivian, Ford, whoever missed?
I believe most dealers have their own in house inspection stations on site, we get a free inspection if we take it to the dealer, I believe it's to make sure that there are no manufacturer defects that can affect safety
 

Paratus

Lifer
Jun 4, 2004
16,837
13,762
146
I'm curious why a brand new car would need to be inspected? Are they going to catch something Tesla, Rivian, Ford, whoever missed?
Right. But does Texas know it’s actually a brand new car? Technically I bought it out of state (over the internet) so Texas wants a state inspection to make sure it conforms to Texas requirements.

It cost me $7 since there’s no ICE or exhaust to check.

It’s mostly just to cause friction to protect instate politically connected dealership networks.

When I first moved to Texas I actually had to do something similar. We had just bought a new car from out of state that still had paper tags and wasn’t registered anywhere. Had to pay a tax difference and get it inspected to get it registered.
 

HomerJS

Lifer
Feb 6, 2002
36,272
28,129
136
Well they do, actually.



and...




I think this is an issue with Tesla in particular, because the manufacturer is doing direct sales, with no franchise agreement. I think other EV dealers would be franchised anyway because that is the typical business model for dealerships.
I still don't get why not having a franchise agreement helps Tesla. Or is it just extra fees to the state?
 
Reactions: ivwshane

brycejones

Lifer
Oct 18, 2005
26,592
24,826
136
I think this is an issue with Tesla in particular, because the manufacturer is doing direct sales, with no franchise agreement. I think other EV dealers would be franchised anyway because that is the typical business model for dealerships.

I'm not aware of an EV only manufacturer that isn't associated with a legacy ICE manufacturer having a dealer network. The pureplay EV companies have been looking to cut out the dealer AKA middleman in order to maximize revenue.

If you know of one please post it here.
 

Paratus

Lifer
Jun 4, 2004
16,837
13,762
146
The laws that benefit dealerships do make it easier on consumers to purchase cars.

In Texas if you buy a new car from the dealer you can easily:
  • roll the state taxes into your auto loan
  • Be exempt from state inspections for 2 years from date of purchase
  • Initial vehicle registration lasts for 2 years
  • Immediate access to paper tags good for 2 months.
When I bought my Tesla I had to:
  • Pay all the taxes upfront within a month to register the car or suffer late fees (paperwork processing only gave me 3 days before the month was up.)
  • Get the new car inspected within first month of ownership or delay registration
  • Car arrived during the 72hours it took them to provide me paper tags so had to wait until they arrived before driving
It’s quite the set of perks they allow dealerships to smooth over the state government requirements and make at least that portion of the buying experience easier for customers.

It’s a good way to reduce competition and push people away from EVs by denying them to EV manufacturers without dealership networks.
So today Texas signed into law a change to EV registration fees.


Every new EV will pay $400 to register the first time and then $200 per year from then on. This bipartisan bill was dropped so “everyone pays their fair share” into the road repair fund.

In comparison, for this year, vehicles under 6000lbs pay $50.75 to register.

Vehicles 6000-10,000lbs pay $54

It takes a vehicle weight of 18,000-26,000lbs before you pay $205.

But ICE vehicles do pay gas taxes which EVs don’t. So how much does that cost so the cost is “fair”?

For me I’ve driven my 4200lb EV 23K miles in 2 years. Under this new proposal I would have paided $400 (Texas allows a one year skip of registration for new cars)

If instead I would have driven my 6600lb V8 Suburban which gets about 18mpg it would have cost me $54 to register and then another $255 in gas taxes for a combined total of $309. 23% less than the lighter more efficient EV.

In our Elantra which gets around 28mpg it would have been $215 total or 47% less.

For some reason it doesn’t seem like they were aiming for “fair” does it.
 

Homerboy

Lifer
Mar 1, 2000
30,856
4,974
126
EV dealerships should have to follow the same laws as ICE dealerships. I also don't think it bans show rooms that don't actually sell cars.

The real problem is the the dealership laws in general, though.

To be fair, the require of ICE only being sold at dealerships, and not manufacturer direct is stupid.
 

hal2kilo

Lifer
Feb 24, 2009
23,647
10,507
136
Right. But does Texas know it’s actually a brand new car? Technically I bought it out of state (over the internet) so Texas wants a state inspection to make sure it conforms to Texas requirements.

It cost me $7 since there’s no ICE or exhaust to check.

It’s mostly just to cause friction to protect instate politically connected dealership networks.

When I first moved to Texas I actually had to do something similar. We had just bought a new car from out of state that still had paper tags and wasn’t registered anywhere. Had to pay a tax difference and get it inspected to get it registered.
I think that would be SOP for most states.
 

manly

Lifer
Jan 25, 2000
11,318
2,345
136
I'm not aware of an EV only manufacturer that isn't associated with a legacy ICE manufacturer having a dealer network. The pureplay EV companies have been looking to cut out the dealer AKA middleman in order to maximize revenue.

If you know of one please post it here.
Aren't there at least three in the U.S.?

Tesla
Rivian
Lucid
VinFast

Unless I misunderstood, are any of these associated with a legacy automaker?

Edit:
You probably meant "that is associated." I can only come up with Polestar, although I'm not familiar with their sales channel.
 
Last edited:

Zorba

Lifer
Oct 22, 1999
14,826
10,231
136
So today Texas signed into law a change to EV registration fees.


Every new EV will pay $400 to register the first time and then $200 per year from then on. This bipartisan bill was dropped so “everyone pays their fair share” into the road repair fund.

In comparison, for this year, vehicles under 6000lbs pay $50.75 to register.

Vehicles 6000-10,000lbs pay $54

It takes a vehicle weight of 18,000-26,000lbs before you pay $205.

But ICE vehicles do pay gas taxes which EVs don’t. So how much does that cost so the cost is “fair”?

For me I’ve driven my 4200lb EV 23K miles in 2 years. Under this new proposal I would have paided $400 (Texas allows a one year skip of registration for new cars)

If instead I would have driven my 6600lb V8 Suburban which gets about 18mpg it would have cost me $54 to register and then another $255 in gas taxes for a combined total of $309. 23% less than the lighter more efficient EV.

In our Elantra which gets around 28mpg it would have been $215 total or 47% less.

For some reason it doesn’t seem like they were aiming for “fair” does it.
Not the right way of doing it. But all gas taxes should be replaced with a weight & mileage tax. EVs should pay for the roads too, but it should be the same calculation as everything else.
 

pauldun170

Diamond Member
Sep 26, 2011
9,133
5,072
136
I'm curious why a brand new car would need to be inspected? Are they going to catch something Tesla, Rivian, Ford, whoever missed?
Considering how some cars are delivered from the factory...
You want your car inspected before you take delivery.

Sure plenty of dealers have enjoyed the sight of missing bolts on the caliper or windshield wiper that aren't attached anything
 
Reactions: hal2kilo

pmv

Lifer
May 30, 2008
13,269
8,196
136
Not the right way of doing it. But all gas taxes should be replaced with a weight & mileage tax. EVs should pay for the roads too, but it should be the same calculation as everything else.


If going that way there probably should be multiple taxes, to cover different externalities.

A tax for road wear needs to include the weight of the vehicle (I think it depends on the 4th power of the weight) and the milage driven, a tax covering pollution needs to account for the type of fuel and fuel efficiency and any emissions limiting tech, and then there's a tax on congestion/limited road capacity, that would depend on when and where you drive, and the size of your vehicle.

Or just ban the things outright unless there's a proven unavoidable need to drive.
 
Reactions: Zorba

Zorba

Lifer
Oct 22, 1999
14,826
10,231
136
If going that way there probably should be multiple taxes, to cover different externalities.

A tax for road wear needs to include the weight of the vehicle (I think it depends on the 4th power of the weight) and the milage driven, a tax covering pollution needs to account for the type of fuel and fuel efficiency and any emissions limiting tech, and then there's a tax on congestion/limited road capacity, that would depend on when and where you drive, and the size of your vehicle.

Or just ban the things outright unless there's a proven unavoidable need to drive.
Yeah. I think the biggest issue with a mileage tax is when do you collect? If at annual registration, then people could end up with a pretty large bill, which could be a real problem for people living paycheck to paycheck.

The other problem is politicians in the US trip over themselves to not raise taxes on cars, except for tolls.
 
Reactions: hal2kilo
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