State after state, Tesla has scrapped and clawed their way into the fray in a model that shirks the automotive retail norm: direct-to-consumer sales. While ten states still outright ban direct sales, 20 have explicitly allowed Tesla to sell directly to the consumer in some capacity. The fight against the sales model has largely been from dealers and dealer associations that aim to make Tesla conform to laws that have stood since the ‘30s.

But now it’s a whole new ball game. Laws are still in place but the new normal may never favor the current retail automotive model again. The longer coronavirus keeps us from operating the way we once did as a society, the more potential exists for a significant shift in how things are done.

Please know that I am NOT advocating for direct-to-consumer sales. Rather, I’m pointing out that dealers need to be aware of the car buyer’s mentality and know how to work their own angle.

Fully Online Sales

Tesla’s model is almost exclusively an online sales experience. In a couple dozen states, there are outlets where shoppers can view and test the vehicles, but orders are placed online. It eliminates nearly any exposure to potential hazards like COVID-19 and is much more convenient.

How to Fight It

Don’t. Sell online. It’s an option that’s growing in popularity and dealers should be prepared for it.

No-Pressure Experience

When you shop with direct-to-consumer retailers whether it’s automotive or otherwise, there’s very little pressure during or after to complete your purchase. And if there is pressure, it’s with an easily avoidable phone call or an email or text message you can simply not reply to. Shopping is at your own pace.

How to Fight It

Make it about the shopping experience rather than the sale. Car shoppers appreciate the human contact and relationship development from an in-dealership experience, not to mention an overwhelming desire for a test drive, when it’s done right.

No-Touch Deliveries

Today, there’s fear of contact that will last well beyond the thick of the pandemic. It’s bound to affect how customers feel about someone previously test driving a vehicle they’re hoping to buy. With no-touch deliveries, exposure to others is extremely limited, plus it’s sanitized thoroughly at the time of delivery.

How to Fight It

Customers will expect the same from a dealership. Test drives could be limited to a select vehicles while the vehicle they’ll take home is left untouched on the lot as inventory. Prove to customers that you’re doing everything possible to limit contact with their new car.

Again, I’m not saying that direct-to-consumer sales are right or wrong but they certainly are different. And they’re positioned perfectly to take away business from traditional dealers. As others like Rivian come to market, you’ll need to identify and mitigate their advantages and turn their disadvantages into reasons why customers should shop at your store instead.