Why does Chris Christie hate the free market

I could've also titled this "How NJ Car Dealership Lobbyists protected a monopoly on selling cars."

Tesla sales will be banned in New Jersey starting April 1st

"Tesla was dealt a crushing blow in New Jersey today after the state's Motor Vehicle Commission passed a rule that will prevent the company from selling its electric cars directly to consumers starting in April. Unlike other automakers, Tesla sells its Model S through company-owned retail stores — a business model that cuts out the franchised auto dealerships that have ruled the market for decades. New Jersey is the third US state to ban car manufacturers from selling directly to customers, joining Texas and Arizona. But unlike those two states, New Jersey is home to a booming luxury vehicle market, making this a major loss for Tesla."

More detail at the link.

TL;DR - Car dealerships are scared to death of Tesla's direct to consumer sales. As they should be since they saw what happened to other predatory consumer sales relationships like music sales. The internet is bringing comeuppance to the middle man.

people will just buy them in PA, NY, or Del.

I don't think this ban will effect Tesla sales AT ALL.

the people that are loosing their jobs probably had something to do with the bridge/tunnel shmazzal from a few weeks ago

If only Tesla had bought some favor, I mean donated to his campaign.

More crony capitalism. It's why I'm starting to pay less and less attention to politics. It positively doesn't matter.

The auto distribution laws have been around for a LOOOOOONNNNGGG time.

Most other auto companies have just dealt with it. No, all other car companies who sell cars in the US deal with it. Same reason that you can't have a GM bought over the interent and sold at your home.

Ohio has been trying to pass the same crap and so far it's been shelved. But the dealers have a powerful lobby and they'll probably ram it through somehow. And those in power in Ohio are all Republicans - who's for "small government" now? Oh right, that's only for the campaign trail. Frikkin' politicians.

In reply to alfadriver:

Yep. I doubt the dealer association really cares about Tesla, but is more fearful of the precedent this could have set for direct manufacturer sales.

Granted, I would almost rather see direct sales with manufacturer-owned service centers where the manufacturers would have better control over how their cars are serviced and customers dealt with. Might reduce some of the 'sleazy dealer' practices.

didn't daewoo sell direct through individual sales "reps" no doubt what will happen here in NJ is that somebody will get the dealer license to be a Tesla dealer and you go through his website to order it and collect it from his home

In reply to Ian F:

I would too- it drives me nuts when a dealer does something in their interest and not ours. I really got onto one dealer for doing that.

Alas, that hasn't changed with the backing of a Big 3 trying to make the change, so it's very unlikely that a tiny Tesla is going to make and progress.

I think it's a great move by Tesla. They're getting a lot of free marketing out of it by pushing the issue. Even if they lose this state battle, they gain press in all 50 states by taking it on.

So a niche high end automaker is getting press and attention from all areas of the market. People's perception of the government is at all time lows, and they (Tesla) can tout that government is standing in their way, crony lobbyists are blocking their stores, etc. it's a strong marketing campaign to raise public awareness. They're also able to position themselves as a new way of doing business in an internet/digital age where the general public's impression of dealing with a dealership is about as favorable as their approval of congress.

The irony of red states / "small government" mantra locations blocking their sales (like Texas) does not go unnoticed also. Im surprised by the broad spectrum of non-car people friends and coworkers I hear talking about this issue, as well as well-to-do younger techie types.

Why does Chris Christie hate the free market?

Because someone paid for his position on the subject.

See also: Why did Ed Rendell ignore background checks and give gaming licenses to people with strong mob ties?

mad_machine wrote: people will just buy them in PA, NY, or Del.

That is free tax money for the surrounding states since NJ won't collect any.

I feel like if this was Governor Obama of NJ the collective conservative cry would be quite shrill. It will be interesting to see if NJ is criticized for this by the usual free market advocates.

New Jersey you say?

Well... I've heard tings'

You want to get legislation done.... talk to Franky Two Times, otherwise, fuhgeddaboutit!

How YOU do-in?

mad_machine wrote: people will just buy them in PA, NY, or Del.

That's a shame for New Jersey. I bet Jersey could easily support 3 Tesla stores.

Sine_Qua_Non wrote:

mad_machine wrote: people will just buy them in PA, NY, or Del.

That is free tax money for the surrounding states since NJ won't collect any.

How so?

At least in OK, regardless of what state I buy the vehicle in, when I title it in OK I pay a vehicle excise tax based on the purchase price.

I'd guess because the surrounding states will have Tesla stores which will now be frequented by NJ buyers. NJ doesn't get any of the taxes from the operation of those stores.

Whoever said that Texas and Arizona don't have a booming luxury car is a damned yankee!

Oh, man what a daydream. I'd love to see the mandatory third party dealership thing [EDIT: END! I'd like to see it END.].

I know, it's like daydreaming about the lottery, but I can't even buy a ticket.

But it would be so cool to see that hive of scum and villainy removed from the process. Honestly, I think it would have a real impact on cars sold; I certainly hate the process and the dealerships are a big part of why I feel that I can't buy a car without wasting a lot of money. I'm up for one new car to keep the household happy, but I can't fathom having a "fun" car bought from a dealership because I'd feel like an idiot getting taken more often than necessary.

If you have to buy it out of state, it is considered "exotic".

Xceler8x wrote: I feel like if this was Governor Obama of NJ the collective conservative cry would be quite shrill. It will be interesting to see if NJ is criticized for this by the usual free market advocates.

I feel like you're being a butthole because of this statement and your deliberate choice of thread title.

This is a blatant case of political, crony capitalism. Acts like this are common to both sides of the aisle and you know it. If any of the "conservative collective" gives Christie a pass, they'll be as guilty of hypocrisy as you are of trolling.

Sine_Qua_Non wrote:

mad_machine wrote: people will just buy them in PA, NY, or Del.

That is free tax money for the surrounding states since NJ won't collect any.

if NJ is like NC, they will still collect their tax money at reg. time

I should know this by now, but...

• What's the rationale for not allowing direct-to-consumer sales of cars?
• If it's just been banned in three states, is there an actual legal ban on the practice in general, or is it just that somehow the dealers have inserted themselves into the process in other ways?

Aren’t the laws already in effect? If this is the case, Christie isn’t doing something bad; worse case, he’s failing to do something good.

Change typically has significant, negative unintended consequences. What about all the people that invested in license agreements, dealership locations, etc.. How is it fair to pull the rug out from under them? I hate non value added junk like this as much as anyone but once it’s in place, the damage is done. Revoking it just creates a second wave of damage.

Enough with the change…lock the rules and let the capitalistic slugfest begin.