The Dealership Model Is Doomed Unless It Starts Adding Value

The traditional dealership model is not doomed simply because companies such as Tesla and Rivian sell vehicles directly to consumers. It is doomed when dealerships insert themselves into the transaction without making the experience easier, more informative, or more trustworthy.

I was reminded of that during what should have been a simple and enjoyable evening shopping for a car with my daughter.

Although I would prefer that she drive a fully battery-electric vehicle, we agreed that a hybrid would be a reasonable compromise. She was interested in the Honda Civic Hybrid, and we found an Urban Gray sedan at Heritage Honda of Westminster, MD that she really liked.

We were not trying to negotiate a complicated deal that evening. We simply wanted to sit in the car, experience the hybrid powertrain, and take it for a test drive.

Instead, the visit became a case study in how the traditional dealership model can undermine itself.

A Simple Test Drive Became Nearly an Hour of Frustration

We arrived at approximately 7:45 p.m. and located the Civic Hybrid in the rear parking lot. No one greeted us outside, so we walked into the showroom and stood there for at least 10 minutes before anyone acknowledged us.

Eventually, a very kind salesman approached and offered to help. He was the bright spot in this experience. We showed him the Civic Hybrid and explained that we wanted to sit in it and take it for a test drive.

He went to retrieve the keys and returned with a dealer tag, but no keys. We then waited another 15 to 20 minutes while he tried to locate them. When he returned, he explained that two other salespeople had leads on the vehicle and that no one could determine where the keys were.

To his credit, he tried to find alternatives. He offered us a regular Civic, but this dealership had only one Civic Hybrid on the lot. A conventional Civic might have helped us evaluate the basic size and interior, but it would not have allowed us to experience the hybrid powertrain we had specifically come to evaluate.

He also suggested that we return Saturday or Monday. Unfortunately, we were not available on either day.

I do not blame the salesman. He appeared to be making a genuine effort, but he seemed to have little support or authority to resolve the problem.

The Missing Keys Were Not the Real Failure

Keys get misplaced. Employees forget to return them. Systems occasionally fail. None of that, by itself, needed to ruin the experience.

The real test of a business is what happens after something goes wrong.

My wife and I went back inside and specifically requested a manager. We waited at least another 10 minutes while managers remained seated at computers in their offices. Not one came out to introduce themselves, acknowledge the situation, apologize, or explain what was being done.

The salesman said they were checking the key logs to determine who had last removed the keys. That may have been true. But if management was genuinely investigating the problem, someone could have taken two minutes to speak with us.

A manager could have said:

We are sorry. This is our only Civic Hybrid, and we cannot locate its keys right now. Let me take responsibility for this, confirm when it will be available, and arrange a test drive around your schedule.

That brief interaction could have changed the entire outcome. Instead, management left the salesman to handle the situation alone and allowed us to leave frustrated and disappointed.

This Was Not an Isolated Communication Problem

Unfortunately, we had recently experienced a similar communication failure with the same dealership's service department.

We repeatedly called, texted, and left voicemails asking whether our vehicle was ready. It had apparently been completed and sat at the dealership overnight. We finally returned the following day and discovered that it was ready, despite never receiving meaningful communication.

One breakdown can be a mistake. Repeated failures across both sales and service suggest a larger operational and management problem.

Why This Matters to the EV Community

This happened while we were shopping for a hybrid, but the implications are especially important for electric vehicles.

An EV customer often has more questions than a conventional vehicle buyer. How does home charging work? What charging connector does the vehicle use? How quickly can it charge on a road trip? How will weather, towing, or highway speed affect its range? Which incentives apply? What equipment should be installed at home?

A knowledgeable dealership can add tremendous value by answering those questions, demonstrating the technology, helping the customer understand real-world ownership, and remaining available after the sale.

But when the dealership cannot provide accurate information, locate the vehicle's keys, coordinate its employees, or communicate with the customer, it does not reduce uncertainty. It creates more of it.

That is particularly damaging to EV adoption. A customer who is already uncertain about switching powertrains does not need additional confusion from the company selling the vehicle.

The Problem Is Not That Dealerships Exist

Having purchased vehicles through both traditional dealerships and direct-to-consumer companies, I can see potential advantages in both models.

Direct sales are not perfect. Tesla and Rivian owners can encounter service delays, communication problems, limited physical locations, and other frustrations. Removing the dealership does not automatically guarantee an excellent ownership experience.

Likewise, a good dealership can provide something valuable that an app or website cannot. It can offer local expertise, immediate access to vehicles, convenient test drives, delivery assistance, customer advocacy, and a long-term service relationship.

The problem begins when a dealership behaves like a gatekeeper instead of a service provider.

If customers must navigate internal commission disputes, unclear pricing, unavailable inventory, repeated hand-offs, and managers who will not speak with them, the dealership is no longer improving the transaction. It has become an unnecessary tollbooth between the customer and the manufacturer.

How Dealerships Can Make Themselves Valuable Again

The frustrating part is that this is completely preventable. Dealerships do not need to reinvent automotive retail overnight. They need to focus on the fundamentals of a good customer experience.

• Make appointments and test drives dependable. Confirm that the vehicle is available and that its keys are accessible before the customer arrives.
• Use transparent pricing. Customers should be able to understand the selling price, incentives, fees, financing, and trade value without games or unnecessary surprises.
• Train genuine product experts. This is especially important for hybrids and EVs, where knowledgeable guidance can determine whether a hesitant customer feels comfortable moving forward.
• Give employees the authority to solve problems. A motivated salesperson should not be left powerless because another department or salesperson controls information, inventory, or keys.
• Make managers visible and accountable. When something goes wrong, management should engage immediately instead of waiting for the customer to leave.
• Communicate consistently after the sale. Sales and service updates should be timely, accurate, and available through the customer's preferred communication method.
• Use the larger dealer network. If the requested vehicle is unavailable, help locate one, arrange a transfer, or coordinate a test drive at another location.

A dealership does not need to beat online shopping at being online. It needs to make its physical presence worth the customer's time.

Poor Dealership Experiences Damage the Manufacturer Too

Our family has owned Honda vehicles for roughly a decade. Yet this experience left us questioning whether our next vehicle will be another Honda.

That may seem unfair to the manufacturer, but customers experience the dealership as part of the brand. When the local retailer fails, Honda, Ford, General Motors, Volkswagen, or any other manufacturer suffers the loss of trust.

Automakers cannot afford to treat dealership behavior as someone else's problem, particularly as they ask mainstream consumers to adopt unfamiliar electric technology. Every poor retail interaction gives customers another reason to consider a company offering a simpler purchasing process.

The Dealership Model Must Earn Its Place

The salesman who helped us demonstrated the courtesy and effort that the dealership should have provided throughout the organization. Unfortunately, the system around him prevented him from delivering the experience we should have received.

This is why I believe the current dealership model is in serious trouble. Consumers have more information, more purchasing options, and less patience for unnecessary friction than ever before.

Dealerships do not have to disappear. But they must stop assuming that their legal or geographic position guarantees their relevance.

What has your experience been with traditional dealerships compared with direct-to-consumer vehicle companies? Have you found a dealership that genuinely improves the buying or ownership experience? Share your experience in the comments.

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