Deal Opens Doors for Tesla Dealership in Northern Virginia
Tesla, the Virginia Automobile Dealers Association and the state's Department of Motor Vehicles came to an agreement that essentially will help avoid litigation surrounding the opening of a Tesla dealership in Northern Virginia.
After the Virginia DMV denyed Tesla’s request in April to open a dealership in the area, Tesla appealed the ruling in Fairfax County Circuit Court.
Now, after much deliberation between the company, state officials, and dealer representatives, the parties have decided to approve Tesla’s request to operate a dealership in Virginia.
Sunni Brown, public relations and media liaison of the Virginia DMV, offered the following statement to Auto Remarketing:
“Tesla, the Virginia Automobile Dealers Association, and the Department of Motor Vehicles, through counsel, came to an agreement and avoided litigation regarding the operation of a Tesla dealership in Virginia. After the initial ruling, the parties to the hearing engaged in discussions and, after consideration of those discussions and additional information presented, the Commissioner can determine that Tesla may own a Tesla dealership in Northern Virginia.”
That said, the fight for a Tesla dealership in Virginia is far from being over for the company.
According to Brown, “To operate as a dealer, Tesla must meet the statutory requirements applicable to dealers and obtain a license for the Motor Vehicle Dealer Board.”
Furthermore, this agreement deals solely with the Northern Virginia dealership proposition and no announcement has been made regarding whether Tesla will be able to open additional dealerships in the state in the future.
Tesla Motors’ non-traditional direct-to-consumer sales model has landed the automaker atop auto industry news this year, while also leaving many dealers throughout the country up in arms. But little has been said regarding the young company’s potential effect on the used-car market.
To get some insight into residual values and the future market for used Teslas, Auto Remarketing reached out this summer to remarketing experts from a variety of backgrounds.
Kevin Filan, vice president of customer marketing and industry relations at AutoTrader.com, said, “We expect interest in Teslas to remain strong in the near future, particularly with Fisker out of the mix in the EV market.”
That said, Tesla is obviously a low volume manufacturer, and Filan contends that “early adopters who have purchased Teslas likely have more of an affinity for their vehicle than the average car shopper, which could lead them to hold on to it longer.”
Sarah Rubenoff can be reached at srubenoff@autoremarketing.com. Continue the conversation with Auto Remarketing on both LinkedIn and Twitter.