Factory Pickup, Retail Store Pickup, Or Delivery

[Ekh]

Nice try, but wishful thinking. I thought as you did -- until I read the actual law. In Ohio law, motor vehicles includes motorcycles. That is the law, and it is not ambiguous. Go read it yourself. It may not have been enforced, but after the Tesla legislative compromise, it most certainly will be.

The law does make some distinctions between remanufacturing and manufacturing. Perhaps that covers chopper shops. There is no LEGAL shelter for Elio in being a motorcycle, but there may be PRACTICAL shelter, at least until the sales really take hold and the dealers start screaming.

By the way, motorcycles constitute about 3% of the vehicles on the road nationally. The automotive industry does not see them as a threat, so it's live and let live, for now. If Elio attains that percentage, the screaming will be fierce! Better to work out Plan B.

How about this one: Sell to Ohio residents only in Shreveport, waive the delivery fee, and extend the warranty 800 miles to cover the trip home. No Ohio transaction, and once here, it's only a matter of showing title and paying state sales tax and you're legal.

I am not a lawyer. But I'm sure some such wiggle-room exists somewhere. I hope Elio is clever enough to find it.

 

[zelio]

I have read the Ohio law governing dealerships, franchisees, etc.

Ohio does not distinguish between motorcycles and automobiles for this purpose: both are classed as "motor vehicles." That means that Elio cannot hide behind "well, it's a motorcycle, not a car" for purposes of this issue.

The law governing the 3-tiered system (manufacturer, distributor, franchised dealer) was established in 1937. It is murky, and last Spring was being contested due to Tesla's growing success. The dealers argued that Tesla threatens the long established 3-tier system, which operates to protect consumers from fly-by-night manufacturers of "junky" automobiles. Tesla (and consumer groups) argued that the 3-tier system exists chiefly to protect dealers, not consumers, and that Tesla is demonstrably not a fly-by-night operation.

Subsequently, on March 27, 2014, Ohio's legislators reached a compromise over the Tesla issue -- while Tesla is authorized to open one additional factory store, that's it -- and no other motor vehicle manufacturers will be permitted to operate retail stores in Ohio

Here's the relevant text:

"In a big win for Tesla Motors' auto dealership battle, the state of Ohio will allow the automaker to sell its electric vehicles directly to customers. According to AP, Tesla Motors and the Ohio Automobile Dealers Association negotiated the deal Tuesday, and it was approved by a Senate panel.
...
The bill also made sure to prohibit other automakers from opening manufacturer-owned stores in the state of Ohio. This ensures that others can't follow Tesla's path and try to get rid of auto dealers altogether. - See more at: http://www.dailytech.com/Tesla Motors Ohio Auto Dealers Come to Agreement on Direct Sales/article34602.htm#sthash.4Sliicg9.dpuf "

I am writing to Elio's Govt Relations dept. asking what is being done about this -- there needs to be a Plan B, because according to this report Ohio law now precludes direct factory-operated sales locations in the state. I can think of several possible alternatives -- Plans B, C, D -- but perhaps Elio's folks are already on top of this. I will hope for more of an answer than "we're working on it."

I think you will find that may be your answer. If you accept that graciously then it is likely they will contact you in the future if/when they need your help to further the cause. Sometimes too many fingers in the pie can mess up the pie rather than improve it. I know they have requested support in other states when they reached a point where consumer comments had the power to make a difference. Good Luck! I'm really glad I no longer live in Ohio. :-) Z

 

[JDub]

I worked at a motorcycle dealership "back in the day" and would drive up to Chicago to pick up a load of bikes. Never charged a customer a delivery or setup charge. A sales feature we offered to help sales. Like I said "back in the day" so may have changed but don't believe so as I keep in touch with my old employer. So I think Elio will have the option to do as they choose.

 

[MajorXx]

[QUOTE="

How about this one: Sell to Ohio residents only in Shreveport, waive the delivery fee, and extend the warranty 800 miles to cover the trip home. No Ohio transaction, and once here, it's only a matter of showing title and paying state sales tax and you're legal.

[/QUOTE]

To have a title in the first place will require registration and sales taxes in Louisiana or some other state, then another set of fees in Ohio to get their paper work.

 

[Elioman]

As long as it's in the USA I really don't care. You can always have it shipped private carrier. Something that small in today's world would be around $1,000. But you could fly one-way and drive it home for less if you didn't mind putting the miles on it.

 

[Ekh]

[QUOTE="

How about this one: Sell to Ohio residents only in Shreveport, waive the delivery fee, and extend the warranty 800 miles to cover the trip home. No Ohio transaction, and once here, it's only a matter of showing title and paying state sales tax and you're legal.

To have a title in the first place will require registration and sales taxes in Louisiana or some other state, then another set of fees in Ohio to get their paper work.[/QUOTE]
That's right, and it happens every day. Here in Cincinnati, folks often buy their car across the river in the land of O'Connell and his kin, get a memo title, and drive across the river, pay their sales tax and get an Ohio title. This is an everyday occurrence and no big deal. I think I actually did it myself about 30 years ago, for a used car. It helps that KY does not have sales tax, so there's no balancing of tax accounts to do.

Not ideal, perhaps, but it IS a legal route to get Elios into Ohio without selling them there. At least, it looks legal to me ... as I confessed before, I am not a lawyer. Not devious and insincere enough, I guess. (I'm joking; I have a very close friend who not only is an attorney, but is MY attorney, and we have lunch together once every week or so -- and he DOES NOT bill me for it! And only one has he fled the restaurant when an ambulance passed by ...)

 

[Ekh]

As long as it's in the USA I really don't care. You can always have it shipped private carrier. Something that small in today's world would be around $1,000. But you could fly one-way and drive it home for less if you didn't mind putting the miles on it.

That's why I suggest extending the warranty by 800 miles (or 1,000) which will get you from Shreveport to any point in Ohio. Bus fair would be a couple of hundred bucks, but be awful. Maybe we can set up an "ELIO PICK-UP PARTY," rent a monster van, and drive down. Overnight in Atlanta, on to Shreveport the next day...

 

[Elioman]

Thanks for your reply.

 

[Ekh]

Zelio, I fear "we're working on it" really isn't a good answer. "We're working to change the law" is an answer. "We're working with the state motorcycle dealers' association to explore how they can operate without the 3-tier system" is an answer. "We're planning to drop them by drone onto your front lawn" is an answer -- not credible, but an answer. Plain old "we're working on it," which you are probably correct is the answer I'll receive, is not sufficient because it requires faith and offers no substance. A good answer would suggest a direction in which they're working, a possible timetable, some steps along the way, and ways in which Elio owners might become active in the process. THAT is an answer that would satisfy me.

I'm afraid I'm long on road maps and time-tables, short on faith in vague corporate statements. After years in corporate PR and communications, I ought to be! Of course, no one at Elio is going to tip off their entire strategy to a non-insider. But general directions, even acknowledgement that yes, there's a potential problem here would be helpful.

My purpose here is not to stir up trouble. It's to acknowledge that Ohio law has changed to preclude motor vehicle makers (like Elio) from selling directly to the public in Ohio. This is a thread on delivery, and Shreveport delivery in particular. Going to Shreveport is one way around the Ohio legal problem. I really don't think that Elio's just flying under the radar as a motorcycle has any legal validity whatever (on this issue; it does matter on other issues, such as safety standards). If it does, hallelujah! and spank my knuckles with a ruler. But on the facts available to me, and as presented above, yes, Shreveport pickup does look like a preferred option at the moment.

 

[Ekh]

BTW, I "sold" another Elio today! (Wish there were an incentive program for doing that!). But lacking confidence that the cars can actually be sold here, I'm going to back off on the evangelism -- even though it's great fun to do.