California dealers object to Teslas car buyer referral program

California dealers object to Teslaês car buyer referral program

The California New Car Dealers Association has complained to the state Department of Motor Vehicles about Teslaês new referral program. The program offers a $1,000 credit to a Tesla owner referring a friend who buys a new Tesla. The referring owner gets a $1,000 credit toward service, gear or a future Tesla purchase, and the new buyer gets a $1,000 discount.

The dealers association said the program is illegal under the state franchise law, which bans bird dogging (paying salespeople who donêt have a license to sell cars).

A similar program in Virginia drew complaints from the Motor Vehicle Dealer Board. In response, Tesla now gives the entire $2,000 to the buyer.

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