Can people stop using the wrong terminology? You folks are talking about a (currently up to $7500) Federal tax credit for EVs and PHEVs, NOT a rebate.
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Yes. Guess at demand in 2019 and that will predict the value of a used Model 3.
If demand is 500K units/year the value of a used model 3 will be quite high and a seller will benefit from the expiration of the ITC in the U.S.
When iphones were in somewhat short supply the trade in value was high. Buying at launch and trading for a new model was a good strategy for people who wanted the latest tech.
What could mess up trade in value of the model 3 is faster supercharging in ~2020.
fluxemag
Member
But we also have to remember that when Tesla's 7500 credit runs out, the other automakers will have it. Primarily, I'm thinking of the competition from the VW group. They will have a 7500 advantage that Tesla needs to overcome somehow. Tesla's one of the best offerings at 35k now and absolutely the best at 27500. But they will need to compete with the other EV offerings in 1 year. That will get very interesting.
If the EV was being produced offshore I would agree that this administration would probably nix it in short order; however, as a "Made in the USA" vehicle I just don't see that happening until Tesla, and probably GM, have made it through all of the available credits.
For some context, Cash-for-Clunkers rubbed Republicans on the hill the wrong way for two reasons: 1) The price 2) It encouraged people to scrap older American cars and buy new foreign cars, predominantly from Asian manufacturers. The American cars being of poor build quality and having even worse fuel economy was inexcusable. US Manufactures had time to rethink fuel economy after the gas shortage of 1973, but memories faded and the same mistakes were made again.
This tax credit predominately encouraged consumers to buy American through federal incentive, the exact kind of crony capitalism that this administration has often argued for and put policies behind.
No doubt, but your buying the car or not makes zero difference.
The question is, without the tax credit, will there still be 500k people each year that will buy the car?
If there is, I see no reason for Tesla to lower the price.
If there isn't, then Tesla will.
As a reminder, the Model S was originally just "under $50K" after $7500 Federal tax credit. Look at its starting price now, which has fluctuated a bunch.
2013 Model S Price Increase has the original prices before a price increase. Then they decided to cancel the 40 kWh Model S and just ship those that ordered one a 60 kWh car w/software to limit it to 40.
My thinking and for easier thinking, let's assume the rebate expired overnight on certain day.
The car built the previous day, compared to next day, would be identical. So in theory the resale value is same.
However, in real life if the buyer knows there was rebate, he'd be more prone to haggle more "you already got good discount when buying", and the seller would be more susceptible to give lower price since the perceived depreciation is better.
So there's be probably small (~$1000-2000) difference at cases, although in general they'll be fairly evenly priced as the car really is the same.
The car built the previous day, compared to next day, would be identical. So in theory the resale value is same.
However, in real life if the buyer knows there was rebate, he'd be more prone to haggle more "you already got good discount when buying", and the seller would be more susceptible to give lower price since the perceived depreciation is better.
So there's be probably small (~$1000-2000) difference at cases, although in general they'll be fairly evenly priced as the car really is the same.
Really? How many purchasers do you suppose can really afford a $40k-$60k car? And the answer to that question is not how many people can make lease payments or 6 year car loan payments. Many purchasers will be overspending their financial situations even with the tax credit. They don't need you to shame them into an even worse financial decision.
So, you're asking why do people care about money? I have to pile on. That's a supremely stupid question.
