Any advantage to place order six months early?

[No Tailpipe]

Yes, I've been bitten by the Tesla bug! My next car is the p85. Unfortunately, my current lease expires May 2014.
So, with months between today and delivery I'm having difficulty placing the order now. With the current p85 delivery queue at 1-2 months I planned to place my order in February/March 2014.

The $2,500 deposit can be spent in much better ways between now February/March. Any good reasons to pull the lever now versus wait until early 2014?

 

[dsm363]

There are websites where someone can buy your lease out so might be one option.

Don't think there is a benefit to keeping a deposit on hold. If there was a price increase again then the advantage might be that you'd get the old pricing but likely only if you finalized within a short window. Another price increase is unlikely before when you plan to order but possible. Good luck!

 

[No Tailpipe]

There are websites where someone can buy your lease out so might be one option.
Don't think there is a benefit to keeping a deposit on hold. If there was a price increase again then the advantage might be that you'd get the old pricing but likely only if you finalized within a short window. Another price increase is unlikely before when you plan to order but possible. Good luck!

Thanks for the tip. I couldn't see anything except isolation from a price increase. But, if a price increase happens before February and I wasn't ready to pull the trigger I'd have to live with the price increase. Just wanted to make sure I wasn't missing anything.

 

[dsm363]

Thanks for the tip. I couldn't see anything except isolation from a price increase. But, if a price increase happens before February and I wasn't ready to pull the trigger I'd have to live with the price increase. Just wanted to make sure I wasn't missing anything.

I think that is correct. You are locked into the $2,500 deposit after 2 weeks and would lose that if you change your mind I believe. Probably just wait until you are ready to order. They are moving target with these things so calling Tesla might give you the most up to date information.

 

[brianstorms]

I noticed the $2,500 deposit is immediately charged the day you place the order (got my credit card bill). I guess "locked in" means if you cancel within two weeks they send you a refund, otherwise they keep the $2,500 they already collected two weeks earlier.

 

[No Tailpipe]

I noticed the $2,500 deposit is immediately charged the day you place the order (got my credit card bill). I guess "locked in" means if you cancel within two weeks they send you a refund, otherwise they keep the $2,500 they already collected two weeks earlier.

Interesting. I thought the deposit was refundable until the time an order is locked and the build begins.
I will follow-up with my Tesla Ownership advisor to confirm.

 

[B-Chicago]

One argument in each direction:
1. A potential advantage to ordering in December is you can claim the EV credit on 2013's tax return versus 2014. Saves you 7 months+ if that matters to you.
2. On the flip side, I believe the cars are model year based on calendar year, so from that perspective I would think waiting a couple months for a "2014" model would be better than "2013" from a resale value (plus, in addition to the announced option updates I truly believe they are getting better at actually making the cars every day - i.e. pano rattle, brake pad squeak, etc that they are now fixing on older cars very quickly at the SCs).

 

[MarkR]

1. A potential advantage to ordering in December is you can claim the EV credit on 2013's tax return versus 2014.

Our tax accountant indicated that the rebate is based upon the delivery date so there may be no advantage from a tax perspective. Best to check on this to be certain.

 

[B-Chicago]

Correct on the delivery date for taxes. I should not have said "order". I meant delivery. The same would be true for the model year I believe.

 

[techmaven]

Yes, I've been bitten by the Tesla bug! My next car is the p85. Unfortunately, my current lease expires May 2014.
So, with months between today and delivery I'm having difficulty placing the order now. With the current p85 delivery queue at 1-2 months I planned to place my order in February/March 2014.

The $2,500 deposit can be spent in much better ways between now February/March. Any good reasons to pull the lever now versus wait until early 2014?

You should definitely have a conversation with Tesla sales and let them know you are interested and your timeframe. Let them know of any hesitations or concerns, as that helps drive their product planning. Ask to be notified of any pending pricing increases. Don't rely on that-definitely check periodically, especially at the end of the year. There is probably an advantage to reserving before a price increase as it may grandfather you into an older pricing plan. Depending on your lease and whatever price changes, you may want to think about what it means to buy out your lease and buy the P85 early. At least be prepared to do so in case the pricing/options changes again.

It is likely that a P85 would be built quickly and the current time to delivery is about 6 weeks so there's no real delivery reason to order early. While unlikely and location dependent, there may be events that are open to Tesla owners or reservation holders only.

 

[andrewket]

Correct on the delivery date for taxes. I should not have said "order". I meant delivery. The same would be true for the model year I believe.

Technically it will be the date that you paid in full for the car, and the date on the bill of sale. Some of us live in states that Tesla can't yet do business in. In this case the transaction occurs in California, typically weeks before delivery. Title could transfer in December, but you don't take delivery until January. It will still count for 2013.

 

[montgom626]

Our tax accountant indicated that the rebate is based upon the delivery date so there may be no advantage from a tax perspective. Best to check on this to be certain.

And, AFAIK, you need the VIN for your taxes. No VIN, no Fed tax credit.

 

[No Tailpipe]

You should definitely have a conversation with Tesla sales and let them know you are interested and your timeframe. Let them know of any hesitations or concerns, as that helps drive their product planning. Ask to be notified of any pending pricing increases. Don't rely on that-definitely check periodically, especially at the end of the year. There is probably an advantage to reserving before a price increase as it may grandfather you into an older pricing plan. Depending on your lease and whatever price changes, you may want to think about what it means to buy out your lease and buy the P85 early. At least be prepared to do so in case the pricing/options changes again.

It is likely that a P85 would be built quickly and the current time to delivery is about 6 weeks so there's no real delivery reason to order early. While unlikely and location dependent, there may be events that are open to Tesla owners or reservation holders only.

Talked to my Tesla ownership advisor and the deposit will hold the price until a future price increase. So, looks like I have a few options...
1- Put down a deposit and select the date that works for my expected delivery. If pricing or options change I would need to finalize my build at that time, but then select a delivery date that fits my schedule. So, if the p85 is averaging 6 weeks, but I'm not ready for 90-120+ days I would just select a future date that works for my current situation. Win Win but out $2,500 for six months. Or, do nothing take the price increaee hit but keep myself at the top of the build queue for the original month selected.
2- Do nothing now and keep my $2,500. Then place the order 6ish weeks before I need the car. This option is a crap shoot, as the advisor thinks there will like be a change in options and pricing around the holidays.

 

[AudubonB]

I DID place my deposit and order early. Seven months: placed it in March, with delivery October; finalized it just last week. So seven months from deposit to delivery.

A few notes:

* that was the earlier, higher deposit of $5,000

* Tesla dropped the ball two times in the interim, not getting back to me regarding order specifics and delivery specifics. They acknowledged their mishandling in subsequent conversations.

* I received no notices of pending price increases, nor did I receive any ability to obtain certain options at the time-of-initial-placement-pricing,


Conclusion: for me, there were zero benefits, other than psychological , in having ordered early; there was the disadvantage of seeing $5K go away five months before it had to.

YMMV