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CA bill to allow factory pick up w/o sales tax

Discussion in 'News' started by mspohr, Jan 27, 2016.

  1. tedsla

    tedsla Mobile Member

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    Add us to the list of those that would do a Factory delivery, if this bill was passed. But I am afraid California is going to take too long for our MX 90D delivery. We are still planning to take delivery in Florida after it is sent across the country. Let me know if they pass the bill.
     
  2. CGT

    CGT New Member

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    This is great new, but too late for me. I wanted to pick up my S in Fremont and drive it back to Florida but the double tax hit put me off the idea. This should be good for people wanting to get the most out of their new cars. Hopefully it will be in place by the time the Model 3 is ready as I'd like to do it when we pick up my wife's 3.
     
  3. adiggs

    adiggs Active Member

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    I would much rather take delivery in Fremont and drive home. For Model X though, that means the bill is going to need to be passed into law really soon. Though if I had a date when I knew it went into law, I might delay delivery until then.

    H'mm...
     
  4. flankspeed8

    flankspeed8 Member

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    Is there any financial benefit from Tesla factory pickup? Waived transport fee or anything like that?
     
  5. mspohr

    mspohr Well-Known Member

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    Unfortunately, no. It seems that all auto manufacturers have gone to a standard "Destination fee" which is not based on distance. When I picked up my Tesla at the factory, there was a $1,170 Destination fee on the invoice even though it had only moved from the back of the factory to the front.
     
  6. Haggy

    Haggy Member

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    Indirectly. Tesla has to pay to transport cars. Buyers pay a destination charge. By federal law, destination charges have to be fixed, cannot be negotiated, and have to appear as a separate line item on the invoice. They are supposed to be based on the average cost to transport a car. This is done supposedly in the name of consumer protection. It does help people in Hawaii to be subsidized by people from California, and it may help the automobile industry since they can have uniform prices nationwide and it's easier for them to sell cars in remote places. But it doesn't help consumers to have to pay for something they don't get. It used to be that car buyers could go to Detroit, pick up a car, and save money. But that's no longer allowed.

    When I say it could help Tesla indirectly, it's because the destination charge is fixed and computed in advance. If there's a sudden shift of people picking up their cars in Fremont, Tesla pays less but still collects the same destination charge for now. At some point, they would have to recalculate it, and that would help consumers on average, and at that point, Tesla wouldn't gain anything except in the sense that if a customer has a lower bottom line cost, they'd be more likely to buy the car. I have no idea at what point Tesla would have to recalculate anything, but if it's like anything else that's regulated, it would go by year and model.
     
  7. flankspeed8

    flankspeed8 Member

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    Thanks for the explanation. Another good example of one size does not fit all but I understand what the law is trying to do. I would be surprised if Tesla would lower that fee even if lots of people pick up in Fremont. The east coast is a long way away and those cars have to be pretty expensive to move, especially if they go on a truck. Would be nice if they could somehow offer a credit or other incentive for factory pickup in addition to the cool tour. Maybe partial reimbursement or credit for airfare or hotel stay.
     
  8. mspohr

    mspohr Well-Known Member

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    Interesting that this is a Federal law. I don't see any benefit to consumers in this law. It does benefit car dealers by preventing them from discounting the cost and preventing customers from going to a place with cheaper transportation costs. Probably passed by your congressmen bought and paid for by car dealers.
     
  9. T-Will

    T-Will Member

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    Location:
    Rocklin, CA
    Are there any loopholes to save CA residents from the sales tax? :biggrin:
     
  10. dgpcolorado

    dgpcolorado high altitude member

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    Move to Oregon?
     
  11. smartypnz

    smartypnz Supporting Member

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    Well, they won't be buying gas.
     

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