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Demo / Service Loaner Questions

Discussion in 'Model S' started by Tes La Ferrari, Jun 16, 2018.

  1. Tes La Ferrari

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    Are service loaners always for sale ? -- what happens if they all sell out at a local SC ? do they keep adding them on and selling them regardless of mileage or do they wait until it hits some magic number of miles?

    They would always need demos, so what if they sell one with a very small showroom adjustment because it only has 300 miles on it- would they put in another one and incent it's sale ? or would they just say they have no demos for sale ?


    Also when is the best time to buy a Demo / loaner -- at the end, beginning or middle of a quarter ?
     
  2. ChadS

    ChadS Petroleum is for sissies

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    #2 ChadS, Jun 16, 2018
    Last edited: Jun 16, 2018
    As you note, the dual-use of demos (or loaners) as inventory cars causes tension. Does sales sell everything they can, and leave no cars for demos or loaners? Or do they hold on to them? Depending on what corporate's focus is, they may or may not be able to replace them quickly.

    It seems to vary by service center (based on online reports, as well as a local person saying they had locally "decided" to stop selling to keep a certain number of demos/loaners) as well as by central directive as things change. For example, if they are introducing a new performance model or doing a facelift, they often ask sales center to sell the old ones they have been using as demos and loaners. At some number of miles (not sure the number is always the same) they stop offering leases on inventory cars.

    It's also possible for a sales center to order extra cars for inventory if, say, a local incentive is expiring. 3 years a Model S incentive was going away in my state, and locally they ordered 30 extra cars, and sold all of them by the end of the month. It sounded like the person that made that decision was taking a personal risk of some sort, so that might not always happen.

    So static advice is difficult...things change over time. The best time to buy is when they are trying to get rid of them, which might be end of quarter, but also might be whenever something new is coming out. In Sept 2016 it was end of quarter and they were just about to introduce the P100D...some of us got fantastic deals on P90D demo cars. (Mine was over a year old and had over 14k miles. I was able to lease it, but was later told they no longer do that when cars have that many miles). Deals that good don't seem to have popped up very often since.
     
  3. Tes La Ferrari

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    Good points, ChadS. I wonder if a new performance model X & S is round the corner as my local SC seems to be rather low on those for inventory.

    Wouldn't it be in Tesla's best interests to sell every demo they can, and just keep replacing them with a new cars as quick as they can make them - particularly in the case of the MS & MX as there is no production ramp up issues ?

    Also, I wonder whose decision it is at Tesla to order more loaners, (is it someone at the SC) and when to sell them - is it a Sales Manager ?
     
  4. DESinUS

    DESinUS Member

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    Service loaners are usually opened up for sale as "inventory vehicles" near end of quarter. From my time there, Tesla basically pushed every EOQ to sell all inventory vehicles (i.e. service loaners, showroom/test drive cars, and brand new "demo" cars from the factory) which created a vacuum effect wherever they were sold from.

    We had one EOQ where sales sold every loaner that a few SCs had. This created a headache for people in sold loaners that had to return them, and forced SC's to rent ICE vehicles to loan out. It was crazy!

    Despite this headache for employees and owners, the best time to buy a demo/loaner is at end of quarter. There's always a flood of new vehicles fresh off the line titled as demo cars, but often match custom build configs. They also open up SC's loaner vehicles to be sold. This gives the buyer way more options to choose from.

    ***TIP: If you do order a demo car, MAKE SURE YOUR SALES PERSON CALLS THE SC ITS PINGING AT TO MAKE SURE THAT ITS ACTUALLY THERE!! Don't leave or give them money until they confirm it's ready to be shipped to a delivery center!!! This was a huge problem for delivery, who had to chase down vehicles and regularly pester SC's to get vehicles back from loan and shipped. This always caused delays, and made customers feel lied to in regards to timing.
     
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  5. Tes La Ferrari

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    Thanks for your very detailed response. It is very helpful.
     
  6. Tes La Ferrari

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    Do sales people get paid for new cars sold even if the car is a demo and has to be brought in from an out of state SC ?
     
  7. tpham07

    tpham07 Active Member

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    If you mean does your Owner Advisor get credit for selling an inventory car, then yes. OAs don't get paid commission like car salesmen, which is why I don't consider them sales people. They do get bonuses though for meeting certain quotas.
     
  8. Tes La Ferrari

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    So OA’s don’t get a certain dollar amount per car sold on top of their base salary ?

    How do they OA’s get compensated ?

    And d they get the same compensation for selling an inventory car that is local as they do for selling one that they have to move in from across the country?
     
  9. tpham07

    tpham07 Active Member

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    They get paid a base salary plus bonuses for meeting sales goal. Remember Tesla is not trying to be like other car manufacturers, or car dealers. The idea is without commission they won't be annoying or pressure you as much as a traditional car salesman
     
  10. JayyyDeee

    JayyyDeee Member

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    except at the end of the day meeting quotas is the same as getting a commission
     
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  11. Tes La Ferrari

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    True - the sale is still the primary goal.
     

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