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Did August & September sales EVER happen before and will they ever happen again?! 30K+ Discounts?

Discussion in 'Model S: Ordering, Production, Delivery' started by soooma, Oct 30, 2016.

  1. BBB4000

    BBB4000 Member

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    This is my first time hearing about these discounts. Can someone explain what they are or how they come about? I just ordered a new MS but was not ever told about any potential models with heavy discounts.
     
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  2. Footer

    Footer Member

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    Discounts have been around for a long time but few and far between. Usually they sell a demo with a discount on the order of $1/mile. Sometimes a better deal pops up but it's not well advertised.

    3rd quarter this year there was a huge push to move inventory. Many cars had just a few miles. The P90Ds received the biggest discounts, many in the $30,000 range, but there were deals to be had in all segments. Easiest way was to check out EV-CPO.com. Owner Advisors had access to many cars that weren't publicly listed and got some stunning deals for their customers. There were several threads on this forum that were useful.

    Supposedly Elon did not approve of the discounting and said never again. We'll see. We know there will be a Q4 push and we know there are still inventory cars out there. Keep your eyes on EV-CPO and TeslaInventory.com if you're interested. At the moment there are no big discounts compared to Q3.

    That's pretty much it.
     
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  3. BBB4000

    BBB4000 Member

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    Thanks Footer. Why would the sales rep at my local DS never mention this to me?
     
  4. Footer

    Footer Member

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    It's not in Tesla's best interest to sell discounted cars at this point. There aren't any great deals now anyway. If this were September a good OA should have mentioned it.

    Also, when you configured a car back then it would automatically check inventory and suggest a similar car. That's how I found mine.
     
  5. ChadS

    ChadS Last tank of gas: March 2009. EV miles: 254,000

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    For clarity: Elon's note called out that it is fine to have discounts on cars that are old, or have miles on them, or were used as showroom cars, or have had damage, or are missing new features.

    What he explicitly disallowed was discounts on brand-new cars with nothing wrong with them. Discounts should only be applied when there is something about the car that actually lowers its value.

    I got $36,500 off my inventory car, but the discounts were for it being over a year old (typically $1k per month), having 14k miles on it (typically $1 per mile), being pre-refresh, and being a P90DL delivered after the P100D was announced and P90DL was no longer available. Good reasons for all of those (if the discounts had not been there I would have just gotten a new car and they never would have sold this one), so there will be more discounts like that in the future.

    A lot of these very large p90d discounts came up in Q3 because they wanted to unload cars being used for test drives (some of them pre-refresh cars used for over a year) to replace them with refreshed p100ds. Well, that AND they wanted to move as many cars as they could in Q3.
     
  6. hmmm

    hmmm Member

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    I like how some folks from the original thread (a good read here for background: https://teslamotorsclub.com/tmc/threads/snagged-a-p90d-inventory-car-for-700-mnth-on-the-new-24-month-lease.75855/)...sounds like the good ol' days.

    My numbers ended up being similar for a Feb 2016 P90DL with 5k miles on it, ie 142/107 (ie 35k discount)/92.

    As for @SoCal Jimmy making money off of his car(s) a couple of weeks later, that's just wrong :)
     
  7. Footer

    Footer Member

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    My car was brand new, never driven, and even had the rear cup holders so a recent build. It was the sought after 90D which was rarely discounted. Yet I got $13K off. That was a no no. It never showed up as inventory, yet when I configured a similar 90D it popped up as a 95% match. I clicked the order button immediately and found out later that it had been available for less than an hour.
     
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  8. SoCal Jimmy

    SoCal Jimmy Active Member

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    Supply and demand:p:p:p:p
    All kidding aside, i didn't really make anything. It was a break even point for me after license/reg, lease acquisition fee and the transfer cost
     
  9. u00mem9

    u00mem9 Member

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    In Q3, Tesla was desperate. If you must have a deal, you need to wait until Tesla is desperate again.

    At minimum, they will firesale the remaining AP1.0 cars. Probably quietly discount the AP2.0 cars too. I sure wouldn't buy one in November. You will be sorry and jealous when the posts start in mid Dec. There is really zero chance Tesla can match the deliveries they achieved in the US in Q3 with Q4. I suspect they may sell shares immediately after the SC deal is approved and then they won't care about their Q4 promises. In that case, the incentive to firesale cars will be gone.

    That will result in a window of time where Tesla thinks they have capital to get them to M3 launch. It will probably be summer of 2017 before they realize Gigafactory+Buffalo+SC burden has them desperate again.
     
  10. SoCal Jimmy

    SoCal Jimmy Active Member

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    Here's a facelift P90D with a 15-16k discount, so discounts are still around but not as large. This is actually a pretty good deal for someone looking for one today.

    Model S P90D 5YJSA1E48GF142728 | Tesla
     
  11. TJtv

    TJtv Member

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    Due to the way that Tesla calculates the residual(pre-discounts and +$7500 tax credit) there's a HUGE difference between a 3 year lease payment on a car with $16k discount, and a 2 year lease payment on a car with a $30k discount.

    Its really unfortunate that the 2 year lease is no longer available.
     
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  12. GTIceman

    GTIceman Member

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    I am really curious what we will see when these cars come off the 2 year lease. There will certainly be a market but I don't think many will buy them. I don't like leasing but couldn't argue with around $580 a month versus plopping down a huge down payment.
     
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  13. SoCal Jimmy

    SoCal Jimmy Active Member

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    Tesla will make money again off your lease return and here's how:

    Your $143k car had a residual of 97-98k on a two year lease. Of that residual, $7500 is the tax credit they added back and will get from the fed. Factor in your 4.32% effective interest rate on your lease and you paid another $8-9k in rent charge which they could write off on the residual of the car essentially putting their real all in cost at $82-83k.

    A two year old P90D, even with AP1 technology will fetch them at least that with less than 20k miles on its clock.

    My guess is the lower end 60-75 Model S disappears as we get closer to M3 launch, pushing entry level MS up higher making the M3 and CPO's more attractive.
     
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  14. davidc18

    davidc18 Active Member

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    The key to getting a deal is that you have to be ready to put the deposit down - NOW! I lost out during the first round of discounts on the classic P90DLs but when the facelift models showed up a week later we were ready to pounce. It will be interesting to watch as the end of the 4th quarter gets near. Good luck to everyone!
     
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  15. GTIceman

    GTIceman Member

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    Oh I know they will make money. I wouldn't be totally sure about the value. We were seeing P85 and + topping our around $85k if I recall which are now down in the $60k range. I think if enhanced AP and driverless get some headway prior to the trade in time we could see values drop a bit more. Also, in the event Elon builds a bigger battery again, unlikely with M3 being the focus. Also, my Model S will have over $40k miles on the clock and they still say it is worth $97k as a residual. I would never buy it out and I personally wouldn't buy it for $82k if Tesla listed it at that.

    Again, I know people will buy them and Tesla will make money. It is just interesting to see values change.
     
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  16. schonelucht

    schonelucht Active Member

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    I am really curious how this works. The credit must be claimed the year the car is put in service. Yet Tesla has no tax liabilities since it is not turning a profit. So what is Tesla using the credit for then?

    A significant part of that 4.32% goes to the banking partners of Tesla that are fronting the money.
     
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  17. SoCal Jimmy

    SoCal Jimmy Active Member

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    Except a significant amount of the 2 year leases done in 3rd quarter are being held by Tesla's internal leasing division because US Bank wouldn't lease some vehicles based on the following scenarios:

    *Too many miles even though it's still new(I believe 5k was their cutoff)
    *2015 models
    *Those with lower tier credit
     
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  18. GTIceman

    GTIceman Member

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    This explains why I got the rejection letter from Tesla and US Bank, my car was a 2015 with 20k miles but my credit is impeccable
     
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  19. wamochi

    wamochi Member

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    oh that is interesting, I didn't realize they have internal leasing. I wonder why they don't do that more often.

    the residual on our P90DL is very very high, about 95k IIRC. love the car but definitely would not consider buying it out for that much. this is similar to a lot of high residual leases on luxury brands. they want the cars back, and plan on CPO'ing them and making a pretty penny off the car a second time.

    i am bummed that we will never see discounts like these again, as i would never pay $1000+/mo more than what i pay now! i'll be back to a 60 or 75 again and paying the same amount! this possibly was a once in a lifetime deal ... (although i am hoping there will be another firesale in Q3 2018)
     
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  20. wamochi

    wamochi Member

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    +1. i kept asking questions and they were already sold by the time the OA got back to me. we missed out on a few but then lucked out when he found an even better one with fewer miles, so i called back ASAP and put down the deposit. car was delivered a week later on 9/30!
     
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