Explain As If I'm Five: Could TSLA offer long term M3 rentals if there are HW upgrades every 18 mos?

[MAXXX Q]

I currently have my M3 reservation and now this planned obsolescence scenario kinda confuses me. Why buy a 1G M3 now when there's a better 2G, 3G, 4G down the road? Why can't TSLA just offer a long term payment plan like ATT's Next where I can upgrade every 12-24 months indefinitely? Buying a new car every 18 months would be a pain and leasing long term would be even more expensive. Thoughts?

 

[WileyTheMan]

It's really no different than what the industry (or any industry, really) in general is doing. You stagnate, you die. Buy the best you can afford, and it will make your product stay relevant for as long as possible.

Keep in mind that AT&T is selling you a service, not a product. The phone is commodity to them. A hook to get you to buy their service. Tesla (as of now) is selling you a physical thing, so they can't easily implement what you are asking for without taking a loss, I think.

 

[carter_seattle]

leasing long term would be even more expensive

It seems like you're asking for a lease, but shorter term and cheaper? I see no reason why we won't get there eventually as Tesla pushes down prices.

 

[Waiting4M3]

Do a 3 year lease, skip every other 18 months major updates, just like your 2 year iPhone contract

 

[MAXXX Q]

I spoke to a Tesla rep yesterday and he said that leasing would be the more expensive option than purchasing. I'm guessing that at some point Tesla will evolve into a transportation utility rather than a product so people could just "borrow" a car indefinitely from their pool. When cars are returned back to the pool they could be used for car share, short term loaners etc.

 

[jerry33]

1. Whenever you purchase any high tech-item, you know that it's obsolete when you purchase it. The only way to be happy with a high-tech item is to buy the best you can afford (where you determine what "best" means), and then never look at another review or ad until it no longer does what you purchased it to do. When that occurs repeat the process.

2. Leasing is wonderful for a business or if you can write off part or all of the cost because then there is no question about how much you can deduct. For those who can't deduct, it's less than ideal because your situation may change during the lease period and you can end up owing the lease company a whopping exit payment.

3. I've rented enough cars over the years to know that cars in a pool are dirty and sticky, expensive on a per-mile or per-day basis, and are often not well maintained. I realize that is the new fad and is probably fine for someone who only uses a car once a month or less, but if you drive almost every day it's a very sub-optimal experience.

 

[Dwdnjck]

When Tesla makes an improvement in their cars, it doesn't' break the ones that they have previously sold..

 

[MXWing]

You are basically looking to do continuous 2 year leases.

Let's do a number like 1500 every month.

Is it worth you paying 1500 monthly to have a new Model 3 every 2 years?

 

[N5329K]

I own a car to fulfill a mission. Why should I give a hoot if, after a year, or two years, an updated version of the car I own satisfies my mission plus does something else? It still meets my requirements.
Robin

 

[tomas]

The economics of this would make it untenable for Tesla, customer, or both. Do the math. Answer becomes obvious.

 

[swaltner]

GM's Book by Cadillac service does something very close to what you're asking for. I mentioned this service in the Drive any Cadillac, anytime, for $1,500 a month thread a couple weeks ago. As @MXWing postulated for potential pricing on a Model 3 plan, the price for the Book plan is $1,500/month, but you are not locked into a long term contract (it's on a month-by-month basis) and you also can switch out your current Cadillac in the plan with any other Cadillac (up to 18 vehicle changes a year) whenever it suits your fancy.

Personally, I wouldn't do this type of a plan due to the high monthly cost, but I can see the draw of something like it.

 

[stopcrazypp]

I currently have my M3 reservation and now this planned obsolescence scenario kinda confuses me. Why buy a 1G M3 now when there's a better 2G, 3G, 4G down the road? Why can't TSLA just offer a long term payment plan like ATT's Next where I can upgrade every 12-24 months indefinitely? Buying a new car every 18 months would be a pain and leasing long term would be even more expensive. Thoughts?

So you want to switch to the latest and greatest, but you are cheap? Good luck finding automakers that will do something like this. As others pointed out, something like $1500 per month might be possible, but you pay the price.

As others pointed out, AT&T makes their profits on the service plans, not the phones. Previously, before the Next plans, they gave away "free" phones every 2 years.

Unless Tesla starts a car driving service (for example a self-driving car share fleet), there's no profit for Tesla to make such a plan.

 

[number12]

For $1500/mo you would have almost paid off the m3 in 3 years. Has to be worth something. Just start by buying a 6 month used one and keep flipping for a 6 month used one. It will work out the same way dollar wise. There's not beating the system.

 

[MXWing]

Just realized I have a perfect explanation for a five year old as I have one.

Here's how it would go. But replace Model 3 with some random Star Wars lego.

5 year old: Daddy, I want this new toy.
Me: You have enough toys and there is nothing wrong with the toys you already have.

 

[Topher]

The whole mission of Tesla is to accelerate the advent of sustainable transportation. What you are asking for is exactly the opposite. Disposable cars, where you get a new one every 18 months are not sustainable. Tesla wants them to last for twenty years and half a million miles. The 'planned obsolescence' is only in your head.

Thank you kindly.

 

[ItsNotAboutTheMoney]

Keep in mind that AT&T is selling you a service, not a product. The phone is commodity to them. A hook to get you to buy their service. Tesla (as of now) is selling you a physical thing, so they can't easily implement what you are asking for without taking a loss, I think.

^^^This

 

[tomas]

Just realized I have a perfect explanation for a five year old as I have one.

Here's how it would go. But replace Model 3 with some random Star Wars lego.

5 year old: Daddy, I want this new toy.
Me: You have enough toys and there is nothing wrong with the toys you already have.

Yep you are the only one who did 5 year old bit right. Could also be. "No. Why? Because I said so!"

 

[MXWing]

Yep you are the only one who did 5 year old bit right. Could also be. "No. Why? Because I said so!"

I am not in opposition to your answer. I just worry about being overly heavy handed when its time to get my diapers changed.

 

[S3XY]

The whole mission of Tesla is to accelerate the advent of sustainable transportation. What you are asking for is exactly the opposite. Disposable cars, where you get a new one every 18 months are not sustainable. Tesla wants them to last for twenty years and half a million miles. The 'planned obsolescence' is only in your head.

Thank you kindly.

It's not like he's proposing to drive his 18 month old M≡ directly to the dump when he's done with it. Obviously someone else would be willing to buy or lease it.

 

[MAXXX Q]

It's not like he's proposing to drive his 18 month old M≡ directly to the dump when he's done with it. Obviously someone else would be willing to buy or lease it.

Correct. My suggestion was to return my used car back to their pool for use for car sharing or other purposes. So, my overall take away is that even though the technology for cars is advancing at a breakneck pace, the means for paying for them will never change. Ever.