Full Tax Credit Pointless

[Fair Verona]

This isn't to complaint about the price reductions, other than to ask, does anyone else feel like they basically render the tax credits pointless? By Tesla adjusting the prices to reflect the dwindling tax credits, it feels to me like they are the ones getting the most benefit from the tax credit, not the purchaser. I feel like it almost negates any benefit the tax credit provides, because the car is going to be the same price for everyone, regardless of when they purchase, regardless of tax credit.

One of the reasons we took the plunge and ordered our M3 back in September was to ensure we got the full tax credit before the end of the year. I love our car, but if I knew that I could get the car for the same price or cheaper (after tax credit) regardless of when I purchased it, we may not have been so quick to sign on the dotted line. I'm sure this was the point and I'm ok with price reductions, but it would have been nice if they made the prices just so the 2018 purchasers felt like they had a teeny bit of advantage to falling into the higher tax credit bracket. Is it just me that sees it this way? I'd be open to hearing points of view that help me see it from a different perspective (without being snarky).

 

[Tam]

...Is it just me that sees it this way?

Time is money.

In the old days, if you want a cell phone, you would pay a lot for a big heavy brick-size cell phone.

If you could wait, you could get a lighter, smaller, cuter, and more powerful cell phone.

It's the premium of not waiting.

I have no regret for paying more to access what I need then and not waiting for it.

 

[Msjulie]

Tesla doesn't get any money from tax credit of course, just increases (potentially) the pool who feel they can afford the car; as the company matures I would totally expect them both to be able to produce 'the same thing' at lower prices and have to continue to add demand in whatever way works.

 

[Gresh]

Yes, Tesla effectively takes all buyer's federal tax credit benefits.

 

[ucmndd]

Demand just isn’t strong enough for them to do nothing. They basically had no choice but to lower the price from my perspective.

 

[Fair Verona]

Time is money.

In the old days, if you want a cell phone, you would pay a lot for a big heavy brick-size cell phone.

If you could wait, you could get a lighter, smaller. cuter, more powerful and lighter cell phone.

It's the premium of not waiting.

I have no regret for paying more to access what I need then and not waiting for it.

I guess my point is not really about paying more (although maybe it is), it's that based on their pricing approach, I feel like the the tax credit is only really of benefit to Tesla and not the buyer.

 

[TeeEmCee]

Tesla doesn't get any money from tax credit of course ...

That's like saying corporations pay taxes ...

 

[cybergates]

i think they could give us "early adopters" (I bought mine 12/31/18 for the full tax credit) something like free supercharging for 2-3 years to make it feel like we got something for being an early buyer vs. current price cuts (loss of 6K in 2 months).

 

[MountainRatMat]

I personally have no problem with it. Let Tesla enjoy the benefit of the tax credit, they are doing amazing things as a company and whatever helps them continue their mission I am on board with. I paid the 2018 price for my Model 3 and I am perfectly happy.

 

[JanetM]

I'm not sure I understand. Are you saying that you bought the car in September because you thought it was a good deal at the time, and now you're upset that others are getting the equivalent good deal now? You'd rather everyone pay more so you can feel you got an advantage? Seems you did get an advantage. You got to drive the car 5 months sooner than those poor disadvantaged souls who waited almost half a year for the same deal.

What I mean is, if the price is the same in the end, does it matter whether the savings came with a different name attached? I really don't understand your cause for concern.

 

[Fair Verona]

I personally have no problem with it. Let Tesla enjoy the benefit of the tax credit, they are doing amazing things as a company and whatever helps them continue their mission I am on board with. I paid the 2018 price for my Model 3 and I am perfectly happy.

Thank you, nice to hear a different perspective. It's probably the healthiest approach for staying happy!

 

[Nocturnal]

Disagree 100%. You got the full credit, but nobody could know that Tesla would be able to (or want to) decrease prices to compensate. For all we knew the price could have stayed flat.

 

[nvx1977]

i think they could give us "early adopters" (I bought mine 12/31/18 for the full tax credit) something like free supercharging for 2-3 years to make it feel like we got something for being an early buyer vs. current price cuts (loss of 6K in 2 months).

I'm also an "early adopter" (Jan 2018) Not sure why some of y'all think we are entitled to anything extra at this point.... No one forced us to buy the car when we did. No one forced me to give Tesla $1000 interest free for 2 years either. I knew the terms of the deal and agreed to it. It sucks if you buy something the day before it goes on sale. If Tesla compensates you, should they compensate me too? Where do they draw the time? Someone will always feel screwed.

 

[Glamisduner]

This isn't to complaint about the price reductions, other than to ask, does anyone else feel like they basically render the tax credits pointless? By Tesla adjusting the prices to reflect the dwindling tax credits, it feels to me like they are the ones getting the most benefit from the tax credit, not the purchaser. I feel like it almost negates any benefit the tax credit provides, because the car is going to be the same price for everyone, regardless of when they purchase, regardless of tax credit.

One of the reasons we took the plunge and ordered our M3 back in September was to ensure we got the full tax credit before the end of the year. I love our car, but if I knew that I could get the car for the same price or cheaper (after tax credit) regardless of when I purchased it, we may not have been so quick to sign on the dotted line. I'm sure this was the point and I'm ok with price reductions, but it would have been nice if they made the prices just so the 2018 purchasers felt like they had a teeny bit of advantage to falling into the higher tax credit bracket. Is it just me that sees it this way? I'd be open to hearing points of view that help me see it from a different perspective (without being snarky).

Yes, but I'm not sure that is by choice. They are trying to keep a demand.

 

[NHK X]

Got my X Sept 2017 and my 3 for my wife in Dec 2018. I don’t consider myself an early adopter, nor do I expect any special treatment.

 

[GregRF]

Wasn't this the whole point of the EV tax credit? To give manufacturers the chance to get EV technology a kick start so that it might get them to the level of parity of existing technologies? It wasn't really about giving consumers cheaper cars.

 

[Fair Verona]

What I mean is, if the price is the same in the end, does it matter whether the savings came with a different name attached? I really don't understand your cause for concern.

It's always nice to feel like you got a good deal. But no, I guess the point I'm trying to make is, Tesla's pricing structure is basically: flat price for the car + whatever the current tax incentive is at time of delivery = current listed price. I don't regret getting my car but I just wish I'd known this so as to place less importance on the tax incentive as a bonus.

 

[Fair Verona]

Wasn't this the whole point of the EV tax credit? To give manufacturers the chance to get EV technology a kick start so that it might get them to the level of parity of existing technologies? It wasn't really about giving consumers cheaper cars.

I'm definitely all for the government giving EV manufacturers some help to compete, but if that's the case, why didn't they just pay the incentive direct to the company for every car sold instead of giving it to the consumer? It gave a false sense of benefit to the consumer.

 

[Msjulie]

That's like saying corporations pay taxes ...

No need to get snippy. Regardless of the myriad of tax loopholes, Tesla does not get your tax credit for buying an EV

 

[Shygar]

i think they could give us "early adopters" (I bought mine 12/31/18 for the full tax credit) something like free supercharging for 2-3 years to make it feel like we got something for being an early buyer vs. current price cuts (loss of 6K in 2 months).

For a car that was out for a year and a half before you bought it, I wouldn't quite say you were an early adopter. But you're not comparing apples to apples. If you bought EAP, that package doesn't exist anymore.

Bottom line is we all bought the car at the time because we thought it was worth the money we paid for what we got. The only time I would be really upset is if I bought it like a week or two before this announcement and had not yet received the car (honestly I don't know if people in these situations get discounts or not).