Have to vent

[dn325ci]

What others pay for their vehicles really doesn’t impact your transaction, at all. Whether it’s more, less or otherwise.

When you purchased the vehicle, you exchanged your hard earned money for the vehicle. At the time, you thought that exchange was fair. Neither the vehicle, nor the price you paid for it, has changed one iota. If you thought it a fair enough deal to execute then, it remains so. Nothing about any price adjustment - up or down - changes your individual transaction.

So it’s really of no consequence.

Now, if you were treating it as an asset that you could exchange back out for cash in the future … well, that’s the rub. With VERY limited exception, cars aren’t assets. They’re depreciating hunks of metal. Sometimes you get lucky and someone is willing to trade a large amount of cash for it. Sometimes not. Just the way it is.

Easy to say, and of course you’re technically right. Still, I’ve never in my life seen a car’s MSRP go down, and I’m 54. And the magnitude of the reductions was more than a little. The vast majority of original owners sell a car at some point and these massive reductions cratered values, without question. It is almost without precedent.

 

[dmurphy]

Easy to say, and of course you’re technically right. Still, I’ve never in my life seen a car’s price go down. And I’m 54. And the magnitude of the reduction was more than a little.

Listen, I’m on the short end of the stick, too. Have a 3, S and X in the driveway, all of which have taken a colossal hit. The S I just picked up in February.

But I’ve never thought of them as appreciating assets. I’ve never thought of ANY vehicle as appreciating assets. It’s a losing game - the deck is stacked against you in so many ways - that I’ve never entertained the thought of making money on my cars. I just drive them, enjoy them and don’t dwell on it. That’s just a recipe for depression!

 

[dn325ci]

But I’ve never thought of them as appreciating assets. I’ve never thought of ANY vehicle as appreciating assets. It’s a losing game - the deck is stacked against you in so many ways - that I’ve never entertained the thought of making money on my cars.

I have actually made money selling my cars, believe it or not! New cars depreciate though. Everybody knows that. That’s too simplistic. We are talking about an unprecedented level of depreciation.

 

[4WheelBill]

What others pay for their vehicles really doesn’t impact your transaction, at all. Whether it’s more, less or otherwise.

When you purchased the vehicle, you exchanged your hard earned money for the vehicle. At the time, you thought that exchange was fair. Neither the vehicle, nor the price you paid for it, has changed one iota. If you thought it a fair enough deal to execute then, it remains so. Nothing about any price adjustment - up or down - changes your individual transaction.

So it’s really of no consequence.

Now, if you were treating it as an asset that you could exchange back out for cash in the future … well, that’s the rub. With VERY limited exception, cars aren’t assets. They’re depreciating hunks of metal. Sometimes you get lucky and someone is willing to trade a large amount of cash for it. Sometimes not. Just the way it is.

I respectfully disagree. You are only looking at this from the point of view of the actual purchaser (me) but not a potential purchaser (you). Everyone else reading these posts like you would not buy today given the speed at which prices are dropping. You would wait, right? So the price adjustment, and more importantly the rate at which those adjustments occurs, absolutely changes "individual transactions". If you hold off now, demand will diminish further, and so on...

 

[dmurphy]

I respectfully disagree. You are only looking at this from the point of view of the actual purchaser (me) but not a potential purchaser (you). Everyone else reading these posts like you would not buy today given the speed at which prices are dropping. You would wait, right? So the price adjustment, and more importantly the rate at which those adjustments occurs, absolutely changes "individual transactions". If you hold off now, demand will diminish further, and so on...

Appreciate your viewpoint, but no. Like I said, I just bought an S in February. Was there a risk of a possible price drop? Yep. Did I still execute the transaction? Yep. It was at a price I was willing to pay for the car I wanted.

If that car were $1,000 today, it still wouldn’t change the fact that I was OK paying what I did for it, when I did.

The cost:value calculus met my value threshold, so I clicked the button. I neither pay attention to, nor care, what others pay. It’s immaterial to me - doesn’t change a thing.

I’ve always been of the “if it meets your needs and the price is agreeable, do the needful” mindset. I do my best not to trade in “what-ifs” …

(And I understand, it’s easier said than done. But I assure you, it’s a more peaceful place.

 

[dmurphy]

I have actually made money selling my cars, believe it or not! New cars depreciate though. Everybody knows that. That’s too simplistic. We are talking about an unprecedented level of depreciation.

Can it happen? Of course. And I’m glad for you it did!

But that’s not a universal truth.

I have the same problem with real estate; many folks believe it has an unassailable right to appreciate. That’s not the case, and in fact, within the next 1-2 years, we’re going to see a LOT of trouble in that department. Receding values are going to implode a lot of lives because a ton of mortgage deals are structured such that even a small deprecation in home value is catastrophic.

 

[Tessd]

Appreciate your viewpoint, but no. Like I said, I just bought an S in February. Was there a risk of a possible price drop? Yep. Did I still execute the transaction? Yep. It was at a price I was willing to pay for the car I wanted.

If that car were $1,000 today, it still wouldn’t change the fact that I was OK paying what I did for it, when I did.

You may be ok with it, but the value of the deal you made yesterday would absolutely change if others were paying $1,000 today. When I buy a car, I don't just look at the purchase price. I consider the overall TCO. Depreciation is usually the most significant factor when calculating TCO. Tesla had very robust used car values in the past, which made TCO very attractive. This was something touted by Tesla. If I bought (not leased) a Tesla with this expectation yesterday and Tesla drops prices to $1,000 today, they have just demolished my TCO and no amount of gas savings will make up for it.

It is inaccurate to say that what others are paying today is irrelevant to people who purchased the car yesterday. Tesla obviously knows that price drops impact their used car values and their existing customers. But they prioritized sales volume over customers who already bought their cars. It's a deliberate tradeoff and I think they are making the right business decision. However, it should be of no surprise that existing customers complain. This isn't sour grapes or people who don't understand that cars depreciate. Tesla is knowingly tanking the value of their cars. Of course customers will complain when this happens. I'm not a recent buyer. But I definitely understand people who did buy a car recently and had their values decrease by 20% or more. Their expected TCO has been crushed by the company they bought their car from.

Having said all this, Tesla has now clearly showed their hand. They are willing to drop prices and don't care about their used car values. If you buy today, your TCO calculation should have huge error bars around the cost of depreciation. If you buy today, you are willingly accepting the gamble. If Tesla drops prices by another $10K next month, well, then you lost the bet. This is why I would not buy a Tesla today. I prefer buying a car with a more predictable TCO, although of course I also understand that there are no guarantees.

 

[4WheelBill]

@Tessd, well said.
@dmurphy, your entire argument is based on the idea that you will never sell your car (or only after a long, long time when depreciation plateaus). For those that get a new car in the 5 year timeframe, dramatic price decreases mean a great deal. Nevertheless, when you said, "But I assure you, it’s a more peaceful place [ignoring all this and just enjoying the car].", I can't argue with that.

 

[BadTrainDriver]

Sorry, need to vent. Just picked up my MS and today I see the base price decreased $5k to $85k. I can't imagine how those that paid the price before the last 2 other decreases feel... Very frustrating to know you overpaid that much and now your existing car is worth less on day one.

Everyone wants money back if the price falls, but no one wants to cut a check if the price increases.
*Elon Musk

 

[PR0FESSOR]

I suspect I have purchased close to 18 new cars in my lifetime, and I do not ever recall even looking at the prices of the vehicles after I purchased the one I was interested in. When I purchase a vehicle, I tend to keep it for close to 10 years, so short term price fluctuations are not important to me. This said, I am empathetic to those who have lost a significant sum of money due to price drop…. Even as I just benefited from yesterday’s price drop since my MSP has a delivery date of April 21 - April 28, 2023.

I would like to be able to say that a significant price drop would not matter to me, but this would be disingenuous… if I knew about the price drops, it would bother me… if for no other reason than because it could have been money in my pocket.

Now… would anyone mind if I went back to partying over the $5,000 that Uncle Elon gave me?

Joe

 

[WyoDude]

I suspect I have purchased close to 18 new cars in my lifetime, and I do not ever recall even looking at the prices of the vehicles after I purchased the one I was interested in. When I purchase a vehicle, I tend to keep it for close to 10 years, so short term price fluctuations are not important to me. This said, I am empathetic to those who have lost a significant sum of money due to price drop…. Even as I just benefited from yesterday’s price drop since my MSP has a delivery date of April 21 - April 28, 2023.

I would like to be able to say that a significant price drop would not matter to me, but this would be disingenuous… if I knew about the price drops, it would bother me… if for no other reason than because it could have been money in my pocket.

Now… would anyone mind if I went back to partying over the $5,000 that Uncle Elon gave me?

Joe

How many cars do you currently own?

 

[Laddcruzer]

I paid over $140,000 ( tax included ) for my Plaid in June of 2021. Do I think it was worth it? Absolutely. The car has been fantastic on all levels. Did I worry about the price dropping and someone else getting the car for a lower price? Absolutely not. There’s nothing I can do about a price decrease and life is about enjoying the time you have. Guys and gals buy the car if you want it for the price it costs. If you think it’s too expensive and the price might drop then don’t buy it. But you might never get to the fun of living life moving forward.

 

[Tiger]

If it’s like crypto, eventually people will stop buying Tesla’s all together when they find out it’s just a big hustle

Yes, only spend on cars (or crypto) an amount you're ready to lose and you won't get dissapointed. For cars there's no "next generation" to fall for what you own, unless it's a collectable.

 

[GreenCoffee]

Is it venting.........? or is it more like a rant......? I can never tell the difference ! , oh btw I can now buy a model Y 2k cheaper than a few days ago, I wish I needed another one!

 

[TLLMRRJ]

Is it venting.........? or is it more like a rant......? I can never tell the difference ! , oh btw I can now buy a model Y 2k cheaper than a few days ago, I wish I needed another one!

Technically, it's a rant. This will help you to know the difference:

Rant vs Vent – What Is The Difference? – Check English Words

 

[AS9.9.]

We all feel your pain my friend!

While most cars are depreciating assets, there is a limit to rapid depreciation to which any reasonable person would seriously consider not buying a product. Obviously I see the argument that most cars depreciate, but no reasonable person can justify buying a car for $5K more one day before the price gets cut, assuming the features are the same as before. That is why I partially agree that Tesla should give some kind of rebate to customers within x amount of days of a price cut (even if it is in the form of a Tesla shop card for accessories).

However, as a shareholder, I am happy Tesla is drowning the competition with price cuts

 

[AMPd]

I was ready to pull the trigger on a long range when the base price was 104.9 now it’s 20k less and I’m more hesitant to finally try purchasing one again. Im trying to see if Tesla will keep going lower or if now is the best time to jump in.

 

[_panda]

f I knew about the price drops, it would bother me

This is the thing. I've never purchased a car before Tesla where I've gone back and easily seen the price changes. With dealers, this was not the case because I never paid MSRP, so even if MSRP dropped, it worthy wouldn't both me as much.

I'm just happy with the car I got and the fact that even though I didn't get 5k, I got 10k super charging miles which I'll probably never use. The only kicker is, I now have a strong sense that they will drop another 5k and level at 80 for LR

 

[PR0FESSOR]

I have eight vehicles right now, all of which are ICE but only there of them were purchased new: a 2004 Ford F-350 dually, a 2016 Jeep Wrangler Unlimited (wife’s) a 2015 Jeep Wrangler Unlimited. The rest are either restored or in the process of being restored.

How many cars do you currently own?

 

[Tiger]

I was ready to pull the trigger on a long range when the base price was 104.9 now it’s 20k less and I’m more hesitant to finally try purchasing one again. Im trying to see if Tesla will keep going lower or if now is the best time to jump in.

The target price for CT is in th e 40k price range, you really think anyone is going to buy a10 yr old S/X frame in the 100k price range when they come out? Osborne wasn't born yesterday. Food for thought.