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Hilarious new dealer attack - "Tesla Saves Consumers Money"

Discussion in 'Tesla Motors' started by CapitalistOppressor, Sep 16, 2013.

  1. CapitalistOppressor

    CapitalistOppressor Active Member

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    California new car dealers claim Tesla violates advertising laws - latimes.com

    Ok, in fairness I think we can all agree that Tesla's initial calculators went too far with how they set their default values and monthly lease costs.

    And while I think the default settings are much better now, I agree that some of the options are fairly ludicrous.

    That said, I am awestruck at the stupidity of the dealers in this. How does this accomplish anything except to stir up a big debate about just how much money you can save by owning an EV?

    Face it, the core of Tesla's argument is entirely correct. The total cost of ownership on a Model S is likely to be far, far lower than an equivalent BMW 7 Series. And those comparisons are generally going to hold anytime you have comparably priced alternatives between ICE and EV.

    I vote for putting this firmly in the "There is no such thing as bad publicity" category. I am just shocked that they think this is a good idea.
     
  2. dsm363

    dsm363 Roadster + Sig Model S

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    Best part
    I would assume most people buying this car have to pay more than $7,500 in federal taxes (I realize not all but hardly a majority).
     
  3. texex91

    texex91 Banned

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    The dealers are certainly trying to find anything to cry about.

    However, I do wish Tesla on their site when you build would not subtract that $7500 from the build price. Albeit they say AFTER tax credit, it's still a little silly to show a much lower number. I understand why they do it, just I don't like it for the reason that not everyone will qualify for the $7500 tax credit (I do hear your point Dave). They should state 'potential' tax savings.

    Anyways, living in Texas, I don't care for any of the auto dealers and their slimy tactics they use to hinder Tesla expansion in Texas (and other states).
     
  4. Discoducky

    Discoducky Active Member

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    More free advertising and driving people to the website to configure cars is fine by me ;)
     
  5. brianman

    brianman Burrito Founder

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    How do you stop doing something you already aren't doing?

    This sounds like regulating commerce by forcing you to engage in said commerce.
     
  6. dsm363

    dsm363 Roadster + Sig Model S

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    I agree the 'after federal tax credit' is slightly misleading and doesn't apply to 100% of buyers but not any more shady than advertising practices from dealerships or Best Buy...etc. I do think Tesla should stop advertising after the tax credit price or maybe list both to highlight the credit.
     
  7. liuping

    liuping Active Member

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    I'd prefer they list prices before credit as well. I always have to add it back in to calculate sales tax, etc.

    On the other hand, the Leaf, Volt and Spark all advertise their price minus the $7500 tax credit. And I assume the percentage of people buying a $24k (before credit) EV that might not qualify for the full credit is quite a bit higher than the for people buying a $90k car.
     
  8. ItsNotAboutTheMoney

    ItsNotAboutTheMoney Active Member

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    The tax credit should never be included in the price, not because not everybody's entitled, but because taxes are calculated on the amou nt before tax credit.
     
  9. liuping

    liuping Active Member

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    Exept for those lucky few who live in states that do not charge sales tax on EVs. Almost makes me want to move. :)
     
  10. stopcrazypp

    stopcrazypp Well-Known Member

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    Keep in mind all the other plug-in manufacturers include the credit too, so Tesla would be at a disadvantage not to (included only Leaf and Volt for brevity):
    http://www.nissanusa.com/electric-cars/leaf/
    http://www.chevrolet.com/volt-electric-car.html

    If any of those car dealers sell a plug-in (which would also do the same $7.5k subtraction), they would be hypocrites and also would be violating advertising laws.
     
  11. TurboFroggy

    TurboFroggy Member

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    The other thing that sleazy dealers do as well is advertise cars like the Leaf and Volt as a net price on sites like Cars.com and Autotrader.com. This is against cars.com's terms of use, I sent a complaint in and verified. Dealers constantly list the net price which is minus the $7500 tax credit and any other magical savings that you may or may not quality for. So if you use cars.com's search engine and sort by price lowest to highest you can see the dealers that do this.
     
  12. spaghetti

    spaghetti Member

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    The irony here is that dealers have all sorts of sleazy tricks to maximize their profits - see this article Confessions of a Car Salesman

    It's laughable that they are crying foul here - Tesla sales must be really hurting them.
     
  13. Tacket

    Tacket Member

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    The tax credit is not going to last forever, so might be nice for them to actually list the price as $xx,xxx - $7500.
     
  14. reddy

    reddy Member

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    Seriously ?

    A CAR DEALER trying to seize the moral high ground ?

    If you ask anyone what experiences they hate in life, the car purchase dickering and hassles ranks near the top.

    And new car dealers are right at bottom of ethical rankings, just above used car dealers and Congress.
     
  15. brianman

    brianman Burrito Founder

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    California car dealers want Tesla ads probed - CNBC
    To my knowledge, Tesla hasn't bought any advertising. They have a web site with some data on their products. That is not advertising. If that's advertising, then having a physical office in the desert with a phone number is advertising.

    If the claim is about Tesla's "advertising", isn't the simple rebuttal / dismissal argument: "they are complaining about something that doesn't exist"?

    What am I missing?
     
  16. cschock

    cschock Member

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    This was exactly my first thought as well. They don't actually advertise at all.
     
  17. JohnQ

    JohnQ Active Member

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    Well, the original article doesn't reference which law it is, and instead says "several state and federal laws." Probably more an issue of sloppy language by the dealers association which made it into the article and headline. I'm sure there are laws on the books about deceptive pricing practices regardless of whether it's over the air, on a billboard or on a pricing sheet.
     
  18. wycolo

    wycolo Active Member

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    Could be that a company self-defines what is 'advertising' by whether or not its cost is deducted as an expense. If TM deducts the annual net cost of running its website(s), which seems likely, then you could say that TM indeed has an advertising budget of xx dollars.
    --
     
  19. brianman

    brianman Burrito Founder

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    This wasn't sloppy language in a memo. The part I quoted was directly from the mouth of Brian Haas in that video from CNBC. If you're going on television talking about how you want another company probed by the government, your language should be spot on not sloppy.
     
  20. JohnQ

    JohnQ Active Member

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    Just a quick Wikipedia search regarding "false advertising." Wikipedia - False Advertising - Regulation and Enforcement

    The relevant item for California states
    I would say that Tesla's webpage qualifies.
     

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