How are Local Inventory Prices Decided?

[halfhumble]

Obviously the longer time on the lot, they reduce it. But is that determined by an algorithm, after x amount of days on the lot? Other factors?

Anyone know what that time period is, from a former sales employee/reports?.Like every 7 days in the lot, they drop it $750? etc....

Because sometimes I see massive ($5k) differences for the same car/specs.

 

[EV-CPO]

Everything is priced at Corp HQ. There are no local managers that determine price.

Tesla does not work like old school car dealers.

 

[halfhumble]

Everything is priced at Corp HQ. There are no local managers that determine price.

Tesla does not work like old school car dealers.

That makes sense, but I wonder what the policy is, that causes the big price differences and amount of time that has to pass, other factors.

 

[EV-CPO]

It's basically a Dutch auction. Tesla will periodically lower the prices -- there is NO set schedule or method that's public.
If a car doesn't sell at a bottom level price, Tesla will bump it back up to the top price again and start lowering it until it sells. Lather, rinse, repeat.
Looks like a 'sawtooth' wave.

If you see a car at a price you like, just buy it. Don't wait for it to lower, as either someone else will buy it, or the price will get jacked up several thousand dollars.

 

[zoomer0056]

It's basically a Dutch auction. Tesla will periodically lower the prices -- there is NO set schedule or method that's public.
If a car doesn't sell at a bottom level price, Tesla will bump it back up to the top price again and start lowering it until it sells. Lather, rinse, repeat.
Looks like a 'sawtooth' wave.

If you see a car at a price you like, just buy it. Don't wait for it to lower, as either someone else will buy it, or the price will get jacked up several thousand dollars.

Very interesting, the saw tooth.

 

[EV-CPO]

Here's an example.. not exactly a sawtooth, but you get the idea:

And another for Model X

 

[halfhumble]

Here's an example.. not exactly a sawtooth, but you get the idea:
View attachment 1004412

And another for Model X

View attachment 1004413

Interesting. I just looked up those vins, those are used vehicles though right? The first one is a 2018.
Sorry, I was referring to new inventory sitting on lots.

Brand new, no miles, and not a demo vehicle. Like I just found a new MYP last week for $51k on a lot, and then the same exact car for $46k at another lot.

There must be some algorithm that adjusts them every couple of days if it doesn't sell.

 

[EV-CPO]

Brand new, no miles, and not a demo vehicle. Like I just found a new MYP last week for $51k on a lot, and then the same exact car for $46k at another lot.

There must be some algorithm that adjusts them every couple of days if it doesn't sell.

Yes, as I said there is an algorithm that adjusts the prices (same as used cars), but it's all done at HQ, and yes, you'll always be able to find matching cars at different prices. Buy the cheaper one.