Incorrect Tesla sales strategy?

June 30, 2023

I think most of us are very aware that Tesla is trying to close out the second quarter with a bang.

As a stockholder, I certainly endorse the strategy.

Unfortunately, I think they have a blind eye in one particular area that I would like to mention.

There is a vehicle in inventory that we wanted to buy and we were ready to pick it up same day or next day, but we needed to know what our trade would be worth.

Their response was that we should order the new vehicle, charge $250 to the credit card and only then would they would give us a trade-in value.

If I went into a legacy car dealer and offered to buy a particular vehicle, they would give me a trade-in value on the spot, and they certainly would not charge me anything.

I have owned 5 Teslas, all of which have been ordered, versus purchased from inventory, so I kind of understand the drill and the reasoning for the system.

However, I think this should not apply to inventory vehicles.

The long and the short of it is they lost the sale because of their inflexibility.

I will be interested to hear what you think.

 

[kpanda17]

Typos

 

[SpicyPaneer]

They gave me $6,400 for my 2015 Prius with 178k miles without inspection. Took the amount off my final price after I accepted their deal can’t go wrong with that.

 

[BeanPerf]

In NYS we are not charged sales tax on the trade amount, only rhe balance left
Therefore for $29.5K and no tax that’s $2500 savings
When the trade in is done as a separate transaction, sales tax must be paid on the entire amount
In my first trade, Tesla was lower but only by the sales tax savings amount therefore a wash
For your example, Tesla $29.5K Carvana $32K

Agreed! However, I’m in a unique situation where trade in value tax savings don’t apply. I’m in the military and SC doesn’t collect taxes on non-residents so don’t benefit from the savings.

 

[R.P.E.]

Tesla purchased by beat up Prius & gave me $6400 bs dealer giving me $2k when I traded in for 23 MYLR. Can’t complain here for me YMMV.

In fairness, the Prius has the one of the highest resale popularity used markets over any vehicle on the road today (With Honda also right in line with other Toyota models.) Heck, a Prius with over 200,000 miles still has dealer attraction, even over domestic cars with significantly less mileage.

 

[mjwojtukiewicz]

I had 4 Prius before Tesla (2002,7,10,17) and I have to say they caused me NO trouble at all. I wish Toyota made an all electric Prius. No more dealing with Elmo