Model Y now unaffordable for most of us

[whisperingshad]

It's easy to blame Tesla because you see the price hikes on the website but all the other cars have 10-20k dealership markups right now.. I'm helping my cousin shop for a PHEV (he needs the range for interstate commuting) and a 35k Niro is essentially 50k and a 45k RAV4 Prime is essentially 60k after the markups. It's not just Tesla. You can't compare Tesla's prices (which is exactly what you pay) vs a dealerships listed price (no one is actually getting those prices right now).

And this should be illegal IMHO, NEVER pay over MSRP. The Stealerships already make enough. Shopping through a credit union or other avenues can yield MSRP right now if you can find availability. Coworker bought a new Ice car, no markup at all last month.

 

[zpaul]

And this should be illegal IMHO, NEVER pay over MSRP. The Stealerships already make enough. Shopping through a credit union or other avenues can yield MSRP right now if you can find availability. Coworker bought a new Ice car, no markup at all last month.

But again no one is mentioning that they are getting a lot of money on trade in.
The car market is nuts right now. Trade in values through the roof.
I agree I would never pay above MSRP. We upgraded my wife's car because now it is a rare opportunity to trade car for crazy money and find something at MSRP.
So point is you screwed either way when people were getting "deals" $10K below MSRP they were getting ripped off on trade in.
Now people are not getting "deals" on buying but in a way they are overcompensated for selling.

My question is what was the value of that Chevy before market went nuts and what is the value now? I am sure it will compensate somewhat for $10K increase in MY price.

 

[DanDi58]

But again no one is mentioning that they are getting a lot of money on trade in.
The car market is nuts right now. Trade in values through the roof.
I agree I would never pay above MSRP. We upgraded my wife's car because now it is a rare opportunity to trade car for crazy money and find something at MSRP.
So point is you screwed either way when people were getting "deals" $10K below MSRP they were getting ripped off on trade in.
Now people are not getting "deals" on buying but in a way they are overcompensated for selling.

My question is what was the value of that Chevy before market went nuts and what is the value now? I am sure it will compensate somewhat for $10K increase in MY price.

This. I'm a Realtor and there are plenty of people who want to sell their homes for the high prices they are fetching in many places, but don't want to pay the same high prices for a property to buy! Damned if you do, damned if you don't....

 

[mangrove79]

Only time will tell whether Tesla will continue to be innovative and trend-setter, but at least until now, no other cars compare. Every carmaker is using Tesla as a blueprint, borrowing features and customizing them to call their own. I'm putting my trust in Tesla, given the vision Musk has - not just in automobiles, but climate change, space explorations, etc. It's hard to imagine he'll ever want to be a follower.

 

[whisperingshad]

But again no one is mentioning that they are getting a lot of money on trade in.
The car market is nuts right now. Trade in values through the roof.
I agree I would never pay above MSRP. We upgraded my wife's car because now it is a rare opportunity to trade car for crazy money and find something at MSRP.
So point is you screwed either way when people were getting "deals" $10K below MSRP they were getting ripped off on trade in.
Now people are not getting "deals" on buying but in a way they are overcompensated for selling.

My question is what was the value of that Chevy before market went nuts and what is the value now? I am sure it will compensate somewhat for $10K increase in MY price.

Not worried about the more trade in value, since the dealership is selling it for more than normal too

 

[whisperingshad]

This. I'm a Realtor and there are plenty of people who want to sell their homes for the high prices they are fetching in many places, but don't want to pay the same high prices for a property to buy! Damned if you do, damned if you don't....

Cant wait till that bubble pops

 

[jjrandorin]

Having been around here for a while, and noticing that this OP joined TMC to make this post, then logged off shortly after, it will be interesting to see if they ever log back in again. I am betting either they never log in again, or that they never really post again.

This feels like a (for want of a better term) "Lets get conversation going" post by the OP.

 

[zpaul]

Not worried about the more trade in value, since the dealership is selling it for more than normal too

Exactly my point. You are paying same in difference between trade in and whatever you are buying.

My friend bought used Ram truck for $27K drove it for 3 years adding 40K miles. Sold it for $34k and got a brand new Ram.

 

[jessepotter]

Rising prices suck, we get it. No one likes paying more for something, especially if there are cheaper alternatives to compare it to.

The fact is, everything has gone up and the price of Tesla vehicles is no different. Not only are we dealing with rising component costs, but demand far exceeds supply.

Not to patronize, but if you owned an apple stand and 50 apples, then had 100 people wanting to buy an apple from you, would you sell the apple for one dollar or two dollars? Looking at it another way, if your apple tree only produces 50 apples and they all sell within a day or two, why would you underprice them?

It would be one thing if they were the only food items and you had a monopoly, but that's not the case here. Any one of us could go buy a Honda Civic for $22,000 today and it would still get you where you need to go. You don't NEED a luxury CUV. No one is making you part from your money (other than taxes to the government, but that's another topic). If the price is too high for you personally, buy somewhere else.

I want a MYP, but $66k is a lot of money for me. I will continue to save until a combination of two things happen: I save up enough for a lower monthly payment or the price of the vehicle decreases. Those are my choices. If I buy outside of my budget, that's my own fault, not Tesla's.

I genuinely hope you find the joy you are seeking somewhere else, although I doubt you will return here for a rebuttal. It appears you are just blowing off steam.

 

[Kairide]

Having been around here for a while, and noticing that this OP joined TMC to make this post, then logged off shortly after, it will be interesting to see if they ever log back in again. I am betting either they never log in again, or that they never really post again.

This feels like a (for want of a better term) "Lets get conversation going" post by the OP.

If the OP began this thread in sincerity or not, they do bring up some valid points. Elon promoted Tesla as bringing affordable EVs to the masses for the better of the environment. At this time I think anyone with a neutral view can see this is no longer true, which is a bit disappointing. Yes there is a shortage in chips, there is inflation, but the monthly price increases over the last few months of 2021 were strictly to maximize profit and try to double dip with the BBB Bill, that never passed. I can understand Tesla, as a business that has strong demand, rake in the money when you can. They are no longer a small underdog in the business. Tesla is no better than any of the other legacy car manufacturers now because of this. As the OP stated, Tesla has become out of reach of most people. Ultimately, I think that was the OP's original point.

 

[DanDi58]

Cant wait till that bubble pops

Me either. Much less stressful for everyone.

 

[Jbiddy]

i want an lambo SVJ

 

[acarney]

May have been Statista, I'll track it down. KBB looks at invoice price if I'm not mistaken, doesn't take into account additional market adjustments.

Here's Ford's from Ford Authority:

https://fordauthority.com/2022/01/ford-average-transaction-prices-up-nine-percent-in-2021/

If the OP can wait just a bit the $25,000 Tesla, BYD Dolphin, and a slew of other inexpensive EVs will be available. The Kandi K27 is $13k IIRC.

"Just a bit" is likely 5 years or more

 

[jpy1980]

I dont get this type of post, especially if someone joins a website to make it. I get that car is out of reach for many, that part I get. The part I dont get is someone joining a website that is specifically for that brand to say "i cant afford it so I am going to buy X or Y".

I cant afford a maserati, but I am not going to go on forums dedicated to discussing maseratis and say 'I cant afford this car so I am going to buy a BMW or Audi".

If this OP wants cheaper from tesla, then they should be looking at a Model 3 RWD. No one "needs" a SUV type vehicle (yes, I said it, even people with kids do not NEED a SUV").

OMG YOU SAID IT! OOOOoooOOOOOoOOOO.

When I had my first kid...I went out and bought a 7 seater Audi Q7. hahahahahahahhahhah. Would've been ok in a Corolla. Eh...my wife needed space for 2 strollers, 5 diaper bags, 10 jackets and 15 water bottles. Now that I have 2 kids, I guess it makes more sense, but ever since I got the MYP, we've been using that as our "only" car due to me not wanting to fill up $120 worth of gas in my Audi Q7. The Model Y is more than enough!

 

[Double-O]

May have been Statista, I'll track it down. KBB looks at invoice price if I'm not mistaken, doesn't take into account additional market adjustments.

Here's Ford's from Ford Authority:

https://fordauthority.com/2022/01/ford-average-transaction-prices-up-nine-percent-in-2021/

If the OP can wait just a bit the $25,000 Tesla, BYD Dolphin, and a slew of other inexpensive EVs will be available. The Kandi K27 is $13k IIRC.

At a top speed of 35mph, that's a waste of $13k. Plus it's ugly AF!

 

[laservet]

"Just a bit" is likely 5 years or more

Maybe, likely sooner. The Dolphin has already sold over 30.000 in China, is shipping to Australia this quarter, and BYD is advertising for employees in the US.

 

[tomagucci]

Don't worry, once you make more money you'll be back!

 

[jpy1980]

Cant wait till that bubble pops

I am a RE Broker in SoCal and I don't believe we are in a true bubble. If anything does "pop," prices will just stabilize a bit or plateau. It make homes that were unaffordable, still unaffordable, but it won't feel like you're rushing to put in a crazy high bid.

The prior 2008 bubble was caused due to poor lending strategies and an over building of homes. Basically if you had a pulse, the banks lent money to you to buy a home. Prices now are skyrocketing due to low rates, pent up demand, low inventory and people putting more importance on having a homestead where they can have space and work. Most loans these days are also all A paper / full doc loans. Also most deals are all cash as well. Not many subprime mortgages.

With the feds probably hiking up the interest rates this year, that may cause the RE residential market to lose some steam, but really, not a bubble where we will see 20-30% corrections. I wish it would be true but I'm not too certain. I represent buyers and sellers too and I'm also in the market to buy a bigger home as well. Times are tough for anyone wanting to buy a home for a deal, but my mantra is that I am not going to let prices dictate my life and put my life on pause. If I need a bigger home for my family (and/or a new Tesla), and I can afford it, I'll buy it.

If you DO want to invest in real estate and possibly get a deal, wait towards the end of the first quarter 2022 and look out for when the eviction moratorium ends. Lots of multifamily owners will be evicting their tenants and hopefully trying to get out of these types of buildings. If the states extend the EM, I'm sure lots of owner will also want to sell as the building probably isn't worth it to them at that point. Just my thoughts.

 

[Double-O]

If the OP began this thread in sincerity or not, they do bring up some valid points. Elon promoted Tesla as bringing affordable EVs to the masses for the better of the environment. At this time I think anyone with a neutral view can see this is no longer true, which is a bit disappointing. Yes there is a shortage in chips, there is inflation, but the monthly price increases over the last few months of 2021 were strictly to maximize profit and try to double dip with the BBB Bill, that never passed. I can understand Tesla, as a business that has strong demand, rake in the money when you can. They are no longer a small underdog in the business. Tesla is no better than any of the other legacy car manufacturers now because of this. As the OP stated, Tesla has become out of reach of most people. Ultimately, I think that was the OP's original point.

In phases. Like in the past, they sell top trims first. Revenue brought in from that helps make the lower trims.

Tesla plans on making an even more affordable model in the near future at an estimated cost of around $25k. Will it stick to that price when it's close to production? Time will tell. You got Honda civics in the 30k range (non type r). Eventually Tesla more than likely will reach the masses. The current market has made that a bit of reach for some who are in the market for an EV but there are other options coming that will give tesla some competition which should ultimately drive the cost down of some cars or just come up with more affordable models. Patience.

 

[laservet]

At a top speed of 35mph, that's a waste of $13k. Plus it's ugly AF!

That's a typo, it goes 65 mph. At $13k you aren't paying for beauty. Here's Out of Spec Reviews driving one from the Dallas dealership, they like it:

The BYD Dolphin was designed by an ex-designer from Audi and actually isn't bad looking.