My Two Weeks Old Tesla Model 3 Depreciated by 10% Overnight

[M3OZ]

Tesla just dropped the price of M3 by $8000 in Australia.

This is good news for motorists considering an EV in Australia and I am all for it. However, it short-changes the customers who recently bought a Tesla. My EV depreciated when I drove it out of the showroom (less than three weeks ago) as expected but I did not expect it to depreciate another 10% overnight. I have spoken to Tesla and they have no sympathy for customers like myself.

I am happy with the product but I have previously posted about the very poor sales process and customer service (or in fact lack of it). This is just the icing on their bitter cake.

Who else is affected by this decision and what if anything do you plan to do?

 

[DDHEverything]

That’s just bad luck. Nothing you can really do about it.

 

[Kevy Baby]

... but I have previously posted about...

This was your first post

 

[M3OZ]

This was your first post

Haha, I had posted on Tesla's own forums. Copy and paste referring to an earlier post!

 

[M3OZ]

That’s just bad luck. Nothing you can really do about it.

Perhaps not by myself. But, if enough of us who are affected come together in AU we may be able to have our voice heard.

 

[TLLMRRJ]

And it's depreciating even more than you think because they just added more features and range to the new Model 3 compared to your car. It's like a triple whammy!

 

[T3SLAROD]

I’ve been waiting all day for this thread

 

[M3OZ]

And it's depreciating even more because they just added more features and range compared to your car. It's like a triple whammy!

That I can understand, I have bought a 2020 model not 2021. If I knew the new model is coming out in 3 weeks time, I would have probably waited but a new model coming out and a price drop of this size, no one would even hesitate to wait. It was very predictable that it is not going to make customers very displeased. The people who withheld the information did that so deliberately and to get rid of existing stock.

 

[LionXng]

Tesla just dropped the price of M3 by $8000 in Australia...
I am happy with the product...
Who else is affected by this decision and what if anything do you plan to do?

If you are hoping for an $8k check I hope they tell you to pound sand!

No one, literally no one, is affected by this decision. You bought an awesome car for the exact price you agreed to pay for it. Looking for an investment? Try TSLA not a Tesla! Cars do not go up in value!

 

[ucmndd]

Welcome to emerging technology.

 

[SigNC]

don't feel bad, the P3 was over 70k USD a few years ago. Just glad they are dropping the prices and increasing the range!!

 

[M3OZ]

It was very predictable that it is not going to make customers very displeased.

rather: It was very predictable that it is not going to make customers very pleased.

 

[M3OZ]

Welcome to emerging technology.

Emerging technology is great. Rash decisions without properly taking the impact to customers into account and bad customer service is not.

 

[ucmndd]

Emerging technology is great. Rash decisions without properly taking the impact to customers into account and bad customer service is not.

Welcome to Tesla.

This isn’t new, nor rash, nor unexpected. The price of emerging technologies comes down over time. Sometimes quite rapidly. If depreciation was a primary factor in your purchase decision, you bought the wrong car.

Sincerely,
The guy who paid $82,000 USD for a 2016 Model S 75

 

[M3OZ]

A car is a significant asset and depreciation is absolutely a factor. Particularly, when the sales person kept banging on the fact that Teslas hold their value much more than other cars. Sent me a link to back up her claims on Tesla losing only 5.5% of the value and to win me over found local examples of resale value of Teslas.

From sales rep:
'I am not sure if you read this article or not which explain the resale value of of the model 3, it only lose 5.5% less of their value after a year of ownership which is much better than other cars.
Please check this article if you have not read it yet, very interesting Tesla Model 3 tops list of cars that hold their value'

Then a few days later:
'In terms of trade in, the team just not willing to give me a number based on the hypothetical situation, but I have asked one of my customer who tried to sell her model 3 standard range privately, she only had it for couple of months and she wants to upgrade to a Long range with different color. She said she got a lot of inquiry about her model 3, and one lady offer her 71000 for her car.
In general, trade in price is lower than the trade in price, and Tesla holds the value better than other petrol cars. Tesla model 3 is a really popular car with a lot of demand.'

So as you can see, she failed to mention that this is the wrong car in terms of depreciation and was going exactly in the opposite direction. These statements are misleading to say the least.

 

[907XCP]

I feel your frustration, this is the price of innovation. While other car companies increase the price of their cars YoY, Tesla makes their cars better and cheaper.
Coming from a 2018 Model 3, the 2021 one is now $10,000 cheaper and better in almost every way.

What if the prices of the same vehicle you got actually went up, do you think it would be fair for Tesla to ask you to pay the difference shortly after you bought it? That is how I think about it.

And finally and most importantly, each one of us is paving the way for a more sustainable future and helping push the adoption of EVs. Whenever you feel sour about your Tesla purchase always remember their core Mission:

"To accelerate the transition to sustainable transportation"

 

[ggnykk]

EV car pricing will ALWAYS trend downward for years and years to come as cost of battery comes down. (battery is the biggest cost component of an EV). If you want the best EV with the best range and lowest cost possible, wait another 8 to10 years before you buy one. That's what I am doing.

Price of any new technology always come down fast.

 

[M3OZ]

What if the prices of the same vehicle you got actually went up, do you think it would be fair for Tesla to ask you to pay the difference shortly after you bought it? That is how I think about it.

This is a reversal argument. I understand the sarcasm here but legally in Australia a business cannot increase the price of a product they have sold (even if not delivered yet). There are consumer protections in place that you cannot take, then reverse the role of buyer and seller and see if the fairness test applies. The law deliberately gives more protection to customers and sets obligations on sellers that are not meant to be reciprocal.

I understand that Tesla is not legally obligated to do anything but misleading information that I was given as part of the sales process may offer some remedy and I intend to investigate through proper channels (Fair Trading in NSW). They have had a price drop (great! and I am all for it). However, most companies would consider the impact of their moves on their customers and would offer ways to dampen the impact. Why cannot they include FSD as a way to dampen the drop? I am truly not interested in FSD but see that as something that negates the sudden depreciation.

 

[907XCP]

This is a reversal argument. I understand the sarcasm here but legally in Australia a business cannot increase the price of a product they have sold (even if not delivered yet). There are consumer protections in place that you cannot take, then reverse the role of buyer and seller and see if the fairness test applies. The law deliberately gives more protection to customers and sets obligations on sellers that are not meant to be reciprocal.

I understand that Tesla is not legally obligated to do anything but misleading information that I was given as part of the sales process may offer some remedy and I intend to investigate through proper channels (Fair Trading in NSW). They have had a price drop (great! and I am all for it). However, most companies would consider the impact of their moves on their customers and would offer ways to dampen the impact. Why cannot they include FSD as a way to dampen the drop? I am truly not interested in FSD but see that as something that negates the sudden depreciation.

I am not being sarcastic but just following that logic. Also I am curious, what misleading information did Tesla give you? did they give/take away something you did not agree to?

 

[tintinfish]

Happens all the time, welcome to Tesla
(I paid $2000 for the white paint then they made it free a few weeks later)