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Order before March 1 or wait until end of Q1
- Thread starter Nullogy45
- Start date
Tesla offering a $5k discount, is basically the same as offering 0% for 60 months if looking at $40k loan. They've done that recently. I know some people like to think their loan doesn't cost anything, but it's really just the dealer moving money around.
I see we have a bunch of cash folks in this thread. Apologies for my suggestion but I do think it is a good incentive as most people finance their car purchase.
I agree that dealers play games with the finances by doing whatever (e.g., extending the loan length) to lower the monthly payment. However, I do think lowering the interest rate is a smart move by Tesla as it would open up more buyers without having to lower the price of the car. Frankly, it would help the company's bottom line.
How does it make any difference? As I shared above, you can lower the monthly payment by lowering either the price, or finance rate. Lowering the price makes it more transparent and actually lowers the taxable amount of the vehicle. It benefits all, not just people financing.
The quarterly reporting numbers and the metrics folks used to determine a healthy company. Keeping the price of vehicle higher is a good thing for Tesla as it shows up in their reporting through its cars net profit margin so lowering the APR (or giving out free Supercharging miles, etc.) is a better way for them to run their business than just lowering the price of their cars.
Lowering the APR isn't a dealer tactic. The dealer doesn't' control the APR, that's a banking decision. Tesla has its own finance division which allows it to control the APR it sets for buyers.
Does lowering the APR cost them money ... yeah, in a sense but it isn't the same for Tesla as lowering the price of the car. It costs Tesla much less in terms of net profit to lower the APR than lower the price of a car. Its a smart business decision to adjust the APR especially to bring in customers so the bank (in this case Tesla's finance division) to make money. Obviously in a higher inflationary environment, the interest rates will rise but that's not necessary what happens with the APR for car loans.
ucmndd
Well-Known Member
That's not strictly true. Dealers get kickbacks from banks if they fund a loan at a higher APR than necessary.
For example the bank might offer a loan at 3.9% but give the dealer a $500 incentive if they get you to take 4.9%.
Good point. Even with that qualification my point stands that it is more financially beneficial for Tesla to lower the APR or provide other incentives (e.g., issue free Supercharging miles or color upgrades) than to lower the price of their cars. Obviously, all come with costs but the costs of the former are less "costly" (pun intended) for Tesla than reducing the net profit margin of their vehicles.
This is correct. I buy vehicles commercially using established lines of credit. I’ve had a couple of scummy dealerships try to mark up the rate. One even told me the finance department needed to make net profit on my sale, so he was marking up my rate 2.5%. I took his crap rate and paid off the vehicle on the first payment, resulting in a charge back and a penalty for the dealership.
in LA there are a shortage of base grey RWD it seems, inventory gone for a couple days. No change for LR.
RWD doesn’t appear to get the $7500 federal rebate now, so it would cost more than the LR. No need for Tesla to produce RWD now.
Your probably seeing demo vehicles or ones from 2023. 2024 RWD are eligible for the rebate
There is the one I saw, demo car. Shows the MA $3500 rebate but nothing about the $7500 federal rebate.
Yes, it's a 2023 demo
I like using this site to filter and give some extra info on what's in inventory.
United States Tesla New Demo Model Y inventory
This is the New Demo Model Y inventory for cars in United States. The inventory is taken from Tesla directly and refreshed every few minutes, we also explicitly differentiate between New and Demo cars both of which Tesla list as New. In many countries we also gather used cars from various...
tesla-info.com
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