Price-gouging among "flipped" Model 3s by current owners?

[igotzzoom]

One potential concern I have is the potential for price-gouging among current owners that will get first priority for the Model 3 that attempt to quickly "flip" the cars on the private market. How widespread do you think this will be? Yes, I like being an early adopter, but not so much that I'm willing to be stupid with my money. I am willing to "wait my turn." Thoughts?

 

[ummgood]

I am sure it will happen. The likelihood of someone who can afford an 80k car going through the effort for a few thousand dollars (after taxes etc...) is probably less than someone throwing the latest Nintendo Switch on a credit card and selling it for a 200 dollar profit.

 

[Stirthepot]

it may happen, if there is a market for it then its not really gouging IMO, its simply supply and demand, the same principle everything in our capitalist economy is based upon. I don't like it but it happens all the time, even dealers do it with hot new cars.

 

[Haxster]

Same issues with Model S and X reservations. Did this actually happen? I don't recall any stories about people cashing in on flipped Teslas.

Some of this may depend on how well the M3 is received and what sort of production ramp actually takes place.

There are probably better ways to make a buck.

 

[M0DEL³]

One potential concern I have is the potential for price-gouging among current owners that will get first priority for the Model 3 that attempt to quickly "flip" the cars on the private market. How widespread do you think this will be? Yes, I like being an early adopter, but not so much that I'm willing to be stupid with my money. I am willing to "wait my turn." Thoughts?

Personally, I do not see this as a concern. If I wanted a M3 so badly that I would pay a premium to skip-the-wait, eat the loss of the tax-credit, and deal with the other issues involved, I think it would be great for someone to make a profit in selling me their car. Curious as to why you think this is an issue at all? If anything it's a healthy indicator of a robust marketplace.

Like you, I will be waiting in the production queue. But I feel no ill will towards those who are willing to pay more to skip it. Happy for them!

 

[SabrToothSqrl]

How is it 'gouging'? No one buying a Model 3 is being forced to. It's a car, not water.

 

[jerjozwik]

when the X first came out, someone here tried to sell his for 200k. im pretty sure the entire forum told him he was nuts.

 

[DFibRL8R]

I do recall some instances with Model X of flipping, I think the S was too new and unknown with a relatively short turn-around once they finally started manufacturing.

Personally, I have 2 on order, no plans to profit but I predict the earliest version I could buy not having the exact options I would eventually want (D).

I may or may not execute the purchase of my second 3, I just like having the option.

 

[Bokonon]

when the X first came out, someone here tried to sell his for 200k. im pretty sure the entire forum told him he was nuts.

The "X sold for $200K" story that I remember was a referral winner who sold his Founders series X to a Chicago-based dealer, who in turn sold it to Ford.

 

[calisnow]

One potential concern I have is the potential for price-gouging among current owners that will get first priority for the Model 3 that attempt to quickly "flip" the cars on the private market. How widespread do you think this will be? Yes, I like being an early adopter, but not so much that I'm willing to be stupid with my money. I am willing to "wait my turn." Thoughts?

You are "concerned" about a theoretical transaction between two private parties, freely entered into - that has nothing to do with you?

Lemme 'splain you 'bout my two wittle friends - the supply curve and the demand curve. There's this neato little point where they meet called the "market clearing price."

 

[kort677]

One potential concern I have is the potential for price-gouging among current owners that will get first priority for the Model 3 that attempt to quickly "flip" the cars on the private market. How widespread do you think this will be? Yes, I like being an early adopter, but not so much that I'm willing to be stupid with my money. I am willing to "wait my turn." Thoughts?

why is it any of your business what agreements that a buyer and seller come to?
it's not like a model 3 is a necessity of sustaining life like food, water or fuel.

 

[ummgood]

I think the problem is after the invent of online resale sites like Amazon and Ebay there is a problem with artificial supply shortages of the latest and greatest wares. For example say a bunch of dorm kids from college line up for the latest whatshuzit and then all buy one or two because there is a limit of 2 per person. They then immediately keep one and sell the rest on ebay/amazon/craigslist for a profit. Some people might be willing to pay while others aren't. The problem is there is now hundreds of these whatshuzits sitting in some artificial inventory that no one can get a hold of for a reasonable price until the manufacturer catches up with the demand if that happens. I see it happening more and more. Where I live it is next to impossible to get some toys/games for my kids before Christmas. I don't even try to bother anymore and get them some things I know they'll enjoy that I can get and also get them some gift cards that they can either choose to buy the item when it is in stock or on something else they deem more important.

With that said I think this has caused some kind of resentment with a lot of people. The artificial demand causes people to feel like anything exciting worth buying is unobtainable until way later. It doesn't really bother me but it really does bother others.

I would venture to say that the Tesla Model 3 isn't as big of a problem because it does require 1k down for a very long time to get to the front of the line. Plus it takes a lot of investment with some risk to pull it off. It did happen with the PT Cruiser so I am guessing it could happen with the Model 3

On a side note this has been happening as long as I can remember. Anyone remember when the original cabbage patch kid came out? I just think it is more so now with the online retail sites making it easier to sell the stuff at a higher profit.

 

[calisnow]

@ummgood - there's nothing artificial about the shortages in your example. That's markets at work - markets will be markets. The college kids are functioning as market makers to set the true market clearing price. The inefficiency is actually the retailer, which for a host of reasons (including political - can't adjust prices in real time response to fluctuating demand and supply levels - an uneducated public confuses accurate pricing with "gouging") cannot raise prices in response to demand. So the kids do it for them.

 

[calisnow]

@igotzzoom and @ummgood - I'm assuming neither of you has taken an introductory economics course. I stumbled into econ as an undergrad - I'm not on a high horse here. But folks who never took econ typically ascribe some kind of magical moral correctness to a published and fixed price for a good or service. This gets fixed in their brain and then if it turns out the fixed price is incorrect and market makers step in to correct the situation - John Q Uneducated Public feels that something unethical has happened.

 

[bonnie]

Plenty of people flipped their X early on. After I found out that I qualified for a Founders series (more exclusive, less expensive), while waiting for my Sig delivery I flipped my Signature. I had no need for two X's in my driveway. And trust me, there were plenty of buyers circling.

I'm sure the same thing will happen with Model 3. But demand dies down quickly as Tesla ramps up production. I don't see this as an issue.

 

[gavine]

If they gouge too much, buyers will just get a low-end Model S instead.

 

[ModelNforNerd]

One potential concern I have is the potential for price-gouging among current owners that will get first priority for the Model 3 that attempt to quickly "flip" the cars on the private market. How widespread do you think this will be? Yes, I like being an early adopter, but not so much that I'm willing to be stupid with my money. I am willing to "wait my turn." Thoughts?

If you're concerned.....don't buy from one of them.

If they can find a sucker to pay it, let them. We are a free market economy, and you're free to shop around.

 

[Dwdnjck]

Thank goodness Tesla doesn't have any dealers to take advantage of short supply

 

[igotzzoom]

Perhaps "concern" is the wrong word. I'm just wondering how prevalent you think it will be. If the buyer has the means and is willing to pay the premium, then more power to him/her. I'm not suggesting it should be regulated by the government or anything.

 

[EVCarGUy]

One potential concern I have is the potential for price-gouging

Sure, that's capitalism at work.

My real concern is that they'll claim the $7500 tax credit and we tax payers will be putting money in their pocket.