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Price Negotiation?

Discussion in 'Model S' started by PattyChuck, Jan 24, 2012.

  1. PattyChuck

    PattyChuck P6703 VIN4080

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    So I bit the bullet a few weeks ago and paid the reservation deposit, and today I invested in TSLA. I am finally at a point in my life where I can "afford" a luxury car, and I've been coveting the Tesla brand since I first read about the Roadster many years ago. The Model S will be the first high-end luxury car I've ever owned (currently driving a base-model Infiniti), and a friend of mine, who makes it a hobby to help other friends negotiate car buying prices, asked me if I wanted his help in buying the Model S. It hit me that, since I've never bought a car over $35,000, is the Tesla a car that I should expect to be able to negotiate a price? Or is it list price and everyone pays the same?
     
  2. richkae

    richkae VIN587

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    When a car has a long waiting list - and the Model S is at 7-9 months, you have no negotiating power. It was the same with the Leaf, the Prius, the Boxster, the Miata and lots of other cars.
    It is actually very good news that Tesla isn't selling through independant dealers because every one of those cars mentioned the dealers jacked the price up several thousand over MSRP because of demand.
    When the waiting list is exhausted you can try to negotiate.
     
  3. stopcrazypp

    stopcrazypp Well-Known Member

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    #3 stopcrazypp, Jan 24, 2012
    Last edited: Jan 24, 2012
    Tesla operates under the same "no haggle" policy as Saturn did, which means there is no need for negotiation of pricing. The car also comes direct from factory (no dealers involved at all, only Tesla owned stores), so there is no traditional dealer mark up (as seen in some recent plug-ins being sold by dealers) nor is there such thing as an "invoice" vs "MSRP" or "holdback" or "dealer cash", which are usually the basis for negotiations. Everyone pays the same price for a Model S specified the same way. Plus there won't be a salesperson breathing down your back trying to sell you on useless options/accessories (you are free to choose what you want).

    Also, given the demand is much higher than supply right now, even if Tesla operated on a traditional dealer model (which they don't), I wouldn't expect much room for negotiation. The only time I have seen room for negotiation by Tesla is for leftover demo units for the Roadster (and that's because they are demo units so the value for them is lower in the first place), but there's certainly none in existence for the Model S.
     
  4. NigelM

    NigelM Recovering Member

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    Welcome to the club!

    Unfortunately with a long reservation list the chances of negotiating the price are zero.
     
  5. Citizen-T

    Citizen-T Active Member

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    I'd say that it is extremely unlikely, and that has nothing to do with being a luxury car. The reason is simple supply and demand.

    The reason you are able to negotiate price on other cars is because the manufacturer is limited only by how many vehicles they are able to sell. They can make up for the lower margin in volume by moving more cars than they would otherwise have been able to move.

    Contrast that with Tesla, who has sold 9,000 more cars than they have produced (and by the time your number comes up that will likely be an even larger gap). They are going to sell no more than 20k cars in 2013 and have a long waiting list to boot. To them, giving you some concession on price isn't one more sale than they would have otherwise had, it is 100% loss.

    If you tell them you are going to walk away from the deal unless they give you xy or z, they are going to be like "that's fine, there's a few thousand people that will be happy to move one spot closer to getting theirs." You have no position from which to negotiate, they don't need your money. They just need someone with money to fill your slot in line. They don't care if that person is you, the person after you, or the person after that.

    Now, if it doesn't pan out that way, and they are struggling to sell all the 20k cars they produce in 2013, then they will probably be willing to negotiate. I just don't think that is a likely scenario. At some point Tesla will have built up enough manufacturing capacity that they can handle all the demand that is out there, and then some. At that point, they will start doing promotions and negotiating in an attempt to create more demand.
     
  6. Andrew Wolfe

    Andrew Wolfe Roadster 472 - S 440

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    I agree with everything that has been said - but let me add one more.

    In the U.S., negotiating for cars is an artifact of the independent dealer networks. Various laws prevent manufacturers from setting prices for dealers. Saturn's deal was not that GM set the price for dealers, but that each dealer agreed to sell for a single, no-haggle price. Each dealer was free to decide what that price should be.

    Since Tesla has no dealers - they are free to set prices.
     
  7. PattyChuck

    PattyChuck P6703 VIN4080

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    Thanks for all the great replies. It pretty much aligns with what we were expecting!
     
  8. stopcrazypp

    stopcrazypp Well-Known Member

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    I doubt there will be negotiation even then (outside of the situation of demo units at stores, which have some of their value taken away from being tested by people). I expect a price decrease to address drops in demand (and a very well managed production line that can ramp down in times of less demand) rather than individual negotiations. This is because one of the key things about Tesla is the buyer experience, and negotiations is one thing Tesla is trying to eliminate as much as possible. That's the whole point of investing in stores, instead of going to dealers like everyone else.
     
  9. Lloyd

    Lloyd Active Member

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    If you need to negotiate you will need to wait and buy a used one!
     
  10. Citizen-T

    Citizen-T Active Member

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    Good point, agreed. I didn't consider the experience part of it. You are right, George B wouldn't have it. Right George?
     
  11. Trnsl8r

    Trnsl8r Blue 85kwh since 12/8/12

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    Actually, from what I heard not even that is true. I once asked a store rep about pricing on demo units (on the Roadster) and was told they simply take the MSRP for the car as new and subtract $1 per mile on the odometer.
     
  12. Cobos

    Cobos S60 owner since 2013

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    I wouldn't write off negotiations completely. I'm guessing after a few hours of intense haggling you would probably get a free Tesla coffee mug or a Tesla hat.

    :)

    Cobos
     
  13. AnOutsider

    AnOutsider S532 # XS27

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    Agreed. Not to mention they model themselves after apple. How often do you see sales from apple? It wasn't until recently when they began letting other retailers sell their goods that we even saw slight price breaks and bundle deals on things like iPads.

    Nope, I expect tesla to have a firm price across the board (for the better IMO)
     
  14. kgb

    kgb Member

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    With my Roadster, I got a free T-shirt, a free hat, and a free key ring - and I didn't negotiate. Imagine if I had!!! :wink: (I hope I didn't get anyone in trouble) :scared:
     
  15. ElSupreme

    ElSupreme Model S 03182

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    You have given me hope about haggling. I am shooting for the stars. I want a Jacket.
     
  16. Jkam

    Jkam Member

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    Ok talking about nitpicking, but am I the only one who thinks Tesla could do a lot better on their logowear. Granted it is more important to work and spend their resources on producing the car, but all the caps, shirts, jackets, keychains...could use a good pick me up IMO. I went to the October event and wanted to buy a shirt or something, but after looking at what they had to offer ended up buying nothing.
     
  17. MitchL

    MitchL S#945

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    I agree, they could have better swag - logo merchandising must make reasonable money, enough to sustain itself, so why not?

    The one thing I was looking for that I can't seem to find is the "my next car won't have one of these (arrow to tailpipe)" stickers for my current car. Or a window cling. Or something...

    /Mitch.
     
  18. AnOutsider

    AnOutsider S532 # XS27

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    Agreed, but I did get a onesie since we're expecting. It says "0% emissions" then "almost" near the buttcheeks
     
  19. dsm363

    dsm363 Roadster + Sig Model S

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    e-mail your customer advocate. They were able to send me one last year but I don't know if they still have them or not.
     
  20. neroden

    neroden Happy Model S Owner

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    Demo models and production validation models and whatnot may end up being subject to negotiation. Or they may go like hotcakes -- what do I know!

    Actual standard production-line models won't be subject to negotiation -- unless you want to negotiate a higher price, I think Tesla may be willing to arrange that ;-)
     

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