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Prices are slowly going up?
- Thread starter nlam514
- Start date
CapeOne
Active Member
I think some make too big of a deal out these Tesla price changes. Price adjustments are common in the automotive world (and elsewhere) due to supply, demand, competition, etc. They are typically adjusted through rebates/incentives although sticker prices change as well. I get that people want the "best deal" but $500 here or there in the long run won't mean much. I think worrying about prices too much can take some of the enjoyment out of buying a car.
Enjoy the car!
It's also not nearly as bad as what new home builders are doing in some markets. Due to low inventories, raw material price increases (particularly lumber), etc,, some have increased “base prices” by 25% or more over just the last eight months or so.
Enjoy the car!
It's also not nearly as bad as what new home builders are doing in some markets. Due to low inventories, raw material price increases (particularly lumber), etc,, some have increased “base prices” by 25% or more over just the last eight months or so.
I remember it. I thought that was the incentive I got for paid for being a beta tester
. Besides. They dropped the price more than $7500 worth.I think it's more about "is it worth it to wait 8+ months (unknown) to get a 10K or less rebate (unknown) if prices go up 3K in the meantime". Depends on a lot of personal factors. In my situation for instance, my ICE car will need pricey maintenance before then so that rebate is not useful to me all things considered (which is great because I get to focus on enjoying the car!).
Lotsa reasons Tesla prices are going up.... besiides the obvious ones (inflation, steel, demand, etc), the additional factor just made obvious: Tesla just lost its biggest source of carbon credit purchasing, worth billions.
What are you taking about. Tesla only sold $350M total to Stellantis and it only appears to affect European credit purchases. So it’s not anywhere near a billion. Probably not even $200M
CapeOne
Active Member
While I think other factors are bigger reasons behind the price increases, $350 million would not be insignificant per car sold. Based on last year's global M3 and MY sales, it would amount to approximately $791 per car. Based on last year's U.S. M3 and MY sales, it would be more than $2,000 per car.
Knightshade
Well-Known Member
I remember it. I thought that was the incentive I got for paid for being a beta tester
Well, they don't see LR RWD anymore so you can't compare "todays" price on a product they don't sell.
But my own LR AWD car?
I paid 62k in blue with FSD, minus $7500 tax credit= $54,500 in 2018.
Pricing same at Tesla.com today that car is... $59.490.
Mine was 5k cheaper... (AND it came with the $300 homelink option standard, and a 14-50 adapter, and the mats they no longer include-plus lifetime premium data saving me another $100/yr compared to today)
So no, it does NOT appear they dropped the price compared to 2018- it appears they raised it by at least 5k (or 5500 if you count the extra HW the 18 had)
Except you DIDN'T pay $54,500, you paid $62,000. That you received a $7500 rebate is a plus for you, but you still paid the $62K - that what Tesla received.
So yes, the price of your car went down significantly.
Knightshade
Well-Known Member
Why do I care WHO got the money? That has NOTHING to do with -my- cost.
I care how much net the vehicle cost me then versus if I bought the same thing today.
It'd be over $5000 more today net cost to me.
And it's not like I paid cash up front- that cash was much better placed in Tesla stock (which is up a little bit since 2018 if you hadn't heard), and I happily took a 2% loan for the car instead.
people are surprised Tesla is a car company and their prices always go up. Barring a cheaper model, this is the cheapest the cars will likely ever be long term.
I'm glad someone else pointed this out. Everyone always want to subtract those $7500. I have yet to find someone who actually received $7500 from the IRS and then either put it in their pocket because they paid cash or put towards their loan. This is happening with Mach-E owners also, saying its cheaper than a Model Y
Knightshade
Well-Known Member
Why would that matter?
Money is money. Cash is fungible.
The IRS money isn't magically different from the "other" money I use for other things.
So for example let's say I have $100,000 in a bank account.
I buy a car for $50,000 cash, and then get a $7500 IRS check that goes into the account. The account now has $57500 in it, and net cost of car was $42500.
Or I buy a car for $42500 and get no check. The account now has $57500 in it, and net cost of car was $42500.
Same same.
In this case, if I bought the same car today, my NET cost is over $5000 higher than it was in 2018.
TBrownTX
Active Member
All true, except the car still costs less than it did when you purchased yours originally.
Tim
CapeOne
Active Member
If think you guys are getting caught up between retail price and ultimate transaction cost. The retail price of the M3 has come down since 2018 but it would appear, depending on how much of the federal tax credit average buyers qualified for in 2018, that transaction costs may have gone up.
The reality with any car is that sticker prices or MSRPs only tell part of the story as you need to factor in things like tax credits, manufacture rebates, interest rates, discounts, inflation, etc. to get a better picture of where costs have gone. It's not as simple as just looking at sticker price or MSRP since people often end up paying different prices, qualifying for different rebates or tax credits, etc.
The reality with any car is that sticker prices or MSRPs only tell part of the story as you need to factor in things like tax credits, manufacture rebates, interest rates, discounts, inflation, etc. to get a better picture of where costs have gone. It's not as simple as just looking at sticker price or MSRP since people often end up paying different prices, qualifying for different rebates or tax credits, etc.
Uncle Paul
Well-Known Member
Perhaps the price increases are due to a combination of demand exceeding supply plus the rapid increase in raw materials costs.
Tesla wants to maintain their profit margins.
Tesla wants to maintain their profit margins.
Knightshade
Well-Known Member
Except no, it does not.
It cost me over $5000 less net cost in 2018 than if I bought the same car in 2021.
You guys keep acting like "tesla dollars" and "irs dollars" and "my dollars" aren't exactly equivalent in value and it just ain't so.
Dollars are dollars.
I'm net 5000+ more of them out of pocket buying the identical car in 2021 than I was 3 years ago.
Given Tesla (and most folks) expect a new tax credit- creeping the price up slowing this year lets them capture more of that credit without it being as obvious a cash-grab as if they did it all at once, and since demand continues to outstrip supply even at the higher prices this isn't a problem for them.
GM is in a different situation because the only way they're moving Bolts right now is offering large $7500-10k "dealer rebates" and other such.... when the fed credit comes back for them they capture 100% of it by just discontinuing the dealer incentives. Tesla doesn't have that method available, so their only choices are this price creep to be subtle about it, or a big spike that'd garner a bunch of negative press.
@Knightshade more people need to take economics courses.
Not explicitly related but still...https://freakonomics.com/2012/04/17/tax-deductions-or-tax-expenditures/
Not explicitly related but still...https://freakonomics.com/2012/04/17/tax-deductions-or-tax-expenditures/
Right, but how many actually for $7500 from the IRS is the question. You are probably one of the few who came out with those $7500 or somewhere around that range. I would say most say maybe half of that or none due to tax liability.
Agreed.
The EV tax credit can save you thousands -- if you’re rich enough
Almost 80 percent of the credits have been claimed by people making at least $100k.
grist.org
Because this discussion has been about the PRICE OF THE CAR not what you (net) paid for it. There are a LOT of other factors that are not included and would turn this into a convoluted discussion. What about inflation? What about that my credit score is better today than it is when I bought my car in August 2019? How have interest rates changed in that time frame? What was the rebate for Canadian or European buyers?
What about the fact that you paid tax based on $62,000 and NOT $54,500?
And since you want to keep bringing in Tesla stock, one could just as easily say that if you had invested $62,000 in Tesla stock on May 11, 2018 (at $61.00 adjusted), you would have $639,311 (based on yesterday's close of about $629). So, whoever buys the car TODAY after investing $62,000 preciously, is getting PAID $577,311. Kind of a ridiculous comparison.
Bottom line: the cost of your car has gone UP by $2,510
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