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Sales tax and other fees result in a about 10% higher amount for monthly payments!!!!

Discussion in 'Tesla Motors' started by Benz, May 6, 2013.

  1. Benz

    Benz Active Member

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    On the Financing page of the Tesla Motors website, we see three different Tesla Model S cars, in 3 different colours.

    The car on the left side is black and has a 60 kWh battery pack, and the estimated monthly payment is 916 USD. With no options!
    The car in the middle is blue and has a 85 kWh battery pack, and the estimated monthly payment is 1,045 USD. With no options!
    The car on the right is red and has a 85 kWh battery pack (and is the Performance model), and the estimated monthly payment is 1,239 USD. With no options!

    The monthly payment will be higher if the customer chooses any options.

    But even if the buyer doesn't chooses any options, the amount for the monthly payments will still be about 10% higher, because of:
    - sales tax (about 9%);
    - registration, transfer and titling fees (about $655);
    - tire fee (about $7).
     
  2. NEWDL

    NEWDL R#350 R#1323 Sig23 8136

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    NE OHIO
    Please do not tell me that you are shocked by this...

    No auto maker can advertise a payment with taxes and fees included because they do not know where the person viewing the ad lives! Look in the paper today for new car ads and notice they all say "plus taxes and fees".

    Ohio for example bases automotive sales tax on county of residence. How would the dealer/manufacturer know where the buyer lives?

    This is nothing new.
     
  3. ZBB

    ZBB Emperor

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    OP -
    i see you are from the Netherlands, where it is common for prices to be inclusive of tax.

    However, in the US, it is common for prices to be quoted exclusive of tax...
     
  4. Benz

    Benz Active Member

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    As a customer friendly point of view I would appreciate it if on the webpage for the calculator there would be added some kind of a dropdow menu where one could choose the state that he or she lives in, in order to calculate an amount for the monthly payment including taxes and fees. Wouldn't that be more customer friendly?
     
  5. Kaivball

    Kaivball Member

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    Since Tesla doesn't know where the buyer resides and local taxes change constantly its easier to keep it off.
     
  6. mknox

    mknox Well-Known Member

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    One of the things I find a bit disingenuous (and not just Tesla) is how dealers and manufacturers will advertise car pricing exclusive of the compulsory Freight and Pre-Delivery Inspection fees. I see ads in the paper all the time with teeny tiny print saying something like Freight and PDI extra without disclosing how much extra). These fees are usually the same across regions and are non-negotiable. Tesla's "Personal Delivery" and "Inspection and Prep" fees were like this when I purchased, and as far as I know were the same across the country... so why not just build it into the price like just about every other commercial product.
     
  7. lolachampcar

    lolachampcar Active Member

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    mknox,
    I suspect it might be that those fees are wiggle room on pricing should Tesla deem it necessary. They can work with those numbers without affecting the buyer "paying full price" for the car or having to "discount" list. This is only a guess.
     
  8. mknox

    mknox Well-Known Member

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    I have a friend who owns a Lexus dealer, and while he agrees with me, he says he's not going to be the first one to run newspaper ads with prices that look higher than his competitors. I think these Freight and PDI extras are just so ingrained in the auto buying ethos that it is hard to change. Too bad Tesla couldn't have broken that mold.
     
  9. neroden

    neroden Happy Model S Owner

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    Yeah. I was disappointed by that myself. It was a "This is just like every other car dealer" moment.
     

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