TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker or making a Paypal contribution here: paypal.me/SupportTMC

Should Tesla Reconsider Policy re: Credit for 19" Sig|Perf Wheels?

Discussion in 'Model S' started by Warrenbonz, May 3, 2012.

?

Is it a good policy to not provide a credit to Sig & Perf buyers who select 19" rims?

  1. I feel it is an unfair/unwise policy.

    54 vote(s)
    54.5%
  2. I feel it is a fair/good policy.

    11 vote(s)
    11.1%
  3. I don't feel strongly either way.

    34 vote(s)
    34.3%
  1. Warrenbonz

    Warrenbonz Member

    Joined:
    Jul 10, 2011
    Messages:
    205
    Location:
    Florida
    #1 Warrenbonz, May 3, 2012
    Last edited: May 3, 2012
    Not offering a credit when opting for 19" rims on Sig & Perf; good policy or unwise/unfair poicy?

    Let's help Tesla decide.

    My thoughts: From a stock a holder and a reservation holder perspective I believe a credit should be offered.
    From a manufacturing/efficiency/simplicity standpoint I think it is very smart for Tesla to start with the Sig. Model; fewer variables to complicate things/higher price point etc. It makes perfect sense to me that options such as the tech package, air suspension etc. would not be changeable or eligable for a credit. Tire/rims on the other hand are so easy to change at the factory that is just doesn't seem worth creating the bad feelings and mess of "wheel trading" that will ensue if a credit is not offered. Instead of losing $3,500 many people will order thier sig. / perf with 21" rims planning to swap them with owners of 19" rims. I believe this would lead to a lot of frustration from wasted time/energy and take away from the good feeling and excitement new owners have for both their new car and Tesla. From a revenue perspective, a number of people will simply choose a base model instead of a sig. or Perf. Perhaps with there being a Sig. waiting list it may seem like there wouldn't be a loss there; I am not so sure. There are those that will downgrade from Perf to a base model or perhaps change their mind and not purchase the car at all. I envision many Tesla employees (store/service) ending up spending countless hours trying to lessen the frustration of customers over this policy by trying to justify/explain/sympathize and by kindly helping coordinate rim swaps. Not the best use of thier time, especially when it could all be so easily avoided by simply allowing for a credit.

    Tesla has an amazing resource in all our excitement and passion for the company. Not offering a credit feels unfair to me and I believe would damper some of the excitement many of us feel. I believe there is no better or more powerful way for a company to grow than from genuine excitement from it's customers and supporters.

    My vote is that it is an unwise/unfair policy. It just feels wrong to have to pay for something you aren't getting.

    Please share your thoughts and vote in the poll.
     
  2. ckessel

    ckessel Active Member

    Joined:
    Jan 15, 2011
    Messages:
    4,266
    I'm not sure there's much more to be said on it. God knows I stated my opinion more than vigorously enough :).

    There's another thread already that's beaten this horse dead, resurrected it, and then beat it again:
    Model S Wheel Pricing Performance: Std|Perf|Sig
     
  3. bonnie

    bonnie Oil is for sissies.

    Joined:
    Feb 6, 2011
    Messages:
    14,241
    Location:
    Columbia River Gorge
    [Mod note: Modified thread title, since (to the best of my knowledge) Tesla has not stated they are reconsidering changing policy.]
     
  4. gg_got_a_tesla

    gg_got_a_tesla Model S: VIN P65513, Model 3 Res Holder

    Joined:
    Jan 29, 2010
    Messages:
    6,097
    Location:
    Redwood Shores, CA
    I'm not a stakeholder per se in this argument but, I do think it's unwise and bordering on unfair. Instead of offering a credit up front, Tesla could perhaps allow the buyer to offset additional accessories or service in the future - sort of like a store credit.
     
  5. ckessel

    ckessel Active Member

    Joined:
    Jan 15, 2011
    Messages:
    4,266
    I hadn't really thought about store credit as an option. I've been waffling back and forth on the tech package, if they did a credit that'd almost certainly tilt me to adding the tech package (not mention I'd get the Perf rather than not, so a big win for Tesla as far as my individual purchase).
     
  6. Larry Chanin

    Larry Chanin Model S Perf Sig 1055

    Joined:
    Aug 22, 2011
    Messages:
    4,283
    Location:
    Sarasota, Florida
    Hi Warren,

    I think your remarks quoted above nicely sum up this entire issue.

    Even for financially comfortable Signature reservation holders this policy unnecessarily gives the impression that Tesla is nickel and diming their prospective customers. This issue could definately have been better handled by Tesla.

    Larry
     
  7. Warrenbonz

    Warrenbonz Member

    Joined:
    Jul 10, 2011
    Messages:
    205
    Location:
    Florida
    FYI, I was told from someone at Tesla that this topic was being reconsidered :).
     
  8. stopcrazypp

    stopcrazypp Well-Known Member

    Joined:
    Dec 8, 2007
    Messages:
    7,057
    I find that if they never offered the option to downgrade wheels (which is what most other makes do), they probably would have less/no issue. Or if they never offered 21" wheels as standard in any trim level (and stuck with more common 19" or 20").

    I think Tesla marketing allowed the downgrade option to:
    A) allow more options to the buyer
    B) make it seem like the included wheels are of added value to the car that the buyer gets for "free" or a discount.

    Instead, it got customers to unexpectedly feel like they got ripped off by having wheels they don't want/need (mainly because they are 21" wheels) bundled with the car and being charged full price for them.
     
  9. Larry Chanin

    Larry Chanin Model S Perf Sig 1055

    Joined:
    Aug 22, 2011
    Messages:
    4,283
    Location:
    Sarasota, Florida
    True, it's certainly much more difficutl for Tesla to change the production line to accommodate different roof packages than to change wheels/tires. Yet, somehow Tesla deemed that they would make the panoramic roof an option even for the Signatures.

    Larry
     
  10. Tommy

    Tommy Member

    Joined:
    Mar 3, 2010
    Messages:
    880
    Location:
    The great OC
    #10 Tommy, May 3, 2012
    Last edited: May 3, 2012
    I think those wanting Tesla to credit them $3500 for down grading to 19" wheels are looking at it from the wrong perspective; I sense many believe Tesla is pocketing $3500 by not allowing a credit for the downgrade. That is not the case, looking at the $3500 markup on the wheels for the non sig/perf versions and asking that amount as a credit, in effect is expecting Tesla to give back their markup margin and lowering the overall margin on the car. IMO, the fair way to both parties (Tesla & purchaser) would be to credit the actual cost difference between the standard and downgraded wheels, which is certainly much less than $3500. In reality, this is not practical as it would more than likely alienate the non sig/perf purchasers for having to pay a markup to upgrade the wheels rather than the actual cost difference.
     
  11. Grendal

    Grendal Active Member

    Joined:
    Jan 31, 2012
    Messages:
    2,524
    Location:
    Santa Fe, New Mexico
    This seems like the winning compromise for Tesla. The customer gets more choices and it can even potentially make money for Tesla. I can't see how it is a loss for them - it's at worst, a push. It would go far to improve customer relations and so it's definitely a win for them.
     
  12. Larry Chanin

    Larry Chanin Model S Perf Sig 1055

    Joined:
    Aug 22, 2011
    Messages:
    4,283
    Location:
    Sarasota, Florida
    Hi Tommy,

    I find your remarks somewhat confusing. Where does this $1500 come from? For a General Production car there is no charge for standard wheels. Upgrading to the wheels that come standard on the Signature models costs $3500.

    Larry
     
  13. Tempus

    Tempus Member

    Joined:
    Nov 18, 2010
    Messages:
    331
    Location:
    Virginia
    if this was a normal dealer, the obvious solution would be to just bargain with them. "Look, if you knock off 1500 for the wheels, i'll upgrade x and y in addition to my current purchase". That's gotta be a win for them and you in that case, one would think
     
  14. Tommy

    Tommy Member

    Joined:
    Mar 3, 2010
    Messages:
    880
    Location:
    The great OC
    #14 Tommy, May 3, 2012
    Last edited: May 3, 2012
    I was using the upcharge for the aerodynamic wheels, I should have specified $3500, I will edit my post to reflect $3500 price point
     
  15. Larry Chanin

    Larry Chanin Model S Perf Sig 1055

    Joined:
    Aug 22, 2011
    Messages:
    4,283
    Location:
    Sarasota, Florida
    Hi Tommy,

    Tesla has announced that it expects its margins to be between 25% and 30%. So if we take the more optimistic estimate and downgrade to standard wheels, that amount should be $2450.

    Is that what you have in mind for a credit?

    Larry
     
  16. Tommy

    Tommy Member

    Joined:
    Mar 3, 2010
    Messages:
    880
    Location:
    The great OC
    I didn't have a dollar amount in mind. Your example is based on what the margins will average and we don't know how Tesla is pricing the various upgrades/options margins to arrive at that average; thou there should be a dollar amount that both satisfies the purchaser's sense of fairness and Tesla's bottom line.
     
  17. Larry Chanin

    Larry Chanin Model S Perf Sig 1055

    Joined:
    Aug 22, 2011
    Messages:
    4,283
    Location:
    Sarasota, Florida
    Hi Tommy,

    Right now Tesla is offering $0, anything is bound to be an improvement. :wink:

    Larry
     
  18. qwk

    qwk Model S P2681

    Joined:
    Dec 19, 2008
    Messages:
    2,817
    This makes no sense whatsoever in Tesla's case.

    All of the bolt on options on the roadster are/were available separately at any time after purchase for the same cost as the options. If you bought your roadster with the cast wheels and then decided to get the forged wheels, you paid the same price for the forged wheels as someone who ordered them as an option except you now had two sets.
     
  19. Robert.Boston

    Robert.Boston Model S VIN P01536

    Joined:
    Oct 7, 2011
    Messages:
    7,842
    Location:
    Portland, Maine, USA
    I really like the idea of a "store credit" for downgrading. This preserves Tesla's margins and revenues, while ensuring that the customer gets the car that best suits his or her desires.
     
  20. swegman

    swegman Member

    Joined:
    Mar 27, 2012
    Messages:
    962
    Every customer rep I have spoken to in Washington, D.C. and New York advises against the 21 inch wheels/rims in the Northeast corridor. And I speak from experience when stating that the large wheels/lo profile tires (which I have on my SLK350) are much more prone to rim dents from potholes than regular rims/tires. I do not want these tires on my model S. I'm already paying a $5,100+ premium to have the car with the Tesla red paint. I object to effectively paying an additional $3,500 for downgraded tires.

    So I am stuck with the choice of paying for tires/rims that I will not receive (by downgrading to 19 inch wheels), or downgrade from the Signature model to a non-Performance Production model. However, I can not equip the non-Performance Production model with everything that is in the Signature Peformance model (but for the 21 inch wheels). Thus, I either pay for stuff that I don't get, or take a car that does not have all the options I want.

    If Tesla does not reconsider and offer some compromise, I may end up canceling both cars, or selling my spots. If i am paying $100K for a car, it shoukld be equipped the way i want it. And I should not have to accept a lesser equipped car. I have expressed my concerns to Tesla. They say they understand and will reconsider their position. I hope they do.
     

Share This Page