It’s a $170/mo difference without the tax credit. Essentially $65/mo difference WITH the tax credit but the payment on the loan doesn’t change with the tax credit so that’s how I have to factor it into our budget.
-
Want to remove ads? Register an account and login to see fewer ads, and become a Supporting Member to remove almost all ads.
Standard Battery should be available in 6-9 months. Will it require premium interior ?
- Thread starter creekcrosser
- Start date
It’s a $170/mo difference without the tax credit. Essentially $65/mo difference WITH the tax credit but the payment on the loan doesn’t change with the tax credit so that’s how I have to factor it into our budget.
Understood and you have to do what works for you. I guess it's a little like taking out a loan for a 401k. Works if you are paying the loan off quick but otherwise not so much. For me, I'd be realizing $300/month in gas savings less hydro costs so I factor that into my monthly costs/budget. If you already know your budget and cost of ownership in great detail and there's nothing you can do without till the credit is realized, I think you already have your answer. No depreciating asset is worth getting too far in debt over. Ideally your loan is for no more than the resale value of the vehicle. I'm not an accountant though so will stop there. Hope it works out for you.
Appreciate the supportive message. Yeah we don’t drive many miles in our current situation (probably 6000 Miles a year). So we would be paying about $450 less per year in “fuel” over our ICE car. Insurance is $10 more per month with the Mode 3 so I think I’m “saving” $35/mo with the Tesla by having a $715 payment haha (the ICE is paid off)
N5329K
Active Member
But are you all realizing the potential impact of such a decision?
The 35k Model 3 was a bold statement from the reveal of March 2016. This price point have been widely shown all around the globe in all media. All of us remembered the famous quote from Musk, car for the "masses".
Dropping that configuration will be catastrophic for the reputation of Tesla.
Potential impact being the key word and only if demand fell below production capability. I don't think many people are going to hold them to 35k 3 years after the initial statement was made. Vehicle purchases are cyclic. Many will have already bought something new by then whether it be a LR M3 or another EV or plug-in or an ICE. For those left, some will jump on the SR PUP if that's introduced first.
I don't see how you can hold them to 35k. It was marketing BS. All companies do that. Never hang off marketing double-speak.
I don't see how you can hold them to 35k. It was marketing BS. All companies do that. Never hang off marketing double-speak.
N5329K
Active Member
Definitely harmful, but probably not catastrophic. Tesla can make a good argument they've already succeeded at accelerating the transition to sustainable transportation. What abandoning (or building in very limited numbers) the standard-range Model 3 would be is an admission that Tesla's natural market is not mass, but early-adopter luxury. Which is where they are most comfortable now, where they make the best margins, and where they find the most agreeable customer base. You will not find as many former Camry/Accord/Prius owners happily describing how they outwitted their phone key to make it work properly. They just expect it to work.
While I wouldn't like to see this sort of retreat, I also don't find it too hard to imagine building a limited number of "S40" Model 3's with a long-range pack electronically limited (but upgradeable). And selling every "loaded" Model 3 they are comfortable building for tons more money.
Any other car manufacturer would already be doing exactly that.
Robin
As of today, we've had two breakdowns of the cost to build the Model 3 that show it to have massive profit built in. One showed an expected build cost, with labor, to be $28,000, without just $18,000. The one today I didn't hear a number from but confirmed a more than 30% profit margin, implying on a $49,000 version of the car, a less than $35,000 cost to build.
And these were with the luxury features and long range battery.
I have a hunch they will never deliver the $35,000 base model too. I expect they will build in the "luxury" upgrade to that price point as the tax credits expire, and the 3 will never be sold without them.
And these were with the luxury features and long range battery.
I have a hunch they will never deliver the $35,000 base model too. I expect they will build in the "luxury" upgrade to that price point as the tax credits expire, and the 3 will never be sold without them.
Similar threads
