Tesla drops prices on X/S $20k. All colors free. Bye bye resale

[ucmndd]

What is below MSRP? What is above MSRP? Rebates do not affect MSRP. Low APR does not affect MSRP. $0 down does not affect MSRP. Trade-in bonuses does not affect MSRP. If MSRP changes multiple times, it isn't a reliable base for anything.

It isn’t a reliable base for anything in either case. It’s right there in the name: “suggested”. Transaction price determines the value of the car.

There are two ways to go about that: posting it publicly and then actually charging that amount to everyone who buys that day, or all of the other below-ground trickery.

You can choose whichever way you personally prefer, but it doesn’t change the fact that same is same.

 

[dn325ci]

Is it legal? Totally.

Is it brand loyalty suicide? IMO, yes.

I don't know.... there are others wanting to buy that are pretty happy to take the discount.

 

[SO16]

I don't know.... there are others wanting to buy that are pretty happy to take the discount.

And plenty of previous owners that are excited about not paying so much next time.

Every singe time Tesla drops prices, some people come out claiming that Tesla is dooomed with brand loyalty, etc. DOOOOOOOOOOMED!

Heard all sorts of this earlier this year when the model Y dropped by thousands of dollars.

Well guess what. Tesla still has very high brand loyalty even after these drops over the years. Will be no different this time.

Tesla Brand Loyalty Still Very High, Tesla Stealing Sales From Toyota & Honda - CleanTechnica

Teslaâs brand loyalty has been notably high compared to some automakers, and with recent price cuts, the company has

cleantechnica.com

 

[fasteddie7]

Couldn’t the same argument for resale be made for all the dealerships out there adding tens of thousands of dollars of “market adjustment” to their sticker price? i Personally would take the is what it is price of Tesla over all of the haggling shenanigans of dealers all day long.

 

[SO16]

Couldn’t the same argument for resale be made for all the dealerships out there adding tens of thousands of dollars of “market adjustment” to their sticker price? i Personally would take the is what it is price of Tesla over all of the haggling shenanigans of dealers all day long.

And I’d rather Tesla get the price increases over a dealership getting an arbitrary markup. At least Tesla could use the money for something worthwhile compared to a dealership.

 

[Propofoln]

At what point do legacy auto dealers stop taking teslas in on trade after taking massive hits like this lol

I thought the same thing

 

[WhiteOnWhiteMY]

Couldn’t the same argument for resale be made for all the dealerships out there adding tens of thousands of dollars of “market adjustment” to their sticker price? i Personally would take the is what it is price of Tesla over all of the haggling shenanigans of dealers all day long.

Argument to that is the mark up is clearly outlined to the buyer. That vehicle isn't worth what the purchaser is paying for it. With Tesla's method, the buyer assumes what they are paying is the car's value. The 2023 has had 8 different MSRPs. I'm sure many buyers would feel different if they knew they bought a car at an overpriced amount with a clear "Market Adjustment" added.

 

[asterothe]

I’m talking real case. Friend of mine and I both purchased M3s back in 95. Exact same features. Different colors. 5 days apart. $10k difference.

Wow you got a M3 in '95.

 

[CWhite]

Wow you got a M3 in '95.

Maybe he meant a BMW M3

 

[sorka]

What cracks me up is the number of listings that were already sky high in price BEFORE yesterdays's reduction.

Still listed at $139K with almost 10k miles.

Autotrader - page unavailable

 

[sorka]

Other vendors cars lose 30-40% as soon as you drive it off the lot. Not sure which world you were living in before covid.

That has literally never been a thing.

 

[1100MCM]

Our lord and savior does it again!

 

[SO16]

That has literally never been a thing.

That is a bit of an exaggerated claim as far as driving off the lot, loses that much.

But after the first year, that is a thing. And since few people sell their car within the first year, this does apply.

Do new cars really depreciate by 30 per cent when you drive them off the lot? - The Globe and Mail

During the first year, the average depreciation for new cars is around 30 to 40 per cent, but most lose less and some lose more

www.theglobeandmail.com

 

[fasteddie7]

Argument to that is the mark up is clearly outlined to the buyer. That vehicle isn't worth what the purchaser is paying for it. With Tesla's method, the buyer assumes what they are paying is the car's value. The 2023 has had 8 different MSRPs. I'm sure many buyers would feel different if they knew they bought a car at an overpriced amount with a clear "Market Adjustment" added. View attachment 970315

But it’s still not consistent, people I know drive hundreds of miles to different dealerships and spend countless hours looking for the “best deal” and then who knows if they got the lowest price possible, rebates, discounts, dealer incentives, the only reason they aren’t outraged is that no one knows what the real price is. I see what you are saying, but in my mind people who buy at the dealership and take the “best deal” took what they were comfortable with, and chances are, if they go online and talk to others, someone else paid less. Tesla is just more transparent with pricing than any other. Same could be said about hardware changes, which is why this forum was lit up for months with people obsessing over VIN numbers on if they would get the new computer, swiveling screen, and hardware 4, which to this day is still not completely official on the Tesla website. At least they cut you a check for changes before you take delivery and don’t charge for increases.

 

[sorka]

No one would be happy about the market value of their vehicle taking a huge dive recently after purchasing, but can anyone really take it out on Tesla?

It's not their goal to protect the market value of your vehicle. It's their goal to sell, and they're doing what they feel is best for sales.

It's a bit self destructive. The MXP has dropped $49K since February, so if you bought one in before the first price drop it's already down more than 50% in the first 6 months. Those buyers will never touch the brand again. I'm really thankful I dodged that bullet.

 

[sorka]

Polestar 2, Audi e-tron GT, Mercedes EQS are instantly depreciate 30-40% the second you drive off the lot. It’s why there are significant incentives to move them. Well… P2 not really… just buy used IMO.

No they don't.

 

[SO16]

It's a bit self destructive. The MXP has dropped $49K since February, so if you bought one in before the first price drop it's already down more than 50% in the first 6 months. Those buyers will never touch the brand again. I'm really thankful I dodged that bullet.

You should take a poll to see if those buyers would never touch the brand again.

Tesla will do the same with the Cybertruck in the long run as well. Long time members should be used to this by now.

FYI - Model X price in 2019 started at 72k. Todays price: 79k

Prices went way up during pandemic. Elon even stated prices were “embarrassingly high”.

 

[WhiteOnWhiteMY]

But it’s still not consistent, people I know drive hundreds of miles to different dealerships and spend countless hours looking for the “best deal” and then who knows if they got the lowest price possible, rebates, discounts, dealer incentives, the only reason they aren’t outraged is that no one knows what the real price is. I see what you are saying, but in my mind people who buy at the dealership and take the “best deal” took what they were comfortable with, and chances are, if they go online and talk to others, someone else paid less. Tesla is just more transparent with pricing than any other. Same could be said about hardware changes, which is why this forum was lit up for months with people obsessing over VIN numbers on if they would get the new computer, swiveling screen, and hardware 4, which to this day is still not completely official on the Tesla website. At least they cut you a check for changes before you take delivery and don’t charge for increases.

I'll give credit where it's due, Tesla doesn't change the cost of the car if the MSRP has gone up since ordering. But the backslide of it on the other hand, definitely burns bridges much harder than the dealership model. I for one am exhausted on this MSRP rollercoaster. Make a car, set an MSRP, and have temporary promotional pricing.

 

[WhiteOnWhiteMY]

You should take a poll to see if those buyers would never touch the brand again.

I'm sure the Tesla Forum is certainly the best place for this, no biases here

 

[mm9351]

I recall how I felt after taking delivery of my M3P in 2021 and saw a price increase of about $4K a few months later. Psychologically, it made me feel 'good' 'about the timing of my purchase. Fast forward to March of this year, traded in my M3 for an MS, again thinking about good timing with the free SC miles. This latest price adjustment of -$13.5K (after a couple of recent price increases) is another painful dose of reality that Tesla car prices are as volatile as its stock prices. Adding to this, the crazy jump in interest rates and the used M3 market collapse creates a huge offset to today's pricing. Who could have predicted that auto interest rates would be at a 15 year high just one year ago? We just need to accept the fact that until we have that proverbial 'crystal ball' we will all continue to play the price / timing game.