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

[brkaus]

Again, I argue that the customer knows the manufacturer's suggested price on the Monroney sticker on the window. Any mark-ups beyond that they know are Dealer add-ins, markups, etc. While it can be frustrating, you can at least argue that they know they are getting screwed a lot easier. Tesla's way of doing it is much simpler but leaves a lot to question the value of their car.

But they have absolutely no idea what the manufacturer is giving the dealer.

 

[brkaus]

Wow you got a M3 in '95.

Maybe he meant a BMW M3

Yup.

 

[Jeremy3292]

unless you're already in a position to not have a $100K purchase not be a material factor in your finances, you should probably opt for a Bolt instead.

Thats almost exactly what I said in my original post though just different semantics…

 

[WhiteOnWhiteMY]

But they have absolutely no idea what the manufacturer is giving the dealer.

I don’t follow what you are getting at?

 

[fasteddie7]

I don’t follow what you are getting at?

Dealer kick backs for units sold. Can add up to a huge amount of money, which is why some will sell the number of cars they need to hit the bonus number at a “loss” and make it up with huge kickbacks. those Folks would technically get the best deal, not counting anything recouped on the back end with financing, provided the dealer ”helped” with financing.

 

[WhiteOnWhiteMY]

Dealer kick backs for units sold. Can add up to a huge amount of money, which is why some will sell the number of cars they need to hit the bonus number at a “loss” and make it up with huge kickbacks. those Folks would technically get the best deal, not counting anything recouped on the back end with financing, provided the dealer ”helped” with financing.

Gotcha, don’t really understand the correlation to the Maraoney sticker.

 

[sorka]

Thats almost exactly what I said in my original post though just different semantics…

Right, but you I was responding to your specific point that you shouldn't be concerned about resale value if you're wealthy enough to afford one in the first place and my point was that if you were smart about an expensive purchased and factored in resale value it would have just been one of thousands of decisions you made smartly in the first place that allowed you to afford a $100K car without it being a life changing financial event.

 

[Jeremy3292]

Right, but you I was responding to your specific point that you shouldn't be concerned about resale value if you're wealthy enough to afford one in the first place and my point was that if you were smart about an expensive purchased and factored in resale value it would have just been one of thousands of decisions you made smartly in the first place that allowed you to afford a $100K car without it being a life changing financial event.

Fair enough

 

[fasteddie7]

Gotcha, don’t really understand the correlation to the Maraoney sticker.

This is a over simplified explanation but: If my dealership sold 997 Hyundai’s for the month and needed three more cars for a $100,000 kickback check from Hyundai, and it was the last day of the month, you better believe the next three people in the door are going to get the deal of a lifetime. if everywhere else, a Hyundai was $50,000, for you and two others I’d be knocking $10k or more off the sticker to get you to buy right now as no other dealer could beat my deal without a heavy loss (unless they were close to a kickback). Even if I gave away $50,000 - I’d still be $50k ahead. Ideally, the less you give the more you keep, but it’s a do whatever it takes to get them out the door when kickbacks are on the line. And anyone who walks in the dealer that day will get a car for less there than any other place.

 

[WhiteOnWhiteMY]

This is a over simplified explanation but: If my dealership sold 997 Hyundai’s for the month and needed three more cars for a $100,000 kickback check from Hyundai, and it was the last day of the month, you better believe the next three people in the door are going to get the deal of a lifetime. if everywhere else, a Hyundai was $50,000, for you and two others I’d be knocking $10k or more off the sticker to get you to buy right now as no other dealer could beat my deal without a heavy loss (unless they were close to a kickback). Even if I gave away $50,000 - I’d still be $50k ahead. Ideally, the less you give the more you keep, but it’s a do whatever it takes to get them out the door when kickbacks are on the line. And anyone who walks in the dealer that day will get a car for less there than any other place.

Makes sense, I get what you’re saying, I just don’t feel like that really affects the used market like Teslas move here has done . Appreciate you explaining in detail, seems to be better for the consumer anyways.

 

[fasteddie7]

Makes sense, I get what you’re saying, I just don’t feel like that really affects the used market like Teslas move here has done . Appreciate you explaining in detail, seems to be better for the consumer anyways.

I agree, I also don’t think it affects the resale of Hyunda’s for instance, I was speaking more for folks who felt burnt by spending thousands more weeks or days ago than people who buy today, rarely does everyone pay the same price for a car, someone always gets a better deal, sometimes by tens of thousand, if anything Tesla is the most consistent as everyone gets the same deal, until the price changes suddenly, but that goes both ways.

 

[AMPd]

I thought the same thing

This local BMW dealership is going to take an absolute bath on this model X

I’ve been following the price since they originally listed it for sale from their other bmw dealership, original list price 96k.

I don’t see anyone buying this model x for more than 65k. Especially with the tax credit being around.

More than 30k less than original list price. Now I know that’s not what they paid for it but I’m sure they paid well over 65k

They would probably have more luck selling it had they uploaded decent photos and CLEANED the car up, it’s so dirty inside.
And personally I couldn’t be happier about it! This specific bmw dealership and I have somewhat of a beef. When I was a young buck in my early 20s, I came in hoping to purchase an M5, the sales guy told me the M5 was a bit too much car and a bit too much money for me and asked if I were interested in the 5 series they also had in stock, said it was basically the same car but more affordable.
I left that place and a few days later visited a Tesla service center that offered me a test drive, placed an order for the model s and the rest was history.

 

[brainhouston]

They would probably have more luck selling it had they uploaded decent photos and CLEANED the car up, it’s so dirty inside.

I feel like every seller deserves to lose money for doing this... plain laziness...
Every cellphone can take portrait quality photos these days lol

 

[brkaus]

View attachment 970371

This local BMW dealership is going to take an absolute bath on this model X

I’ve been following the price since they originally listed it for sale from their other bmw dealership, original list price 96k.

I don’t see anyone buying this model x for more than 65k. Especially with the tax credit being around.

More than 30k less than original list price. Now I know that’s not what they paid for it but I’m sure they paid well over 65k

They would probably have more luck selling it had they uploaded decent photos and CLEANED the car up, it’s so dirty inside.
And personally I couldn’t be happier about it! This specific bmw dealership and I have somewhat of a beef. When I was a young buck in my early 20s, I came in hoping to purchase an M5, the sales guy told me the M5 was a bit too much car and a bit too much money for me and asked if I were interested in the 5 series they also had in stock, said it was basically the same car but more affordable.
I left that place and a few days later visited a Tesla service center that offered me a test drive, placed an order for the model s and the rest was history.

Yes, they are not going to get anywhere near asking. But "bath" is unknown without understanding what they paid for the trade and how they structured the deal on the new car purchase. Some dealers will give a lot for a trade (because it makes people feel good) and then not deal on the new car price as much as they would have if there was no trade.

All smoke and mirrors.

 

[AMPd]

Yes, they are not going to get anywhere near asking. But "bath" is unknown without understanding what they paid for the trade and how they structured the deal on the new car purchase. Some dealers will give a lot for a trade (because it makes people feel good) and then not deal on the new car price as much as they would have if there was no trade.

All smoke and mirrors.

Never worked at a dealership so I don’t know what they’re usually looking to make on trade ins but if they were originally asking for 96k, I would imagine they paid somewhere around 80-85k.

 

[FirstTime22]

So you “carefully evaluated” your money and said “yeah let’s spend $100k+ on a car?” You’re joking, right? A Chevy Bolt does the same thing and costs 1/3 the price. Spending anymore $$$ than what it takes to get you from point A to point B is a luxury. Period.

perspective my friend, it’s all that matters. Your perspective is very narrow , the reality is a car can be much more. Access, joy, and even fulfillment.

You have a lot to learn.

 

[Jack Tripper]

I can't imagine any existing S or X owner who bought in the past two years is happy right now. Brand loyalty is a huge thing and anyone knowing something they own drops in value so quickly (regardless of whether they planned on selling) has to leave a bad taste in peoples mouths.

I bought mine 7 years ago and trust me, price drops still sting!

 

[Jack Tripper]

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.

Paid a lot more for my S in ‘17. After every price drop I was mad as hell and swore never to buy another Tesla. Then this last price drop hit and I’m starting to think I need to get another Tesla…

 

[Jack Tripper]

It doesn't get me to other states that I frequently travel to. It's not as fast. It's not as big. It's not as fun. You can still make luxury purchases and be smart about it or you can be stupid about it. At the same time, unless you're already in a position to not have a $100K purchase not be a material factor in your finances, you should probably opt for a Bolt instead. It's a perfectly fine car.

Also you risk people seeing you in public driving a Bolt.

 

[Jeremy3292]

perspective my friend, it’s all that matters. Your perspective is very narrow , the reality is a car can be much more. Access, joy, and even fulfillment.

You have a lot to learn.

I think you’re missing the discussion here. The discussion was about finances, which I am very well versed on. If “access, joy, and fulfillment” was enough, we wouldn't have a 10 page thread about Tesla cutting prices and people wanted to sue them about it. The point was if you’re spending $100k on a car, you should be wealthy enough to not be worried about the finances and smart enough to know a car is not an investment. If you were good with $100k then, you should be good with $100k now. Bc like you said, your purchase brings you access, joy, and fulfillment