Inventory Vehicles were $5k or more under the price of ordering one before the recent price drop. Does it look like we will get a chance to see an additional $5k off the Plaid from new to inventory? Now there is no benefit to buying inventory since they are charging the $1,300 destination fee like you are paying for a special order.
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Tesla drops prices on X/S $20k. All colors free. Bye bye resale
- Thread starter Propofoln
- Start date
ucmndd
Well-Known Member
Destination fee is a federally regulated charge on every single vehicle sold in the US. It has nothing to do with “special order” or not. You pay it on any new vehicle from any manufacturer, and it’s the same amount whether you pick it up at the factory door or at a dealership in Hawaii.
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Might have been mentioned in this thread already regarding car resale value for many brands dropping 40% as soon as you drive off the lot…
Depreciation happens on MSRP though, so that would still apply. If someone buys a new Model S at current prices today, it depreciates from there. People who bought at higher prices, their vehicles would now theoretically depreciate at their purchase price minus the new MSRP and then minus depreciation on that new MSRP.
MSRP cuts are not depreciation, it would be compounding in theory
Depreciation happens on MSRP though, so that would still apply. If someone buys a new Model S at current prices today, it depreciates from there. People who bought at higher prices, their vehicles would now theoretically depreciate at their purchase price minus the new MSRP and then minus depreciation on that new MSRP.
MSRP cuts are not depreciation, it would be compounding in theory
ucmndd
Well-Known Member
MSRP is relevant though because it is the starting point from which a vehicle’s depreciation occurs and current market values will be driven by depreciation from that new starting point, especially where the vehicle itself hasn’t really changed. The maintenance costs are still the same, risks are still the same, but new vehicles today would be driving off the lot and losing (for example) 40% immediately off the new MSRP and previous model years at higher prices would be hit by the market now reflecting depreciation from that new starting point.
Say someone bought a Model S LR at the peak like 14 months ago and paid $105k, it loses 40% right off the bat, it’s now worth $63k.
A Model S LR today if it was still $105k, loses 40% right off the bat, today it’s worth $63k. But now the MSRP is $75k, it loses 40% right off the bat, so in theory it would be worth $45k and the discounting would start there for used models with higher miles.
Market values are dependent on a lot of different things of course, but in theory nothing has changed but the MSRP and depreciation would compound on that MSRP. A Model S bought 14 months ago would be valued on depreciation on today’s MSRP.
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brainhouston
Active Member
I feel like a loss of 'coolness' factor contributes to all of these drops as well
S was the only great EV in 2012-15
Then in 2016-2019 S got a nice facelift/tech upgrades n X was introduced, still held that 'wow' factor, still rare to see n have
Then covid inflated everything..
So even if prices come down to pre-covid levels + inflation, the car is not as cool anymore as it once was...
They are everywhere now n a lot more competition
I would expect for prices to fall till they actually equal to cost of manufacture + maybe 10%...
S was the only great EV in 2012-15
Then in 2016-2019 S got a nice facelift/tech upgrades n X was introduced, still held that 'wow' factor, still rare to see n have
Then covid inflated everything..
So even if prices come down to pre-covid levels + inflation, the car is not as cool anymore as it once was...
They are everywhere now n a lot more competition
I would expect for prices to fall till they actually equal to cost of manufacture + maybe 10%...
Even with the latest price cuts the MS is still overpriced for the quality of the product.
And other cars are overpriced based on their antiquated drivetrains.
This is your subjective view; others probably have different views. MS sold quite well even before price drop, so apparently many people thought it was worth that money.
It actually comes to the definition of "quality", which varies between persons. As @brkaus pointed out, many people insist having an EV, so that already rules out many cars. Then you might have requirements like 4wd, high power, quick charging, which actually makes the list of options quite short. How lame is a RWD Kia EV9 with 203hp, for example? Then if you factor in the quality of the charging network, you might come to realize that your only choice is which Tesla model you want.
New M3 vs MS is a though call though, Model 3 is so cheap and the refresh looks really good.
racerx2005
Member
SilentWarp
Member
When they started all this, Tesla was losing tens of thousands of dollars on every car. Now, they can enjoy a huge profit margin per vehicle which they can now use to clear out inventory. It just proves that once you go all in on electric, you can really perfect that, and drive the prices down.
Ford is struggling with costs because they dithering between gas and electric.
Ford is struggling with costs because they dithering between gas and electric.
racerx2005
Member
I agree 1000%. All Teslas fit and finish look cheap, fell cheap, it is cheap indeed, not compatible with price range.
I just noticed that... it seems high to just change the style of the steering wheel. It's like they don't want people to buy the yoke anymore.
racerx2005
Member
You never know with Elon, i.e., he may do it just to screw with Lucid’s CEO as they hate each other, by adding another nail to Lucid’s coffin.You know I think there's a non zero chance that before end of this year there may be another cut to the Model S. Plaid below 85k?!?! If it does go that low I'm definitely ordering one!!!
This better be for the V2 I hear so much about. Luckily, I got in while it was 250, and waiting for my build to come in.
racerx2005
Member
Tesla v2 Yoke with 'improved materials' rumored to come this Summer
Tesla will have a new Yoke steering wheel with "improved materials" coming in July 2023, a Service Advisor said.
www.teslarati.com
I've been looking for a 2020 or pre-refresh 2021 S and it's interesting that so far, the price of used Teslas hasn't really reflected the drop in new prices. There are still a lot of 2022 cars asking more than the current new price. I guess the sellers are hoping no one has noticed.
brainhouston
Active Member
I think since Tesla doesn't do the usual ads on TV n such, not many ppl scout websites/twitter/forums for news...
It'll take some time for used market to realize why the cars aren't selling
Plus there will always be few buyers that don't pay attention n still continue to buy overpriced used cars so that time might get extended..
Same thing is happening on salvage auctions... Some still bid to 15-20k for wrecked model 3...
It'll take some time for used market to realize why the cars aren't selling
Plus there will always be few buyers that don't pay attention n still continue to buy overpriced used cars so that time might get extended..
Same thing is happening on salvage auctions... Some still bid to 15-20k for wrecked model 3...
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