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email from Tesla sales to me:
I wanted to touch base with you because as of today we have a couple updates. Car deliveries have slipped to 6-10 weeks so we are already looking at end of year deliveries with current orders. Additionally the order process has had a slight update in that the deposit has gone down from 2,500 to 100 dollars - however now the 100 dollars is non-refundable if you cancel. With this all being said, I think it would be prudent to re-open the exploration on the Model S and Model 3 so that we can ensure you receive the vehicle in a timely manner.
Neither. It's just a smart move. Make sure every player has a little bit skin in the game. Less effort for handling order cancelations. Deter shorts from gaming it. I hope they raise the non refundable deposit in the future.
Were shorts really gaming it? I doubt it. And if you want to take it further and hypothesize that shorts were buying and returning cars within the return window timeline, this change in deposit does not affect those returns in any way. In fact, this would make it less burdensome since only $100 is temporarily taken out of their hands.
Prior to this change, didn't the deposit turn into non-refundable once the order was matched to a vehicle. So, no cars were technically assigned to a refundable deposit anyways. Unless shorts wanted to go through with the purchase just to return, which then goes back to my point above.
The $2,500 has been fully refundable for a while (just like the entire car). It used to be non-refundable after VIN match.
$2,500 may have been difficult for people financing to scrape together and float for 2-3 months.
If people have a hard time setting aside $2,500 for 2 to 3 months, a $40,000+ car is seriously not something they should be looking into buying IMO.
I think they open up all potential sales for even more demand. But because they are automating all aspects of a sale (service same way), there's no loss to speak of. They should snag more sales IMO.If people have a hard time setting aside $2,500 for 2 to 3 months, a $40,000+ car is seriously not something they should be looking into buying IMO.
- Seems they don't need this cash too much...
- Since this was paid by credit card, prob 2% fee to bank/visa, Tesla gets to keep more cash - $2,400*0.02=$48/car (can't be too bad in a "game of pennies")
- could mean less cancellations, since you lose some money, so think more before placing an order?
I see, sorry I misunderstood then. But also: does anyone know if the new fee counts towards the cost of the car? By calling it a "fee" instead of a "deposit", I'm wondering if it is effectively an extra $100 price increase on the car (so another $95-97 for Tesla after fees).That's what i mean. Average care fees are about 3-5% nowadays depending on the card. So anywhere from 74-120 per car saved
No, the fee is what the banks charge for using their credit card services. Not Tesla.I see, sorry I misunderstood then. But also: does anyone know if the new fee counts towards the cost of the car? By calling it a "fee" instead of a "deposit", I'm wondering if it is effectively an extra $100 price increase on the car (so another $95-97 for Tesla after fees).