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Tesla lowers deposit (out of main)

Electroman

Supporting Member
Supporting Member
Aug 18, 2012
6,395
7,521
TX
$2500 refundable to $100 non refundable.

I am not sure how to ready this? bullish or bearish?
 

JusRelax

Member
Apr 24, 2019
999
13,134
Los Angeles, CA
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.

Just to make sure -- you had a reservation for an X?
 

M3Rider

Supporting Member
Supporting Member
Oct 3, 2018
1,509
7,701
CO
$2500 refundable to $100 non refundable.

I am not sure how to ready this? bullish or bearish?

- 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?
 
Last edited:

KSilver2000

Active Member
Dec 23, 2017
1,368
2,438
CA
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.
 

mongo

Well-Known Member
May 3, 2017
13,461
42,019
Michigan
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.
 

KSilver2000

Active Member
Dec 23, 2017
1,368
2,438
CA
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.
 

Johann Koeber

Active Member
May 1, 2012
1,196
3,931
Hersbruck, Germany
In Germany it is still 2,000 Euros fully refundable, to be paid by credit card.

In other news:
A friend returned his M3 within the 7 day return policy. Waiting for the refund of the full price of the car, tried to contact Tesla through different channels. Him being an attorney he is sueing Tesla. He expects to get 9% annual interest on the outstanding amount (German interest rate for late payments).

There is still room for improvement in the communications.
 

mongo

Well-Known Member
May 3, 2017
13,461
42,019
Michigan
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.

Figured someone would bring that up.
If you are currently in a loan/ lease situation and you can get into a Tesla at a similar monthly payment, removing a $2,500 up front charge is a plus. Just because you can, does not mean you want to. Same deal for a first time buyer just out of college, high earnings, low liquidity.
 

SOULPEDL

Active Member
Jul 25, 2016
3,480
14,196
Arizona
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.
 

StealthP3D

Well-Known Member
Dec 12, 2018
9,939
81,962
Maple Falls, WA
- 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?

Very good analysis!

I charge a $50 non-refundable fee before I accept a reservation for our Hawaiian beachfront rental in addition to the 25% reservation deposit (which is refundable should the guest's plans change). Like Tesla, it takes me significant time and energy to take the reservation and the $50 non-refundable fee keeps the "looky-loos" away.

Note: Don't tell anyone, but I don't actually keep the $50 if a guest's plans change and they notify me in a timely manner. But I could (and that's the point). I'm sure Tesla would keep the $100 for the sake of consistency. The fact that the reservationist has some "skin in the game" is a huge benefit. I don't exist to fulfill everyone's whims and I don't like flakey people. No one does. Some people think the world exists for their personal pleasure and every business has the right to "just say no" to their games.
 
A

anon

Guest
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
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).
 
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jerry33

(S85-3/2/13 traded in) X LR: F2611##-3/27/20
Supporting Member
Mar 8, 2012
20,002
24,694
Texas
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).
No, the fee is what the banks charge for using their credit card services. Not Tesla.
 

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