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Tesla lowers deposit (out of main)
- Thread starter Electroman
- Start date
Lots of cash on hand -> bullish.
Trying to lock people in with $100 non-refundable -> bearish
JusRelax
Active Member
Just to make sure -- you had a reservation for an X?
My read on this is that it must've worked well for Tesla Energy and helps filter out people who would cancel at the last moment affecting regional allocations of product.
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.
- 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?
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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.
204EV
Member
This might sound crazy but on 2500 versus 100. Tesla is Pocketing an extra 87 per car so if they deliver 105k cars thats an extra approx 9million in the margins bracket. Nothing wrong with that
Tesla will also save on credit card processing fees on the 2500.This might sound crazy but on 2500 versus 100. Tesla is Pocketing an extra 87 per car so if they deliver 105k cars thats an extra approx 9million in the margins bracket. Nothing wrong with that
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
Happy Owner
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.
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.
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.
Considering the price rise today on Model 3 ($500 on SR+, $1000 on P).
on 100,000 cars that is at least $50 million in additional gross margin.
on 100,000 cars that is at least $50 million in additional gross margin.
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.
204EV
Member
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
StealthP3D
Well-Known Member
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.
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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