Tesla Model Y Standard Range AWD to be priced at $59,990 USD

[FatherTo1]

Why does everyone say Tesla doesn't have dealer markups? All of those price increases are the same thing, just a different name since Tesla doesn't use dealerships.

Toyota and other manufacturers increase prices too but dealer markups are another level of padding the profits to take advantage of regional demand.

I know the distinction doesn’t seem clear but Tesla increases it across the board for every new customer whereas different dealerships add differing amounts of markup. Tesla’s increases, to me, are tied to increase cost of materials, similar to increases on eggs or milk at the grocery store. In the past Tesla reduced prices too. The dealership may decide to pass on some kickbacks and manufacturer incentives/rebates but it’s at the discretion of the dealership. You would have no idea a rebate was even available if the dealership decided to just hold onto it.

At least with the Tesla increases you also see some new features added to the cars. Completely different than the dealership that added a $40,000 markup on a RAV4 Prime just because they had one of the few ones left in the region.

 

[Kairide]

Dealer markups in the sense, that if you place an order today in Seattle, WA or Appleton, WI, or Holmdell, NJ, you will pay the exact same price... You can't say the same for the EV6... You can and often will pay a different price depending on which dealer you walk into...

You can spin it any way you want, but Tesla's price increases are equivalent to dealer markups and are based on supply and demand.

 

[Kairide]

Because there are no DEALER markups. The money is going to Tesla, not some dealership and everyone in the nation is paying the exact same price at the time of ordering.

Go visit a Toyota dealer, try to order a RAV4 Prime with a list price of $50k and then experience the "yeah, and if you want it now it's an extra $20k" fun.

Does it really make you feel better that the $10k you paid more now for a Y goes directly to Tesla rather than Joe Smoe's Dealership?

 

[ZenRockGarden]

You can spin it any way you want, but Tesla's price increases are equivalent to dealer markups and are based on supply and deman

You're free to think that way. Won't change the reality that they are two very different things.

One is a private dealership screwing its customers.

The other is the Car MAKER charging a uniform price to everyone in the nation.

Sorry you can't get it.

 

[ZenRockGarden]

Does it really make you feel better that the $10k you paid more now for a Y goes directly to Tesla rather than Joe Smoe's Dealership?

Yes, it absolutely does. Next question?

 

[Kairide]

You're free to think that way. Won't change the reality that they are two very different things.

One is a private dealership screwing its customers.

The other is the Car MAKER charging a uniform price to everyone in the nation.

Sorry you can't get it.

They are equivalent:
ZenRockGarden's car dealership sells a car with an MSRP of $50k for $60k because of a $10K mark up due to supply and demand.

Tesla raises it's price from $50K to $60K because if supply and demand.

Screwed over customer has to decide who they'd rather bend over for, ZenrockGarden or Tesla as both have increased their prices due to the market. Tesla is the manufacturer and the dealer, so they are marking up their cars...just in a uniform way.

 

[ZenRockGarden]

They are equivalent:
ZenRockGarden's car dealership sells a car with an MSRP of $50k for $60k because of a $10K mark up due to supply and demand.

Tesla raises it's price from $50K to $60K because if supply and demand.

Screwed over customer has to decide who they'd rather bend over for, ZenrockGarden or Tesla as both have increased their prices due to the market. Tesla is the manufacturer and the dealer, so they are marking up their cars...just in a uniform way.

Yep "in a uniform, perfectly fair way" that also happens to put the money back into the company that made the car.

We get it that you don't give a crap. Some of us do. We like fairness. We like the money going to the company that actually engineered our cars so they can do even more amazing things in the future. Dealer offers absolutely none of that. Just a local leech.

 

[Kairide]

Yes, it absolutely does. Next question?

Ok, sorry didn't realize you were a fan boy. I'll stop now. I guess giving $10k more directly to Tesla makes it ok?

 

[ZenRockGarden]

Ok, sorry didn't realize you were a fan boy. I'll stop now. I guess giving $10k more directly to Tesla makes it ok?

Reality Hint: I ordered last year, before the $10k price increase. Sorry to gut your entire little tirade. Keep trying!

 

[Kairide]

Yep "in a uniform, perfectly fair way" that also happens to put the money back into the company that made the car.

We get it that you don't give a crap. Some of us do. We like fairness. We like the money going to the company that actually engineered our cars so they can do even more amazing things in the future. Dealer offers absolutely none of that. Just a local leech.

Amazing, huh...like removing radar, lumbar support, mobile chargers and buying Twitter?

 

[goin2drt]

Because there are no DEALER markups. The money is going to Tesla, not some dealership and everyone in the nation is paying the exact same price at the time of ordering.

Go visit a Toyota dealer, try to order a RAV4 Prime with a list price of $50k and then experience the "yeah, and if you want it now it's an extra $20k" fun.

This exactly. A dealer markup is different everywhere by dealer to dealer and can be different and can be adjusted based on trade in, financing etc etc. Tesla is the same price no material where you are and who you are. All they are doing is raising prices based on cost, demand etc etc. That is not a markup but a price change. Just like an Apple phone. They raise prices based on what you are getting.

 

[ZenRockGarden]

Amazing, huh...like removing radar, lumbar support, mobile chargers and buying Twitter?

Were you like short TSLA into their record-breaking earnings beat today, or what? Who peed in your cheerios?

 

[DrGriz]

You can spin it any way you want, but Tesla's price increases are equivalent to dealer markups and are based on supply and demand.

No. With Tesla, you pay the price the car was when you ordered it. With dealer markups, you can order the car and if they choose they will add whatever markup when it arrives 6 or 9 or 12 months later.

If it were the same, I'd have paid $9000 more than I did for my car, and I did not.

 

[thesmokingman]

Trololo

They are equivalent:
ZenRockGarden's car dealership sells a car with an MSRP of $50k for $60k because of a $10K mark up due to supply and demand.

Tesla raises it's price from $50K to $60K because if supply and demand.

Screwed over customer has to decide who they'd rather bend over for, ZenrockGarden or Tesla as both have increased their prices due to the market. Tesla is the manufacturer and the dealer, so they are marking up their cars...just in a uniform way.

WRONG. ADM or additional dealer markup has nothing to do with inflation or supply, demand. It is a pure mark up for the middle man aka the stealership. That money does not go to the manufacturer. In any case, legacies will raise their prices shortly however they react much slower.

 

[Kairide]

Trololo

WRONG. ADM or additional dealer markup has nothing to do with inflation or supply, demand. It is a pure mark up for the middle man aka the stealership. That money does not go to the manufacturer. In any case, legacies will raise their prices shortly however they react much slower.

So dealer markups have nothing to do with supply and demand? Are you saying the current dealer markups aren't driven by a lack of cars? Pre-pandemic you'd see dealer markups on hard to find/new models in limited supply (Ford Bronco). Is that not supply and demand causing dealer markups?
If there's more cars than customers, a dealership would go out of business if they had dealer markups.


We may not all agree on dealer markups, but I think we can all agree that dealer mark ups are driven by supply and demand.

 

[thesmokingman]

So dealer markups have nothing to do with supply and demand? Are you saying the current dealer markups don't exist due to a lack of cars? Pre-pandemic you'd see dealer markups on hard to find/new models in limited supply (Ford Bronco). Is that not supply and demand causing dealer markups?
If there's more cars than customers, a dealership would go out of business if they had dealer markups.


We may not all agree on dealer markups, but I think we can all agree that dealer mark ups are driven by supply and demand.

Go google instead of making *sugar* up.

 

[Kairide]

Go google instead of making *sugar* up.

Ok, here's literally the first thing that pops up when I Google "What causes dealer markups?"

https://www.kbb.com/car-advice/buyer-beware-dealer-markups/#:~:text=The%20more%20of%20a%20thing,and%20the%20price%20eventually%20falls.

"Car Prices Determined by Supply and Demand​

If you never pay much attention to the fundamental theories of economics, you may not realize the current marketplace works like a Petrie dish for the effects of supply and demand. In an open market, the price gets determined by demand. The more of a thing people want (like cars), the more they are willing to pay for them, and the higher their price. That higher price motivates additional production of that thing, and the price eventually falls."

 

[goin2drt]

Pricing is always based on supply and demand but a price that literally everyone pays is completely different than an ADM.

Go and try to buy a Porsche 992 GT3 right now as a customer that has never bought a single Porsche vs the guy that owns 5 of them. You will see what I am talking about and those are not the same.

 

[thesmokingman]

Ok, here's literally the first thing that pops up when I Google "What causes dealer markups?"

https://www.kbb.com/car-advice/buyer-beware-dealer-markups/#:~:text=The%20more%20of%20a%20thing,and%20the%20price%20eventually%20falls.

"Car Prices Determined by Supply and Demand​

If you never pay much attention to the fundamental theories of economics, you may not realize the current marketplace works like a Petrie dish for the effects of supply and demand. In an open market, the price gets determined by demand. The more of a thing people want (like cars), the more they are willing to pay for them, and the higher their price. That higher price motivates additional production of that thing, and the price eventually falls."

You trolling or what?

A dealer tacks these arbitrary amounts onto the MSRP to increase profit on high-demand models. Historically, you would find them primarily for highly anticipated all-new or redesigned models. Such dealer markups take advantage of a model’s high demand and short supply when first launched.

Manufacturers like Ford, General Motors, Subaru, Hyundai, and others began cracking down on dealership pricing.

 

[DrGriz]

Ok, here's literally the first thing that pops up when I Google "What causes dealer markups?"

https://www.kbb.com/car-advice/buyer-beware-dealer-markups/#:~:text=The%20more%20of%20a%20thing,and%20the%20price%20eventually%20falls.

"Car Prices Determined by Supply and Demand​

If you never pay much attention to the fundamental theories of economics, you may not realize the current marketplace works like a Petrie dish for the effects of supply and demand. In an open market, the price gets determined by demand. The more of a thing people want (like cars), the more they are willing to pay for them, and the higher their price. That higher price motivates additional production of that thing, and the price eventually falls."

Now that you have moved the goalposts from "additional dealer markup at the time of sale is equivalent to future Tesla price increases that don't apply to you once you've ordered" to "both of these dissimilar things are driven by supply and demand", can we all just move on?