Tesla's new Strategy?!?!?

[ckessel]

Wow, I have to say I'm totally blown away by the quantity of cool things in their service announcement. Impulse buys for people, no required service. I'm totally going to ask for the Roadster loaner

 

[Citizen-T]

You are 100% on the money on this one. This gives them a way to have a little bit of inventory available to make the sale to the person who wants or needs a car right away, without having millions of dollars in inventory sitting around doing nothing. They are very effectively killing two birds with one stone.

Really good point. Thank you.

 

[mitch672]

Really good point. Thank you.

Your welcome "thinking out of the box since 2012, when I was introduced to Tesla Motors"

 

[Johann Koeber]

Now if they have a lot of people trading in their used MS,
how are they going to market those.

Considering the planned turn around of the loaner cars
(they might even have underestimated that)
they will have quite an inventory of used, older
Model Ss.

 

[anticitizen13.7]

Now if they have a lot of people trading in their used MS,
how are they going to market those.

Considering the planned turn around of the loaner cars
(they might even have underestimated that)
they will have quite an inventory of used, older
Model Ss.

Certified Pre-Owned for those of us who can't afford a new one:smile:

 

[Calisun]

Actually in California you are going to pay sales tax on the full value of the new car. There's no sales tax advantage for trade-ins. You're buying a new car here, I would think all the things you note are expected. It's just an easy way to get a deal on a fairly new service loaner.

That is true but the service loaners will likely have to be registered to Tesla thus making them used cars, even with only 1000 miles on it. I got a deal on an Infiniti because the test drive was exactly what I was looking for and technically it was 'used'.

 

[adiggs]

Wow, I have to say I'm totally blown away by the quantity of cool things in their service announcement. Impulse buys for people, no required service. I'm totally going to ask for the Roadster loaner

As a nice side benefit, I think this does positive things for the Roadster resale market. Heck - if I wasn't already driving a Roadster, I would for sure want a day or 2 in a Roadster just to try it out. (now I'm looking for an excuse to get some work done on my Roadster, so I can drive a Model S for a day).

 

[SteveG3]

Now if they have a lot of people trading in their used MS,
how are they going to market those.

Considering the planned turn around of the loaner cars
(they might even have underestimated that)
they will have quite an inventory of used, older
Model Ss.

It will be interesting to see how it plays out, but I don't think this will turn into a Pandora's Box. For one thing, having to fork over taxes on the purchase of loaner would seem to keep the volume of these transactions more manageable. More basically, if they are having a hard time selling the used Model S's turned in, it means they over-estimated the trade-in value to the original owner, will adjust downward going forward so they can lower price on the used Tesla inventory. Yes, for in the short-term they may misjudge market value and get hung up with used inventory, but over time it seems supply/demand will price the car to where the program functions.

 

[voidptr]

An interesting possible side effect of using Roadsters as service loaners to Model S owners... You can't currently loan a Roadster to a Model S owner for any length of time, since they can't charge it at home. I wonder if they're going to retrofit the Model S charge port on the Roadster loaner fleet, and if so, if they're going to make that option available to current Roadster owners as well.

 

[CyberDutchie]

Actually in California you are going to pay sales tax on the full value of the new car. There's no sales tax advantage for trade-ins.

It's a great announcement for state and local government, they will be able to collect sales tax on the same vehicle multiple times. And with Tesla's new trade-in program, I expect their cars to transfer ownership much sooner.

How many of you thought before the announcement that you were going to keep your car at least for 8 years? And how many still feel that way? Would be an interesting poll question...

 

[mitch672]

That is true but the service loaners will likely have to be registered to Tesla thus making them used cars, even with only 1000 miles on it. I got a deal on an Infiniti because the test drive was exactly what I was looking for and technically it was 'used'.

That brings up another point: if mr impatient wants to plunk down his $115K to buy the top end Model S, he's not going to be eligible for the $7,500 Federal tax credit, because the loaners will be "used" vehicles. That's probably ok for the truly rich "I can't wait I need instant gratification" types, but it won't result in a huge volume of new sales to worry about... Most of them will probably wait the 4-8 weeks for factory delivery (they didn't get wealthy by squandering their money).

Also Tesla will have taken that $7,500 Federal tax credit, since they will be the registered "owner" of the loaner cars.

 

[jcstp]

An interesting possible side effect of using Roadsters as service loaners to Model S owners... You can't currently loan a Roadster to a Model S owner for any length of time, since they can't charge it at home. I wonder if they're going to retrofit the Model S charge port on the Roadster loaner fleet, and if so, if they're going to make that option available to current Roadster owners as well.

smart thinking!

 

[bonnie]

An interesting possible side effect of using Roadsters as service loaners to Model S owners... You can't currently loan a Roadster to a Model S owner for any length of time, since they can't charge it at home. I wonder if they're going to retrofit the Model S charge port on the Roadster loaner fleet, and if so, if they're going to make that option available to current Roadster owners as well.

You can plug a Roadster into a 110 outlet, a 40amp outlet, a J1772 and all sorts of things with adapters ... so probably isn't an issue. But it would be nice to have a retrofit. Or an adapter. Just unlikely in the near term.

 

[SteveG3]

It's a great announcement for state and local government, they will be able to collect sales tax on the same vehicle multiple times. And with Tesla's new trade-in program, I expect their cars to transfer ownership much sooner.

How many of you thought before the announcement that you were going to keep your car at least for 8 years? And how many still feel that way? Would be an interesting poll question...

Indeed, it is great for states... states that allow Tesla to do business. cough, Texas :wink:

 

[FalconNinetyD]

For those living in a sales tax-free state, this could be a pretty sweet deal...

 

[ElSupreme]

That is true but the service loaners will likely have to be registered to Tesla thus making them used cars, even with only 1000 miles on it. I got a deal on an Infiniti because the test drive was exactly what I was looking for and technically it was 'used'.

That brings up another point: if mr impatient wants to plunk down his $115K to buy the top end Model S, he's not going to be eligible for the $7,500 Federal tax credit, because the loaners will be "used" vehicles. That's probably ok for the truly rich "I can't wait I need instant gratification" types, but it won't result in a huge volume of new sales to worry about... Most of them will probably wait the 4-8 weeks for factory delivery (they didn't get wealthy by squandering their money).

Also Tesla will have taken that $7,500 Federal tax credit, since they will be the registered "owner" of the loaner cars.

Hmm this is an interesting question. I would probably expect that Tesla might be able to sell those cars as 'new'.

When my dad brought his VW Passat in for service (fix some stuff before he traded it in) he was given a 'loaner' Audi TT. He at the time was actively in negotiations to buy the same Audi 'TT'. He drove it as a loaner/test-drive for 3 days then bought the TT. And sold the Passat privately.

He bought the car 'new' from the Audi dealership. I would be wondering since Tesla is a dealer/manufacturer if them titling the car in required for test drives? And even if they were required to title the car, would it count as a first sale?

 

[mitch672]

Hmm this is an interesting question. I would probably expect that Tesla might be able to sell those cars as 'new'.

When my dad brought his VW Passat in for service (fix some stuff before he traded it in) he was given a 'loaner' Audi TT. He at the time was actively in negotiations to buy the same Audi 'TT'. He drove it as a loaner/test-drive for 3 days then bought the TT. And sold the Passat privately.

He bought the car 'new' from the Audi dealership. I would be wondering since Tesla is a dealer/manufacturer if them titling the car in required for test drives? And even if they were required to title the car, would it count as a first sale?

If they are issued "dealer plates" they don't need to title it, the original "manufacturers certificate of origin" could go to the buyer, but I somehow doubt they will be able to handle it that way, because you'd have non-employees driving the loaner cars around - dealer plates are for the dealer to use while a vehicle is unsold for test drives, etc.

Also, if you are trading in your Model S, I doubt the Feds will be happy with giving you a 2nd $7,500 Federal tax credit, although technically I guess they'd have to. If this happens, expect to see the language change on the Credit to having to keep the car for a minimum number of years, or a "recapture credit" would likely need to be done...

 

[K Hall]

That brings up another point: if mr impatient wants to plunk down his $115K to buy the top end Model S, he's not going to be eligible for the $7,500 Federal tax credit, because the loaners will be "used" vehicles. That's probably ok for the truly rich "I can't wait I need instant gratification" types, but it won't result in a huge volume of new sales to worry about... Most of them will probably wait the 4-8 weeks for factory delivery (they didn't get wealthy by squandering their money).

Also Tesla will have taken that $7,500 Federal tax credit, since they will be the registered "owner" of the loaner cars.

That is incorrect. All demo cars are sold as new cars as they have never been titled. And your trade in now makes the MS available to a whole new set of buyers to purchase at a lower price.

 

[FalconNinetyD]

If the car has not been sold to a private party yet, and no one else has claimed the tax credit(s), I would bet you would not have a problem claiming them yourself.

 

[Stoneymonster]

If they are issued "dealer plates" they don't need to title it, the original "manufacturers certificate of origin" could go to the buyer, but I somehow doubt they will be able to handle it that way, because you'd have non-employees driving the loaner cars around - dealer plates are for the dealer to use while a vehicle is unsold for test drives, etc.

Also, if you are trading in your Model S, I doubt the Feds will be happy with giving you a 2nd $7,500 Federal tax credit, although technically I guess they'd have to. If this happens, expect to see the language change on the Credit to having to keep the car for a minimum number of years, or a "recapture credit" would likely need to be done...

That's what California does with the $2500 energy credit (not a tax credit). You state that you will keep the car for 36 months or they get back a portion of the credit.