The recent price drop

[ElectricIAC]

It sucks I agree with you. Seems like a desperate move by Tesla to clear inventory.

They chose to go for market share by complying with price caps set for BEV credit eligibility. That’s not desperation, that’s marketing.

 

[woolymammoth17]

They chose to go for market share by complying with price caps set for BEV credit eligibility. That’s not desperation, that’s marketing.

I think the truth is that we actually don't know if it's desperation or not. It's likely a mixture of all of these things, plus Elon's fear of a recession and it getting harder to sell high priced vehicles.

I know personally I've been surprised at how much of a difference the $7,500 credit is making. Seems like anything above $55k is stagnating. There's still inventory almost everywhere I checked with cars over $55k, and none below.

I also think a lot of people are confused about who qualifies for the credit, and don't understand it's not refundable, and there will be a lot of disappointed people in April of 2024.

 

[whisperingshad]

So would you have written this letter offering to pay more if these would have been price increases?

EXACTLY

 

[advertisingfre]

For the life of me, I cannot understand how all the people saying "would you write a check when the price goes up?" can think that they are making any kind of a point. It's a useless statement that is nonsensical. I guess because Elon Musk tweeted it they think that it must make sense in some world somewhere?

Of course it doesn't make sense to you. What about buyer's remorse, does that make sense to you?

 

[ElectricIAC]

Of course it doesn't make sense to you. What about buyer's remorse, does that make sense to you?

If you have buyers remorse over buying a Tesla, you probably bought the wrong car.

 

[Maxdriver]

Supply and demand OP. Not long ago some were buying Teslas and then flipping them for profit. It’s all about timing.

 

[advertisingfre]

If you have buyers remorse over buying a Tesla, you probably bought the wrong car.

Nope, in fact, I'm getting a model X instead of Y because it is now within reach. The comment was for those whose blamed others for their own decisions.

 

[johnnycnote]

...it’s not the consumer’s job to set a fair price so it’s not their responsibility to fix a price that’s too low...

"Fair price" is the price that both parties agreed to at the time of the transaction. Whether one party or the other underpaid or overpaid is irrelevant and fair

 

[YNoVA]

I can see that scenario playing out. But if this scenario puts you in any sort of financial bind, then perhaps people that could be in that situation should not be purchasing a $70k vehicle....its a luxury/toy....not a necessity.

Every other ICE car I've owned I've never gotten GAP because I put a large down payment down. I never needed GAP as the down payment meant I always had positive equity on the loan.

This is the first time I'm under water on a loan after putting 30% down. If my car gets into an accident tomorrow and totaled, the car would be valued at $6,000.

 

[YNoVA]

That's not true. There are cases like @YNoVA that are riding on thin ice due to the extreme price drops that tanked the value across the board. So yes, it is a loss in the form of value and leaving a lot of people in a situation that tesla brought onto them. It doesn't matter whether you plan to sell your tesla or keep it, the hit is the same and there is pain in both situations.

This isn't some normal or natural rate of depreciation going on here. Like I said it was a sucker punk in the gut for you, me and everyone else. Whether people can admit to that or not is on them, but the fact is that we all did lose some serious value.

This is too much for @ElectricIAC to understand.

I don't care about my car value in terms of selling price. I'm not going to sell the car for a long time. But I do care about what the insurance values the car and according to them the car is valued at a whopping $6k.

This means that if my car gets into an accident and totaled, the insurance will value my car at $6k. That's what worries me; I can drive safe but someone else can total my car on the road and I'm screwed.

 

[woolymammoth17]

Every other ICE car I've owned I've never gotten GAP because I put a large down payment down. I never needed GAP as the down payment meant I always had positive equity on the loan.

This is the first time I'm under water on a loan after putting 30% down. If my car gets into an accident tomorrow and totaled, the car would be valued at $6,000.

View attachment 896538

What in the world kind of offer is this?

 

[ucmndd]

I don't care about my car value in terms of selling price. I'm not going to sell the car for a long time. But I do care about what the insurance values the car and according to them the car is valued at a whopping $6k.

This means that if my car gets into an accident and totaled, the insurance will value my car at $6k. That's what worries me; I can drive safe but someone else can total my car on the road and I'm screwed.

This is ridiculous, and you know full well your car is not currently valued at $6,000 based on one “we decline to buy your car” online offer.

Insurance companies provide replacement value in the event of a total loss. So whatever it costs to replace your car in the current market with an equivalent used one is what you get.

There’s no need to engage in ridiculous hyperbole to make a point.

 

[ucmndd]

What in the world kind of offer is this?

This is the “we don’t really want your car so we’ll throw out a ridiculous number we know you won’t take” offer.

 

[Msicario]

This is my response to the recent price drops with Tesla.

Tesla,

Let me begin by expressing my complete disappointment and utter astonishment at the recent actions of Tesla Motor Corporation and the recent aggressive price cuts of its automobiles. In late September I purchased a Model Y performance for $77,440 plus tax and license totaling some $85,400 and of course waiting 3 months for delivery. Just before the year end I learned of the new price cuts, tax credits and free supercharging not to mention the less than one week delivery. If that wasn’t shocking enough and now just a couple months later I find out my car is only worth $65,380, the price at which I can buy the same vehicle today. If I knew this was coming I would have simply waited 3 months and saved nearing $15,000. I can’t even take advantage of the tax credits, supercharging or price breaks and now can never sell my car without taking a huge loss. Thanks for the immediate depreciation of my vehicle!!

As a read through on-line posts and social media, I’m certainly not the only one who is outraged by this action. I believe Tesla Motor Company should provide a rebate at some level to its clients who purchased a vehicle say within 6 months of this recent news. At the very least, Tesla should provide the free Supercharging offer and free full self-driving capability as this would cost Tesla essentially nothing. This would not in any way make me whole but at least it’s something other than the gut punch Tesla and Elon Musk just served up. It must be comforting for a Billionaire to make these rash decisions while hard working loyal customers like myself who support him have to just sit here and take it.

I expect a qualified response to this e-mail and not some “canned” cut and paste reply. This situation represents real money and is a valid concern by one of Tesla’s valued customers.

I’m 100% with you on this I doubt very much we will get anything from Tesla (Musk) They have our money therefore we are not that important anymore.

 

[ElectricIAC]

Every other ICE car I've owned I've never gotten GAP because I put a large down payment down. I never needed GAP as the down payment meant I always had positive equity on the loan.

This is the first time I'm under water on a loan after putting 30% down. If my car gets into an accident tomorrow and totaled, the car would be valued at $6,000.

View attachment 896538

Wrong.

 

[ucmndd]

Wrong.

View attachment 896545

I wish all the people getting fleeced for $15k FSD could see the market value of it is ~$750

 

[YNoVA]

Wrong.

View attachment 896545

Well this is good news then.

I'm not sure why sites such as Cargurus and Carvana were valuing my car at less than $10k. I also checked KBB just now and they put the value at $60k private party (thought I suspect it to realistically be around high 40's - 50k).

 

[woolymammoth17]

Wrong.

View attachment 896545

What site is this? $750 is close to what FSD is currently worth.

Surprising to se $1,500 extra for white being that white is the most common color, and the only zero cost option.

 

[ElectricIAC]

What site is this? $750 is close to what FSD is currently worth.

Surprising to se $1,500 extra for white being that white is the most common color, and the only zero cost option.

It’s a dealer tool to appraise vehicles.

 

[tonyz1]

I'm not sure why sites such as Cargurus and Carvana were valuing my car at less than $10k. I also checked KBB just now and they put the value at $60k private party (thought I suspect it to realistically be around high 40's - 50k).

View attachment 896549

They probably haven't updated their valuation models yet. KBB values tend to be high.

Another thought that came up for you, here's some additional options (USA Gov Car Complaints) to explore if you are truly in a bad spot with respect to your loan. I fortunately don't have debt on my car so I'm not sure how much more I want to push on this vs. just focusing on moving on from this debacle. But I can understand if you're stressed about debt, this is worth pushing further.

I'd also make sure to opt out of arbitration and consider writing your local congress person, who might not be an Elon fan or would want to score some political points. I'd also consider pushing Tesla directly on your situation since I don't think they're above giving you an individual deal with a NDA.

I noticed some of the people who just took delivery before the price cut have stayed silent after the initial shock - maybe Tesla gave them something to keep quiet that they're not giving the rest of us?

Anyways, I'm sorta ready to move past this vs. spend more time on this although this is not a company or product I would recommend to anyone I know today. Good luck with your debt situation.