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We might complain about configuration price increases....

Discussion in 'Model 3: Ordering, Production, Delivery' started by Jedi2155, Aug 18, 2018.

  1. Jedi2155

    Jedi2155 Model 3 has Arrived.

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    But imagine if we were buying Tesla's at a dealer with the demand that Tesla has right now for the Model 3, we'd be seeing this much more often:

    [​IMG]
     
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  2. gaswalla

    gaswalla P4201/85/airsusp/pano/19i

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    An economist would argue that's the price the market is willing to pay..in the void of a markup for something high in demand, you end up with long queues. (Hence the long wait list for the Model 3).. Not sure personally what's better
     
  3. Kermee

    Kermee It's Not Easy Being Green

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    I remember when I was looking for a 2nd daily driver vehicle that was relatively inexpensive and had a decent amount of cargo room, the Honda Fit had just come out. Local dealerships in my area was adding $5K... On top of an MSRP of about $13-15K. I ended up getting a Nissan Versa instead, but as @gaswalla pointed out, I'm not sure what would be better too. Long queues, or having the option to go ahead and pay the markup price.

    But honestly, if Tesla started adding "Market Adjustment" pricing to their vehicles, I'm sure major media outlets would somehow spin it negatively (i.e. Production issues to meet demand, only "rich" people purchasing, etc.)

    EDIT: Small note, I did have a chance to test drive an M2 before. I do admit, it's a very nice vehicle. Though, I wouldn't buy one with a $15,000 markup. That's a delta of like a Tesla M3 AWD to a fully decked out M3P+...
     
  4. Jedi2155

    Jedi2155 Model 3 has Arrived.

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    The negatives are, that you're stuck in line with everyone else regardless of our personal wealth. On the plus side is that those who would normally be priced out due to limited availability still has an opportunity to obtain the vehicle at the original price.
     
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  5. gambit48

    gambit48 Member

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    Shoot, my local Honda dealer does that with EVERY model they have. I asked a salesman once who would pay that on something like an Accord. He replied, "you'd be surprised..."

    I think I lean towards Tesla's model. If they offer you a refundable deposit to hold a place in line, you just put the deposit down while you're thinking about it.
     
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  6. UnknownSoldier

    UnknownSoldier Unknown Member

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    It's important to realize that the stealer doesn't rebate the "market adjustment" back to the manufacturer. These sorts of things are pure profit for the stealerships.

    Right now, a lot of stealers are marking up Type-R's by around $15-20k too. I don't know who is buying a Type-R for $50k+ including the "market adjustment" but someone must be since they keep marking it up.
     
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  7. Koflach

    Koflach Member

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    Thankfully they don't do this in Canada.
     
  8. Jedi2155

    Jedi2155 Model 3 has Arrived.

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    Basically they get to profit by their waiting in line while you get you pay the extra cost. I still rather have all these issues than the pay the stealership profit model. Only the super rich can argue otherwise.
     
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  9. MXWing

    MXWing Active Member

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    Hah I’m an economist and yes it is a more efficient outcome to allocate vehicles to those most willing to pay for it. Problem with modeling it is you assume every transaction is fully independent - which it is not.

    The buyer who “won” the vehicle will feel resentment once price drops and those who didn’t win will feel resentment at the whole stealership model that allows such transactions to occur.

    Even those who are effective at exploiting arbitrage do see value in a system where everyone is more or less treated the same. “At least no one got it cheaper than me”.

    In any case laissez faire is still alive and well. Vin 000001 will give up their Model 3 at the right price.

    Tesla could guarantee Q3 profitability if they had an auction system on their cars but as I mentioned at the start, the negative sentiment outweighs the initial surplus profit in the long run.
     
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  10. ShockOnT

    ShockOnT ⚡️⚡️⚡️⚡️⚡️

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    That's why I hate buying new cars (except Tesla).
    Dealing with dealers is just gruesome.
    Case in point: I called a Renault dealer here in Sydney to ask about the Renault Zoe (just curious), and I've since had half a dozen phone calls asking me to come in, offering deals, etc. Too sticky!
     
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  11. glide

    glide Member

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    They let you see the car in person, test drive it, and it is available to buy on the spot if you decide you want it.

    I think it is the Tesla sales model is crazy. Give deposit, buy sight-unseen, roll the dice on vehicle condition at pick-up.
     
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  12. T34ME

    T34ME Active Member

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    The alternative is see car in person, test drive it, and it is available to buy on the spot if you want it for $64K for a $49K 3LR, or pay $84K for a $64K P3D.

    I like the way Tesla does it.
     
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  13. ItsNotAboutTheMoney

    ItsNotAboutTheMoney Well-Known Member

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    They can do it because it's all margin, and they just need 1 person to pay it to make it worth it.
    But as an individual buyer you can ignore it, the same way you can ignore those weird high prices on Amazon.
    If you can't get a good price locally, you can just email other dealers.
     
  14. willa1975

    willa1975 Member

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    The only substantive difference I see is the lack of a test drive and that will change in due time.

    I went to a local Tesla store and did all the usual showroom stuff before ordering.

    The last two cars I bought were a BMW 335i and an Audi S4. Neither was on the lot when I decided to purchase, and the 335i was a custom order, which took about 2-1:2 months from ordering to delivery. And, with regards to rolling the dice on vehicle condition, the BMW was a nightmare. Multiple problems with engine reliability, culminating in the car breaking down four times in the space of two months. Way more of a pain in the ass than the paint flaws and panel gaps that are commonly mentioned by Tesla owners.

    Once the initial surge of Model 3 orders abates and they reach a steady state from a production standpoint (which already appears to be happening), hopefully they will make some cars available for inventory at delivery centers.

    However, I am not sure that a traditional dealership model is feasible for Tesla’s vehicles since, between the simplicity of maintaining an electric powertrain and the OTA updates, there just might not be enough profit to be made on servicing.
     
  15. sperkin

    sperkin Member

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    This was me going to Nissan to buy a 2015 GTR. Walked right out after seeing a $30k mark up.

    20180819_082329.jpg
     
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  16. MXWing

    MXWing Active Member

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    What’s going to happen at pickup?

    Think 7 years down on who you need to trust to service battery and motor?

    If you can’t trust Tesla day 2 you can’t trust them 7 years from now
     
  17. Gavyne

    Gavyne Member

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    Same here, when I went to get a new civic 12 years ago I first went to the local dealership closest to me. The sales guy said he wanted an extra $8k for the car I was looking at. I asked why such a high markup, and the guy said because he can, and he said it with that smug smile on his face that made you want to punch him in the face. I ended up having to drive further away to find a slightly better deal.

    Can't tell you how much better I felt when buying my Model 3 online, not having to talk to a sales guy at the dealership, or having someone hover over your shoulders while you're just browsing around. Prices are clearly laid out, you can upgrade, downgrade, but the choice is yours. For people complaining about how certain color choices delay shipment, it's the same thing at dealerships. The color I wanted for my old civic wasn't available in any of the local dealerships so I had to wait for them to find one and drive one over.

    I love the Tesla sales model, I hope they succeed.
     
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