What will happen to current owners once Tesla drops the price of new Y's?

[Undecided_2]

EMEA and the U.K. are banning fossil fuel cars. Demand for EVs is not going away anytime soon. There isn’t enough Lithium production in the world to meet the current demand for BEVs.

I’m not worried about it and let’s face it. We know a cars value drops as soon as we buy one and drive it away. It’s immediately second hand.

I believe that second hand car values will remain strong for some time. Prices go up and politicians lie, the world keeps turning and so on.

 

[wiparker824]

Does Gap insurance pay the delivery and sale taxes and how must it costs?
If it's not too costly, this could be worthwhile if your car get stolen or totaled, so replacing it will cost you nothing.

Depends if you financed those things then yes theoretically. But you shouldn’t think of it in terms of they pay for this or that from your new car price. They simply pay the difference in the amount owed, and the amount it’s worth. So in the event you total your car and you owe more than it’s worth you don’t have anything additional to pay the bank after your insurance pays out. Your loan amount is now $0.

Your only real cost in this scenario is likely your insurance deductible, but this varies by plan and depends on accident fault.

 

[glide]

I think the odds of it going Up in price are much higher then them ever going down. And it will Never go down to 50 so that is not going to be an issue.

It’s someone’s first experience with a recession/inflation. Adorable.

 

[Hunt3r]

Doesn't seem like a good time to buy any car right now as the bubble has to pop at some point.

Generally buying a new car is never the best financial decision if depreciation is your primary concern.

However this bubble allowed us to sell two used cars for more than we paid for them, which covered almost half the cost of our model Y. So regardless of any upcoming Market adjustments, I think we'll be fine.

 

[sewing1]

As long as Tesla immediately sells every car it makes there is no reason to drop the sales price.

 

[Kairide]

Overpaying for a car is a long term issue. Even after you pay off the loan, your car will never be worth what you paid for it when the market corrects.
GAP insurance only covers the difference between the market value and what you owe if you total your car.
You’re compounding the issue if you pay for FSD as that adds almost $0 to market value, but $12k to your loan.

 

[Yelobird]

It’s someone’s first experience with a recession/inflation. Adorable.

Yeah Tesla is Known for drastic car price reduction’s. Happens all the time! Lol

 

[Charles R]

As long as Tesla immediately sells every car it makes there is no reason to drop the sales price.

Yup. Supply and demand. There’s a near-zero chance of price decreases if people are still willing to wait months at their current prices. Even when inflation comes back down and the supply chain returns to normal, that just means the margins increase for Tesla. As long as Tesla is a publicly-traded company and people are willing to buy their cars at the increased price, it will continue to be about max profit.

 

[glide]

Yeah Tesla is Known for drastic car price reduction’s. Happens all the time! Lol

How much was a Model 3 Performance at launch time vs 2020, genius?

Tesla prices fluctuate wildly. Sorry you bought at the top.

 

[Depwraith]

If you're buying a new vehicle with the expectation that it's an investment and will hold it's value (regardless of the manufacturer), well you need a new financial advisor, lol.

 

[Forest88]

I guess it will not drop in near future (like 2 years).

 

[YNoVA]

If you're buying a new vehicle with the expectation that it's an investment and will hold it's value (regardless of the manufacturer), well you need a new financial advisor, lol.

Nobody is calling it an investment, not sure where you got that idea from. If you actually read the first post then you'd realize why the car value is such a concern.

 

[Charles R]

Nobody is calling it an investment, not sure where you got that idea from. If you actually read the first post then you'd realize why the car value is such a concern.

There's zero chance that the price will drop $15k in one go. If there are price drops, I'd assume it would be gradual to balance out supply and demand, as well as profits.

Even if someone is buying at the "top," depreciation (in normal times) should make up the difference. Regardless, anyone financing the car should buy gap insurance anyway, which assuages any concern for replacement cost.

 

[Depwraith]

Nobody is calling it an investment, not sure where you got that idea from. If you actually read the first post then you'd realize why the car value is such a concern.

The first sentence mentions the vehicle not holding it's value....therefore when anyone drive it off the lot they should expect a value drop. If you have to finance your vehicle, then you should be more prepared with a bigger down payment and/or gap insurance if you are worried. This isn't a Tesla specific problem and in fact as been around forever with all new vehicles. As for what happens to new owners when their value drops, well quite frankly nothing happens to them, lol.

 

[Whatstreet]

The price of a car is influenced by the prices of competitive alternatives. There are a few on the market that are worthy, at least in some ways, if not nearly the same in function (BMW i4). By 2025 there will be many alternatives, Tesla will have to lower prices and keep their factory utilization up.

I agree with those who have said don't buy a car now if you don't absolutely have to. This time next year thing will look different for several reasons.

In fact, I am wondering if Tesla bookings have declined with their price increases. I find them to be discouraging.

 

[TomServo]

If folks are willing to buy Tesla’s at current prices what is Tesla’s incentive to lower them? Now if sales tank, then all bet’s are off. I’ll be paying cash for my new PMY because I’m getting FAR MORE for my 2 year old Y than I paid for it. The difference today is just at $5K, given that I have almost nothing to lose.

 

[HellsKitchen]

If folks are willing to buy Tesla’s at current prices what is Tesla’s incentive to lower them?

To get MORE folks to buy them.

 

[AndrewZ]

I think people need to acknowledge that central banks are focused on reducing demand to balance with supply and bring down prices causing inflation, that is the purpose of interest rate increases driving up financing costs. If we don't see a reduction in car prices then it seems likely the Fed will continue with further rate hikes until balance is achieved, either that or we need more supply to will bring down prices.

But the bottom line is that prices will need to come down for us to win the battle against inflation, and monetary conditions will tighten until that's accomplished -- price stability through low and stable inflation IS the mandate of central banks.

 

[Chomlee]

So here’s my theory. Tesla will be king for quite some time. Our government is currently snubbing Elon because they says they favor labor unions but I think it is really about being in bed with the Big 3 automakers. What is silly is that many of us know that they would like nothing more than to crush Tesla. You would think that if you wanted to crush Tesla they would already have supercharging info-structure out there already but they don’t. As a result, you will start to see more and more horror stories of people getting stranded on long trips with Mach-e cars and others having to sit at 30 amp chargers for 4 hours just to get 100 miles of charge. You will probably also see these “other“ cars reporting 20% range capacity decrease in 1-2 years because of poor engineered batteries.

as a result, I think when more and more people get smart about this, they will either go back to gas cars or get a Tesla. So IMHO, I think the demand for Teslas won’t go down for quite some time.

some things might come down in price once all this stuff washes out (maybe even other cars). I just don’t think Tesla will have that issue.

 

[CyberGus]

What will happen to current owners? Some might cry but nothing for most people. If you are asking if they will get a refund there is exactly 0 chance of that happening. That's just how it works.

When Apple dropped the iPhone price by $200, they gave $100 rebates to recent purchasers.

Today in Apple history: $200 iPhone discount fuels fan backlash

On September 5, 2007, Apple ditched its 4GB first-gen iPhone and slashed the 8GB model's price by $200. The iPhone price cut angered many.

www.cultofmac.com