The Model Y won't stay at this price forever. What would happen to the owners whom bought at 65k+ if Tesla decreases the price of the car back down into the 50k range? Those owners would lose a lot of money if they totaled their vehicle and their insurance only gives them a check for 45k while they still owe 60k in the vehicle. Doesn't seem like a good time to buy any car right now as the bubble has to pop at some point.
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What will happen to current owners once Tesla drops the price of new Y's?
- Thread starter YNoVA
- Start date
You are correct, when the market corrects itself there will be a lot of car owners underwater. Not just Tesla owners.
No, its not. Nor is it a good time to buy a house, or go grocery shopping or do anything else spending money since interest rates and costs are up. Some people have no choice to do those things (buy a house, car, etc).
If you have a choice and think you wont hold onto the car "until the wheels fall off" (in which case it makes ZERO difference what someone else is paying for it, or what yours is worth on resale), probably shouldnt buy a car now.
I supposed the MYP is the least susceptible to the bubble as its lowest price ever was 61k. The MYLR however was once priced at 49k(17k less than the current price) meaning that if the prices ever do go back to their original the MYP would lose 9k while the MYLR would lose much more.
It's always good to buy gap insurance.
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.
Eventually it will drop, but I think it will be at a gradual pace just like the increases were at a gradual pace but if demand is as it is currently and no competitor steps up, it may be awhile. No need to decrease prices if demand is so high.
Watts_Up
Well-Known Member
Well, the same with the stock market, between when it's good time to buy and when it's a good time to sell.
Yep. This scenario is pretty much the sales pitch for gap insurance salesmen for as long as I can remember. If you take out a 72 or 84 month loan with little to nothing down, and no gap insurance you’re always going to be susceptible to this. Sure if the market tanks it will hurt more, but it’s always a thing with such types of loans.
Watts_Up
Well-Known Member
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.
Watts_Up
Well-Known Member
In the past there was some little variations, like the AWD option for the Model 3 was $4k then $5k, and then $6k, but whent back to $4k and so on.
Someone made a graph showing the Tesla price changes and publish it time to time to TMC.
VincentParker
Member
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.
I dont think it will drop but instead it keeps going up. Huge back log of orders to fulfill with a wait time of almost a year on long range, 3-6 months on MYP, and more orders coming in each day. As long as there's demand, it will just keep going up. With gas prices going up, people will opt for it.
ZenRockGarden
Active Member
Um... they'll be driving around in a car that's still outstanding?
Gap insurance only pays the difference between the replacement value and the amount owed.
I did think before prices may come back down but I’m convinced we will not see that now at least with Tesla.
Let’s think about this for a second. With high oil prices EV will remain in high demand. I also think the MYP hasn’t really increased that much. That was why i went with the P because it was 61k in Feb 2021 when I leased my LR. When I ordered in March it was 64k so $3,000 more.
We may see some correction as higher rates make it more expensive and supply shortages ease up. Those corrections though will be less impactful on high demand products like EV and especially Tesla.
Now an energy crash could change that but I think that’s less likely. I don’t think we are going to see $2 a gallon gas again anytime soon.
I think it’s a fine time to buy a Tesla. Houses same thing. That is if you plan to hold for at least 3-5 years. If your buying to flip for a profit though I think not.
Let’s think about this for a second. With high oil prices EV will remain in high demand. I also think the MYP hasn’t really increased that much. That was why i went with the P because it was 61k in Feb 2021 when I leased my LR. When I ordered in March it was 64k so $3,000 more.
We may see some correction as higher rates make it more expensive and supply shortages ease up. Those corrections though will be less impactful on high demand products like EV and especially Tesla.
Now an energy crash could change that but I think that’s less likely. I don’t think we are going to see $2 a gallon gas again anytime soon.
I think it’s a fine time to buy a Tesla. Houses same thing. That is if you plan to hold for at least 3-5 years. If your buying to flip for a profit though I think not.
We - so far- buy cars and drive until we throw it out or its value is at its minimum. My 1996 MB E-320 has been serving me well, still very enjoyable and reliable every time I drive it, probably the best I6 engine that MB builds. MYLR will be my last car , Period 
phigment
Member
Well, if they got the insurance to pay for the replacement vehicle, it seems they'd be in the same place as before it got totalled. They'd own a Y, and owe the amount they owed before.
Thunder7ga
Member
As long as you have GAP insurance (as has been said many times), it is what it is. I was in this same situation when I bought my 2018 Model 3. It was at its highest prices at that time when I bought and came down several grand over the next year. Regardless, I got to enjoy the car, and was not a big deal. I still have that car.
Right now demand is vastly outstripping supply for EVs, driving up costs, but also creating huge profit opportunities for EV makers. When gasoline prices drop, EV demand will slow and prices will decrease, especially as battery production costs decrease. I’m candidly having second thoughts about my MYLR order, especially with the charging network not expanding fast enough to support all of the new EVs being purchased.
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