J
jbcarioca
Guest
This forum and almost all press reports seem to devote tremendous energy defending or attacking Tesla's rapid changes in pricing and option treatment. Why? The answer is very simple and obvious but almost never mentioned either by bulls nor bears:
All other manufacturers: Because every one has dealers, they set wholesale prices for dealers, then provide:
-dealer incentives,
-consumer incentives,
-fleet buyer incentives.
those three have different combinations;
-rebates for one of those or all three,
-quota based rebates,
-special financing terms,
-options packages for a huge variety of choices.
then there are seasonal promotions;
-end of reporting periods (e.g.month, quarter, year),
-model year clear-out,
-new model changeover.
finally the ever-popular financing options
called "subvention: paid by manufacturer/distributor cost reduction of part/all financing cost)
-in retail, wholesale, floor planning, fleet flavors,
-local, regional, national choices,
-retail- paying all or some of loan interest,
-wholesale-the same as retail but often with buyback terms,
-lease- residual value guarantees, money factor subvention.
all those things and almost endless variety of maintenance, servicing, and other features that subsidize the distribution system
Nobody seems to notice that all those things are done every year and every season and that resale value for every vehicle plummets with annual model changover, even more so when major changes take place.
Tesla actually has none of those for dealers because they don't have dealers. Instead Tesla announces or simply begins to offer different terms as conditions change. Each Tesla change is described as evidence of instability or catastrophic disarray. Since Tesla eschews annual model change every equipment, option, feature change is further proof of instability.
Every manufacturer tweaks their terms every day/week/month and such information is dutifully printed in Automotive News (for US) in nice tables for 'Consumer' or 'Dealer' incentives.When other items are tweaked they are also reported as soon as available. Many countries have similar reporting. No major news, just industry gossip.
When Tesla does anything remotely analogous it is definitive proof of impending disaster.
Why? It is all because Tesla has a different business model that threatens the established order.
Lastly, here on TMC we all know most of that and still we bleat that the resale value of our cars drops because pricing is reduced. My latest Tesla delivery a P3D+ cost me US$7,000 more in September 2018 than it would if I bought the same car today. So, I have lifetime Supercharging free, which I would not have now. Am I angry? No, I think it is just fine. That is part of buying a new car. All of us have always known that. Only Tesla, among all manufacturers, makes that explicit.
So, for everyone who is complaining, please stop! You're helping nobody. You'll only suggest that Tesla should hide reality as other manufacturers try to do.
When complaining about lease rates or financing rates, just remember that with Tesla you're not tricked by 'residual value subvention' or 'interest rate subvention' into thinking you have a better deal than you really get. While you're at it you need to know that you're not getting an artificially elevated trade-in value on your car either.
Frankly, many of us here are feeding the FUD by misunderstanding the fundamental differences with Tesla.
All these things get in the way of us discussing the actual problems we have, and obscure the remarkable achievements of which we are the recipients.
If we want to complain let us please concentrate on customer service, delivery process, parts supply and other things that actually need improvement rather than criticizing the very things that benefit us the most.
All other manufacturers: Because every one has dealers, they set wholesale prices for dealers, then provide:
-dealer incentives,
-consumer incentives,
-fleet buyer incentives.
those three have different combinations;
-rebates for one of those or all three,
-quota based rebates,
-special financing terms,
-options packages for a huge variety of choices.
then there are seasonal promotions;
-end of reporting periods (e.g.month, quarter, year),
-model year clear-out,
-new model changeover.
finally the ever-popular financing options
called "subvention: paid by manufacturer/distributor cost reduction of part/all financing cost)
-in retail, wholesale, floor planning, fleet flavors,
-local, regional, national choices,
-retail- paying all or some of loan interest,
-wholesale-the same as retail but often with buyback terms,
-lease- residual value guarantees, money factor subvention.
all those things and almost endless variety of maintenance, servicing, and other features that subsidize the distribution system
Nobody seems to notice that all those things are done every year and every season and that resale value for every vehicle plummets with annual model changover, even more so when major changes take place.
Tesla actually has none of those for dealers because they don't have dealers. Instead Tesla announces or simply begins to offer different terms as conditions change. Each Tesla change is described as evidence of instability or catastrophic disarray. Since Tesla eschews annual model change every equipment, option, feature change is further proof of instability.
Every manufacturer tweaks their terms every day/week/month and such information is dutifully printed in Automotive News (for US) in nice tables for 'Consumer' or 'Dealer' incentives.When other items are tweaked they are also reported as soon as available. Many countries have similar reporting. No major news, just industry gossip.
When Tesla does anything remotely analogous it is definitive proof of impending disaster.
Why? It is all because Tesla has a different business model that threatens the established order.
Lastly, here on TMC we all know most of that and still we bleat that the resale value of our cars drops because pricing is reduced. My latest Tesla delivery a P3D+ cost me US$7,000 more in September 2018 than it would if I bought the same car today. So, I have lifetime Supercharging free, which I would not have now. Am I angry? No, I think it is just fine. That is part of buying a new car. All of us have always known that. Only Tesla, among all manufacturers, makes that explicit.
So, for everyone who is complaining, please stop! You're helping nobody. You'll only suggest that Tesla should hide reality as other manufacturers try to do.
When complaining about lease rates or financing rates, just remember that with Tesla you're not tricked by 'residual value subvention' or 'interest rate subvention' into thinking you have a better deal than you really get. While you're at it you need to know that you're not getting an artificially elevated trade-in value on your car either.
Frankly, many of us here are feeding the FUD by misunderstanding the fundamental differences with Tesla.
All these things get in the way of us discussing the actual problems we have, and obscure the remarkable achievements of which we are the recipients.
If we want to complain let us please concentrate on customer service, delivery process, parts supply and other things that actually need improvement rather than criticizing the very things that benefit us the most.