bitkahuna

iTrader: (20)

guessing the dealer makes more from a purchase than a lease but i could be wrong. but if true, they're more interested in selling it.

yup, but there are people who do, and the dealers know that, so it's not for you. supply and demand.

maybe tesla should sell their cars on cars and bids.

geko29

That would solely depend on specific program incentives. From an inventory perspective, the dealer is selling the car to someone no matter what. Cash purchase is obviously to the buyer/owner, Finance or Lease is to the (usually captive) finance company. So until you start talking about kickbacks, the profit at signature is the same. Negotiated purchase price + dealer fees - dealer cost for the car.

I'm less familiar with dealer incentives for leases, but for example both BMWFS and AudiFS allow the dealers to mark up the finance rate by up to 1%, and whatever they add comes back to them, on top of whatever kickback they get once the loan reaches a minimum term (usually 90 days).

RNM GS3

I have purchased 3 cars in the past 18 months and all 3 were negotiated over email without me going down to the dealer. They sent me all the numbers up front and I signed the bill of sale. No additional BS at all, no run around with what a manager can do etc.

Also what if a buyer has questions on financing or registering the car or insurance etc. These are all things that you need a dealer to assist with. Most people also have a trade-in vehicle etc.

Its not always a simple - here is your price and buyer writes you a check. That’s probably the lowest occurrence.

RNM GS3

You are assuming people understand these numbers or can even qualify for the loan amount. Most folks are not financially literate especially if it’s their first purchase. You also have ppl that may be upside down on their existing loan. There are MANY variables.

Again I’m not saying Tesla sales would be 50% more if they had sales people but I definitely think that they could be doing another 10-20% in business with a dealer network.

AMIRZA786

That's another issue altogether. this number was based on current financing through Tesla, but you can finance through other parties/banks. You can also select that you are paying cash or leasing to get numbers based on those options. As far as those numbers I posted from the Model Y configuration, if someone doesn't understand them, I don't know what to say, maybe they went to a really bad public school? I feel really bad for someone like that, fertile grounds for an unscrupulous dealership screwing them royally

bitkahuna

iTrader: (20)

i could imagine a day when tesla DOES allow independent dealers to sell new cars for them, just in the same way apple and dell sell direct, but they also sell through best buy, etc.

Margate330

I do believe it will happen eventually.

Maybe dealers that specialize in EV's.

Like a combo Polestar & Tesla, etc dealer, that sounds cool.

AMIRZA786

I don't know what you think about this, but one of our companies early investors is the Hyundai family. Some of our executive team flew out to Korea a few years back and met with the CEO, Chung Eui-Sun and the rest of the executive team. At the time they had just released the Ioniq 5, which at the time had large dealer mark-ups. One of our VP's which is also a friend of mine casually mentioned to him that he was interested in buying an Ionq 5, but wasn't buying one due to Dealership mark-ups, and Hyundai's CEO said to him that he felt the biggest hold up for their EV offerings was dealerships, but couldn't do anything about it due to binding agreements that tied his hands. I tend to agree with that assessment

SW17LS

See, I did that and got to the dealer and they spent 5 hours trying to renege on what we had agreed to. When I threw the salesman out of the room and dealt with the finance manager and the sales manager it got done.

I deal with the public on a daily basis when they are buying and selling homes. People are more literate than you give them credit.

As fir maybe they could do 10-20% more business...maybe...but would they make 10-20% more profit? I doubt it.

LeX2K

AMIRZA786

I hope to God it's not anywhere near Model S/Plaid pricing. If it's close to last years Model 3P pricing or Model Y Performance pricing....this baby is mine when the Polestar's lease is up

Hameed

It would never sell if it's even remotely close to the S/X Plaid price. It wouldn't even be close to the Model S LR price. I predict it will be about $10k (at the most) more than the Model 3 LR .

jrmckinley

TSLA reports earnings today. I anticipate there will be more blood on the streets... Predictions by anyone?

AMIRZA786

Bloodbath

RNM GS3

Good time to buy if you can hold long term - over 2 years and ride it out…..