Tesla’s recent decision to lower the prices of its vehicles by as much as 20% has sparked mixed reactions among buyers, with some feeling cheated by the sudden change in prices. One such buyer is Marianne Simmons, a self-professed “Tesla fan girl” from Naples, Florida, who bought her Model Y Performance in September for $77,000, only to find out the same vehicle is now available for $13,000 less.
This price cut has not only affected the buyers’ perception of the brand but also the resale value of their vehicles. As per Ivan Drury, director of insights for research website Edmunds.com, “For any existing owner it’s a kick to the teeth. Anyone who bought a Tesla recently will feel an immediate impact [and] wish they leased it.”
The new vehicle price cuts will hit used cars immediately and could lower values even further. As buyers prefer new-car smell, pre-owned prices could fall more. This is not the first time buyers have faced this problem in the car industry but it’s the size of the price cut that has made this one different.
This price cut has also not only affected Tesla buyers but also buyers of other used cars. As per the researcher Cox Automotive, used-model pricing fell 15% in December, while new ones hit a record average of nearly $50,000.
Tesla’s price cuts have been the biggest among new-car sellers, with their more expensive models taking the biggest hit. Model Y base prices are down 20%, starting at $53,000 and the performance edition of the car that Simmons bought is down 19%. The larger Model S sedan’s Plaid edition was cut 14%.
The price cut has not only affected the buyers’ perception but also the resale value of the cars. Some buyers have already listed their cars for sale at a lower price, some have even had to cut the price again. Jack Bradham, a cloud services developer in Charlotte, North Carolina, said he’s miffed that the black Model Y long-range edition vehicle he bought in December has been devalued. He should have waited because he might have gotten the discount if he took delivery in January.
This decision by Tesla has not only left a bad taste in the mouth of buyers but also has left them with no one to contact. Andrew Checketts, from Santa Barbara, California, said he took delivery of a seven-seater Model Y in early December after Tesla was “hounding” him with text messages promoting a $3,750 discount at the time. If he had waited one month, he could have bought the car for much less.
In conclusion, Tesla’s recent decision to lower the prices of its vehicles has not only affected the buyers’ perception of the brand but also the resale value of their vehicles. This has left many buyers feeling cheated and with no one to contact for a resolution.
Source: Automotive News