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$35,000 Tesla Model 3 Available Now

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Re: $35,000 Tesla Model 3 Available Now

#131
post #9

Interesting to point out that the $35k is the full price, which goes down when additional discounts are applied. If you get the short range model with no options, it starts out at $35k, then goes down all the way to $24,950 after including the $3,750 Federal tax credit, $2,000 New York EV rebate (clearly it's geolocating by IP address here), and "$4,300 estimated 6 year gas savings". OK, so that last bit is BS, and i…

[Deleted]

That’s a tax deduction. A tax credit of $X really is $X off your taxes owed.

Re: $35,000 Tesla Model 3 Available Now

#132
post #9

Interesting to point out that the $35k is the full price, which goes down when additional discounts are applied. If you get the short range model with no options, it starts out at $35k, then goes down all the way to $24,950 after including the $3,750 Federal tax credit, $2,000 New York EV rebate (clearly it's geolocating by IP address here), and "$4,300 estimated 6 year gas savings". OK, so that last bit is BS, and i…

[Deleted]

You appear to be conflating a credit with a deduction.

A deduction reduces the amount of income thats taxed. So for example if you're in a 25% marginal tax bracket, deductions are worth 25 cents on the dollar.

A credit reduces the amount of tax you owe, dollar for dollar. In addition, some credits are refundable, meaning that they're allowed to make your tax liability negative for the year, so you get benefit from them even if the credit is more than the taxes you would otherwise owe.

And to be clear, when I talk about the "tax you owe", I mean the total amount of money you need to have paid the IRS by April 15th, including payroll withholding, estimated tax payments, and so on, and not the size of check you need to mail to the IRS in early April.

Re: $35,000 Tesla Model 3 Available Now

#133
In my obviously very biased opinion as a TM3 owner, I am both happy and sad for this news.

The Tesla store in the mall near my house is fun. My kids love going there and sitting in the different models, and my son knows how to trigger all the Easter eggs, like making the X falcon doors dance.

At the same time, I have zero use for the store now that I’m an owner, and I had zero use for the store in actually making my purchase. The test drive that I did finally do of the TM3 (after I had already put $3,500 down and was entirely certain I would be buying the car) was actually underwhelming because I didn’t get nearly enough time with the car to really appreciate it, nor get to drive it in any kind of interesting terrain.

Actually driving my own TM3 on the other hand blew me away from nearly the first moment and still does.

I wonder how many owners are like me in that with the massive quantity of YouTube videos and reviews, already knew with certainty a TM3 would be their next car without actually needing to drive it? BTW, I’ve never had that with another car, and never would have dreamed of buying a car without driving it, before Tesla.

At the TM3 base-range $35k starting price, I think the vast, vast majority of people who “trial” one will keep it. This is particularly true if you’ve already made any kind of actual arrangement to charge it at a decent kW rate.

I would add that they need to have a trial mode of the full auto-pilot functionality, and also perhaps the ability to pay monthly for auto-pilot software subscription rather than bumping up the sticker price. This would also help with reducing sales tax and excise taxes I think.

I just hope the car-buying public is ready for this. Tesla will rely heavily, extremely heavily on word of mouth without a way for people to easily get in and touch and test drive a model with no commitment. Luckily I give test drives to everyone I know who I can talk into it, and I’m guessing most owners act the same in an effort to evangelize.

But as they try to go more mass market and compete with the Accords and Camrys, as they have less of the evangelical early adopters, will that target market a) have the charging infrastructure readily available, and b) really be willing to buy purely online and sight unseen?

I want this to work, and fear that it won’t. They are pushing so damn hard to get to that $35k price point with any kind of margin left over. If they had another year of process improvements maybe they could do it even with the stores. Without a store they can pull forward a profitable $35k TM3 several months at least. So it makes perfect sense while still being a huge gamble. Wild ride.

(Copied from the other post about the same news)

Re: $35,000 Tesla Model 3 Available Now

#134

Amused the $35k model is any color you'd like as long as it's black.

:D “Any customer can have a car painted any color that he wants so long as it is black.” -Henry Ford (July 30, 1863 – April 7, 1947) This was in reference to the Ford Model T which was introduced at $850 in 1908 and was brought down to $300 in 1925.

I don't see why it's amusing though - it made sense as a way to keep costs down then and it does now. What's the problem?

Re: $35,000 Tesla Model 3 Available Now

#135
post #103

Earlier quoted context omitted.

Does that circumvent some state laws that demand selling cars through dealerships? Also does Tesla still have Tesla branded "service shop" to do car delivery/return/refund/service?

"At the same time, we will be increasing our investment in the Tesla service system, with the goal of same-day, if not same-hour service, and with most service done by us coming to you, rather than you coming to us. Moreover, we guarantee service availability anywhere in any countries in which we operate."

While service is an issue, the bigger issue right now is repairs after an accident or other, bigger problems that can't be fixed in a "daily visit on site".There are people waiting three to six months for repairs: https://forums.tesla.com/forum/forums/why-does-it-take-month... https://teslamotorsclub.com/tmc/threads/repair-time-6-months... https://www.driving.co.uk/news/features/tesla-owners-facing-... https://www.sfchronicle.com/business/article/Tesla-owners-fu... My boss had to wait more than three months this past fall after his accident, and he was making payments the entire time (of course) --- they have not fixed this problem. And no, most insurance will not cover a loaner for this period of time.

Re: $35,000 Tesla Model 3 Available Now

#136

"To achieve these prices while remaining financially sustainable, Tesla is shifting sales worldwide to online only. You can now buy a Tesla in North America via your phone in about 1 minute, and that capability will soon be extended worldwide. We are also making it much easier to try out and return a Tesla, so that a test drive prior to purchase isn’t needed. You can now return a car within 7 days or 1,000 miles for…

“Courageous”

If anyone has ever had to cancel a car sale you’ll realize how much of a hassle it truely is to “return a car”

Your credit report will show a loan even after it’s been cancelled for weeks.

I once cancelled financing for a car due to it not being as described. Started looking for a new car and found it.

Got denied for a loan because my score showed a 60k loan with 0 payments made. It took almost 2 months to fully remove it from my report and start with a clean state

In summary, Tesla is essentially saying “you can’t test drive it but if you don’t like it you can cancel your car search for a few months and ding your credit score for nothing”

This is like mattress stores that give you a “free trial”, they know the resistance to actually doing ending your “trial” is crazy high

Re: $35,000 Tesla Model 3 Available Now

#137

I wish they would hire the interior controls engineer that worked on the 8th gen. Mazda Protege. Simple, elegant, and ergonomic. That giant iPhone in the middle of the Tesla 3 puts a crick in my neck just from looking at the pictures.

Except everyone who owns one seems to love the interior

Re: $35,000 Tesla Model 3 Available Now

#138
post #11

I'm confused about the return policy, on the glossy ordering web site it say 7 days / 1000 miles, but on the T&C page it says 3 days / 500 miles. It's an interesting policy regardless. In sounds like it's pretty much 'no questions asked'. Any experiences with this?

[deleted]

Re: $35,000 Tesla Model 3 Available Now

#139

Earlier quoted context omitted.

[Deleted]

You just described a deduction. A credit is literally cash (assuming you have enough liability to cover it).

Certain tax credits apply even if you don't have enough liability. Like if you owe zero taxes for the year for some reason they will send you a check for the full credit amount. Not sure which category the EV one falls under though.

Re: $35,000 Tesla Model 3 Available Now

#140

I wish they would hire the interior controls engineer that worked on the 8th gen. Mazda Protege. Simple, elegant, and ergonomic. That giant iPhone in the middle of the Tesla 3 puts a crick in my neck just from looking at the pictures.

Except everyone who owns one seems to love the interior

Have they driven a Protege? :)
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