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Long term effect of Tesla Cars price drops on Tesla's Motors brand?

135

Comments

  • Registered Users, Registered Users 2 Posts: 1,297 ✭✭✭walterking


    I would not let short term high electricity prices get in the way of a long term purchase.

    Gas prices have stayed down. gas futures are also in the €75 range for September/ Oct delivery. This will start feeding into electricity prices soon and standard rates will move back toward 30c



  • Moderators, Society & Culture Moderators Posts: 39,802 Mod ✭✭✭✭Gumbo


    I agree. Wholesale purchases by ESB are down. But they’re still in the last commutes to prices.

    Rates should drop towards the end of the year alright.



  • Registered Users, Registered Users 2 Posts: 3,785 ✭✭✭...Ghost...


    You are forgetting the extra 17 grand you pay at the end of the PCP period for that Tucson. Similar for the Corolla. PCP makes repayments look small and then you have to pay he balloon payment at the end. My figures are coming from AIB for HP rather than PCP. HP is a better marker, because you don't have the balloon payment at the end and the repayment is directly comparable. You own the car after the final monthly payment which remains the same to the end.

    I could add a few cent per kWh to the cost of charging, but it won't make much difference. I don't know a single person who uses their car to commute to work and spends less than €50 per week. Most spend €100+. One of the lads on my team drives an older Tucson. He lives close to work and still puts in more than 50 a week with almost no leisure driving as he lives across the road from a large shopping centre, so doesn't drive for groceries etc.

    I'm basing my figures off real world values and have compared my monthly costs against others I know with similar commutes. A common complaint I hear is just how expensive it is to fill a tank with Diesel or petrol. The last time I drove/owned an ICE was 6 years ago. My commute was a 10 minute drive each way in a 1.6 petrol Opel. With very little driving and lower fuel prices than now, I was still throwing about 200 a month into the tank.

    Stay Free



  • Registered Users Posts: 808 ✭✭✭podge1979


    Smart plan bord gais, 40c during the day but of course higher peak rate, if exporting rate of 18c buy back on that I think.



  • Moderators, Society & Culture Moderators Posts: 39,802 Mod ✭✭✭✭Gumbo


    Thanks. He has no PV so exporting is irrelevant. I get 21c from ESB though.

    Peak rate etc may cancel out the lower 40c rate.

    I’ll do some man maths with him but I think energies ev rate is best based on fully charging nightly.



  • Registered Users Posts: 808 ✭✭✭podge1979


    He must do some milage to have to fully charge each night!

    Looking at the stats only 1 hour in peak is high with ours (when cooking not much higher cost wise to our high use hours during the day).



  • Moderators, Society & Culture Moderators Posts: 39,802 Mod ✭✭✭✭Gumbo




  • Registered Users Posts: 808 ✭✭✭podge1979


    No I was quoting Tesla PCP also in my figures as that is how average Joe will be able to afford a car at the high 30 or 40k car.

    There is no way you were putting 200 euro into a opel for a 20 minutes round trip. In my last car I was doing 80km round trip each day in an Audi A3 1.6 and used to put in 50 euro a week (filled the tank).

    I know loads of people who spend less now due to remote or hybrid working.

    That 80km commute would cost 100 a week now, but seen as only 2/3 days in the office like a lot of people that would be back to 40/60 euro.



  • Registered Users Posts: 808 ✭✭✭podge1979




  • Registered Users, Registered Users 2 Posts: 3,591 ✭✭✭Hoboo


    They won’t have the raw materials to build 20m electric cars in 2030.



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  • Registered Users, Registered Users 2 Posts: 23,666 ✭✭✭✭ted1


    rubbish.

    basis economics is that price is driving by supply and demand. Hence the higher prices.


    they now have a factory in Berlin, Texas and China which they didn’t have when the M3 began. That gives them an additional 750,000 model 3s a year which is where the supply is coming from.



  • Registered Users, Registered Users 2 Posts: 23,666 ✭✭✭✭ted1


    You are forgetting higher insurance, tax, tolls, maintenance etc.



  • Moderators, Society & Culture Moderators Posts: 39,802 Mod ✭✭✭✭Gumbo




  • Registered Users, Registered Users 2 Posts: 3,576 ✭✭✭carsfan2


    Off topic but this is not correct. The dealer, in this case Tesla gets paid up in full by finance provider for the car. The risk lies with the finance provider.



  • Registered Users, Registered Users 2 Posts: 1,960 ✭✭✭Jizique


    Service level is the single biggest issue US customers have



  • Moderators, Sports Moderators Posts: 19,197 Mod ✭✭✭✭slave1


    This comes up from time to time, it was a comment Tesla made at 3 launch and the $35k 3 was available in the US, it is not on the website but could be ordered in store. As this has not come up recently I don't know if still available.



  • Registered Users, Registered Users 2 Posts: 5,822 ✭✭✭Old diesel


    Totally agree with this.....

    Premium in the 1980s

    Genuinely the best cars on the road in terms of quality build, design, engineering and built to last in the context of the 1980s.

    Premium now

    Hi yes - you want an Audi - certainly sir - 20 grand extra for the same 2.0 TDI you can get in a Skoda. A Skoda which will pretty much give you the same long term ownership performance....

    As for Teslas brand - sure the image guys will be turned off by the entry to Tesla ownership being lowered.

    But the Tesla product is different to legacy auto at the moment.

    So if you like that you will still have one.

    If you don't like Tesla then you weren't owning one anyway.



  • Registered Users, Registered Users 2 Posts: 5,822 ✭✭✭Old diesel


    Well this is interesting.......

    In ICE car terms a Model 3 is compared to a 3 series BMW.

    Many people judge EVs vs ICE based on diesel.....

    The standard issue 3 series diesel for years was and is the 320d.....

    So now a brand new 60 kwh Model 3 is comparable on price to a 2019 320d with over 50,000 miles on the clock....

    Edit

    Link

    https://www.carzone.ie/used-cars/bmw/3-series/fpa/202210200914191?journey=Search



  • Registered Users, Registered Users 2 Posts: 1,928 ✭✭✭kanuseeme


    When I read about the Tesla "premium" brand, I like to think of the other premium brands like Chevrolet, Buick, Dodge etc, even in the states premium is associated mostly with German brands, and Tesla might lead the way in EV's much the same as Rolls Royce leads in luxury, but I would never attach a label of premium to them, stick all the Gucci labels you want on a scumbag, you still have a scumbag.

    What I don't understand is why they need to drop the price so much, they could have offered transferable supercharger credits time-limited with a smaller discount without pissing off previous customers, or even a more gradual drop in price or a buy one last year get one this year cheaper. There seems to be no care for their customers.

    The price dropping is a good thing puts pressure on other car manufacturers, I would be even tempted by a Y, but a saving of 500 euros a year in my case is not worth it.



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  • Moderators, Society & Culture Moderators Posts: 39,802 Mod ✭✭✭✭Gumbo


    Just aswell this is an Irish based forum. I wouldn’t want to base my buying opinions on somewhere like the US.



  • Moderators, Motoring & Transport Moderators, Regional East Moderators Posts: 8,061 Mod ✭✭✭✭liamog


    You'd be a long time travelling to your service appointment



  • Moderators, Society & Culture Moderators Posts: 39,802 Mod ✭✭✭✭Gumbo


    They come to you or else sandyford.

    Handy for city folk. One Luas leaves me home if required.



  • Moderators, Sports Moderators Posts: 19,197 Mod ✭✭✭✭slave1


    In fairness the SC is not faultless, they struggle with staff knowledge and turnover and have very poor inventory holdings even for day to day parts and Tesla do not do air freight so all parts come over land/ferry from the Netherlands



  • Moderators, Motoring & Transport Moderators, Regional East Moderators Posts: 8,061 Mod ✭✭✭✭liamog


    That's terrible, I'd of expected US customers to be going to service appointments in North America.



  • Registered Users Posts: 243 ✭✭LasersGoPewPew


    There's a lot angry people which is understandable. I am delighted that they've dropped their prices. I hope they fall further to sub 40k for M3 SR and MY. I hope Tesla go for volume and smaller margins like Toyota.

    It's badly needed as part of the equation to accelerate EV adoption, Tesla are the only brand that offer great efficiency, extensive features and quick updates on their cars. Others need to follow suit and reduce their prices because the likes of VW and Korean brands are very expensive these days.



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  • Registered Users, Registered Users 2 Posts: 3,785 ✭✭✭...Ghost...


    OK, using your PCP figures and ignoring the balloon payment, are you suggesting that someone spending over €400 per month couldn't afford to pay €600 (your figure) on a Model 3 with fuel included? I don't buy that figure, but hey, I thought I would ask. Let's do the sums for clarity.

    The Tucson gets an average real world MPG of 40. Your 80km is 50 miles per day, 250 per week, 1000 per month. Cost 200-240 per month depending which average MPG you take. With PCP on top, that's 470-510 per month....leave it at 500 to keep it simple. Tax is higher etc.

    The same 1000 miles or 1600 kilometers in a Model 3 RWD would use 240 kWh (average 15kWh per 100km). At 15c per kWh, that's €36. The Model 3 according to the figures you posted was €480pm on PCP. add €36...round her up to €40 for some spirited driving and we have €520.

    Sorry, but i'm not getting where the Model 3 is costing 50% more....certainly not on TCO.

    Adding in hybrid and remote working is muddying the waters. We have been talking about people doing reasonable commutes every day. Let's leave out the folk spending 1 day a week in the office.

    Stay Free



  • Posts: 0 [Deleted User]


    If you are staying with Tesla the cost of change will stay the same than before the the discounts. There will also be bigger potential second hand market for used Teslas that suddenly are much cheaper than before Friday the 13th.

    I got offered €53k for my 211-reg 3 LR earlier in 2022 to trade for Y LR which at that time was €73k. So cost of change would have been 20k approx. Now if I was going to do the same trade in one year later I would only have to get €34k for my car. I suspect it would be quite easy to sell a spotless 53k km 211 Model 3 LR for €35k or even for a few k€ more. So the cost of change would actually be less now in 2023 than what it was almost 1 year and 20k km ago. The EV grant muddies the waters in this example but it's still a valid case of one current owner.

    To me this sounds great actually as suddenly our 10-15k cheaper used Tesla has a much bigger potential second hand market: It now competes with likes of a new Peugeot e2008 or 40 kWh LEAF and undercuts a Kia eNiro by a wide margin. If I wanted a non-Tesla instead the situation would be different unless the other makers also started to compete in price.



  • Moderators, Society & Culture Moderators Posts: 39,802 Mod ✭✭✭✭Gumbo


    Not many understand this. I’ve been posting it on the groups but they don’t get it.



  • Registered Users Posts: 243 ✭✭LasersGoPewPew


    If I could buy a 211 M3 LR for 35-37k I'd absolutely jump at that opportunity. PM cars my way lads😂



  • Registered Users, Registered Users 2 Posts: 1,928 ✭✭✭kanuseeme


    A smart move would have been to have a sale on their existing stock before introducing the price drop, there is SR 3 2019 for 42k, who in their right mind would buy that now?

    I count 14 M3 on their site and all have lost value. Their own worst enemy.



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  • Posts: 0 [Deleted User]


    It's all funny money for Tesla themselves. They are here to keep selling the new cars and the second hand stock will just be discounted or offloaded for trade if they don't shift. The second hand only dealers are a different ball game though if they bought expensively with real money. They and the taxman lose and the consumer wins here I think.



  • Registered Users, Registered Users 2 Posts: 9,726 ✭✭✭Red Silurian


    There is actually a slight benefit as well, if your car is worth less then your insurance should, in theory, also reduce in price



  • Registered Users Posts: 808 ✭✭✭podge1979


    Sorry you lost me with the first line looks like 200 euro a month is no biggie to you but someone might be stretching with deposit and monthly payments even at that.

    And the answer is yes speaking from experience prior to my current car I had decided to go new as the second hand cars I had before that were starting to cost me too much (repairs) also had a baby on the way and wanted something more comfortable. I initially was going for a Octavia on pcp around 280 I think back then but wondered into an Audi dealership for a browse and ended up with an A3 for 340 a month (was stretching at that so yes 60 euro was a lot). Since then did fairly well work wise (missus too) and can afford an EV which I'm driving for the last year and I'm well aware of the savings.

    Secondly someone doing that milage like I was would have to get an ev (perhaps MG or leaf or even 2nd Model 3 now if they drop at a cost of around 30k mark) but people who work from home or run about milage expense in relation to big milage would be less of an issue so a corolla or Tuscan maybe more cost effective.

    But have to say fair play to ya if 200 euro a month increase 400 to 600 and you wouldn't bat an eye lid to it maybe you should have stretched to a model S yourself 😉



  • Registered Users Posts: 85 ✭✭Newoven


    Probably because it’s wrong. Whether changing to another Tesla or a different car the fact remains that this price cut has chopped €8k or so from the value of cars bought in 2022, including my M3 RWD bought for €52k last February. Just because a tesla can be had cheaper when we change car doesn’t change the maths, it just means that only Teslas will be in budget. Tesla has chosen to undercut the value of an asset it sold to us at a time when the market values for EVs overall hasn’t significantly changed. We didn’t buy a speculative asset from Tesla, these aren’t shares or crypto. I was already unimpressed by Musk and his madness, this makes me highly unlikely to buy another car from him.

    By the way when considering cutting prices did tesla management consider also cutting supercharger prices? That’s one way to ease the hit for existing owners.



  • Moderators, Society & Culture Moderators Posts: 39,802 Mod ✭✭✭✭Gumbo


    BMW done the same in 2013 when they start importing the "Sterling Collection".

    Over night, every Irish car bought in the first half of 2013 devalued to the cost of a UK import because the dealers were bringing them to sell at a discounted price.

    Many bought into the Tesla brand thinking they could a year or more and sell for the same money. In these forums many have been posting that the second hand car market significantly cooled in the summer of 2022, I posted it myself many times. My car is devalued too.



  • Registered Users, Registered Users 2 Posts: 1,928 ✭✭✭kanuseeme


    How is Tesla on trade in's?

    Just now on the website, there is a 2019 m3 SR for 42k. Has their trade-in valuation procedures caught up with the new sale price?

    If you can get the same high valuation on a trade-in, it would be one way to play the system.

    Post edited by kanuseeme on


  • Registered Users, Registered Users 2 Posts: 283 ✭✭ElitesTeam


    They have not updated used prices.

    Would be worth trying so see what they offer



  • Moderators, Society & Culture Moderators Posts: 39,802 Mod ✭✭✭✭Gumbo


    Submit the details and they get back to you. But, Tesla generally give better trade in values on teslas that they can actually sell, similar to bmw, Audi etc

    Best bet is to test the waters on the trade in while also selling on DoneDeal and submitting to the trade buyers.



  • Registered Users Posts: 258 ✭✭WattsUp


    They just dropped supercharge rates to 45c and 50c peak between 4pm and 8pm



  • Moderators, Sports Moderators Posts: 19,197 Mod ✭✭✭✭slave1


    Good luck with that, I have my trade in with them since week before last, they have a huge backlog



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  • Registered Users, Registered Users 2 Posts: 12,794 ✭✭✭✭galwaytt


    eh, 'premium' is subjective. 'niche' brand is more apt.

    They won't hit 'premium' until quality matches the other players: NVH, fit & finish, paint etc. They're not at that level yet.

    Ode To The Motorist

    “And my existence, while grotesque and incomprehensible to you, generates funds to the exchequer. You don't want to acknowledge that as truth because, deep down in places you don't talk about at the Green Party, you want me on that road, you need me on that road. We use words like freedom, enjoyment, sport and community. We use these words as the backbone of a life spent instilling those values in our families and loved ones. You use them as a punch line. I have neither the time nor the inclination to explain myself to a man who rises and sleeps under the tax revenue and the very freedom to spend it that I provide, and then questions the manner in which I provide it. I would rather you just said "thank you" and went on your way. Otherwise I suggest you pick up a bus pass and get the ********* ********* off the road” 



  • Registered Users, Registered Users 2 Posts: 3,576 ✭✭✭carsfan2


    Here's Why Tesla Car Values Have Dropped So Fast - YouTube

    Doug De Muro is a car guy who knows his stuff. I think his assessment here, while US centric is spot on with relation to attitudes to the brand and a lack of new product etc.



  • Registered Users, Registered Users 2 Posts: 3,785 ✭✭✭...Ghost...


    I lost you at the first line and you go on to write a short novel in response!! 😂

    Seriously though, you should go back then and read the rest, starting from paragraph 2 if you skipped ahead. Based on your figures, the Tesla is really only €20 per month more than the Tuscon.....cheaper if we include motor tax. Way cheaper if we start to talk about servicing and maintenance after the first year.

    Great to read you are enjoying your EV and your situation has improved from when you were driving an older and expensive to run ICE. Some of them can become real guzzlers, as was the case of my Opel.

    Stay Free



  • Registered Users, Registered Users 2 Posts: 992 ✭✭✭bf


    Strange, I got a trade in value back in less than 24 hours this week!



  • Registered Users Posts: 808 ✭✭✭podge1979


    Your a bit of a wordsworth yourself!!

    Its only 20 euro more if your doing big milage to justify it and as I said then buying a corolla/Skoda (2nd hand Tesla now) my be the option for sub 30k car.

    Even on fuel saving a 40k+ car is not an option for many.



  • Registered Users Posts: 85 ✭✭Newoven


    I’m struggling to see any reference to this. Do you have a link?



  • Registered Users, Registered Users 2 Posts: 2,645 ✭✭✭joe1303l




  • Registered Users, Registered Users 2 Posts: 5,822 ✭✭✭Old diesel


    A devaluation of Model 3 prices was inevitable.

    2nd hand ones were nearly the price of a new one.

    The old price of a new one.

    Was unsustainable



  • Registered Users, Registered Users 2 Posts: 239 ✭✭rdhma


    They could have held prices steady and rampant inflation would have done the job for them.

    Anyway, won't harm the brand long term, the EV early-ish adopter pricing couldn't last, interiors etc. did not match the price tag.

    With more Chinese EVs on the horizon, they would have had no choice but to drop prices anyway or lose market share, e.g BYD Atto 4 still undercuts Model 3.



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  • Registered Users, Registered Users 2 Posts: 1,292 ✭✭✭MightyMunster


    Click on a supercharger on the car navigation and it gives the prices



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