Elon reveals Cybertruck details / production expectations on Q3 2023 call

[Gurule92]

Yep, dealerships make 70%+ of their profits from financing and service.

Thankfully, buying a new car does not require using a dealership's financing, or its service.

To that extent, whatever complaints folks might have about dealerships' approach to the sales price of new cars, it's independent of F&I/service model.

And at the same time, folks would have to say a lot more before I just assume away that Tesla doesn't also make money off of F&I and service. I personally don't find it "likely" that this is true. I see plenty of stories of folks talking about the service costs of Tesla. (To say nothing of the dirtly little secret that Tesla is beginning to rely on sending Tesla's to other OEM's service centers for service.)

And while not directly related here's Tesla charging $8,000 to $12,000 for a WRAP - and, strangely, I don't see anyone saying "see how predatory Tesla is!" Some in fact appear (in virtue of being a shareholder?) to slow clap and say, "man, look how profitable and savvy Tesla is."

That's true. I never used dealers and try not to use Tesla for that matter. I had a hard time finding a place to do my alignment yesterday cause everyone is afraid of these cars or something

I remember quite a few people at least in our threads talking about how crazy that wrap price is.

But yea they're expensive for service.

The cars just use service less. (Probably)

Idk about how they make money financing. They last rate matched me at a way too good a rate for way too long a term so they didn't make much there off me at least lol (through UsBank)

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[Gurule92]

it's a great example of how two things can be sold differently in the same exact way

True. But in a given day, if everyone walks in everyone gets the same price.

 

[Gurule92]

And while not directly related here's Tesla charging $8,000 to $12,000 for a WRAP - and, strangely, I don't see anyone saying "see how predatory Tesla is!" Some in fact appear (in virtue of being a shareholder?) to slow clap and say, "man, look how profitable and savvy Tesla is."

There was even one guy saying that this was Teslas move to evil corporation.

Is that a bad price for a color ppf wrap though (that's what they're doing right? I have no idea)? I've never got a quote for one of those. I know normal vinyl is cheaper

 

[TheLastStarfighter]

I prefer the dealership model because it gives me more choices and I can actually negotiate a deal instead of being told the price. I like getting a good deal.

And I have had good experiences with the dealers I have worked with. Yes, they have tried to get more revenue by offering things I don't want, but you can say "no".

My local Ford service department is great. So is the local Cadillac one.

When your entire business depends on your reputation in your local community sometimes you get better results. When my small local community is just a drop in Tesla's ocean, do the really pay me the the same level of attention? Not likely.

The closest Tesla service center is one hour from my house. The closest Ford dealership is 5 minutes. The Cadillac dealer is 10 minutes away. Why would I want to drive an hour when I can drive 10 minutes?

You didn’t negotiate a deal. They had a price where they can sell it but quoted more than that. You “negotiated” the removal of the premium (like everyone else who goes there) and then you paid the price of the car like everyone else. Made you feel like a winner though, so I guess there’s that.

 

[cvalue13]

There was even one guy saying that this was Teslas move to evil corporation.

Is that a bad price for a color ppf wrap though (that's what they're doing right? I have no idea)? I've never got a quote for one of those. I know normal vinyl is cheaper

I don't know, either. Which is why we're not claiming Tesla has moved to evil corporation. I suspect that person also doesn't know, but unlike us loves to find a villain to blame.

Because at the end of the day, whether Tesla is charging more for a wrap than alternative providers is irrelevant. If Tesla only wants to sell to people who find convenience in, or for some reason are "forced" to use a Tesla wrap - then it's a free market.

Just like that, whether OEM's are charging more for service than an alternative provider is irrelevant, because some people find value/convenience in, or for some reason are "forced" to do so, is also a free market.

 

[cvalue13]

You didn’t negotiate a deal. They had a price where they can sell it but quoted more than that. You “negotiated” the removal of the premium (like everyone else who goes there) and then you paid the price of the car like everyone else. Made you feel like a winner though, so I guess there’s that.

This isn't true just bizarre and misleading information that does more to evidence that you have some emotional bone to pick than any interest in an intellectually honest conversation.



OEM's set dealer invoice pricing and MSRP.

Dealerships are (shocking!) only in the business to make a profit.

It is possible for a given individual to make decisions that result in paying more or less premium to a dealership than 'the next guy.'

One principle way that occurs: the exact vehicle they choose to purchase.

If a buyer chooses to purchase e.g., a honda accord, agnostic to paint color, because they want the best value and to give the dealer the least amount of profit, they can get one for at or below manufacturer invoice price.

If instead a buyer chooses to purchase e.g., a Ford Raptor, will accept nothing other than that rare candy apple paint job, because that's what they value - then they better get comfortable with giving their dealer the profit the market bares.

Which goes to show the slight of hand 'hidden' behind these many of these complaints: in one hand, a buyer wants it's special and exact little unicorn of a vehicle, and in the other hand that same buyer feels butthurt when they then have to pay for their decision.

The latter type of buyer decides to subsidize the former type of buyer.

And I think them.

 

[TheLastStarfighter]

This isn't true just bizarre and misleading information that does more to evidence that you have some emotional bone to pick than any interest in an intellectually honest conversation.



OEM's set dealer invoice pricing and MSRP.

Dealerships are (shocking!) only in the business to make a profit.

It is possible for a given individual to make decisions that result in paying more or less premium to a dealership than 'the next guy.'

One principle way that occurs: the exact vehicle they choose to purchase.

If a buyer chooses to purchase e.g., a honda accord, agnostic to paint color, because they want the best value and to give the dealer the least amount of profit, they can get one for at or below manufacturer invoice price.

If instead a buyer chooses to purchase e.g., a Ford Raptor, will accept nothing other than that rare candy apple paint job, because that's what they value - then they better get comfortable with giving their dealer the profit the market bares.

Which goes to show the slight of hand 'hidden' behind these many of these complaints: in one hand, a buyer wants it's special and exact little unicorn of a vehicle, and in the other hand that same buyer feels butthurt when they then have to pay for their decision.

The latter type of buyer decides to subsidize the former type of buyer.

And I think them.

You think what?!?

 

[cvalue13]

You think what?!?

 

[TheLastStarfighter]

I’m pretty sure this is really you.

 

[cvalue13]

I’m pretty sure this is really you.

and that would be problem why?

 

[TheLastStarfighter]

and that would be problem why?

I did not state a problem. It’s sad that you think there’s something wrong with that fellow.

 

[cvalue13]

I did not state a problem. It’s sad that you think there’s something wrong with that fellow.

did you just really "I know you are but what am I"?

 

[TheLastStarfighter]

did you just really "I know you are but what am I"?

No, I didn’t.

 

[Knucklehead]

You didn’t negotiate a deal. They had a price where they can sell it but quoted more than that. You “negotiated” the removal of the premium (like everyone else who goes there) and then you paid the price of the car like everyone else. Made you feel like a winner though, so I guess there’s that.

Yes, I felt like a winner! Because I like to win. And I won the opportunity to spend a lot of money!

 

[CyberGus]

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