I totally agree, because you’re not spending that money on gas, it does not make it a discount on the purchase price of the car. It might bring down the cost of ownership when compared to a gas vehicle, but the bank will still finance that portion of the price tag regardless. As for the $7500 federal incentive, it also is not a discount of the sticker price.
For me this falls in the same category if you went to a car dealership and the salesman put a price tag on the window that’s was 10K less and claimed it was technically 10K less because of all the savings of not having to pay for parts when they break due to the wonderful 3 year warranty. Still financing the full amount and still doesn’t impact what you actually pay for the car.
@@DrewsReviews2023 "I know it says $50,000 but the car is really $42,500. Just think of it as a $7,500 loan to the dealership that you'll get back next year if you have a high enough tax burden." Bada bing!
@mjbates but it still doesn’t lower the amount financed. So the amount financed if putting no money down would still be 50k. To be clear I think the tax credit is awesome, but it still doesn’t give the immediate relief this the car payment is still higher than if you received the 7500 at point of sale.
Yeah, I would say it's a bit misleading, but as others have mentioned, there are MULTIPLE disclaimers in the ordering and processing steps that inform you about the actual price. Even right at the beginning of the video, where it displays the heavily discounted price, it also includes the statement: '*Price before incentives and savings is $50,490, excluding taxes and fees. Subject to change.' Additionally, Tesla's website provides calculators to offer more accurate figures. Ultimately, it's the consumer who purchases the product, and it's their responsibility to perform due diligence.
As I have mentioned to others, I primarily don't like the fact they are selling a dream. The dream scenario is taking your $800 car payment down to $500 after all of the savings and tax credit, but the reality is that it is still an $800 car payment in that scenario. Thanks for the feedback and for taking the time to watch.
This is VERY simple - just make Tesla do in the US what they had to do in Europe - display actual pricing as the main thing, 'Probable, after tax credit' as the second tab. It does seem to me like this is similar to car advertisements on TV though because those prices always have asterisks too, but it's about qualifying for that pricing, not about a price you can't possibly pay.
Ah, that is a good point. I didn't realize in the UK there is still no sign of FSD. At least in the states we do have FSD that truly can drive itself. The only issue is you have to touch the steering wheel quite often.
Totally agree. Was looking at all different options of 3 and Y LR and got so confused that I sent them an email to give me actual costs, no estimates or 'probable savings' added. They sent a document with actual prices from their internal cost calculator tool and it was an eye opener tbf. Much higher(ofc) than their website states.
The actual price is there but it is stupid they add the potential gas saving potential. I want to know the price I would be paying if paying cash or getting a loan.
Yeah, it's kinda weird to market it like that, but I think anyone seriously car shopping can figure out how to toggle off potential savings to see a real price. Personally, I think it would be much more impactful to have a tool on their site where you put in the mpg of your current car and your zip code (to get accurate pricing for home charging) to show the equivalent price you're paying for a gallon of gas. Ex: I went from a car that got 26mpg, and now with my Tesla it's as if I'm paying $0.75 per gallon of gas. The actual $/gallon is what ICE drivers think about everyday. I think it's much more impactful than $6500 over 7 years or however Tesla puts it on their site.
I agree that people can figure out to toggle off and focus on actual price but I personally think there will be many people who try to justify a car they may not be able to afford even more so than the pressure typically felt at a dealer. People might see the after savings payment and think….an 800 dollar payment is technically only a 600 payment. That is why I have issue with it. To try and say the car cost 10-15k less than it actually costs is redic! Regarding your calculator idea I think that would be incredible! Thanks for taking the time to watch and comment!
I don't think it's misleading. Purchase vs. Potential Savings are clear in the side panel, and are summarized at the bottom of the screen. Plus you see the full price of course at checkout. Even if you were confused by the checkout price, it's simple to go back an look more closely to understand what they are presenting. It's fair for Tesla to present potential savings front and center, because it is true for most people, who wouldn't otherwise do the math. Compared to what dealerships do to potential buyers, this is truly a non-issue.
It’s not as much that I think it is confusing to buyers as I think it helps buyers perform mental gymnastics to arrive at the idea that their $800 payment will only feel like a $500 payment because of all this gas savings and tax credit. Like buying a house and thinking because the house is so awesome you will go out less because you just want to stay at home so you can afford a larger payment on the house. The payment and the price of the car is still the price of the car. Same with the ev tax credit, you are still financing that 7500 in the vehicle price whether you get the tax rebate or not. I’m totally down for them giving tools to calculate but I think it helps buyers pain a picture that is not accurate. Will they save in comparison to a gas car? Yes but the number is widely variable. Either way I appreciate the feedback and comment!
They also constantly waive the $7500 tax credit and possible state tax credits. Not everyone qualifies. I like the Tesla model of no dealerships and buying directly but they seem to play the same price game as dealers do. They'll think nothing of dropping prices thousands of dollars but if you bought the day before, too bad so sad. I do have a 3 and an S.
What sucks is I believe they have a “hip” vibe the same as apple products and it’s not necessary to market this way. I believe people will still buy with or without tax credits. People want their vehicles.
@@DrewsReviews2023 Apple fights hard against right to repair, uses proprietary things to make you buy more of their overpriced things, doesn't allow as much freedom of use compared to my Samsung phones, has possible human rights violations in China with their manufacturing. They aren't about sustainability at all either, so that doesn't help too. They really want you to keep buying their latest products and more of them.
The number 1 thing I dislike about dealerships is the fact that is takes 3 or 4 hours. I would truly rather pay 2k more than sit there for 4 hours. Its redic.
There are two buttons one says purchase price the other says probable savings so technically they aren't doing anything illegal in my opinion, click on the purchase price and you see it, its in black and white. Also at the bottom it says Vehicle price and next to it probable savings. Your getting your panties in a wad for nothing, read and think and it will be ok.
I show the two buttons in the video. For me it is more about the fact that they take an $800 payment and show consumer that the payment will feel like $500 after "probable savings". I think it helps people find ways to justify a payment they may not be able to afford. They might think I know the payment is $800, but the amount of savings I will have from gas it will only feel like $500. This saving obviously varies widely depending on how much people drive and even the type of car they had. If they went from a 45mpg gas car to an EV - the gas savings may be only $60 bucks savings per month. Even with the tax credit. You are still financing the 7500 into the price of the vehicle, so in my opinion it doesnt make the car any cheaper, it just simply gives you a tax credit when filing taxes in 2024. I also don't think Tesla should be closed down for doing this. I just feel they should go about it in a different way. Hope that makes sense. Thanks for sharing your thoughts!
Damn that's petty of Tesla to be doing that but it must be a US thing. It didn't happen to me when I ordered my Tesla in Mexico and just checked and they're not doing it on the Mexican website right now. It does show the potential savings but it doesn't default to that price.
That is extremely interesting that it doesn’t default to that in Mexico. When you click on probable savings how much does it estimate in gas savings? As I said in the video I received different numbers depending on the time of day I clicked.
You should always do your own math. People got too lazy and just care about monthly payment. I always go for the CASH price and see how much will it cost me monthly, from there I can manually deduct my own expenses which I usually have for ICE car. What I don't like is how the autopilot and FSD are being charged as extras.... you already paid for the hardware even if you don't use it, it should be included in the price anyway. Especially FSD, you pay extra $20K and you cannot fully use it, this is complete scam.
Oddly enough I am cool with them charging for FSD. I personally like autopilot but the FSD I am not as big of a fan because of the frequency it makes you tough the steering wheel. I would be less cool with a 20 per month subscription fee just to use the heated seats. Lol
@@DrewsReviews2023TBH it's only going to increase in price. The only issue I have with it is that it's non-transferable. Any paid software should be transferable so that people can easily upgrade later.
The pricing and savings are unambiguous for those who read the specific details. Is it your thought that their pricing policies should be illegal, despite all the information being available to calculate the pricing, because you needed help to figure it out?
It’s because as someone who is a Tesla fan boy and wanted once since 2015 I would have used their calculations to try and justify a payment I couldn’t afford. I believe it causes people to sign up for 800 dollar payments with the assumption they will save so much in gas and tax credit that it will be ok and only feel like 500 bucks. But in reality it’s still an 800 dollar payment.
I understand you like Tesla's but given who is the marketing goon behind it you are naïve if you think Tesla doesn't lie everywhere in some capacity, from range to self driving to cost. You can be a fan just don't be naïve.
Thanks for making this video, the whole tax credit thing drives me insane. Many people who don’t understand it, assume they’re getting a check or refund for $7500. The whole “probable” pricing is a little ridiculous.
Thanks for taking the time to watch and comment! Means a lot! The tax refund drives me crazy too, I’ve wanted to make a video on the tax credit specifically but felt like it would be wasting my breath since I’m 2024 it is actually slated to be a true point of sale discount.
Yes, they can potentially get a refund/check if their tax liability is above $7500. If tax liability is less than $7500 they will not get the full amount.
@@edwardovalles4024 - Anyone that make so little that they don't owe $7500 in taxes probably isn't looking to buy a brand new $40k or $50k car anyway. Or at least they shouldn't be...
@chiplangowski3298 I was going to politely disagree until you said…they shouldn’t be looking at a car of that cost, but we all know they will. I heard a lady call into Dave Ramsey who made 30k per year and bought a car for 30k per year. It’s madness!
* asterisk bro. Tesla is way more transparent than most companies. There literally IS a button that you can unselect these "potential savings" Is this a serous serius concern or an excuse to make a video?
As I just shared with another comment as someone who is sold out on Tesla and specifically wanted one since 2015 - I would have done mental gymnastics to tell myself I could afford an 800 dollar payment because I would save so much money on a tax credit and gas savings. I think it encourages people to sign up for payments they can’t manage. The banks already approve people for houses and cars they can’t afford and I genuinely don’t think Tesla needs to try and make cars seem cheaper than they are. They have the “Apple effect” people want their products and they will buy them whether they make the price look more appealing or not. I think people are smart enough to figure out the actual price l, but I think people have a hard time putting the genie back in the bottle once they see a fake price tag of a payment and they begin to convince themselves the payment won’t feel like the full amount.
