Release Of Updated 2015 Tesla Model S Leads To Discounts On Older Versions

DEC 4 2014 BY MARK KANE 34

Tesla Model S P85D

Tesla Model S P85D

Just in time for Christmas, it’s end-of-the-year fire sales time for older versions of the Tesla Model S.

By introducing the dual motor version of Tesla Model S and announcing the Autopilot features, a lot of potential Model S buyers and even current Model S owners now are buying the latest versions.

It’s inevitable that demand for previous versions of such luxury cars will weaken. Tesla understands this all too well.

According to Consumer Reports this is the right time to get discounts on new or nearly new Tesla Model S without dual motors and Autopilot.

“A source inside Tesla points out that remaining 2014 Model S cars, including showroom display cars, are available at a discount. Tesla is dropping prices on the cars by at least 1 percent per month from production and offering $1 off per mile on the odometer, where applicable. These cars include dealer demos and service loaners that could have significant mileage on them. In checking with a local dealership, such discounted cars appear readily available. Based on our research, you could save thousands. (We found several models at a local store with discounts between $9,000 and $14,000. We confirmed that these cars have not been registered, so are eligible for electric-vehicle new-car tax credits.)

Now may be a great time to get a rare discount on a new or nearly new Tesla Model S. Of course, a discounted 2014 Model S won’t have Autopilot or all-wheel drive, but it is still a top-rated luxury car.”

So, now you can even get a new Model S at discounts, provided you’re not dead set on getting it with the latest tech.

Source: Consumer Reports

Categories: Tesla

Tags: ,

Leave a Reply

34 Comments on "Release Of Updated 2015 Tesla Model S Leads To Discounts On Older Versions"

newest oldest most voted
Mike

What dealers? I thought they didn’t have dealers.

GeorgeS

jeez only 9000 to 14000 USD .

Yawn!!

pjwood

What, you don’t like brown on grey?

GeorgeS

de code pj!

pjwood

ok, de code. I was going one step further, to what even the 9k-14k discounts imply, and that is that they also may test your will to buy a rather undesirably configured (disfigured?) Model S.

There are lots of folks using the absolute biggest discount they’ve ever seen, as a benchmark. With Tesla’s 2013 option price increases, for 4.5k wheels, 1k paint armor, 2.5k Sirius XM, etc, you often back down to a discount that ain’t so great. This is especially true if from all those options, you want the S85, with tech/leather/pano roof.

See Through, I was told the absolute cheapest car currently in inventory, 4 days ago, in the northeast, was a 60kwh, for 78k. It’s quite possible that car was more than $9,000 off. What can we take from that? Last summer, you practically had to buy 2.5k Cyclone wheels, if you wanted an inventory S85, w/19″ whls. See how it works?

The key part is “We found several models at a local store with discounts between $9,000 and $14,000”.
If each store has several cars like these, then how many are there in total? Even dealers don’t keep so many cars of same model.

I was sent some offers like this as well. The trick is the “inventory” vehicles are not even local to the store you are communicating with.

They might be halfway across the country, but Tesla would be willing to get it to you for the price quoted. You could call three different stores and end up get quoted on the same VIN numbers.

Phr3d

Not that anyone cares (or even should) but we cancelled our entropic Model X and signed up for a 60D the day they were announced.

As that model was ‘deleted for lack of interest’ we were immediately offered a Loner at a substantial discount due to miles (nicely optioned S85 for little more than a base S60) back when the D was announced – i.e., this has been going on for a bit, unless it was specifically to appease us for eliminating our order.

Alonso Perez

I actually thought the 60D was especially attractive. Longer range than a regular 60, plus 4WD. What was not to like?

I think Tesla simply wants to keep the ASP high, still, on the Model S. We should see creatures like the 60D in the future, when they exhaust high-end customers and the S has aged a bit further.

+1! Exactly. Tesla wants all P85D to be sold in Q4, to balance the ASP with the deeply discounted inventory cars it is selling to make its numbers. So, the net ASP in 10Q will not look terrible.

This article is old story. The discounts are already 2% per month for the last couple of weeks or more. If insideevs delivery estimates for Tesla are any good, Tesla only sold 2500 in US in Oct + Nov. That leaves almost 7500 more that they need to sell in December alone. Pretty tough without huge discounts. Of course, they are still taking P85D orders, promising to deliver by December. But how many more people are going to order P85D in the next couple of weeks?

JRMW

Nonsense.
Tesla will make its numbers with or without the loafers.
it is doing what it always does.
it sends the first 1-2 months of inventory overseas
then it ships all the American orders the last month of the quarter.
They do this every quarter.

Do I believe the limitless demand and supply constrained problem? No.

But to argue that tesla is discounting the old loaners just to make the numbers is silly.

What car company keeps old models with higher miles as loaners and test cars?
Do you expect Tesla to use an old RWD with 50,000 miles as a test car for potential 2015 AWD buyers?

Thr old 85s are just that. Old.

Tesla will be in trouble if they can’t get the X out before S sales drop too far.
and then if the can’t grt the 3 out.
but it won’t be due to anything in Q42015

Tech01x

You do realize that Tesla sells to more countries than the U.S., right? In Q3, the percentage of automotive revenue from the U.S. was 45%.

Wil

Actually the discounts are up to $20K, plus the $7500 federal tax credit. Add other state incentives such as $2500 (CA) to $5000 (GA) tax credit, or sales tax exemptions (WA).

You can get a $90K barely used S85 for $65K or better after all discounts, plus 60mo financing through Energy Federal Credit Union at .61%.

The deals are out there if you do your homework, and move quickly.

I’m holding out for the after Christmas sale.
On second thought, it’s expensive even with 50% discount.

ffbj

I bet you are holding out for a lucite one.

Euro View

I thought that Tesla had no inventory and each car produced was to be delivered to its customer .

Wil

These are inventory vehicles for test drives and service loaners. Tesla sells them every few months to keep the loaner fleet fresh.

Typical discount is 1%/mo in service + $1/mile, but right now they’re clearing out the RWD 85s by sweetening the deal to 2%/mo + $1/mile.

Nonsense! Thousands of inventory cars are now being sold at deep discounts to keep the growth story alive.
This might have been the plan all along. Bring out D right after Q3 end, then sell all those inventory cars with the excuse of those being old models.

Wil

That’s interesting. My inventory S85 had over 6000 miles. As did the other S85 that was sold right before mine, which had a scratch on the front right rim. We weren’t interested in the inventory P85s.

Why would Tesla try to fudge the numbers by putting 6000+ miles on thousands of cars while sitting in inventory (and purposely scratching the rims), then selling them at 20+% discount?

Either that is their brilliant secret strategy (launch a new model so they can drive the older models into the ground and then sell them at a discount), or maybe they just want to replace the dozens of inventory cars at the dozens of galleries throughout the country with next years model.

Believe what you will.

Steven

Documentation or Bullsh!t.

JRMW

Thousands of loaner cars? Really. You’re going to argue that there are THOUSANDS
of them? It’s comments like this that ruin any argument you’re trying to make. Tesla doesn’t even sell thousands of cars in America per month.
they have just a handful of service centers around the world.

For them to be dumping THOUSANDS of cars each service center would need an inventory of tens to hundreds of cars.
where are these centers with up to a hundred loaner cars?

Thousands of inventory cars, not necessarily loaners. Just search the internet for ‘Is Tesla sitting on 3000 inventory cars’. Multiple methods and sources point to thousands of missing cars, which went to this stale Model S inventory (best case).

pjwood

Since its becoming easier to see through your short position, maybe you want to read through the back and forth under this one:
http://insideevs.com/november-2014-plug-electric-vehicle-sales-report-card/

Alaa

Now that the price of oil is going down I suspect that the others like Ford GM etc. will reduce their prices! Tesla will most certainly do that too with ease; since there are fewer parts in a Tesla. This might prolong the time it will take Tesla to make the mass market car but it will not stop Tesla from reaching that point.

JRMW

The price of oil has nothing to do with a $120k car.
especially in this economy where the rich are doing VERY well.

There will be no discounts.
in fact Tesla recently raised the prices of cars it sells.

Mark

I still don’t understand how the 60D was available to order and then gone within a week or so. How could they change their mind so quickly on it? And how did the D cost go up $1,000 so fast? They must have known how much it cost to produce when they announced the pricing originally. Puzzling.

abhishekifmr

I can answer for 2nd part. It could be launching discount or earlybird discount

JRMW

Cost to produce is only somewhat related to price. How much does it cost to produce an iPhone? How much dies it sell for?

After launch Tesla realized that it coukd sell more 85D. They make more profit per unit in the 85D compared to the 60D. Since they are still somewhat production constrained it makes more sense for them to make higher profit vehicles.

They’ll drop the pricing and bring back the 60D when their wait list goes down enough.

It wasnt the only thing they did. They also dropped brown and green colors. And they bundled options into packages forcing customers to buy mire than they might have wanted. Many Tesla fans were upset that they couldn’t buy a la cart and had to paybfor very expensive packages.

Mark C

It’s disappointing to see the lesser expensive 60D axed so quickly, as some who were stretching to be able to afford a Tesla were tossed aside. It isn’t suprising though, since, as they say, business is business. There’s more profit in the full boat cars than the lower end cars.

JRMW

Agreed. I am somewhat unhappy with EV options suitable for winter climates. Thus I toyed around with the 60D, even talked it through with my honey.

But then they canceled it saving me from having to make the decision. I make a very good salary but don’t see how regular people can plop down so much for a car!

Ryan

any chance of a 4th article on this topic next week?

Ryan

I wouldn’t be surprised to see the 60D come back at some point… seems to me that their axing of two colors and the 60D was an effort to streamline production so they can crank out as many cars as possible in the next few months.

Recoba

Why discounts?? Thouhgt they have such a strong demand that they are sold out for months?? Why then granting discounts?? Thought they have no car on stock?

tedfredrick

A freind of mine just took delivery on his Tesla. Why did he have to wait for three months if there is a lot of extra cars.