The Tesla Effect

Messages
610
Location
Georgia
Hey there. I am Steven Lang. Long time BITOG poster. Part-time data analyst, and hater of all summer lawns that needs mowing. I just released a study on Tesla and their long-term effects on the luxury car market. Tesla's success has destroyed the resale values of millions of luxury vehicles sold by Mercedes-Benz, Audi, BMW, Lexus, Acura, Infiniti, and countless others.As a matter of perspective, the average three year old Audi A4, BMW 3-Series and Mercedes C-Class is now less expensive than a brand new base model Toyota Camry. Back in 2016 the difference between those models and the entry level Camry was between $4000 and $6000. The difference. Two independent variables. The increasing demand of crossovers and SUVs in this space. The popularity of seven year loans, and the rise of the Tesla Model S and Model 3 as sales leaders in the luxury vehicle market. Here's the hard data. A lot of which has not been publicly released until now. It took several months to collect it all and I have plenty that didn't quite make the story so if you're interested, just PM me and I'll be happy to share it. Hope you guys enjoy it. https://www.capitalone.com/cars/lea...PSget2v3H3CKB7BX2lx-XuLgi4-YT9QBFS8iF0SY
 

4WD

Messages
17,332
Location
Texas
What about the cost of owning a used German car - several BMW fans at work will only lease them ...
 

Y_K

Messages
2,751
Location
WA (USA)
Mannheim Auctions have prices sold tables, and they had the same vehicles down at these levels for years before Tesla Effect. I may mean that the general market is finally saturated by Germans and pro pricing is finally trickling down. I am not arguing that Tesla Effect is a fictitious one, but there are quite a few more market forces at work, e.g. demographics, brand and update fatigue, etc. It's like iPhone Effect of sorts. If you were to look at Mannheim prices for their biggest sites on East and West Coast, you'd scratch your head and think why Germans are trashed to unbelievable low levels and even dealers still pay premium for Landcruisers sight unseen. Supply vs Demand. Telsa can be a good catalyst, but not the disruptor.
 
Messages
3,722
Location
Northern Ontario, Canada
Sedans are tanking in sales ... period, and Tesla doubled down on that with the Model 3. Used sedan prices dropping faster than historical is due to customer demand tanking - and Tesla competition. SUV/CUV/Truck sales are over 80% of the Canadian new car market right now.
 

NO2

Messages
950
Location
Michigan
Cars in general have lower resale prices. Less reliable, very expensive to maintain ($100 oil changes and $1200 sets of tires) and repair cars with lots of gadgets to break are going to be cheaper yet. Besides, regular cars these days are nearly as nice as the Germans, just a slight downgrade in power, seating and noise levels. A Subaru Legacy rides as nicely as the German cars and has better AWD, A Honda or Toyota will last 50% longer. Most of the mass market brands have far more dealers too. I'd pick up a Lincoln Continental with the 2.7 over the German vehicles anyday. Most luxury car buyers want the latest and greatest stuff, so (typically subsidized) leasing is the way to go.
 
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Messages
2,977
Location
utah
I was shocked to see a nice 13 760li for 45k, v12 loaded car that was north of 160k new. Bmw i8 also going for peanuts.
 

Y_K

Messages
2,751
Location
WA (USA)
Originally Posted by JohnnyJohnson
Wait and see how great they are when you need one repaired from a serious accident!
I've seen the bill for one after a minor accident: it's an event of a most unwelcome kind!
 
Messages
1,498
Location
Indiana
With the crappy paint jobs on these Model 3 Teslas (rust after the first winter season just like a 72 Vega) I can only imagine what price those will be selling for after three years.
 
Messages
2,259
Location
British Columbia, Canada
I paid about the same for my then 3 year old used BMW 5 series as for my new Honda Accord a few years later. And I bought the 5 series because it was a bargain compared to a used 3 series. So not such a big change in Canada anyway. Both great cars, and neither worth much on the used car market.
 
Messages
2,170
Location
USA
Not many civics and corollas trade ins on a new Tesla so that % is probably off. Tesla isn't the only ev maker, mb and others are much more capable in production just like the Bolt was out way before the 3 and GM didn't break a sweat doing it. So the story is still unfolding.
 
Messages
11,154
Location
MA
I haven't really noticed the E-class coming down much in price and I have two of them. The C class doesn't have as many options available as the E class. I also DIY or take the car to an indy mechanic so the prices haven't been too crazy for repairs.
 
Messages
72
Location
Phoenix, AZ
Originally Posted by nascarnation
With the crappy paint jobs on these Model 3 Teslas (rust after the first winter season just like a 72 Vega) I can only imagine what price those will be selling for after three years.
I was looking at the paint on the boss's new black Dual Motor Model 3. Stunning paint job. I asked him how much faster it was than his previous Honda Accord Hybrid. He said 50 times faster. "The acceleration will hurt your neck if you're not careful."
 
Messages
7,492
Location
Los Gatos, CA
Originally Posted by perfect_oil
Originally Posted by nascarnation
With the crappy paint jobs on these Model 3 Teslas (rust after the first winter season just like a 72 Vega) I can only imagine what price those will be selling for after three years.
I was looking at the paint on the boss's new black Dual Motor Model 3. Stunning paint job. I asked him how much faster it was than his previous Honda Accord Hybrid. He said 50 times faster. "The acceleration will hurt your neck if you're not careful."
The fit and finish on our Model 3 is perfect. The Model 3 is the #1 selling luxury car, perhaps double the #2 car. #1 in owner satisfaction. That's the data.
 
Messages
7,492
Location
Los Gatos, CA
Ahh, Econ. My minor at San Jose State. Throw in some data... Factors affecting demand: The number of available substitutes, consumer preferences, and the shifts in the price of complementary products affect demand. Basic theory of supply and demand: The theory defines how the relationship between the availability of a particular product and the desire (or demand) for that product has on its price.
 
Messages
11,154
Location
MA
Originally Posted by JeffKeryk
Originally Posted by perfect_oil
Originally Posted by nascarnation
With the crappy paint jobs on these Model 3 Teslas (rust after the first winter season just like a 72 Vega) I can only imagine what price those will be selling for after three years.
I was looking at the paint on the boss's new black Dual Motor Model 3. Stunning paint job. I asked him how much faster it was than his previous Honda Accord Hybrid. He said 50 times faster. "The acceleration will hurt your neck if you're not careful."
The fit and finish on our Model 3 is perfect. The Model 3 is the #1 selling luxury car, perhaps double the #2 car. #1 in owner satisfaction. That's the data.
I suppose, but I find it kind of a stretch to call it a luxury car, doesn't have too many features that a Camry doesn't have. It's priced like a luxury car though. I'd rather get a real luxury car (used E or S class).
 
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