[zroger73]

Two weeks ago, I had no exit strategy for either my '21 Ridgeline or '19 Miata. The Miata will probably be with me for a long time and I planned to keep the Ridgeline until the third generation went on sale.

Then, I read about Tesla dropping the price on the Model Y by 20% on the 13th and it qualifies for a $7,500 federal tax credit. Knowing that my brother-in-law planned to buy a Model Y in the future, I let him know that now might be a good time and he placed an order on January 15th.

I was tempted, but I hovered over the "place order" button for several days before finally clicking it on January 20th.

My original estimated delivery date was "Jan - Mar 2023". This was unnerving because the $7,500 tax credit is only guaranteed until March 1st at which time is may be reduced to $3,750.

The Model Y currently qualifies for the full $7,500 credit because it is made in the US. The Panasonic 2170 cells it uses are also made in the US. What might prevent it from qualifying for the full $7,500 credit as soon as March 1st is if less than 40% of the critical minerals used in those cells are sourced outside the US or a free trade partner. In this case, the credit will drop to $3,750. There is also a possibility that details will be delayed and the full credit will remain in effect.

This evening, the estimated delivery date was updated to "March 3 - March 31" making this even more suspenseful. Since the vehicle is unlikely to arrive before the March 1st, it may or may not qualify for the full $7,500 tax credit.

While the 20% price drop alone may be enough to encourage some buyers to order one, it was the price drop and the $7,500 tax credit that prompted to do so. Without the full credit, I'm less interested in taking delivery. If I don't, the most I'm out is a $250 nonrefundable order fee.

If I end up with the Model Y, I'll likely sell my Ridgeline since I only have space for two vehicles in my garage.

To be continued...

 

[14v6]

I get it that everyone has an OTD price but 20% off plus a $3750 tax credit as the worst case scenario sounds awesome.

 

[zroger73]

When I finally decided to click the order button, I had the bottom line number in my mind as:

$52,990 Model Y
1,390 destination
250 order fee
-7,500 tax credit
$47,130 TOTAL (excluding TT&L)

If I have to pay $50,880 due to the credit falling from $7,500 to $3,750, I'll feel like I'm paying $3,750 too much - that same feeling you get when you pay more at a traditional dealership than you initially expected.

Now, when you consider that hundreds of thousands of buyers paid at least $66,630 for a new Model Y in 2022 before Tesla's price drop the the federal tax credit, even $50,880 may seem like a good deal.

The tax credit of at least $3,750 is likely here to stay for the next ten years, but a lot can change during that time. Manufacturing locations and material sourcing can change, Tesla can raise the price above the $55,000 cap, the rules can change, etc.

I've obviously been aware of Tesla for years, but I've never paid much attention to them primary because I wasn't willing to spend as much money as they wanted for a vehicle and because they don't have press cars.

I started paying a little attention to Tesla when the Cybertruck was announced in 2019. At that time, I was very interested, but it still hasn't materialized. It does look like it's finally going to enter production this year, though.

And, it's hard to avoid being exposed to news about Elon Musk when he agreed to buy Twitter. But, it wasn't until the recent price drop and federal tax credit that prompted me to take a serious look at buying my first EV.

Since then, I've learned more about the vehicles and the company that makes them. My jaw hit the floor last night when I learned that Tesla sold more Model Ys than Honda sold CR-Vs (their best-selling model) last year - and that was when the Model Y was twice as expensive as the CR-V. That truly blows my mind.

The Tesla Model Y and 3 are now cheaper than the average new vehicle.

In Tesla's earnings call yesterday, Elon stated that orders are now coming in at twice the rate of production capacity. A couple of days ago, they raised the price of the Model Y back up a little bit to slow demand - an increase which greatly reduced the number of permutations of colors and options that still qualified for the tax credit. Production of batteries and vehicles is ramping up quickly. Elon restated in a web meeting last night that he never intended Tesla to be a brand limited to the wealthy and that his ultimate goal is affordable EVs for the average person. Also, according to analysts (and Tesla may have confirmed this in the earnings call), Tesla is still making far more profit per vehicle even after the recent price cuts than any other automaker.

 

[eurban]

Gotta ask. If a model Y fits your wants and needs then why own a pickup truck at all?

 

[Pleease]

When I finally decided to click the order button, I had the bottom line number in my mind as:

$52,990 Model Y
1,390 destination
250 order fee
-7,500 tax credit
$47,130 TOTAL (excluding TT&L)

If I have to pay $50,880 due to the credit falling from $7,500 to $3,750, I'll feel like I'm paying $3,750 too much - that same feeling you get when you pay more at a traditional dealership than you initially expected.

Now, when you consider that hundreds of thousands of buyers paid at least $66,630 for a new Model Y in 2022 before Tesla's price drop the the federal tax credit, even $50,880 may seem like a good deal.

The tax credit of at least $3,750 is likely here to stay for the next ten years, but a lot can change during that time. Manufacturing locations and material sourcing can change, Tesla can raise the price above the $55,000 cap, the rules can change, etc.

Sure, things can change, but it really does look like you're in at the right price point....great timing. Always nice to have a lower-cost property in an upscale neighborhood - built-in exit strategy.

 

[zroger73]

Gotta ask. If a model Y fits your wants and needs then why own a pickup truck at all?

A truck has been a poor financial and efficiency decision my entire life, yet I've owned several of them. I like the appearance, driving position, and having the capability of an open bed, but it's very rarely a necessity for me. I also have an emotional attachment to Ridgelines that I've been clinging to for 15 years. I never tow, I never go off-road, and I rarely (but occasionally) put anything in the bed that wouldn't fit in the back of a hatchback or SUV. I really don't even need AWD, either. I have quit the Ridgeline a few times and ended up coming back each time.

At this point, there's too much doubt about when an all-new Ridgeline will arrive and having owned six of them and been in the latest one twice as long as I normally keep a vehicle, I'm bored with it. I've always been near the cutting edge of technology and have appreciated EVs for years, but only now has the pricing fallen to a range that I'm remotely comfortable with.

There's a very real chance that I'll buy a Model Y and end up not liking it and end up with another Ridgeline. I was actually very pleased with my CX-5 - the main reason I traded it for another Ridgeline was because of Honda's financial contribution. I'm well aware of Tesla's crappy quality, but crappy quality has been normalized by Honda the last several years for me so my expectations have been lowered even if my hopes have not.

I assure you that this decision is based on a lot of thinking and research...and it's still at least a couple months away from being a done deal. I can walk away at any time with only a loss of a $250 order fee.

 

[fargin]

As an American taxpayer, I am happy to finally be able to help subsidize one of your car purchases

 

[Sparkland]

Will any traditional automaker really be able to compete with Tesla and win?

 

[NoelPR]

The Model Y is one of the best EVs you can get. Excellent charging network and range.
Based on your needs stipulated above. It should be a great fit.

Make sure to set up the wall charger in advance or you will have to deal with slow charging times at home for a couple of days/weeks.
At least in Central FL, the wait time was long for many local installers.

 

[Maxdriver]

They raised the price $500.00 on the Model Y long range. Every paint color qualifies for the tax credit with the exception of red. Still a good deal.

 

[zroger73]

The Model Y is one of the best EVs you can get. Excellent charging network and range.
Based on your needs stipulated above. It should be a great fit.

Make sure to set up the wall charger in advance or you will have to deal with slow charging times at home for a couple of days/weeks.
At least in Central FL, the wait time was long for many local installers.

I'll put more thought into a charging solution the closer I get to a delivery date. I'll probably buy the Wall Connector to use at home and the Mobile Connector to keep in the vehicle for charging from any 120 or 240 volt outlet.

Fortunately, my breaker box is just a few feet away from where the vehicle's charging port will be in my garage and I have the capability to install the Wall Connector myself. I have space in my panel for one more 2-pole, 60A breaker.

There are no Superchargers in my area and that's okay since have no plans to use them for a few reasons:

• Fast charging can reduce the life of batteries.
• The cost per mile of using a Supercharger is often as much or more than the cost per mile of gasoline for an ICE vehicle.
• Even a 120 volt, 15 amp outlet will meet my charging needs.

 

[Sparkland]

Tesla makes $16K profit on each EV they sell depending upon the model. That compares to Ford that loses money on each EV produced. One of the issues for Ford is that they have much greater legacy costs (retirement, healthcare, etc) built into every Ford product than Tesla. Tesla has not been around long enough to have many retirees and they may not even offer retirement plans other than the standard 401K, which are funded mainly by the employees.

 

[Sparkland]

The Model Y is one of the best EVs you can get. Excellent charging network and range.
Based on your needs stipulated above. It should be a great fit.

Make sure to set up the wall charger in advance or you will have to deal with slow charging times at home for a couple of days/weeks.
At least in Central FL, the wait time was long for many local installers.

Be sure to make plans to purchase new tires every couple of years.

 

[14v6]

The folks at YAA had a video today saying that Tesla makes a staggering 16k on average per car. Second Place was VW in the 8k range. Ford on the the other hand currently loses per EV unit mainly due to legacy costs of servicing it's pensions.

Musk certainly has a stranglehold on the EV market but I've always said to short that stock. My guess is that the mainstream manufacturers can gain with making the ownership experience better and their overall better build quality.

 

[SVT]

Purchased a Model Y in December when they offered $7500 discount and free 10000 supercharger miles. Mainly driven by the wife to haul around the son. Great in town car for that type of driving. It looks like that she likes my Ridgeline more than the Tesla because of better driving position and comfy rides. Tesla has that awfully firm suspension and not so forgiving driving dynamics. For me, I enjoy the acceleration and handling but the suspension is not something I can be used to. Also I don't like the design philosophy of the Tesla. They disregarded everything from 100 + years of automobile evolutions. I wonder how come there are no wide spread safety complaints and reactionary regulatory interventions. If we purchase another electric car in the future it will be from one of the ICE car makers.

 

[zroger73]

Did you get the standard 19" wheels or the optional 20" wheels?

 

[SVT]

I got 20" induction wheels. A sales rep told me that new model Ys come with upgraded comfort suspension so no reason to go with the ugly 19" wheels. However, the ride so stiff it feels like I am riding on a rigid metal plate. I drove M1 Abrams a few times in my Army days and 65ton metal rides better than this.

 

[zroger73]

I've heard Tesla softened the suspension as well, but I'm unclear when that occurred (Tesla makes changes on the fly instead of waiting for model years like virtually every other automaker). My brother-in-law ordered the 20" wheels and his Model Y should arrive a few weeks before mine. I ordered the 19" poverty wheels with hub caps based on price and ride. I figure for the $2,000 that Tesla wanted for the Induction wheels that I can find some decent-looking 19" wheels - or at least the center caps and lug nut covers that Tesla sells for the less-ugly aluminum wheels behind the plastic wheel covers. It'll be interesting to compare the ride between our Model Ys since they should be identical other than the wheels.

 

[SVT]

All 2023 Model Y comes with the new "comfort" suspension. The switch over date was sometime October and our Model Y mfr'd in Dec 2022.
It feels to me that an inch or so of tire sidewall difference won't be the solution. It must be the suspension design plus the rigid frame due to the heavy battery. Have fun with your new Tesla.

 

[zroger73]

I can't see another 0.5" of air and rubber between the wheel and the pavement making a significant difference, either. I grew up on tricycles, bicycles, go-karts, and ATVs with no suspension at all and have no problem spending hours behind the wheel of my Miata, so I'm used to firm rides. They don't seem to bother me, so hopefully it won't be a problem. I've never paid much attention to wind noise, either, but it seems to really bother some people. Squeaks, rattles, ticks, pops, clicks, taps, creaks, and buzzes seem to be what drives me to insanity in most automobiles.