Tesla Will Now Let You Finance Your EV Repairs… With Interest Rates as High as 36% APR
-
Insurance premiums for Teslas have been skyrocketing because of this.
another reason it's not worth buying a Tesla
-
If this was done in the USA, a lot of airlines would struggle or even collapse if they couldn't figure out how to adapt.
The four biggest airlines in the US (United, Delta, American and Southwest) all lose money on flights. The way they make a profit is through their co-branded credit cards. The banks pay the airlines to purchase miles from them to use as points, and one of the primary ways the bank makes the money to do that is from interest payments.
I'm not saying that interest rates shouldn't be limited, just that there'd be some major impact since a lot of the financial industry is funded by interest payments.
wrote last edited by [email protected]So making money zero-sum would kill off parasitic business models. The horror!
-
With Tesla, you can turn a $2,442 windshield installation into a $3,174 windshield installation through the power of interest.
This is being reported by the Teslasphere as an "excellent option" to restore affordability to a car market that desperately needs more affordability.
Only, neither of those numbers is even in the same ballpark as affordable.
I could see battery packs and motors being financable at a sensible interest rate being a good thing for people who can't afford such expenses out of pocket - it would make it possible for slightly less well off people to buy used EVs instead of used ICE cars.
This though? Fuck everything about this.
-
When I had mine, the back seat started rattling one time so I took it in for service. A week later, I finally got it back with a piece of electrical tape stopping the rattle and an invoice for $160.
Glad you no longer have it, but next time, regardless of manufacturer, if you have a minor issue that isn't covered by warranty, don't bother taking it to the dealer. They all scam you based on the hourly pricing (not competitive to independent shops, even specialists of the marque) and replacement policy (replace as big a part as possible because more money + less chance of customer coming back. Example for ICE based cars: Friend did his apprenticeship at a Toyota dealer. Car came in with a bad alternator voltage regulator (probably 20-30 euros for an aftermarket part, Toyota would obviously ask more for a genuine Toyota branded part), his boss told him it's going to have to be a full alternator replacement, they won't replace the regulator itself. This policy is great under warranty (you get more parts renewed, yay), but not so much when it's an out of pocket repair.
-
How much of this expense is because Tesla is a small auto manufacturer? I imagine they don't have the economies of scale that others do.
And I'm not even thinking about the stupid wankpanzer with all it's custom BS...
I feel like a competent CEO would have merged with a large auto manufacturer and maintained an independent leadership.
Tesla still makes the best EVs out of the American manufacturers I believe. They make really horrible cars though.
The big 3 are no better, but if Tesla had merged with a Japanese or European manufacturer that actually knows how to build great cars, it could've been something spectacular. A ridiculous market advantage.
-
Tesla still makes the best EVs out of the American manufacturers I believe. They make really horrible cars though.
The big 3 are no better, but if Tesla had merged with a Japanese or European manufacturer that actually knows how to build great cars, it could've been something spectacular. A ridiculous market advantage.
It's a cautionary tale for any (sane, rational) business now. For crypto, very inspire. Much yoink.
-
Glad you no longer have it, but next time, regardless of manufacturer, if you have a minor issue that isn't covered by warranty, don't bother taking it to the dealer. They all scam you based on the hourly pricing (not competitive to independent shops, even specialists of the marque) and replacement policy (replace as big a part as possible because more money + less chance of customer coming back. Example for ICE based cars: Friend did his apprenticeship at a Toyota dealer. Car came in with a bad alternator voltage regulator (probably 20-30 euros for an aftermarket part, Toyota would obviously ask more for a genuine Toyota branded part), his boss told him it's going to have to be a full alternator replacement, they won't replace the regulator itself. This policy is great under warranty (you get more parts renewed, yay), but not so much when it's an out of pocket repair.
I know, I was assuming they would maybe have to replace a latch or something. Tesla doesn’t sell parts to repair shops, so getting the right one would have been difficult or impossible. Tesla’s service used to be white-glove when I first had the car, and rapidly declined to a shit-covered dumpster fire.
-
I could see battery packs and motors being financable at a sensible interest rate being a good thing for people who can't afford such expenses out of pocket - it would make it possible for slightly less well off people to buy used EVs instead of used ICE cars.
This though? Fuck everything about this.
wrote last edited by [email protected]tl;dr: financing regular maintenance parts for any vehicle is a bad idea. Avoid money pits.
Car depreciation is a thing and those prices are insane to finance. It doesn't make sense to buy a part that's worth more than the entire vehicle. This was an issue with Prius's when they first rolled out. When the battery pack died, the car still ran, but it was in the range of 10k to the battery replaced. It did not make sense to replace it on a vehicle that was probably well into 5 or 6 years. You could also sell the Prius because it was still held value as a running vehicle. Thankfully, aftermarket products have been created to significantly reduce the cost to make it reasonable to replace a battery on a Prius; somewhere between $2k to $3k with DIY kit.
It's a stupid idea to finance parts for a vehicle when the value exceeds financing a whole new / used vehicle. If you end up totaling your vehicle, you're still out the cost for just the financed parts. You've essentially put yourself way upside down on a depreciating asset. Pretty sure insurance isn't going to cover the financed parts when they total a vehicle out. Tesla should have allowed right to repair and manuals to fix their wastes of space like Toyota did for the Prius. I know it's a hybrid, but hybrids are looking to be less of a hassle to maintain and best of both worlds. It's a trend to keep milking people for every last penny with financing every damn thing.
-
A sane society would ban interest rates beyond 2x the Fed. 12% is plenty to make profit.
Higher interest rates allow creditors to take on riskier customers. Having said that, the US sorely needs regulation in all financial matters.
-
Glad you no longer have it, but next time, regardless of manufacturer, if you have a minor issue that isn't covered by warranty, don't bother taking it to the dealer. They all scam you based on the hourly pricing (not competitive to independent shops, even specialists of the marque) and replacement policy (replace as big a part as possible because more money + less chance of customer coming back. Example for ICE based cars: Friend did his apprenticeship at a Toyota dealer. Car came in with a bad alternator voltage regulator (probably 20-30 euros for an aftermarket part, Toyota would obviously ask more for a genuine Toyota branded part), his boss told him it's going to have to be a full alternator replacement, they won't replace the regulator itself. This policy is great under warranty (you get more parts renewed, yay), but not so much when it's an out of pocket repair.
Not understanding the alternator bit. I'm not aware of any shop of any stripe that will replace only the regulator.
EDIT: Leaving the above. Seems like back in the day you couldn't replace the regulator alone. Looked at pics and it seems easy now days.
-
get insurance that covers windshield replacement
it's money very well spent
Florida mandates windshield replacement from any insurance coverage, and they can't raise your rates for that repair. We sorely need more of that kinda thing.
-
Not understanding the alternator bit. I'm not aware of any shop of any stripe that will replace only the regulator.
EDIT: Leaving the above. Seems like back in the day you couldn't replace the regulator alone. Looked at pics and it seems easy now days.
Depends on the model. When my first car was having alternator trouble, I replaced the regulator which required me to remove a whopping two bolts. Of course it's not possible on all alternators, but it was the first example I could think of. Similarly, if you've got a bad valve body in your auto transmission, most main dealers would tell you that you need to replace the entire transmission. Etc.
-
When I had mine, the back seat started rattling one time so I took it in for service. A week later, I finally got it back with a piece of electrical tape stopping the rattle and an invoice for $160.
god damn, lol.
-
tl;dr: financing regular maintenance parts for any vehicle is a bad idea. Avoid money pits.
Car depreciation is a thing and those prices are insane to finance. It doesn't make sense to buy a part that's worth more than the entire vehicle. This was an issue with Prius's when they first rolled out. When the battery pack died, the car still ran, but it was in the range of 10k to the battery replaced. It did not make sense to replace it on a vehicle that was probably well into 5 or 6 years. You could also sell the Prius because it was still held value as a running vehicle. Thankfully, aftermarket products have been created to significantly reduce the cost to make it reasonable to replace a battery on a Prius; somewhere between $2k to $3k with DIY kit.
It's a stupid idea to finance parts for a vehicle when the value exceeds financing a whole new / used vehicle. If you end up totaling your vehicle, you're still out the cost for just the financed parts. You've essentially put yourself way upside down on a depreciating asset. Pretty sure insurance isn't going to cover the financed parts when they total a vehicle out. Tesla should have allowed right to repair and manuals to fix their wastes of space like Toyota did for the Prius. I know it's a hybrid, but hybrids are looking to be less of a hassle to maintain and best of both worlds. It's a trend to keep milking people for every last penny with financing every damn thing.
wrote last edited by [email protected]Tl;dr: you're technically right, but BEVs aren't sustainable if you need to pay up front for the battery.
A 10-20k battery replacement on a car worth 30-40k used, for an example, is not "regular maintenance" though. And presumably it would come with a new 8 year warranty like the original battery does in every BEV, if you're paying (financing) an OEM battery at the main dealer. Once the vehicle is older and worth less, there will hopefully be cheaper solutions
If BEVs and HEVs can't easily do 20 years of service, we should just stop building them and go back to internal combustion full time. Fuck planned obsolescence.
To be clear I meant there should be government-backed low-interest credit programs for replacing expensive EV parts that would render the car scrap metal when they fail after 8 years and one month. Similar to how you can get student loans with a next-to-nothing interest rate because it's government backed and they mandate a maximum interest rate and payment term. Because otherwise I'm going to trust a 25 year old pollution machine over an 8 year old BEV and that's why there depreciating at a record rate.
You can have an Audi E-Tron for no money at all just a few years after it launched because nobody wants to be left holding the bag. I've owned ICE Audis, Mercs and BMWs with between 300k and 600k on the clock and had no issues that would leave me stranded, except for serpentine belts a couple of times because most of those were bought as poorly maintained vehicles in the first place. I have an easier time trusting a 20 year old car with 500k on it than a 5 year old BEV with 100k or even only 50k on it because I know if I can't sell the 5 year old car before the battery warranty expires, I'm cooked. I've looked at BMW i5, MB EQE, Audi E-Tron, even the Porsche Taycan because they've all nicely depreciated now and I could justify them as a company car (saves me damn near 70% in pretax income compared to buying as a private person), but instead I'm keeping my privately owned 18 year old Diesel A6 because even on a company car I don't want to be hit by a massive battery replacement cost and even if it's a company car, I don't want to buy new because fuck being hit by all that depreciation the first owner gets. But if I could get it at 4% APR for a year or 2, I'd be happy to replace an EV battery to keep it going if the rest of the car is solid and I get a good warranty.
-
I know, I was assuming they would maybe have to replace a latch or something. Tesla doesn’t sell parts to repair shops, so getting the right one would have been difficult or impossible. Tesla’s service used to be white-glove when I first had the car, and rapidly declined to a shit-covered dumpster fire.
Fair enough. Though in such a case (zero aftermarket parts availability), you're better off getting a used part IMO, unless it's a wear item. But that's just my opinion of course.
-
With Tesla, you can turn a $2,442 windshield installation into a $3,174 windshield installation through the power of interest.
This is being reported by the Teslasphere as an "excellent option" to restore affordability to a car market that desperately needs more affordability.
Only, neither of those numbers is even in the same ballpark as affordable.
With Tesla, you can turn a $2,442 windshield installation into a $3,174 windshield installation through the power of interest.
Ok but 2442 is already insane. Yes it's heated, yes there's a rain sensor, plenty of cars have that, and their windshields cost half as much.
-
With Tesla, you can turn a $2,442 windshield installation into a $3,174 windshield installation through the power of interest.
This is being reported by the Teslasphere as an "excellent option" to restore affordability to a car market that desperately needs more affordability.
Only, neither of those numbers is even in the same ballpark as affordable.
Much cheaper option....
-
Even when you pay off your balance every time, they still make money charging merchants for every transaction. But yeah, they make shit tons more from people carrying balances.
wrote last edited by [email protected]This is one of the reasons merchant fees are so high in the USA.
In Australia, merchant fees for a medium-sized business are an average of 0.75 to 1.5% for credit cards and 0.25% to 1% for debit cards, according to the Reserve Bank of Australia (https://www.accc.gov.au/consumers/pricing/card-surcharges).
In the USA they're often over double that. Some payment processors charge 3% or more for credit card processing.
-
This is one of the reasons merchant fees are so high in the USA.
In Australia, merchant fees for a medium-sized business are an average of 0.75 to 1.5% for credit cards and 0.25% to 1% for debit cards, according to the Reserve Bank of Australia (https://www.accc.gov.au/consumers/pricing/card-surcharges).
In the USA they're often over double that. Some payment processors charge 3% or more for credit card processing.
Yeah, it’s an absurd amount. A lot of restaurants add on an extra fee if you pay by card. When will the madness end?
-
With Tesla, you can turn a $2,442 windshield installation into a $3,174 windshield installation through the power of interest.
Ok but 2442 is already insane. Yes it's heated, yes there's a rain sensor, plenty of cars have that, and their windshields cost half as much.
My actual pickup truck (a Toyota Tacoma) costs $275 for an installed windshield.
The Cybertruck windshield costs nearly 10 times as much for... reasons? Honestly don't even fucking know why. Because Elon knows an easy mark when he sees one, I guess
