I think people vastly overestimate how much consumers know about the car they buy and how much time they need to wait before the next one comes and also the previous model years on the lot usually go into steep discounts to counter this FOMO effect
I agree, I think it’s more than most people would expect, but it might also be lower than I might expect as someone who is like that. Realistically, it’s probably somewhere in the middle. It’s an expensive purchase, in a quickly changing market, so I’d hope people are making informed decisions that consider the future.
Edit: I agree’d before your edit to say overestimate instead of underestimate as per below.
Well, I just realized I wrote underestimate, when I meant overestimate, I don’t think the new model coming out accounts for even half of that 65% drop,but I could be wrong and maybe people who buy EVs make more informed choices
Ah, well that really changes things haha. I sometimes find I do that as well when I’m writing things down. Think one thing, somehow write the opposite.
On the note of FOMO with discounts then, in Tesla’s case, they have industry low days of inventory. At the end of Q4 it was 13 days, and that includes sold vehicles in transit.
So while there are some cars to buy and they will have steep discounts, it’s not like Ford or GM that have well over a month of inventory, there’s only so many of them available and they’d need to match what people want.
I think people vastly overestimate how much consumers know about the car they buy and how much time they need to wait before the next one comes and also the previous model years on the lot usually go into steep discounts to counter this FOMO effect
I agree, I think it’s more than most people would expect, but it might also be lower than I might expect as someone who is like that. Realistically, it’s probably somewhere in the middle. It’s an expensive purchase, in a quickly changing market, so I’d hope people are making informed decisions that consider the future.
Edit: I agree’d before your edit to say overestimate instead of underestimate as per below.
Well, I just realized I wrote underestimate, when I meant overestimate, I don’t think the new model coming out accounts for even half of that 65% drop,but I could be wrong and maybe people who buy EVs make more informed choices
Ah, well that really changes things haha. I sometimes find I do that as well when I’m writing things down. Think one thing, somehow write the opposite.
On the note of FOMO with discounts then, in Tesla’s case, they have industry low days of inventory. At the end of Q4 it was 13 days, and that includes sold vehicles in transit.
So while there are some cars to buy and they will have steep discounts, it’s not like Ford or GM that have well over a month of inventory, there’s only so many of them available and they’d need to match what people want.