While Tesla Inc TSLA has more demand than it can meet, with some estimated deliveries extending out until 2023, the company still has a direct sales model that allows customers to have the same price. For example, if prices rise, it affects everyone and vice versa.
At a traditional dealership, dealers will regularly change prices on an individual vehicle based on the demand or lack thereof.
And that's what one customer experienced at their local Ford Motor Company F when trying to purchase a Mustang Mach E, in a story shared by Teslarati.
When Reddit user OrderlyMayhem saw markups of $5k or more on the Ford Mustang Mach E he wanted, he decided to email Ford and ask for help with this large markup. But when he got a call back, "...he said there was little they could do to prevent dealerships from adding mark-ups to MSRP."
The Ford employee then agreed it would be better for this person to get a Tesla Model 3 to avoid the dealer markup. While the Ford Mach E may have a similar price to the Model Y or Model 3 when priced at MSRP, a dealer markup in the thousands will quickly make the comparison unfair, pushing anyone towards a Tesla.
The poster then said, "I am now going to be a Tesla Model 3 owner."
This just shows one big advantage Tesla's direct sales have over the competitors. While dealers could offer discounts to seal a deal, in a supply shortage situation markups are more common and can push customers to Tesla, which doesn't use a dealer network.
Photo: Courtesy of Tesla
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