Reservation Cancellations feedback

[invalidname]

heard from a bird, the bulk of Q3 cancellations have been related to fear of losing out on the old $7,500 tax incentive, mostly from Pure reservations, secondary to the initial slow ramp up. probable expectations are there are going to be even more cancellations for Q4, a bulk of it for the same reason and because most reservations are for the Pure.

many were anticipating a base Pure after fed tax incentive for $69.9k.
it now costs $97.4k for a base Pure with proper ADAS (standard lane keep requires DDP)

what are your opinions/feedback about this situation? what suggestions would you have as the consumer?

 

[MoniputerLM]

heard from a bird, the bulk of Q3 cancellations have been related to fear of losing out on the old $7,500 tax incentive, mostly from Pure reservations, secondary to the initial slow ramp up. probable expectations are there are going to be even more cancellations for Q4, a bulk of it for the same reason and because most reservations are for the Pure.

many were anticipating a base Pure after fed tax incentive for $69.9k.
it now costs $97.4k for a base Pure with proper ADAS (standard lane keep requires DDP)

what are your opinions/feedback about this situation? what suggestions would you have as the consumer?

I wouldn't cancel a reservation for a car that I really wanted over $7,500, but that's just my opinion.

 

[ikonos]

I wouldn't cancel a reservation for a car that I really wanted over $7,500, but that's just my opinion.

I am of the same opinion. However you have to understand that we are taking about a $85-$90k when all is said and done before any tax credit and not every Pure reservation holder can splurge that with out thinking twice and the $7500 tax credit plays a significant role in to the equation.

 

[MoniputerLM]

I am of the same opinion. However you have to understand that we are taking about a $85-$90k when all is said and done before any tax credit and not every Pure reservation holder can splurge that with out thinking twice and the $7500 tax credit plays a significant role in to the equation.

I agree. My son could only afford his Model 3 because of the tax credit.

 

[invalidname]

Based on my poll on whether losing out on the $7,500 tax incentive would affect their orders a few months ago, over half of reservation holders would reconsider their orders.

Of the 62 votes, 34 independent Touring/Pure reservation holders claim that losing out on $7,500 will affect their order.

 

[JerseyStrong]

There is undoubtedly more price sensitivity among those choosing the Pure model. It isn’t only the loss of the rebate, but also the increase in loan interest rates and raised prices for basic necessities that hAve produced a triple whammy. Even if one considers that to drop a pre-deadline reservation now means that the loss of the $7500 tax credit will be less than the in raise in price if one comes back later might not matter in terms of how much money is left after rent;/mortgage, food, etc, to cover a car payment now.

 

[noobzilla]

When I complained about not being able to get $7500 credit, I would occasionally get responses along the lines of "if you can't afford losing the $7500 then you shouldn't be looking at the Lucid". The thing is I really really like the Lucid over the Tesla because of the range even with the EV credit switching over in favor of Tesla. Just going to be hard to swallow but I really think it's not gonna be easier later on as I expect inflation and lithium prices going up to continue driving EV prices up. We need a big breakthrough in battery technology and cost.

I'm optimistic that confirmed orders prior to the passage of the new EV bill will qualify for the $7500. Sucks that Lucid would lose it after 2023. I like the new bill better overall. If I would change anything I'd say at least give partial credit to EV's manufactured here in the U. S. After the initial round of reservations at original price, I'm concerned whether Lucid would get enough new orders. It will a lot tougher to sell with Tesla now getting the credit instead of Lucid. Fortunately Lucid has Saudi backing.

anyways, for those in the fence whether to keep the reservation...

1) Check your finances and do cost comparisons. Compare price difference vs your 2nd option lower priced EV. If you're considering ICE instead, calculate gas expenses vs electricity cost. For my case I think I put 11c/kwh and 3.7mi/kwh vs my 30mpg ICE and it's about $28k savings for fuel for 100k mi. I put a $40k cap on ICE as anything more than that I'm better off getting the $77k Pure. If your area has high electricity cost then you can also consider installing solar.

2) Check your mileage needs. Do approximately 75% of EPA range so 400mi Lucid EPA range would be 300mi effective range. So that would good for a 150mi destination, roundtrip.

 

[DeaneG]

I'm surprised how many young people stretch themselves financially to buy a high-end car - a depreciating asset.

 

[MoniputerLM]

I'm surprised how many young people stretch themselves financially to buy a high-end car - a depreciating asset.

We stretched to buy our first home but not sure that is a priority any longer.

 

[Thinjake]

We stretched to buy our first home but not sure that is a priority any longer.

yes, but a home is an APPRECIATING asset vs. a depreciating car. HUGE difference.

 

[MoniputerLM]

yes, but a home is an APPRECIATING asset vs. a depreciating car. HUGE difference.

We have lost money on our last two houses! But I agree that they should be an appreciating asset.

 

[HariK]

heard from a bird, the bulk of Q3 cancellations have been related to fear of losing out on the old $7,500 tax incentive, mostly from Pure reservations, secondary to the initial slow ramp up. probable expectations are there are going to be even more cancellations for Q4, a bulk of it for the same reason and because most reservations are for the Pure.

many were anticipating a base Pure after fed tax incentive for $69.9k.
it now costs $97.4k for a base Pure with proper ADAS (standard lane keep requires DDP)

what are your opinions/feedback about this situation? what suggestions would you have as the consumer?

Here is another way of looking at 7.5k of Lucid vs average ICE cars of the same category similar size, similar luxury. Lexus LS500 MSRP base model $77k. 22mpg. $5 per gal fuel in CA. If we drive 12k miles per yr, fuel cost $2.7k. WIth 3 yrs free charging (for those who got in), the difference is 3yrs to break even on 7.5k tax credit. I own my cars for 14 to 20 years typically. After 3years if I pay 40 cents per KWh and average say 3miles per KWh, for 12k miles I would need 4000Kwh or $1.6k. A saving of $1.1k per yr. If I own the car for 13 yrs, 10yrs after the 3yr free EA, my energy saving is $11k. At that point if the range falls, I am willing to charge more often and keep it going. Most ICE cars are not worth replacing the engine or transmission at 15 years if there is a failure. I would imagine that battery and motors are going to be cheaper to replace in parts and labor and the mother board of the EV could be updated and software too updated at 15 years and make it essentially a new car for much less than buying a new car.

 

[Team Geezer]

Given the pace that EV technology is advancing in both battery tech and efficiency, I suspect that the EVs being produced today may depreciate fairly quickly. If Lucid can get over the production/delivery and software hump they may be an exception. I don't see the same prospects for my Taycan. As it stands right now, it is holding its value very well. In the very near future that will change. Who is going to want to pay the Porsche price when the max range is significantly less than 300 miles?

I am impatiently waiting for the VIN on my GT.

 

[Bobby]

Buying an expensive electric because you anticipate it being cheaper than an ICE car is silly. Buy a Lucid because you love it and can afford it.

 

[HariK]

Buying an expensive electric because you anticipate it being cheaper than an ICE car is silly. Buy a Lucid because you love it and can afford it.

Absolutely true. The best value for the money is a mainstream non luxury hybrid. Right now EV is not for the budget conscious situation at all. This can change in 5 years perhaps.

 

[MoniputerLM]

Absolutely true. The best value for the money is a mainstream non luxury hybrid. Right now EV is not for the budget conscious situation at all. This can change in 5 years perhaps.

Model 3s and Ys are affordable and have low cost of ownership.

 

[HariK]

Model 3s and Ys are affordable and have low cost of ownership.

I am waiting for Fisker Ocean Extreme $69k which is way more value than Model Y if you look at the features, range and the interior. I personally think Model 3 and Model Y are not at all luxury vehicles. Without 7.5k tax credit, A Toyota Camry or Honda Accord Hybrid is much better value. A toyota RAV 4 plugin is lot more value for the money than Model Y.

 

[Bobby]

Model 3s and Ys are affordable and have low cost of ownership.

IMHO they are not worth their asking prices. Quality issues. I’d rather get the Kia.

 

[MoniputerLM]

IMHO they are not worth their asking prices. Quality issues. I’d rather get the Kia.

The problem seems to be getting a Kia at the moment.

 

[HariK]

The problem seems to be getting a Kia at the moment.

But worth waiting for instead of cheaply put together Model 3 or Y with just a center display for everything.