by Gabrielle DeSantis

It’s no secret that car prices are rising. Typically, this tends to drive consumers to buy used vehicles if prices get a little too much for their wallets to bear, but right now, even used vehicles cost far more than in years past. Now, Tesla is creeping the price up for the Model S, and some are wondering if the updated prices are worth it.

It’s hard to top Tesla

When it comes to EVs, Tesla is king. While the EV field is becoming increasingly cluttered with automakers desperate to get on the green wagon, Tesla continues to manage to stand out, at least for the moment.

Tesla models have a clean look to them that makes them easily identifiable at a glance. Then there’s the fact that few automakers even come close to the range of Tesla vehicles. For many EVs from Tesla competitors, you’ll feel lucky to get 200 miles out of it before you have to stop and charge up. Meanwhile, the Tesla Model 3, as the lowest range Tesla model, still gets 300 miles. 

However, the one area that Tesla falls behind the competition is the price range. Teslas cost far more than the competition in most cases, although some luxury EV options like the Porsche Taycan might actually cost more. We say it might because Tesla is cranking up the price range on its vehicles, and it might be cheaper to go with a Porsche soon if this trend continues.

Prices are creeping up

Thanks to the current chip shortage plaguing the automotive industry, the value of cars is skyrocketing. This is because it’s becoming increasingly difficult to stock cars on the lot, and some automakers are increasing their prices accordingly.

This is true for Tesla as well as many other companies. According to News Break, “Tesla has increased the base price of the Model S Long Range to $91,190. It has gotten steadily more expensive recently, as the Long Range was previously available for just over $70,000.”

Tesla has added about $5,000 to the price of the Model S. This is after already increasing it by $5,000, so the price has actually risen $10,000 in just a month, according to Electrek. Some consumers wouldn’t blink at paying that much more, but it’s simply too much to afford for others. Then there’s the group in the middle that could squeeze the extra money out, but it might not be the wisest decision. So is the price increase truly worth it?

Is the price increase on the Model S worth it?

That’s the $10,000 question. If you’re going for the new Plaid version, it just might be. Of course, the Plaid starts at $129,990, a price most people would swoon upon seeing. So, what about the lower trims of the Model S?

It really depends. Yes, the Model S is a striking vehicle that is worthy of consumer praise. However, it’s also starting to become more frustrating to drive. As Tesla moves toward AI-driven vehicles, Elon Musk has decided to take as many driving features away from the actual driver as possible. While that might sound good on paper, cars that drive themselves aren’t fully functioning yet. There has been some amazing progress, but not enough to start taking away manual inputs needed for control and safety purposes.

Elektrek thinks that Tesla might be taking advantage of the supply chain situation. After all, the price has risen almost 30%, which is a bit much, even if it’s become more difficult to ship things out. On the other hand, it could be a combination of a lack of supplies and Tesla jumping at the opportunity to make more money. Either way, $10,000 more is a bit much to pay for a vehicle that you can’t even find the controls on.

RELATED: Consumer Reports Says to Avoid the 2020 Tesla Model S

The post Tesla Just Increased the Price of the Model S by $5,000 appeared first on MotorBiscuit.

by Gabrielle DeSantis

Car shopping can be a stressful matter. A buyer is investing and paying a lot of money for a product. Getting a loan can be stressful, too, if you don’t know exactly where you stand with your credit score. It seems like numbers get thrown around that you can’t even keep track of, and with terms like MSRP, sticker price, and invoice price being talked about, you might find yourself pretty confused by it all. These terms aren’t really interchangeable, so understanding each can help buyers get the best deal when buying a vehicle. 

The differences between MSRP, sticker price, and invoice price

Edmunds lays out the differences between the terms.

MSRP stands for “manufacturer’s suggested retail price.” It is exactly what it sounds like. The manufacturer suggests a retail price to dealerships, says Edmunds. Dealerships may or may not price the vehicle at MSRP, but knowing the MSRP before you go in to buy the vehicle gives you a good idea of what you should be expecting to pay. 

The sticker price is usually the MSRP, but not always. If you’ve been on a car lot, you’ll see the sticker in the window listing out the standard and optional features, EPA-rated gas mileage, and the price of the vehicle. There will often be any additional pricing from the dealership, like destination charges, for example. Make sure to pay attention to the sticker price and see how much above the MSRP it might be. This might give you some wiggle room for negotiation. 

Meanwhile, the invoice price is not something you’ll usually see, but it’s important when pricing a vehicle. The invoice price is the price that the dealership paid for the vehicle directly from the manufacturer. Dealerships have to buy their vehicles first to sell them to individuals and businesses. A dealership has to have that price in mind when negotiating because they can’t lose money on the vehicle. While some negotiation is expected, dealerships cannot sell at a loss or with so little profit that they can’t pay the bills. 

Knowing these terms and what they mean will give the car shoppers enough information to negotiate prices and be confident that they are getting a good deal on whatever vehicle they are trying to buy.

How much can you negotiate a vehicle’s price?

Knowing these prices and terms is the first step. You’ll also need to know what you can negotiate. It’s never wrong to ask for a deal, but know that, depending on what you might want to buy, you may not be able to get it.

If it’s a vehicle that’s in-demand or has a lot of hype around its release, then you can expect to pay at least MSRP. For example, the new Ford Bronco has been a highly anticipated release. Therefore, don’t expect negotiations to work, and instead expect to pay what the sticker says for a Bronco. 

For other vehicles, though, the MSRP is often the starting point for a negotiation. It never hurts to ask, and most dealerships will want to work with you if you are there to buy.

What else should you know when car shopping?

There’s almost nothing more nerve-wracking than trying to buy a car without knowing your credit score. Have a good idea of your credit score, and do some research about what interest rates you could expect for your particular credit score. 

You will also need to know your finances. Set a number for the monthly payment and down payment that you can manage without stressing or stretching your finances and stick to it. If you have an upper limit on what you can pay, then that is it. Don’t go above it, and don’t be talked into paying more. 

With just a little extra information, you’ll be able to negotiate a price on your next car confidently.

RELATED: The Devastating Nature of a ‘Buy Here, Pay Here’ Lot You Might Not Know

The post What Is the Difference Between MSRP, Sticker Price, and Invoice? appeared first on MotorBiscuit.