bdonpwn
Active Member
- Joined
- Dec 16, 2022
- Threads
- 1
- Messages
- 41
- Reaction score
- 81
- Location
- Roseville, CA
- Vehicles
- 2021 Mach-E SR w/ Tech Pkg, 2006 Evo IX
- Occupation
- Engineer
Well this thread is going nuts and I think both sides are right. Is this a good thing? Possibly. Could this go south? Possibly.
One thing I’m not seeing discussed is equity. Yes, the car has the capability to achieve higher power output, but one could argue MB didn’t carry the same material margin on the higher power motor/infrastructure since they’re banking on future revenue via the subscription. Simplistically speaking, instead of building a low and a high power version, they built one that can do both, but the starting price point isn’t based off of the equipment upgrades. If you buy the car and that cost includes the cost of these upgraded parts, then yes, that’s messed up. I don’t think thats the case, but I am an optimist. The alternative is you buy a lower powered motor version and have to rip out the motor/electronics to upgrade it yourself. Then, when you sell it, you can capture the added equity you put into it. Some may like this, but these days most people probably don’t.
This also normalizes the balance between supply and demand for standard vs performance versions of vehicles.
In my college years, I bought a Mitsubishi Evo, a 300 hp AWD rally inspired car. I instantly spent maybe $750 on aftermarket parts and turned up the boost to snag around an extra 20-30 hp, but voided my warranty. Would have rather kept the warranty and had Mitsu do it if the price was right. Over the years, I put nearly $10k+ into it, making it a 550 hp beast that sits in my garage to this day. I put that equity in it and can carry on that value.
One thing I’m not seeing discussed is equity. Yes, the car has the capability to achieve higher power output, but one could argue MB didn’t carry the same material margin on the higher power motor/infrastructure since they’re banking on future revenue via the subscription. Simplistically speaking, instead of building a low and a high power version, they built one that can do both, but the starting price point isn’t based off of the equipment upgrades. If you buy the car and that cost includes the cost of these upgraded parts, then yes, that’s messed up. I don’t think thats the case, but I am an optimist. The alternative is you buy a lower powered motor version and have to rip out the motor/electronics to upgrade it yourself. Then, when you sell it, you can capture the added equity you put into it. Some may like this, but these days most people probably don’t.
This also normalizes the balance between supply and demand for standard vs performance versions of vehicles.
In my college years, I bought a Mitsubishi Evo, a 300 hp AWD rally inspired car. I instantly spent maybe $750 on aftermarket parts and turned up the boost to snag around an extra 20-30 hp, but voided my warranty. Would have rather kept the warranty and had Mitsu do it if the price was right. Over the years, I put nearly $10k+ into it, making it a 550 hp beast that sits in my garage to this day. I put that equity in it and can carry on that value.
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