U.S. Update: Allocation & Order Date

[dgrace]

Energy costs in the UK have spiked by 80%. Just keeping the factory lights on and the robots running is one thing, but it must seriously affect the price of aluminum. My guess is base price will increase significantly.

 

[Lotustoronto]

Am I getting this currency conversion wrong ? but.........since the dollar is stronger would that not reflect that LOTUS is getting paid MORE for USA cars with the price that was originally posted on the web site ?

Any finance degree people can chime in ?

Correct -If you paid 90K USD last year for an F/E - Lotus would receive = 65,700 GBP approx

Today they would receive 81,900 GBP approx

It is significant.

 

[Lotustoronto]

His statement was specifically for the first production year V6 FE, since that's the only car they're producing for the entire first year run. It did not apply to the base price. I'm sure they would like to hold the price, but we'll have to see if they can.

It shouldn't be a surprise that the base price might change because of inflation, increased supply chain costs due to transportation and logistics increases, as well as fluctuating currency exchange rates. Prices for options and option packages on the car may also have some increases.

Since the dollar has increased in strength against the pound, there may actually be a lowering of base prices for cars in the U.S. Due to the current rates, the advertised base price today would be about $4,000 lower in the U.S. than it was at the beginning of the year.

Well in all fairness the US 2023 first year model run is three months of F/E (700 cars) and the rest is base (1,200)... In fact the majority of first year US cars are in fact base config cars.

 

[Eagle7]

Correct -If you paid 90K USD last year for an F/E - Lotus would receive = 65,700 GBP

Today they would receive 81,900 GBP

It is significant.

Except we haven't paid anything in the U.S. for an FE yet. The dealers are the ones who buy the car, then we buy from them. Unless I'm mistaken, the improved strength of the dollar should mean the dealers are going to be paying less for the FE than they would have earlier in the year. What remains to be seen is if they're going to pass that savings on to their U.S. customers, or keep the difference for themselves.

 

[Lotustoronto]

Except we haven't paid anything in the U.S. for an FE yet. The dealers are the ones who buy the car, then we buy from them. Unless I'm mistaken, the improved strength of the dollar should mean the dealers are going to be paying less for the FE than they would have earlier in the year. What remains to be seen is if they're going to pass that savings on to their U.S. customers, or keep the difference for themselves.

That is where I am not sure how the contracts are decided. From my limited understanding is that Lotus USA, purchases all the vehicles. This is where the currency conversion would happen. Then the dealers purchase the vehicles off Lotus USA - no exchange rate fluctuations there. So the contract between Lotus USA and Lotus HQ is the one that would determine this. Individual dealers would not be involved in exchange rate contract negotiations.

 

[Eagle7]

That is where I am not sure how the contracts are decided. From my limited understanding is that Lotus USA, purchases all the vehicles. This is where the currency conversion would happen. Then the dealers purchase the vehicles off Lotus USA - no exchange rate fluctuations there. So the contract between Lotus USA and Lotus HQ is the one that would determine this. Individual dealers would not be involved in exchange rate contract negotiations.

Is Lotuscars USA a separate business entity or part of Lotus? If they're a separate entity, then we have 2 middlemen in between us and Lotus; Lotuscars and our dealer. If they're part of Lotus, then they function as an agent so dealers buy cars from Lotus but through them as the handling agent. If that's the case, then the wholesale cost to the dealer is automatically adjusted by Lotuscars USA.

My order was sent into Lotus in April with the price being $93,400 not including destination, but that price was based on the original declared price for the FE. If Lotuscars USA announces a lower adjusted MSRP in the U.S. due to the currency exchange rate, then we should be able to get our cars at the lower price too. It would probably be about a $4,000 drop but that would be nice. That would cover the destination charge, and for me, covered delivery charge.

 

[Lotustoronto]

I’m in Canada and I still see my build price for a V6 FE. I never did see a base version price since you can’t configure one yet. However, I might have missed it since I was interested in a FE from the get go. I do see the i4 says CONTACT DEALER now. The roller coaster journey continues.

Canadian Base was around 96K for base i4. It's posted somewhere on the Forum...

Is Lotuscars USA a separate business entity or part of Lotus? If they're a separate entity, then we have 2 middlemen in between us and Lotus; Lotuscars and our dealer. If they're part of Lotus, then they function as an agent so dealers buy cars from Lotus but through them as the handling agent. If that's the case, then the wholesale cost to the dealer is automatically adjusted by Lotuscars USA.

My order was sent into Lotus in April with the price being $93,400 not including destination, but that price was based on the original declared price for the FE. If Lotuscars USA announces a lower adjusted MSRP in the U.S. due to the currency exchange rate, then we should be able to get our cars at the lower price too. It would probably be about a $4,000 drop but that would be nice. That would cover the destination charge, and for me, covered delivery charge.

Its hard to say... Lotus USA is part of Lotus HQ, but perhaps a subsidirary? Honestly not sure how that works exactly, but I do know the dealers purchase from Lotus USA.

The F/E V6 price most likely won't change has those prices have been locked firm, I believe once they have accepted build allocation locks, the price locks with it. Again speculating, but would make most sense.

 

[Eagle7]

Canadian Base was around 96K for base i4. It's posted somewhere on the Forum...

Its hard to say... Lotus USA is part of Lotus HQ, but perhaps a subsidirary? Honestly not sure how that works exactly, but I do know the dealers purchase from Lotus USA.

The F/E V6 price most likely won't change has those prices have been locked firm, I believe once they have accepted build allocation locks, the price locks with it. Again speculating, but would make most sense.

The price from Lotus wouldn't change; that would be the price lock, but the currency exchange rate can change the retail price over here.

 

[Pops68]

Well, it's fairly obvious if you have a signed agreement with firm price on the V6 F/E that it can not change. It's a signed agreement... I think his message was directed at base customer pricing / i4 F/E pricing for the first model year run... Since no one would have had signed agreements with firm pricing, which is why his statement on holding pricing would make sense for the base numbers. It didn't change on UK site for a reason... still shows 59K pounds for base edition. Perhaps his message was only for UK depositers?

Yeah I agree, once you have put cash down and they have accepted an order that becomes a binding contract in which the terms can only change with mutual agreement! I'm more concerned with the state of the global economy and its effect on markets. I suspect (and hope) that once the Ukraine situation is sorted out and the post-election results here in the US that the outlook will improve! Otherwise I'll bet we see more than a few cancellations...regardless of price...

 

[Captain.Kirk]

Energy costs in the UK have spiked by 80%. Just keeping the factory lights on and the robots running is one thing, but it must seriously affect the price of aluminum. My guess is base price will increase significantly.

As Indy said, “I’ve got a bad feeling about this”.

 

[Captain.Kirk]

Canadian Base was around 96K for base i4. It's posted somewhere on the Forum...

Its hard to say... Lotus USA is part of Lotus HQ, but perhaps a subsidirary? Honestly not sure how that works exactly, but I do know the dealers purchase from Lotus USA.

The F/E V6 price most likely won't change has those prices have been locked firm, I believe once they have accepted build allocation locks, the price locks with it. Again speculating, but would make most sense.

Lotus USA just recently confirmed to me via email the CAD pricing as follows:

**********
Hello Kirk,

Thank you for your email, I can confirm the below pricing for the Emira models below for Canada:

Emira I4 base: $96,393
Emira V6 base: $105,918
Emira I4 First Edition: $110,363
Emira V6 First Edition is $119,888
**********

Of course as we all know things can change based on the many factors we chat about on this forum.

 

[Cachaco131]

Am I getting this currency conversion wrong ? but.........since the dollar is stronger would that not reflect that LOTUS is getting paid MORE for USA cars with the price that was originally posted on the web site ?

Any finance degree people can chime in ?

Well yes but they still have to compete in a price range determined by whoever they consider as competitors. Some of their costs are probably dollar linked as well. I cannot see an adjustment on price.

 

[VL3X]

Emira V6 First Edition is $119,888

Wait.. so that's ~$88,315 USD for a V6 FE?

 

[Lotustoronto]

Wait.. so that's ~$88,315 USD for a V6 FE?

Yup, CAD $ went down a little this month ... was .78 cents last year... However we have 13% tax on top... The US dollar being strong works in our favour...haha

Also if you convert our 119,888 to GPB, it's higher than the UK price still.

Don't complain too much we sell you guys our oil for cheaper than anyone else on the planet.... Then you refine it in the US and sell it back to us for a profit... so how about you let us win a little this time....lol

 

[Lotustoronto]

Well yes but they still have to compete in a price range determined by whoever they consider as competitors. Some of their costs are probably dollar linked as well. I cannot see an adjustment on price.

I agree.... I personally think the Base configurator will be coming Live next week... at least I hope this is the case

 

[dgrace]

As Indy said, “I’ve got a bad feeling about this”.

I think that was Han Solo, wasn’t it?

 

[nahanni]

This is what I estimate for Canadian price in my area:
MSRP $119888
AC Tax 100
Doc Fee 500
Tire Reco 23
Freight/PDI 3000
____
123510
Luxury Tax 10% 12351
135861
HST 15% 20379
_____
Total est. $156240

 

[dgrace]

This is what I estimate for Canadian price in my area:
MSRP $119888
AC Tax 100
Doc Fee 500
Tire Reco 23
Freight/PDI 3000
____
123510
Luxury Tax 10% 12351
135861
HST 15% 20379
_____
Total est. $156240

HST is 15% now?! God I am so glad I left Canada a few years ago.

 

[Lotustoronto]

HST is 15% now?! God I am so glad I left Canada a few years ago.

It's still 13% in ontario.... for now lol

 

[Captain.Kirk]

I think that was Han Solo, wasn’t it?

I think that was Han Solo, wasn’t it?

You’re absolutely correct. I got the actor correct but not the character/movie. I also think that Luke said a version of that too “I ‘have’ a very bad feeling about this”. However, based on my record with the first quote it could have been Chewy! I think it was actually said by many characters in the SW movie franchise. Wish we all had our Emiras, then we wouldn’t even be talking about this.