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If they start selling better, they will reduce the rebate. After they reduce the rebate to zero, they will take away the promotional financing. If they are still selling ahead of plan, they will hold the production rate at just what they need to meet the required volume. Then the dealers will start adding markup above the MSRP. The way Toyota is doing it, it is easy to regulate demand. The problem is that people now expect the rebate at the high level ($7,500+), so they may find themselves stuck at that level unless something drastic happens like a gas price spike.It's only when you have a lease-only situation like Honda does with the Fit EV where you actually get a sold-out (or wait-listed) situation. Honda controls the lease price, so the dealers don't really have a way to control the demand. I'm sure that if Honda finds that they are getting waiting lists for the Fit EV at the new $259/mo price, they will raise it back up to find the equilibrium between their desired volume and customer demand.
If they start selling better, they will reduce the rebate. After they reduce the rebate to zero, they will take away the promotional financing. If they are still selling ahead of plan, they will hold the production rate at just what they need to meet the required volume. Then the dealers will start adding markup above the MSRP. The way Toyota is doing it, it is easy to regulate demand. The problem is that people now expect the rebate at the high level ($7,500+), so they may find themselves stuck at that level unless something drastic happens like a gas price spike.
It's only when you have a lease-only situation like Honda does with the Fit EV where you actually get a sold-out (or wait-listed) situation. Honda controls the lease price, so the dealers don't really have a way to control the demand. I'm sure that if Honda finds that they are getting waiting lists for the Fit EV at the new $259/mo price, they will raise it back up to find the equilibrium between their desired volume and customer demand.
