Tesla drops prices on X/S $20k. All colors free. Bye bye resale

[CapeOne]

They're not quite the same. A dealer markup has a temporary expectation. Dealer markups typically occur on new models where demand is temporarily higher. The demand usually falls and the markups are eliminated. Because of this, those looking for slightly used examples will still lookup the MSRP as the reference and if the used prices are too high, we'll wait or look elsewhere.

MSRPs aren't usually dropped once raised so the expectation is that the value of a used car won't drop faster than normal depreciation.

Also, markups are highly regionally dependent. For example, when I was shopping for a new C5 in 2001, dealer markups in the Bay Area ranged from $10 to $20K. The lowest markup I found anywhere in the Bay Area was $10K above MSRP. But Serra Chevrolet in Alabama was not only NOT charging a markup, but they were already discounting and I got a 1SC Pewter, with polish wheels allocation for $5K under MSRP. The car was delivered directly from the factory to the dealer of my choice, Fremont Chevrolet. I chose this dealer in the Bay Area because they had the highest markup and I wanted to rub it in the salesman's face when I went to pick it up after paying the service department the $189 PDI fee for having it delivered to a dealer other than the one I ordered it from.

It all depends on market conditions. As discussed, COVID, supply chain issues, inventory shortages, etc. lead to an unusual spike in prices whether they be MSRP increases and/or dealer market adjustments and/or rebate/incentive changes.

Whether a car was sold at $95,000 ($75,000 + $20,000 dealer market adjustment) or $95,000 ($75,000 MSRP increased to $95,000 MSRP), if the resale value is $60,000 the loss to the buyer is the same. It doesn't really matter to the buyer if the larger than expected resale drop was due to the market adjustment being removed, the MSRP being lowered or rebates/incentives increasing.

 

[TSLA Pilot]

Just tested on my Plaid, June, 2022 build, just under 9k miles (with FSD), and it was $69,900.

Looks like Tesla values fully paid up FSD at ~$0 for trade in, as is their norm?

 

[CapeOne]

Looks like Tesla values fully paid up FSD at ~$0 for trade in, as is their norm?

This has been a question/debate for a while. Since Tesla doesn't breakdown its trade-in valuations by equipment (e.g., FSD adds $2,000), it's difficult to know for sure.

 

[sorka]

It all depends on market conditions. As discussed, COVID, supply chain issues, inventory shortages, etc. lead to an unusual spike in prices whether they be MSRP increases and/or dealer market adjustments and/or rebate/incentive changes.

Whether a car was sold at $95,000 ($75,000 + $20,000 dealer market adjustment) or $95,000 ($75,000 MSRP increased to $95,000 MSRP), if the resale value is $60,000 the loss to the buyer is the same. It doesn't really matter to the buyer if the larger than expected resale drop was due to the market adjustment being removed, the MSRP being lowered or rebates/incentives increasing.

It matters to me