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£45,000 Loss on PCP or £45,000 Depreciation?

Discussion in 'Model X: Ordering, Production, Delivery' started by 2160p, Dec 28, 2016.

  1. 2160p

    2160p Member

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    Hello everyone, newbie and Telsa wannabe here.
    I'm concidering buying a Tesla Model S 75D(Custom Build) or a 90D(Inventory) here in the UK.
    Now here is my dlilemma, I have no chance of getting credit but can afford one cash, albeit that would seriously drain me of my lump sum I have in the bank.
    Now if I was able to gain credit, over 3 years and 15K miles per year the Telsa finace would cost me £22,000 deposit (which it's not depsoit, it's just more money down on your monthly payment as you don't get this back) then £857 pcm over 3 years approximately £45,000 or £15,000 a year and thats a serious ammount of money.
    So if I was to buy cash at £80,000 would my car be worth more or less the same, £35,000 or more?
    Ideally I'd like the car to be worth £50-£60K..I know we don't have crystal balls but surely someone can take a guess or give me some pointers.
     
  2. J1mbo

    J1mbo Member

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    In my experience, deprecation on a car generally tracks the cost of PCP.

    If you pay cash then you get to keep the car for as long as you like and do whatever you want to it.

    PCP is good for cashflow tho, and necessary for the GMFV.
     
  3. 2160p

    2160p Member

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    Sorry people I realise now I've put the post in wrong forum.
    So a 3yr old Tesla is going to lose 55% to 60% depreciation..wow that's Alfa Romeo territory.
    It's Tesla constant changing of specs etc that's not helping imho. It's great that they keep things up to date but man do you beta testers pay.
     
  4. J1mbo

    J1mbo Member

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    Depreciation is nothing like 55-60%.

    Have you even bothered to look to see how much used 2014 cars are going for..?
     
  5. 2160p

    2160p Member

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    Wow Sorry...Well when I went to school 80 minus 45 is 35..thats the maths I'm looking at, and also yes I have been looking at prices and they are around 50% minimum depreciation..So please show me a car thats done better than 50% in the last week (Thats actually sold)
    like many things on selling sites, people can ask for a certain price but they sure don't always get it.
    I went to the Gatwick dealer here in the UK and he said look in the lot and see how many cars he's stuck with (as nobody wants the old style autopilot or that fuggly front end) also the car that I looked at, he said It's price in 3 years is totally unforseeable, as next year the electric motor market is going to change big time and the years after that nobody will want a Model S when the Model 3 comes out...
    So sorry I offended you with my piss poor calculations. I'll just keep my mouth shut and stick with a petrol car for the time.
     
    • Disagree x 1
  6. gangzoom

    gangzoom Member

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    #6 gangzoom, Dec 28, 2016
    Last edited: Dec 28, 2016
    ^ You do realise every single car deprecates at around 50% at 3 years. The more expensive the car the more money you loss.

    But here is the important bit, money is for spending when you die its useless. If you want the 'value' car a Tesla should be the last thing on your shopping list. Instead try a £500 10 year old Nissan Micra. It'll be more reliable, cost £0 in deprecation and you can enjoy looking at the £80k in your bank account.

    For us we made the decision to buy a Model X because we believe in what Musk and Tesla are trying to do. Yes it cost money but I cannot wait to take delivery of the most advanced, safe, green on sale today (and likely for many years).

    If you cannot stomach the cost/deprecation no one is forcing your hand. But I suspect every one who can afford a Model S/X are sensible enough to understand the finances/figures involved. Your enlightened realisation that expensive cars deprecate really isn't news to anyone.

    Enjoy your outdated oil burner, but I've been there and done that, after living with an EV for now 18months frankly I don't understand why anyone would want a petrol car if they had the means to get into a Tesla now.

    On a side note how on earth do you end up with a cash lump of £80k but don't have the credit rating to get finance on a car??
     
    • Like x 1
  7. bonaire

    bonaire Active Member

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    Depreciation is also another synonym for desperation. Do you really need a New Tesla in your life right now? How about a CPO with some miles on it and the depreciation already factored in? That might be a way to "get in one without using as much bulk saved funds". Tesla benefits from selling off CPO cars as much as new ones, really. And they get to establish a new customer and service revenue stream and so on. it's a benefit to both sides to consider CPO or private-market used.
     
  8. Jayc

    Jayc Member

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    #8 Jayc, Dec 28, 2016
    Last edited: Dec 28, 2016
    Wow @2160p you do have a certain way expressing your frustration but as @gangzoom points out, however we do the maths, it is difficult to see a direct financial benefit to a Model S in the UK right now. Perhaps if you drive daily to central London and you get the Model S as a company car, it might make some sense. But then, have you ever wondered whether someone ordering a Rolls Royce Phantom would try to do a cost benefit analysis mathematically ? It's the same with a Model S IMO one should have the resources to ignore it's return (or lack of), or get it to support the R&D, or simply get it on PCP because one can just about manage to pay it knowing very well it makes little financial sense.

    I currently own a Toyota Hybrid and I can tell you, it's quite easy to make perfect sense with the numbers. I can also "afford" to get a Model S 60 but just like you, I struggled to justify the outlay. And I cannot imagine having to pay £1000 every so often on a set of premium 20 inch tyres not to mention insurance and general upkeep.

    On the other hand, I believe the upcoming Model 3 is just what I need. It's probably going to cost me £40k and is going to be an upgrade every way to my current car. The numbers should also make sense but I will be hoping to keep it for at least 5 years and at that point, it's residual value should still make sense compared to an oil burner of equal class like a BMW 3-series.
     
  9. J1mbo

    J1mbo Member

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    Oh, I see. Just because a £72,000 2014 S85 is on Autotrader for £51,600, which is the cheapest car being advertised, that ACTUALLY means the car will sell for about £30,000?

    If that is true, suggest you buy it before soneone else does, as it would be bargain of the decade.
     
  10. 2160p

    2160p Member

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    Great idea...I shall take a look even thou that front end is fuggly. As to how I end up with cash and no credit...no cards for 12yrs..no loans...just sold second home.
    Thanks people for feedback even the aggressive ones.;)
     
    • Like x 1
  11. gangzoom

    gangzoom Member

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    #11 gangzoom, Dec 29, 2016
    Last edited: Dec 29, 2016
    Sounds like you love spending money as much as me :).

    The most expensive car I had bought before our X was £20k, and even that was really only £13k cash after PX the previous car. So paying out £60k+ cash on our X is a huge deviation from our normal spending pattern. We originally wanted a £50k Model S but spend too much time in a Tesla showroom and all common sense about budgeting goes out of the window!!

    Even on a used Model S you will 100% guaranteed to 'loss' money, but take a step back and work out what on earth your saving money for....When your 6ft under no one will care how much money you have made/saved over your lifetime. Clearly you have to be sensible as well, but you can clearly afford a Model S/X that really isn't the question, its a case of do you want to??

    It took us 18 months in a Leaf and many visits to the Tesla showroom before we finally cracked and decided we did want a Tesla despite the high cost. Your the only one who can make that final decision, but just bear in mind the £ isn't getting any stronger against the $ and UK prices are heading in only one direction.
     
  12. 2160p

    2160p Member

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    Just put a deposit on a 90D at Heathrow this afternoon..So who wants to give me their referal code?
    George Michael dying made me think as we're the same age, adn the comment earlier also said 'yup go for it' My father dies at 64 years of age in now 11years behind him and I'm sure not gonna wasta time saying would of could of etc etc..
    Referal codes please people...
    Thanks for all the help...see you at the super chargers!
     
  13. FURY

    FURY Member

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    Hi 2160p

    I'm sure it will be the dog's bullocks!

    Richard4583

    Thank you very much

    Fury
     
  14. J1mbo

    J1mbo Member

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    What happened to the 45k deprecation?!
     
  15. krouebi

    krouebi Member

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  16. 2160p

    2160p Member

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    @FURY ([email protected]@@@) 2 Different Codes? and you spelt Bollocks incorrectly....
    @krouebi Thanks I'll add you to the list..
    @J1imbo I'll tell you in 2 or 3 years time...

    Nobody want to join the referal code race? wow £750 (or a $1000) up for grabs and no Brits?!
     
  17. gangzoom

    gangzoom Member

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    Congrats on deciding to order, just make sure you get it in before 2017 to ensure you get free supercharging and potentially avoid changes in VED coming in April 2017. Also it normal takes 14 days for Tesla to confirm the order, so if I was you I would get some written confirmation for Tesla UK to say because you ordered before 1/1/17 your will get free supercharging access regardless of the 14 day cooling off period.

    Personally I find the whole referral code thing a bit of a over the top, I just cannot bring my self get involved.

    If you want to use a referral code use one from someone that you think actually helped in giving advice.

    The chap that helped me the most was a guy who took me out in his S when I was on holiday in LA, the X had only just deliveries and we both happend to come across one!!

    Ironically at the time time I didn't like it, but now waiting on delivery for ours :), his research referal code is below.

    Referral | Tesla
     
  18. 2160p

    2160p Member

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    Thanks gangzoom nice positive words. Yes the main reason it's been a huge rush is that not just the free supercharging ending, but as we are having a massive shake up here in blighty the pound has taken a temporary dive, so Tesla inform me prices are also going up on the 1st of Jan, also the referal codes end in Jan also..So yes mate I have been running around like a headless chicken.
     
    • Like x 1
  19. 2160p

    2160p Member

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    Wow Not One Single Brit Interested In A Referal...Perhaps They Are True Wannabes Like I USED To Be? Well I've chosen a guy in the states who helped me pick my car. Thanks Sahil. Won't be back people as the agressive bs from wannabes put me off. My father used to run a car club in Great Britain and he found 80% of them full of it. Bye! See you in my 90D.
     

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