TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker and becoming a Supporting Member. For more info: Support TMC

Advice Needed: To sell or not? Leaving country for 14 months

Discussion in 'Model S' started by goldenbyte, May 11, 2017.

  1. goldenbyte

    goldenbyte Member

    Joined:
    Apr 15, 2015
    Messages:
    26
    Location:
    Seattle, WA
    Hello all, I would greatly appreciate your feedback and opinions. I have a 2015 85D with 20K miles. I am leaving the country for 15 months soon. The car will be garage kept and no one will drive it during this time. Would it make more sense financially to just sell the car and rebuy when I return? I imagine I will be returning to a new world - model 3's everywhere, double the supercharger network, Tesla competitors, etc. Plus I don't know if it's good for the car to sit so long, then there's insurance premiums to consider since I have a loan.

    Looking forward to your thoughts!
     
  2. Hixson

    Hixson Member

    Joined:
    Apr 27, 2017
    Messages:
    60
    Location:
    Iowa City
    I would sell before the model 3 comes out - I would think your model S will be worth more. I cant imagine paying 14 months of a loan when I cant use the car. Tech will be different in 14 months too - you might want a more current version?
     
  3. Discoducky

    Discoducky Active Member

    Joined:
    Dec 25, 2011
    Messages:
    2,979
    Location:
    Seattle
    I would most likely sell it, as I'd always be worried it might stop charging for some reason. Or I might try to make money on it by listing it on Turo Car rentals in Seattle, WA | Turo.
     
    • Like x 1
  4. ABVA

    ABVA Member

    Joined:
    Nov 2, 2013
    Messages:
    372
    Location:
    Northern Virginia
    Besides making insurance and loan payments your car will also age/depreciate i.e. pouring money into a loosing proposition. All this while you are not using the car. If I were you, which I am not, I will sell the car, evaluate the market place two or three months before my return and have a new Tesla ready for delivery immediately upon my return.
    Just my 2 cents.
     
    • Like x 1
  5. kev1n

    kev1n Member

    Joined:
    Nov 17, 2016
    Messages:
    269
    Location:
    Bay Area
    something others are not mentioning is although you would take a loss in depreciation but if you come back to buy a BRAND NEW Tesla, you're likely going to spend a high premium just to get back into one(not sure which would be less/more expensive option). other things to consider would be, are you happy with your current car? would you want any new tech in the car if it were out when you come back? do you care if you take a loss now? do you have money to blow on another brand new Tesla 15 months from now?
     
  6. oktane

    oktane Active Member

    Joined:
    Oct 25, 2016
    Messages:
    1,207
    Location:
    USA
    Sell! Unless you can get someone to rent it for you on Turo. Why hold on to a depreciating asset if you're not getting any benefit from it? Your tax situation may be unique so check with your accountant.
     
  7. NeverFollow

    NeverFollow Member

    Joined:
    Aug 9, 2010
    Messages:
    368
    First I would look at the kind of earlier termination issues with the loan that you mentioned.
    - What are the clauses for earlier termination?
    - Who is the real owner? can you sale the car and then reimburse the bank?
    - There are web sites providing transfer of a lease or monthly payment that you could consider.

    Note: I'm a little bit curious about this situation. Unless I would be in an emergency purchase need,
    I always buy cash most of my goods, to limit my expenses to what I really need and can afford.
    And then paying a loan to myself on a designated saving account for future expenses.
     
  8. tpham07

    tpham07 Member

    Joined:
    Mar 21, 2017
    Messages:
    459
    Location:
    Baton Rouge
    If you dont have a family member or close friend you wanna "loan" it to, then sell it.
     
  9. Xenoilphobe

    Xenoilphobe Active Member

    Joined:
    Jan 2, 2014
    Messages:
    1,681
    Location:
    Fairfax County Virginia
    Sell it, the fan belts will dry rot, the oil gaskets will start leaking, and the fuel system will get gummed up - not worth it - the dealer will charge you a "restoration" fee to fix all this stuff. ;);)
     
    • Funny x 5
  10. JPUConn

    JPUConn Member

    Joined:
    Aug 11, 2014
    Messages:
    594
    Location:
    CT
    Sell. It's not going up and value so if you want the same car when you come back buy a CPO for less at that time. Keep your options open.
     
  11. JPUConn

    JPUConn Member

    Joined:
    Aug 11, 2014
    Messages:
    594
    Location:
    CT
    Also consider parking any equity you had in the car in TSLA shares. I love my Model S but the same $50k I paid for it last June if invested in TSLA would be close to paying for my Model 3 at this point.
     
    • Like x 1
  12. cgiGuy

    cgiGuy Active Member

    Joined:
    Jul 9, 2013
    Messages:
    1,227
    Location:
    Sacramento, CA
    Turo is not a lease company, it's a short-term rental service, so unless he gives permission for someone else to manage the key handoff, inspection, deal with damage, etc. it's not really an option for him while abroad.

    Sell it and put the payments you save into an account to use as a downpayment on the latest and greatest. Perfect excuse to upgrade.

    I may be in the same boat soon (also with a 2015 85D), as we may be headed to Japan next year. I'm considering selling soon before I put too many more miles on it and before more tech comes out that makes this one even less desirable.
     
    • Like x 1
  13. cgiGuy

    cgiGuy Active Member

    Joined:
    Jul 9, 2013
    Messages:
    1,227
    Location:
    Sacramento, CA
    haha.. some other guy is thinking the exact opposite from his short-term investment into TSLA 6-12 months prior to that, though.
     
    • Like x 1
  14. Xenoilphobe

    Xenoilphobe Active Member

    Joined:
    Jan 2, 2014
    Messages:
    1,681
    Location:
    Fairfax County Virginia
    You could provide it to a high end luxury car rental company and profit share for 18 months...
     
  15. McRat

    McRat Active Member

    Joined:
    Jan 20, 2016
    Messages:
    3,591
    Location:
    Norco, CA
    Contact charities with high paid executives. There are many in your area. Lease it for $1 a month with the stipulation they must insure it. Since insurance comes out the general fund, you can write off the difference between the market value and $1. Use the Tesla lease rate. You might come out ahead if you're in the top tax bracket.

    But you might burn hell, so buy some Nomex undies.

    Lots of companies do this.
     
    • Like x 2
  16. idleuser

    idleuser Member

    Joined:
    Sep 14, 2016
    Messages:
    52
    Location:
    central california
    Sell it.

    1. Deperation
    2. 1 less thing to worry about while you're overseas.
     
  17. oktane

    oktane Active Member

    Joined:
    Oct 25, 2016
    Messages:
    1,207
    Location:
    USA
    3. Technology will have improved by the time you return.
     
  18. Tampaukfan

    Tampaukfan Member

    Joined:
    Mar 6, 2015
    Messages:
    256
    Location:
    Tampa, Fl
    dump it, will take a huge ding when the 3 rolls out.
     
  19. whitex

    whitex Active Member

    Joined:
    Sep 30, 2015
    Messages:
    1,472
    Location:
    Seattle area, WA
    @goldenbyte
    I don't think it's as straightforward as some people here think. A lot of people here suggest that once Model 3 is available nobody will be buying a Model S, which is not true (just because there is a 3 series BMW doesn't mean people don't buy 5 or 7 series ). I would be pragmatic and do the math.

    The cost of keeping it is:
    1. Storage insurance (you have to tell the insurance company the car will not be registered to be on the road)
    2. Interest on the loan (not the whole payment, just interest)
    3. Cost of storage (may be free if you are leaving an empty garage anyways)
    4. Opportunity cost on any money you could get back (interest you could make on what you sell the car for minus the amount you owe today)

    Cost of selling it is how much will you have to pay in 14 months to get back into a similar car. For this calculation, assume buying the very same car, upgrading to new is always extra. So, how much would it cost you to buy the exact same year, model, options, mileage in 14 months (find a similar car as yours that it 14 months older - how much less is it than yours). Subtract how much you can get for your car today (net after any sale costs), and you have your cost of selling and buying it again.

    Without doing the numbers it's hard to tell which one is more beneficial. Also, there is always some risk as you are predicting future car value, which always has some margin of error.

    If it was a longer period, I would think the difference would be greater. With only 14 months, hard to tell. As a point of reference, I sold my 2013 MS two years ago for 61K, a year later comparable cars sold for $50, so $11K depreciation in a year (another $10K depraciation for the year after that). So in your case, the depreciation may be ballpark $12K (discounting the "Model 3 will be the Model S killer" theories). That could be about the hit you would take by selling and buying the same car again (sale_price - trade_in_value).

    Important note, if you were planning to upgrade to a new Tesla in 14 months anyways, then by all means, sell the one you have today rather than wait to trade it in 14 months from now.
     
    • Love x 1
  20. DMan

    DMan Member

    Joined:
    Apr 20, 2016
    Messages:
    6
    Location:
    WA
    DM me if you're thinking of renting it out for 14 months. I am making moves to purchase a CPO to bridge me to the Model 3 but the models I am looking at are 2013 and maybe a 2014 if I'm lucky.
     
    • Like x 1

Share This Page