Definitely do not do the upgrade for any software-unlock trade ins when trading into Tesla. It has a near zero impact on the trade-in value.
But for private party sale, sometimes it helps. Generally not. I think your intuition is correct.
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Advice on Selling S60 after 9 months
- Thread starter virtualsmack
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- Model S
Definitely do not do the upgrade for any software-unlock trade ins when trading into Tesla. It has a near zero impact on the trade-in value.
But for private party sale, sometimes it helps. Generally not. I think your intuition is correct.
I'd note that the "sunk cost" but is generally true... except if you're underwater on the loan. If the car depreciated by enough that you owe more on it than you could get selling it, that's not sunk cost and may factor into your decision(in the long run the payments you're making on it may/likely will overwhelm that, but still).
my tesla was the biggest waste of money as well. but personally i could never drive an ICE vehicle again. even when i have to drive a rental car for one day, even a BMW 5-series, i get angry and annoyed.
That being said, unless you were actively having a budget deficit and going into debt i would keep the car. i think you put a lot of $$ and time into getting the car, and i'd hate to see that go to waste less than one year later. Buying a new, cheaper car seems financially sound, but unless it is used, you're going to take another 20-30% depreciation hit.
That being said, unless you were actively having a budget deficit and going into debt i would keep the car. i think you put a lot of $$ and time into getting the car, and i'd hate to see that go to waste less than one year later. Buying a new, cheaper car seems financially sound, but unless it is used, you're going to take another 20-30% depreciation hit.
I'd go this route. Set up an LLC or whatever business you deem best. Sell your car to that business and rent out the car to Turo/Lyft/Uber drivers.
whitex
Well-Known Member
Sunk cost still applies. You already owe the "under water" amount anyways, the only thing to consider is whether the car loan gives you a lower interest to pay it off than if you sold the car (that is a future saving). The only exception here is if you cannot sell the car because it's so under water that you cannot afford to sell it, but in that case you can often still negotiate with the loan company to give you an unsecured loan for that amount - an alternative to that is to pass this debt to the new car (with good credit you can borrow as much as 110% of MSRP, considering you can also negotiate the price down on the new car, it is possible to trade-in cars "under water"). Bottom line, it doesn't matter how much paid for your car, all that matters is how much you owe and how much can you get for it today (including sales tax credit if you're planning to trade it in).
Odds are that there isn't anything pending that would cause the price of the S to plummet - no upgrades, etc are expected. Musk has said that the 3 isn't a "newer" S although nobody has enough details to sway public perception one way or the other. Got mine 2 weeks ago and I don't regret it - it's a fantastic car.
I'd expect further discounts on the S once the 3 is out and also due to battery costs declining. I'd also expect more equipment to be made standard as they try to separate the S from the 3. Finally, the interior will probably be changed as that's a weak spot for the S.
whttiger25
Member
I agree with many here that you need to ignore losses you've already taken in depreciation. If you are underwater on the loan, that is only a consideration if you don't have the available cash to make up the difference.
Calculate the total cost of ownership, and use current value of the car (your best guess from research) as a starting point. It should be the greater of market value of your car or market value -$2000 of the 75 with similar options. When I calculated the total cost of ownership, I made the following assumptions.
Decide how long you want to keep the car. I assume a car depreciates about 15% a year, so compound that, divide the total calculated depreciation by the months you'll keep it, there is your monthly depreciation cost. Add to this the total remaining cost of the interest on the loan. You should spread this out over how long you'll own the car, not the term of the loan. Add realistic gasoline savings, bridge toll savings. You haven't made any adjustments for time value of money but that's ok it isn't that important.
Now run the same calcs for your SUV. Look at the difference, decide if it's worth it.
Considering I drive 1500 miles a month I found out that it was slightly cheaper to buy a $93000 model S and keep for 6 years than it would be to lease two consecutive BMW 3 series for 3 years each at $50k price point (which is what I was doing prior). Keeping the car longer obviously improved affordability.
Calculate the total cost of ownership, and use current value of the car (your best guess from research) as a starting point. It should be the greater of market value of your car or market value -$2000 of the 75 with similar options. When I calculated the total cost of ownership, I made the following assumptions.
Decide how long you want to keep the car. I assume a car depreciates about 15% a year, so compound that, divide the total calculated depreciation by the months you'll keep it, there is your monthly depreciation cost. Add to this the total remaining cost of the interest on the loan. You should spread this out over how long you'll own the car, not the term of the loan. Add realistic gasoline savings, bridge toll savings. You haven't made any adjustments for time value of money but that's ok it isn't that important.
Now run the same calcs for your SUV. Look at the difference, decide if it's worth it.
Considering I drive 1500 miles a month I found out that it was slightly cheaper to buy a $93000 model S and keep for 6 years than it would be to lease two consecutive BMW 3 series for 3 years each at $50k price point (which is what I was doing prior). Keeping the car longer obviously improved affordability.
ucmndd
Well-Known Member
Sounds like your justification for selling is sound. That said, you should prepare yourself for having *substantially* underestimated your loss.
I am not concerned about model s now vs model 3 this summer/fall, but more worried about model s now vs model s v2 2 months from now.
EV Revolution
Member
Wow! What a beautiful car. Look so great in front of your garage.- Secondly... is there any reason that I should keep the car?
I can't think of any, especially w/ the savings.
If the savings was significantly less, it'd be a different story.
Initially I thought that "if I can afford it, let's just keep it", but if I'm not using it, I
don't even see the point in that! Am I missing something?? Let me know!
Well, I bought my first car 30 years ago, a VW GTI 5 sp in 1987 in San Diego for $10k, and after 350k miles I still have it.
I was considering initially to keep it for 3 to 5 years or 60k miles. I was doing for many years a 120 miles a day commute.
Sometime 6 days a weeks. At that time the speed limit was 55 miles/ hour, not fun, was like 90 minutes each way.
But I never had any real issue with this car. I just put gas, turn the key and the engine starts.
So I decided to keep it until it will die, since the car has no value (The state will give me $1,000 if still running).
And my future car will be certainly a Tesla.
In fact, after one year of ownership, at the time, I was considering to sale it to get a bigger car, like a Volvo wagon or so.
But looking at how much I was losing from the first year devaluation, the 20k miles, and paying again the sales taxes,
I changed my mind. In fact, now I live in San Francisco, and this car is very practical, as I can find parking where most
of the other cars would not fit.
My point is that I think you made a great choice by getting a M S 60, I would have took the same decision in your situation.
You need a car and you have a great one. You could downsize and get a cheaper car but considering what you will lose,
such as devaluation, tax incentives lost, new sales taxes, sunk costs..., the new car will be quite expensive,
and you will drive again an ICE. If you have a low mileage, you can also get a good discount on your insurance.
If I was in your situation, I would keep it for many years, like another 10 years, or even more.
If you look at the total cost for the next 10 years, between keeping your MS 60, or selling it at lost and buying may be
one or two new ICE cars, you might possibly better off keeping it and don't worry about your car and enjoy it.
So now you can think about how to spend time with your family. I find this video quite inspiring:
US Cross Country Road Trip This Summer - 2017
Yep. OP is in California. A buyer of a new EV (who keeps it for 30+ months) will be eligible for the $2500 CVRP (| Clean Vehicle Rebate Project). Someone who buys used is ineligible, further skewing the price besides everything else you listed.
Shock-On-T
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Since you are comfortably well off, I would keep the car for the pleasure of it and rent an SUV for your ski trips.
Life is not all about optimizing one's bank balance!
Life is not all about optimizing one's bank balance!
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