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Any reservation holders considering immediately buying an available new/used?

Discussion in 'Model 3' started by Tforme, Mar 7, 2018.

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  1. Tforme

    Tforme Member

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    There are now over 20 new/used M3’s listed on cars.com, autotrader and eBay. Several of these are priced very near the original MSRP. Looks like any reservation holder who would not be entitled to the tax credit could immediately own one of these at the same cost as waiting for one from Tesla.

    Are any reservation holders wanting one now and considering this? Or are most still going to be patient?
     
    • Like x 1
  2. Chris350

    Chris350 Member

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    I for one, have been looking.... Although the estimator has me at the JULY-SEP estimate and Troy's estimator has me (currently) with a est confirm on 7/19 and delivery of 8/26, I haven't pulled the trigger... Looking for the RWD/PUP/Metallic Grey/ 18in wheels and the full driving package... Most of the ones I see meet all that with the exception of the full driving package... If the estimator is correct, I should be in the "full tax credit" area currently...

    But.... I am hating the waiting.... so, I am still on the fence on if I will "pull the trigger" and go for one early!
     
  3. John Lamoureux

    John Lamoureux l Parzival l

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    I am most likely in range of the US tax credit, even if I defer and wait for the AWD version. But I have also been looking at used MS's; as my configuration and subsequent delivery get closer, it'll be a tough decision as I'm sure the S pricing will continue to drop.
     
  4. eSpiritIV

    eSpiritIV Member

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    in reality THESE PEOPLE WOULD be entitled to the tax credit, and those who are dumping the car within 2 years could not take the tax credit
     
  5. ℬête Noire

    ℬête Noire Active Member

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    #5 ℬête Noire, Mar 7, 2018
    Last edited: Mar 7, 2018
    The law apparently is written such that as long as resale was not your intention when you made the purchase, even if you sell it quickly afterward you're eligible for the tax credit. Proving prior intent to "flip" the vehicle can be problematic. Probably would require something pretty flagrant such as purchasing and flipping multiple vehicles (that'd probably throw a flag on your tax return), advertising the resale prior to your purchase (only obvious by IRS investigation), or doing something stupid like not pleading the 5th to have your accountant/lawyers to do the talking when an IRS agent asks a question.
     
  6. MXWing

    MXWing Active Member

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    I would never give up the 7500 credit to a scalper.

    New S or used S all the way.

    A misconception is a used S doesn't "get" the 7500 credit. - It's baked into the cost. Used Tesla prices will rise as that subsidy phases out.
     
  7. John Lamoureux

    John Lamoureux l Parzival l

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    Okay, I'll bite. Please elaborate as to why you feel the tax credit is baked into the price of a used S. Personally, I believe that the pricing of Model S' (new AND used) will drop as the tax credit expires, as Telsa can no longer "bake" it into their adjusted cost model that they show prospective buyers.
     
  8. ChrisH

    ChrisH Member

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    I don’t see any model 3s on cars.com?
     
  9. John Lamoureux

    John Lamoureux l Parzival l

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    There are 20.
     
  10. ChrisH

    ChrisH Member

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    Oh there we go. I must have put “new” in the criteria.
     
  11. MXWing

    MXWing Active Member

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    A used S, competes with a new S. It's game theory but the flow would look something like:

    An agent may use $20,000 "savings" as the decision point to go from used to new.

    No Tax Credit - Equilibrium Price
    Used 75D = 50,000
    New 75D = 75,000
    Delta = 25,000

    Tax Credit Introduction - Disrupts Equilibrium Price
    Used 75D = 50,000
    New 75D = 67,500
    Delta = 17,500

    Equilibrium Price - Moving Used Car Requires Reaction To Subsidy Availability
    Used 75D = 45,000
    New 75D = 67,500
    Delta = 22,500

    - From tracking Tesla prices for about 2 years, relative price is declining. Price of cars have gone down and added features are more standard.

    It matters far less what the 'sell price' of a car goes versus what the margin is on each unit of sale.

    Tesla -MAY- drop the price but a more profitable strategy is to maintain same price price with value add features.

    Any reduction in sales price is a total 100% loss to Tesla. Adding features reduces losses only to marginal cost of production.
     
  12. CactusOne

    CactusOne Member

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    3CB9F7B5-0A01-4405-9733-0AF2473D2C59.jpeg I’m a day one line waiter, that is still on the waiting list.....Call me Crazy, but I bought a “used” red M3 from a Tesla owner, just so I too can become a “TESLA” owner. I’m hoping this will move me to the front of the list for the AWD, that I really want...

    So, I will be selling this one if anyone is interested..
     
  13. kingjamez

    kingjamez Member

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    It would be cheaper to buy a used S than a used 3 if your goal is to bump yourself up in the line. No one knows of a 3 gets you the same bump that an S,X, or Roadster does.
     
    • Like x 1
  14. T34ME

    T34ME Active Member

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    I'll wait, thank you, to see what additional options become available over the next 2/3 months.
     
  15. AlexanderTX

    AlexanderTX New Member

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    Ok. That’s crazy. Hope your plan works out.
     
  16. John Lamoureux

    John Lamoureux l Parzival l

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    Thanks. But you lost me at "used 70D at $50K" and "new 70D at $75K". They don't exist. Except maybe if you were predicting that's what it would cost when the first M3SRAWD was available?
     
  17. MXWing

    MXWing Active Member

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    Those are not literal values. There's many push/pull factors that makes the complete solution difficult to model An example is when HOV stickers were no longer issued in California. This caused used car prices to be artificially higher than new car prices.

    70K/50K are just contrived values to represent price movement with introduction of a subsidy to new cars (7500 tax credits) It's more simple to assume the cars are identical in every way except for new or used. ceteris paribus (all other things being equal)
     

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