Good to know. Weird cuz i assume always assumedTassumed wouldn't be so pushy with their sales.
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Battery day and used Tesla prices
- Thread starter joltheadq
- Start date
Ostrichsak
Well-Known Member
People be acting like new cars never depreciated before Tesla lowered the prices on the new offerings.
The tech didn't force the depreciation. The natural progression of a high-end luxury car fell to where its expected residuals were expected.
Pay attention to the commentary of the thread.
Tech Depreciation vs Expected Depreciation.
I see your fallacy, as well.
Tesla has proven they’re like any manufacturer- that unless you need the car now, your money will go further if you wait. You’ll be able to get the same technology for less, and in Tesla’s case with better build quality.
Imo Tesla has also taken into account Osborne effect better in their price discrimination, which results it it being worth it to wait. As the latest make becomes yesterday’s tech and production costs improve, the new car price of that make lowers.
Except the S isn’t really a luxury car- it’s a premium car because of it having the latest EV drivetrain tech you can’t beat with any other offering.
The tech didn't force the depreciation. The natural progression of a high-end luxury car fell to where its expected residuals were expected.
Pay attention to the commentary of the thread.
Tech Depreciation vs Expected Depreciation.
You’re kidding yourself if you don’t think the huge deprecation on some of these MS isn’t in large part inherent to tech depreciation, which is now inferior to what you can get in much cheaper, “entry” M3, MY, or a new cheaper S. Less range, less acceleration in some cases, inferior HW and MCU, no heat pump, etc. Once more used M3 and MY hit the market, the used MS will further tech deprecate.
This is far different than the depreciation of conspicuous consumption luxury cars in which much of the value is tied to people knowing you have the latest expensive offering, even though it’s drivetrain and platform are shared with a lower trim or make.
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2012 Tesla Model S P85 was about $120k and resale is $29k - $40k on cargurus right now.
2012 Mercedes S63 AMG was about $140k and resale is $29k - $38k on cargurus.
If Tesla is someone's first expensive car they might not have any experience with depreciation of luxury sedans but depreciation doesn't look unusual to me. It doesn't even seem like Autopilot missing on the 2012 is factored into Tesla depreciation much.
I’m in the same boat as well. I have a 2020 MS LR+ on order, expected to arrive end Aug or early Sept.
My rationale is that the new tech announced will cost more and I wouldn’t want the first or second model year car. I like having most of the bugs figured out before I buy.
Depreciation is always a concern for me because I like switching cars up every 2-3 years. I believe the new range of 402 miles and upgraded tech will help the depreciation curve for this model. Also, the new S price is too good right now compared to used. Even though it looks like the same car for several years, it’s gone through many changes/updates.
My rationale is that the new tech announced will cost more and I wouldn’t want the first or second model year car. I like having most of the bugs figured out before I buy.
Depreciation is always a concern for me because I like switching cars up every 2-3 years. I believe the new range of 402 miles and upgraded tech will help the depreciation curve for this model. Also, the new S price is too good right now compared to used. Even though it looks like the same car for several years, it’s gone through many changes/updates.
Did you end up leasing or loan for the car given that you change every few years? Not obsessed with the lease price, but with the 3/Y it's significantly cheaper than loaning.
I purchase and don’t lease. I personally don’t like paying $1000+ monthly on a lease. Probably makes more sense to lease, but I rather not.
Tesla could drop the price of LR+ after the battery day to move the “old” stock to make room for the new.
I should know as I bought mine 2 months before the recent $5k drop in price.
Possibly, or the last price drop is already reflective of pending announcements and the new S will be back to above 110k. I think the S is such a low volume model that they’re not too worried about combating the Osborne effect with further discounting. If the new S is above 110k, the current inventory S should sell off at a normal rate.
All cars depreciate like crazy unless you're talking about 60 year old cars... Any car you buy with a warranty is going to lose 1/2 its value every 12 to 24 months until the warranty expires, then it'll lose its value based on the most expensive common repairs on the car.
If you want to avoid depreciation, buy a 12 year old camry or odyssey.
Replacement value is what matters. What is the minimum you'll tolerate from a car? Obviously it has to car, so a broken one is not useful. Otherwise, cosmetics, functionality and risk are what set the value of the car. If you want an AWD electric car, your options are pretty limited. For now and for quite a while, used Ys will be more expensive than a 2015 AWD S, though otherwise they've got comparable functionality. The Y has less risk because it is newer and the Y has better functionality unless you're hauling lots and lots of stuff.
Gauge what you can spend and buy the darned car when you can tolerate to lose the money from buying it.
Banking on the value of the car in the future is a mugs game; don't play it if you're worried about losing. BTW, you'll lose. Every time.
Has anyone claimed cars don’t appreciate like crazy? Don’t resort to strawmans. The contention was that the Model S depreciation is largely technology related for used Model S, not like actual luxury cars that deprecate due more to conspicuous consumption dynamics.
I bought a new X and sold it soon after. The depreciation hit was far less than for similarly priced luxury cars, in part because the X premium is based in its tech, and the tech hadn’t changed. The 3 is experiencing that now.
Want to maximize your annual car cost? Buy a new car in which you pay a premium for yesterday’s technology. Your depreciation expense goes down the longer you wait to buy a newly released Tesla.
Ostrichsak
Well-Known Member
it's funny you post this AMG example because I was this close --><-- to buying an AMG several years ago that was $195k new and could be had right at the end of warranty for about $35k. The ONLY reason I was interested was because of how cheap it was and what you could get (the negative being the maintenance bill) for that money.
I see people talking on this forum like Teslas are the ONLY new cars that depreciate rapidly and then blame the tech. This is a stupid argument when ALL cars depreciate at about the same rate with MANY being even higher.
You don't want to take the depreciation hit? (say it with me everyone) DON'T BUY A NEW CAR. Full stop.
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