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Bottom dropping out of used market?

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Thousands of dollars of upside with only a trivial downside of losing your order fee if the market changes and you cancel the order. It's not that irrational to expect people to try to make some $.
Tesla isn't in the business of helping you make money. Tesla is in the business of selling cars and keeping customers happy. Honoring prices of those that have been waiting a year, two, etc keeps them loyal and happy. Maybe it hurts Tesla a little, but how much does it help them when they announce 100k orders in the first month with "money down" even if they're refundable.

Now if people are starting to order cars just to try to flip them, of course Tesla is going to try and stop that. It's just like ticket resales. Customers hate it (fake demand and a market flooded with high prices via resales) and Tesla could legit make that extra sale to someone that might be thinking about buying it now after seeing it in a showroom or test driving it.

I saw people saying they got around the transfers because they MADE NEW ACCOUNTS before ordering the car so they could give away their Tesla log in/password and someone would have the actual account the car was ordered from. Come on, that's not "we had three kids and won't fit in the car any more," that's "man I'm going to make a pretty penny off this."

And in fact, you don't have the vehicle. It's not even like you tied up a slot and now are just trying to help someone out. If you give it up, it goes to the next person in line. It's not like tickets that have been removed and delivered to you and you're just trying to get your original cost back. There is zero downside to letting the car go... if you really are worried about the $250, then that's what you charge above the price you paid for the car, not $5k to just hand over a reservation, even if the preorder price was cheaper than today's price.
 
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Tesla isn't in the business of helping you make money. Tesla is in the business of selling cars and keeping customers happy. Honoring prices of those that have been waiting a year, two, etc keeps them loyal and happy. Maybe it hurts Tesla a little, but how much does it help them when they announce 100k orders in the first month with "money down" even if they're refundable.

Now if people are starting to order cars just to try to flip them, of course Tesla is going to try and stop that. It's just like ticket resales. Customers hate it (fake demand and a market flooded with high prices via resales) and Tesla could legit make that extra sale to someone that might be thinking about buying it now after seeing it in a showroom or test driving it.

I saw people saying they got around the transfers because they MADE NEW ACCOUNTS before ordering the car so they could give away their Tesla log in/password and someone would have the actual account the car was ordered from. Come on, that's not "we had three kids and won't fit in the car any more," that's "man I'm going to make a pretty penny off this."

And in fact, you don't have the vehicle. It's not even like you tied up a slot and now are just trying to help someone out. If you give it up, it goes to the next person in line. It's not like tickets that have been removed and delivered to you and you're just trying to get your original cost back. There is zero downside to letting the car go... if you really are worried about the $250, then that's what you charge above the price you paid for the car, not $5k to just hand over a reservation, even if the preorder price was cheaper than today's price.
Huh? Is this a response to me?
 
Cars have never been an appreciating asset. Anyone with different expectations was living in a delusional bubble.
Forget about appreciating assets, that’s just painting with a broad and frankly imbecilic stroke.

I think the thing(s) to be concerned about right now are 1) the fact that this correction is impacting Tesla significantly more than other brands (i.e. Honda/Toyota have barely been affected). And 2) one of if not the strongest selling points of the brand was the resale value. If that advantage is gone, which it is right now to a large degree, then the cases for the EV6, Mach E, etc. just got a hell of a lot stronger.
 
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Forget about appreciating assets, that’s just painting with a broad and frankly imbecilic stroke.

I think the thing(s) to be concerned about right now are 1) the fact that this correction is impacting Tesla significantly more than other brands (i.e. Honda/Toyota have barely been affected). And 2) one of if not the strongest selling points of the brand was the resale value. If that advantage is gone, which it is right now to a large degree, then the cases for the EV6, Mach E, etc. just got a hell of a lot stronger.
Speaking of an imbecilic take...

For sure 3-4 months worth of data is enough to indicate used car pricing coming back to earth is "impacting Tesla significantly more", and of course supports the "cases for the EV6, Mach E" got stronger.


I see 1 Tesla on here in all these lists. Where did you get the impression Tesla had high resale/retained value? Where's the data ? I deliberately stopped at 2020 because the world turned upside down and car prices entered the stupid zone after that.

 
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Speaking of an imbecilic take...

For sure 3-4 months worth of data is enough to indicate used car pricing coming back to earth is "impacting Tesla significantly more", and of course supports the "cases for the EV6, Mach E" got stronger.


I see 1 Tesla on here in all these lists. Where did you get the impression Tesla had high resale/retained value? Where's the data ? I deliberately stopped at 2020 because the world turned upside down and car prices entered the stupid zone after that.

I think we can all agree that resale value has long be touted as a strength of the MY and M3. The real question is whether there will be a rebound or if we are seeing a permanent lowering of the floor.
 
Speaking of an imbecilic take...

For sure 3-4 months worth of data is enough to indicate used car pricing coming back to earth is "impacting Tesla significantly more", and of course supports the "cases for the EV6, Mach E" got stronger.


I see 1 Tesla on here in all these lists. Where did you get the impression Tesla had high resale/retained value? Where's the data ? I deliberately stopped at 2020 because the world turned upside down and car prices entered the stupid zone after that.

Lol, I wasn't referencing you in regards to the imbecile comment. I meant the people that view cars as appreciating assets. That said... Model S and X notwithstanding, the 3 and Y have both been at the top of their class for resale for years now. In fact I think the Y has led that category since inception.
 
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Lol, I wasn't referencing you in regards to the imbecile comment. I meant the people that view cars as appreciating assets. That said... Model S and X notwithstanding, the 3 and Y have both been at the top of their class for resale for years now. In fact I think the Y has led that category since inception.
The tax credit phased out for Tesla and caused a price bump of sorts.

There was a slight dip in all used car values in 2020 before insanity reigned in.

And in the past two years we've had shortages of Teslas but at the core - used prices being higher than a new is insane unless there is a massive shortage of them like the RAV4 Prime. There is NO shortage of 3s and Ys. Two Tesla factories are pumping them out.... 200K/year in the US. In comparison Toyota produces sub 30K RAV4 Primes for the US a year. Demand for Teslas is high but there is only a limited pool that can afford a $66K compact SUV or a $55K sedan.
 
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KBB values the lowest I've seen. These ranges were $69K+ about two months ago.

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Carmax just offered me 55k for my MYP with 900 miles on it that I bought back in June. That's literally a 20k drop in value in the last 30-60 days (and I'm not trying to flip at all).

I get the ebbs and flows of the market, but this seems pretty extreme. I can't fathom people paying the current prices for much longer.
 
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Carmax just offered me 55k for my MYP with 900 miles on it that I bought back in June. That's literally a 20k drop in value in the last 30-60 days (and I'm not trying to flip at all).
I'm sure they got a glut of them they're trying to let go of now while rates are going up. A $20k drop is insane, but it's far more on the expected side of things compared to getting near retail value or maybe above. I personally would probably expect like a $10k reduction from new price...
 
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Carmax just offered me 55k for my MYP with 900 miles on it that I bought back in June. That's literally a 20k drop in value in the last 30-60 days (and I'm not trying to flip at all).

I get the ebbs and flows of the market, but this seems pretty extreme. I can't fathom people paying the current prices for much longer.

With the tax credit available again for Teslas and 3/Y production ramped up to 400K+... we might see large yearly depreciations like other EVs in the past. The tax credit forces used car prices downward.
 
Corndart is 100% correct. Having positive equity in an everyday vehicle less than 25 years old of ANY type, brand or model has NEVER happened in the history of vehicles.
Of course this market correction effected Tesla more than others because they are the largest supplier of EV's during a period when gas prices were through the roof. Gas prices up = higher demand + higher prices and vice versa. Simple.
The rest of the used car market went nuts because of the supply shortages. Now that dealerships are finally getting product on their lots those vales will get back to normal as well.

Additionally, like their stock prices Tesla vehicles are overhyped. Without the EV part their product would not be able to complete with any other vehicle in the respective categories (compact, CUV, sedan etc..). Just trying to sell a car without Apple Carplay would tank them nevermind their build quality issues.

Their resale value will continue to decrease with every EV offered by another manufacturer.
Forget about appreciating assets, that’s just painting with a broad and frankly imbecilic stroke.

I think the thing(s) to be concerned about right now are 1) the fact that this correction is impacting Tesla significantly more than other brands (i.e. Honda/Toyota have barely been affected). And 2) one of if not the strongest selling points of the brand was the resale value. If that advantage is gone, which it is right now to a large degree, then the cases for the EV6, Mach E, etc. just got a hell of a lot stronger.
 
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Now that dealerships are finally getting product on their lots those vales will get back to normal as well.

It’s actually getting worse. Toyota and Honda are hurting badly with production cuts. They have a 1/4th of normal levels of inventory and no resolution in sight. BMW is struggling to produce EVs… the i4 forums are full of people waiting a year plus when BMW barely even produces 500 globally a month.

Tesla is cranking out EVs when others are struggling but this has lead to a glut.

 
I just got an offer from Carmax on my 2022 Model Y Long Range. It has 22,500 miles and they’ll give me $58K.

I’m jumping on that. It’s basically exactly what I paid after taxes and fees in December. I think that’s amazing for 22,500 miles of driving.

I expect the market to get super screwed up with the pending tax credit.

Every other offer was in the $42K - $52K range. Local Subaru dealer wouldn’t even consider looking at it (after they gave me an online estimate on the $54-64K range and called telling me to bring it in for evaluation - said it was too much of a niche vehicle and that his techs would quit if he purchased it).