Bottom dropping out of used market?

[BMWY]

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).

That's an insane offer, take it right now.... More than they offered me for my brand new MYP, lol.

 

[Woggon]

That's an insane offer, take it right now.... More than they offered me for my brand new MYP, lol.

That is my plan. Offer is good until Friday. Taking it in tomorrow to sell.

We’ll be a single car household for a while. I have a replacement model Y on order, but I’m not sure I’ll end up taking delivery or if I’ll go a different direction for the next car.

 

[z335is]

That is my plan. Offer is good until Friday. Taking it in tomorrow to sell.

We’ll be a single car household for a while. I have a replacement model Y on order, but I’m not sure I’ll end up taking delivery or if I’ll go a different direction for the next car.

Um yeah, take that offer. Here was the offer I got for my MYP with 700 miles on it:

FOR SELLING
2022 Tesla Model Y Performance 4D SUV
700 miles

ESTIMATED VALUE $58,300

 

[ThomasD]

Average auto loan rate is 4.33% for new cars and 8.62% for used cars, Since interest rates are going up and a lot higher than they were 6 months ago this could also push used car prices down.

 

[EL CapiTRAN]

Um yeah, take that offer. Here was the offer I got for my MYP with 700 miles on it:

FOR SELLING
2022 Tesla Model Y Performance 4D SUV
700 miles

ESTIMATED VALUE $58,300

ouch

 

[Woggon]

Um yeah, take that offer. Here was the offer I got for my MYP with 700 miles on it:

FOR SELLING
2022 Tesla Model Y Performance 4D SUV
700 miles

ESTIMATED VALUE $58,300

I’d happily pay you that for your MYP! That offer is crazy.

I’d even throw in an extra thousand or two…

I’m sure I could get more selling privately, but I don’t want to deal with the parade of lookers and people who just want to experience the novelty of driving a Tesla.

 

[Xenoilphobe]

I wonder if inflation going up an inch has anything to do with the used car market?

 

[gx9901]

I’ve always figured that MYPs would have worse resale value than MYLRs. Looks like that’s that case here.

 

[ziptbm]

I took delivery of an MYLR7 (White/White with FSD) last week and was curious what the instant offers would be for it. Here's what I've received so far:

• Driveway.com - $60k
• Audi Dallas - $65.5k
• Vroom - $58k
• GiveMeTheVin - $62-64k
• KBB Instant Cash Offer - not available for this model?

Definitely a bit underwhelming considering what I saw last month when I sold my 2021 Mach-E.

 

[pepperoni]

Definitely a bit underwhelming considering what I saw last month when I sold my 2021 Mach-E.

Ok, what did you see last month when you sold your 2021 Mach-E?

 

[voxel]

I took delivery of an MYLR7 (White/White with FSD) last week and was curious what the instant offers would be for it. Here's what I've received so far:

• Driveway.com - $60k
• Audi Dallas - $65.5k
• Vroom - $58k
• GiveMeTheVin - $62-64k
• KBB Instant Cash Offer - not available for this model?

Definitely a bit underwhelming considering what I saw last month when I sold my 2021 Mach-E.

GiveMeTheVin uses auction prices and takes a cut from that. A friend who has access to MMR data sent me data and MYLRs are selling for sub-$66K now.

 

[ziptbm]

Ok, what did you see last month when you sold your 2021 Mach-E?

It was a 21 Premium ER AWD with under 3.5k miles. Range was 53-60k, with KBB Instant being the best. The original sticker was 56.5k. The dealer that bought it turned around and listed it for 67k, but I saw it go down to 61k before the listing was removed.

 

[voxel]

It was a 21 Premium ER AWD with under 3.5k miles. Range was 53-60k, with KBB Instant being the best. The original sticker was 56.5k. The dealer that bought it turned around and listed it for 67k, but I saw it go down to 61k before the listing was removed.

FYI... when I upgraded from a 2022 Premium AWD ER to new 2022 GT PE in late July (so two months ago) I got $59K (saved $4.5K in taxes) but the dealer sold my AWD ER for $67K. Yes... a used Mach-E without the tax credit! It was Cyber Orange so a rare color and only 1000 miles - which I blame on Ford screwing up and delivering two orders back to back when they were ordered 6 months apart.

 

[Corndart]

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.

Appreciate the support but there are certainly vehicles which appreciate in value, under certain conditions. They just don't happen to be make/model that are mass produced and tend to be driven by scarcity. Availability is a factor here - lack of inventory to sell both new/used - but it was inevitable that valuation snapped back to how it usually works.

Lots of other great points made here, the world is still recovering from being upside down and sideways due to Covid and current / former world events,. We took a hell of a detour off the map from normality,

 

[Daekwan]

I’ve always figured that MYPs would have worse resale value than MYLRs. Looks like that’s that case here.

Same here. One of the reasons I didn't trade my MYSR for an MYP was when I had a chance last year.

I was actually able to prove that MYP would have more depreciation by getting quotes to buy it from various sites like Carvana, Vroom, etc. While the MYP has historically been $4,000 to $11,000 more expensive than the MYLR.. when getting quotes for the exact same vehicle and specs.. but changing from MYLR to MYP the buy offer was generally only $2,000 to $4,000 more.

And while this wasn't really a surprise, what is a surprise is just how many people have now purchased the MYP simply because it delivers several months faster than the MYLR. IMO the unexpected over-popularity of the MYP has pushed used price quotes even further down on the MYP down as most people do not want the heavy 21" wheels and expensive, skinny tires. Especially used. If both vehicles are available used then the MYLR is more likely to sell quicker and for more profit.. as its the most popular model with the longest range. All things that dealers are most interested in.

Hell even if I were to purchase a new MYP.. the first thing I would do is pull the 21" Ultraturbines off and replace them with lighter wheels and cheaper tires.

 

[BMWY]

Same here. One of the reasons I didn't trade my MYSR for an MYP was when I had a chance last year.

I was actually able to prove that MYP would have more depreciation by getting quotes to buy it from various sites like Carvana, Vroom, etc. While the MYP has historically been $4,000 to $11,000 more expensive than the MYLR.. when getting quotes for the exact same vehicle and specs.. but changing from MYLR to MYP the buy offer was generally only $2,000 to $4,000 more.

And while this wasn't really a surprise, what is a surprise is just how many people have now purchased the MYP simply because it delivers several months faster than the MYLR. IMO the unexpected over-popularity of the MYP has pushed used price quotes even further down on the MYP down as most people do not want the heavy 21" wheels and expensive, skinny tires. Especially used. If both vehicles are available used then the MYLR is more likely to sell quicker and for more profit.. as its the most popular model with the longest range. All things that dealers are most interested in.

Hell even if I were to purchase a new MYP.. the first thing I would do is pull the 21" Ultraturbines off and replace them with lighter wheels and cheaper tires.

Some people also simply want the fastest, best performing model. The rest can have the SR/LR

 

[Daekwan]

Some people also simply want the fastest, best performing model. The rest can have the SR/LR

Oh I actually agree. I want it because the fatest version. And if I do trade for another Model Y it will definitely be the MYP.

That said, its no secret that over the past year most people have chosen the MYP over the MYLR because of the significantly shorter delivery date. Why pay $70K for a used MYLR.. when you could order a new MYP for $65K and have it delivered in a month?

 

[Corndart]

Some people also simply want the fastest, best performing model. The rest can have the SR/LR

My wife actually used this on me - "Don't settle and wish you'd gotten the MYP". I converted the order to an MYP a few days later, partially because it theoretically ships faster but also FOMO / buy once cry once

 

[Stirfry]

My wife actually used this on me - "Don't settle and wish you'd gotten the MYP". I converted the order to an MYP a few days later, partially because it theoretically ships faster but also FOMO / buy once cry once

The acceleration in our MYLR is way too fast for us so we are happy with it. So far we just keep it in chill mode.

That said I did just order an MYP lol, mainly b/c of faster delivery. Our MYLR has 7 seats, but they are essentially useless for our needs.

 

[nate704]

I did not buy my MYP for the resale value. I bought it for the speed, performance, and better appearance. I would hate myself if I get beaten by any V8 muscle cars out there during the illegal street race.