Buying a Used M3 with only 300 miles...

[mjablon4]

Going to meet up with a guy later this week I met on a private auto sales website that lives relatively close to me. RWD, White, Sport Wheels, Premium Upgrade, EAP ($57,500 new from tesla.com). He posted the ad for $54,000 and after a few days of back and forth emailing, said $51,000 is the lowest he’ll go. He paid cash and changed his mind after delivery and ended up purchasing a Model X.

My confusion:

Buying new: $7,500 down (assuming I would get the car before tax credits run out I would receive this back), 3.49% APR, 72 month term, I would pay $824/month with taxes.

Buying (some)what new: $0 down, 3.49% apr, $833/month.

Should I show him my calculations and request a deduction in sales price? Seems like I may be missing something here, I don’t think he’s taking into account any depreciation, only removing his tax credit and sales tax.

 

[Kuhz]

Yes price is too high. Go new in this case

 

[Watts 4 Me]

In my opinion I would just get a new one.

 

[Linkeds2]

Are you sure you’d be eligible for the tax credits? Vehicle may need to be new (first registered owner) to qualify.

I also think this guy won’t get the credit either as I think one of the criteria for the credit is not buying to sell (must plan to own vehicle longer than 90 days.

Do some homework on whether you’d qualify for the credits

 

[mjablon4]

Are you sure you’d be eligible for the tax credits? Vehicle may need to be new (first registered owner) to qualify.

I also think this guy won’t get the credit either as I think one of the criteria for the credit is not buying to sell (must plan to own vehicle longer than 90 days.

Do some homework on whether you’d qualify for the credits

I would be eligible for the tax credit if I bought new... on the flip, he’s owned the car for longer than 90 days

 

[Linkeds2]

I would be eligible for the tax credit if I bought new... on the flip, he’s owned the car for longer than 90 days

Got it. Also consider what sales tax and delivery is for you.

The amount of tax credits you get back (buying new) may not be better if you have to pay 5-6000 more in taxes/delivery fee. You’d come out maybe 2-3000 cheaper than sticker price buying new

Vs

Saving 6500 buying used from this guy.

 

[brianmeow]

Buy new and get 1.99% financing from credit union. Less risk also dealing with private party.

 

[Kiomon]

the only potential area of savings here is in taxes. Some places (like Illinois) charge a lot less tax on a vehicle purchase from a private party vs a dealer. A $60k model 3 in Chicago has about 5k Of taxes from a dealer. A 60k model 3 from a private seller has about 2k Of taxes. I am not sure what your state is like, but I would investigate that.

Also check our CarGurus there is a red Model 3 with all of the add ones (eg 20 inch Tesla rims, dash cam, xpel full frontal wrap. etc) and he is asking 51k before negotiation. He has about 65k into the vehicle. That’s a real steal!

I would pass on this deal unless he came down to 49k or less

 

[Rockster]

There is no requirement from the IRS to keep the car for 90 days. The requirement is that the car not have been purchased with the intention of reselling. If one buys the car and changes their mind, that’s fine, even if they change their mind five minutes after taking delivery. But it must be a legitimate change of heart.

 

[ewoodrick]

I would be eligible for the tax credit if I bought new... on the flip, he’s owned the car for longer than 90 days

No, only the first purchaser can get the credit. You should get him to drop the price for the credit that he will receive.
You will also be the second owner from Tesla's viewpoint. It you try for a loan, it will be considered used.

You could probably get a brand new one in a few weeks.

 

[voip-ninja]

No, only the first purchaser can get the credit. You should get him to drop the price for the credit that he will receive.
You will also be the second owner from Tesla's viewpoint. It you try for a loan, it will be considered used.

You could probably get a brand new one in a few weeks.

He's saying if he bought new instead of buying this used car he would be eligible for the tax credit... of course that assumes he takes delivery before end of the year... Tesla is really humming so not too much of a risk of that not happening.

No matter how it is sliced & diced, this is a used car he is buying with all the typical used car caveats... it's also an earlier build car, so if he bought the exact same spec car coming off the line right now it could be expected to be "better" from a fit and finish perspective.

I don't see how this used car is much of a deal unless the seller is willing to really drop the price on it to account for tax credits the OP won't get but will get if he buys a brand new one.

The seller in this instance bought an X, but a lot of people were buying the RWD 3s, then planning to dump them while they were still scarce for an inflated price to impatient people, then turn around and buy an AWD one and get the tax credit twice....