Cheaper to buy a new Model Y?

[GPAPPY]

I have been looking for a 2022 or 2023 Model Y for a couple of months now with little success. I am amazed at how much people (and Dealers) are asking for used vehicles when the price of new has come down so much.

I can buy a Model Y out of Inventory (not even a Demo) for $44090 before the $7500 incentive bringing it down to $38230 including destination and ordering fees. I had a dealer today tell me that their 2023 for $43,000 was a better deal. I couldn't figure out how they came to that conclusion but even without the incentive I would rather pay $3000 more for a new vehicle.

So, I have decided to buy new. Any rumors on when Jupiter might be announced? I would think as it gets closer the discounts on inventory might get even better.

 

[rogersmj]

Juniper is largely expected to show up at some point this year, but it could stretch into early next year. There’s a big thread on it around here somewhere.

But as you’ve pointed out, the inventory deals + tax credits are amazing if you’re not trying to get a Performance, which seem to be kind of hard to get from inventory.

The used car market prices seem to be hoping that people might not factor the tax credit into their calculations. Which is crazy but it’s the only explanation I can think of for the out-of-whack pricing.

 

[GPAPPY]

I think that it is even worse than that. I can literally buy a Model Y LR brand new, without the incentive, for $45730. Most of the 2023 models I see on dealers lots are at least $42000 and some are over $45000. I have not financed a car in a lot of years but new car loans used to be lower interest rates than used so from a payment standpoint you probably could get the new car for a lower monthly payment. Are people really buying these used Model Ys.

 

[mborkow]

Pricing on used Ys doesn’t make a lot of sense to me but I think that also tells us that we better not be planning to flip our cars because Tesla might slash prices again In the future.

 

[Ostrichsak]

Some don't qualify for the tax incentive so assuming this is an blanket figure across the board for ALL buyers is a false starting point. If you do, then it may be advisable to buy new to take advantage of any tax incentives that you're eligible for to lower the purchase price.

You should never buy a new car as an investment. It's not. Especially new cars as they depreciate much faster than used. The tax incentives will help but if you truly value finances first you'll buy a used car, pay cash and not worry about depreciation due to the market because the bulk of the deprecation as already occurred.

Lastly, Tesla (or any car company for that matter) doesn't owes you nothing in terms of resale value. They've got their own set of metrics and they are beholden only to share holders.

Do what's best for you and don't expect a company or the government to look out for your best interests because you'll be left down in nearly 100% of those instances that you do.

 

[laiod]

If you qualify for the incentive and can afford the car and need a car? Go for new.

If you aren't in any urgent need of a new vehicle, doesn't hurt to wait to see the refresh. I'm sure there will still be inventory models by the time that drops (possibly even cheaper?).

 

[mborkow]

Even if you don’t qualify for the rebate, new is cheaper!

 

[tesnova]

Juniper is largely expected to show up at some point this year, but it could stretch into early next year. There’s a big thread on it around here somewhere.

But as you’ve pointed out, the inventory deals + tax credits are amazing if you’re not trying to get a Performance, which seem to be kind of hard to get from inventory.

The used car market prices seem to be hoping that people might not factor the tax credit into their calculations. Which is crazy but it’s the only explanation I can think of for the out-of-whack pricing.

This is wrong, juniper isn’t coming live til mid 2025, with maybe a showcasing of it towards 4q of this year

 

[ucmndd]

This is wrong, juniper isn’t coming live til mid 2025, with maybe a showcasing of it towards 4q of this year

… because you said so?

 

[laiod]

There's a Bloomberg article saying production of a revamped Model Y (not necessarily Juniper) in China will start at the soonest mid-2024. Delays can obviously happen:

Tesla Plans Revamp of Smash Hit Model Y From China Plant

Tesla Inc. is preparing to roll out a revamped version of the Model Y sport utility vehicle from its Shanghai plant, according to people familiar with the matter, as domestic rivals accelerate product launches amid heated competition.

www.bloomberg.com

 

[GPAPPY]

If you qualify for the incentive and can afford the car and need a car? Go for new.

If you aren't in any urgent need of a new vehicle, doesn't hurt to wait to see the refresh. I'm sure there will still be inventory models by the time that drops (possibly even cheaper?).

I have time. I was going to pick up a used one as a 4th vehicle for something new. Was thinking more used hoping to find one with EAP or FSD to mess around with. Unfortunately, all I am finding is base AP for prices too close to new even without the incentive.

I would never look at any car as an investment but when I can buy a 2-year newer car with no miles and 2 more years of warranty for essentially the same money (or less with the incentive) why would anyone even consider the used vehicle, I can hardly believe that in 2 years the depreciation on newer one would make it worth less than the now 4-year-old vehicle.

I did talk to one private owner that told me he paid $60K for his 2 years ago. I feel bad for him but Tesla's price reductions has caused a lot of owners to be upside down on the value of their used vehicles. Not sure why the used car dealers haven't caught on though. I saw one car that had been on the lot for 297 days and the dealer still hasn't budged on his price.

In no particular hurry so I will wait to see what the end of Q1 brings, I guess.

 

[ven7782]

I had a dealer today tell me that their 2023 for $43,000

Can you give me the details? I would like to have some fun with the delusional dealer.

 

[GPAPPY]

Can you give me the details? I would like to have some fun with the delusional dealer.

Bentley in Indianapolis but it isn't just them. Carfax has 4 2023 MY LR for over $45K.

Bentley actually has 2 Long Range for sale right now. One at $42,490 and one at $46,990. First, they told me that very few people qualify for the incentive (which may be true) and then tried to use the cost of an ordered (no discount) MY LR as their basepoint for pricing. I tried to point out that many of the brand-new Inventory vehicles were discounted $5K and they told me that those have hidden fees that jacked the price up. I also checked to make sure they did not have EAP or FSD. None did and they said that it wouldn't matter because Tesla would remove it as soon as it sold anyway. I have heard that but still can't believe that Tesla is doing that unless it passed through their hands. It isn't the first time a dealer has told me that though.

I am sorry for the private individuals and dealers that are caught up with the price reductions but that doesn't mean that I want to bail them out.

 

[Ostrichsak]

Bentley in Indianapolis but it isn't just them. Carfax has 4 2023 MY LR for over $45K.

Bentley actually has 2 Long Range for sale right now. One at $42,490 and one at $46,990. First, they told me that very few people qualify for the incentive (which may be true) and then tried to use the cost of an ordered (no discount) MY LR as their basepoint for pricing. I tried to point out that many of the brand-new Inventory vehicles were discounted $5K and they told me that those have hidden fees that jacked the price up. I also checked to make sure they did not have EAP or FSD. None did and they said that it wouldn't matter because Tesla would remove it as soon as it sold anyway. I have heard that but still can't believe that Tesla is doing that unless it passed through their hands. It isn't the first time a dealer has told me that though.

I am sorry for the private individuals and dealers that are caught up with the price reductions but that doesn't mean that I want to bail them out.

Wait, you mean to tell me that a car dealership lied?! Multiple times?! No way!

 

[eleison]

I think that it is even worse than that. I can literally buy a Model Y LR brand new, without the incentive, for $45730. Most of the 2023 models I see on dealers lots are at least $42000 and some are over $45000. I have not financed a car in a lot of years but new car loans used to be lower interest rates than used so from a payment standpoint you probably could get the new car for a lower monthly payment. Are people really buying these used Model Ys.

I think the dealers bought the model y's at too high of a price. They don't want to sell the cars because they would realize those loses. I'm assuming the dealers are just delaying the inevitable? I guess they are hoping the economy gets better, and the "good times" come back where they can sell other cars at huge profits and ultimately spread the losses of the tesla's among their fleet of cars?

In other words, it's better to keep the model ys on their lots as opposed to selling them at a lose? It's a slow death, but there's a chance the economy could get better, and the dealers could be "saved". That's the only explanation I can think of.

 

[Ostrichsak]

I think the dealers bought the model y's at too high of a price. They don't want to sell the cars because they would realize those loses. I'm assuming the dealers are just delaying the inevitable? I guess they are hoping the economy gets better, and the "good times" come back where they can sell other cars at huge profits and ultimately spread the losses of the tesla's among their fleet of cars?

In other words, it's better to keep the model ys on their lots as opposed to selling them at a lose? It's a slow death, but there's a chance the economy could get better, and the dealers could be "saved". That's the only explanation I can think of.

They likely took the car in for a low price. Honestly, it's not about the people who know they can go get a new one for the same price. It's about the people who drive onto a lot on a Saturday afternoon and want a different car.

The reasons are astounding; some to lower payments, some to change their "vibe" or whatever emotional reason they've justified to continue making bad decisions. They choose a car based on color or some other superficial reason and then let the sales person make it happen. Often times the car they came in for won't work for whatever reason and the sales person's job is to just sell them on something else on the lot. You'd be surprised by how good they are at this task too.

Hell, most buyers don't even look at purchase price anyway.., it's all about monthly payment. They'll make tons of money on the transaction and getting more cars on the lot is just more opportunities to send people home in one of their vehicles that they made money on in dozens of different ways. That's how the machine keeps churning.

 

[GPAPPY]

They likely took the car in for a low price. Honestly, it's not about the people who know they can go get a new one for the same price. It's about the people who drive onto a lot on a Saturday afternoon and want a different car.

The reasons are astounding; some to lower payments, some to change their "vibe" or whatever emotional reason they've justified to continue making bad decisions. They choose a car based on color or some other superficial reason and then let the sales person make it happen. Often times the car they came in for won't work for whatever reason and the sales person's job is to just sell them on something else on the lot. You'd be surprised by how good they are at this task too.

Hell, most buyers don't even look at purchase price anyway.., it's all about monthly payment. They'll make tons of money on the transaction and getting more cars on the lot is just more opportunities to send people home in one of their vehicles that they made money on in dozens of different ways. That's how the machine keeps churning.

I think that you nailed it. They are counting on the uninformed consumer. When I questioned the price of the first one that I looked at in person, the lot lizard opened the Tesla page to show me how much it would cost to purchase a brand-new Tesla. Once they were done, I showed them the inventory page with the $5000 discounts, and that is when they started the hidden Tesla fees argument. Must be because of all their hidden fees.

Oh well, I have finally made up my mind to just buy a new one so will wait to see if any discounting happens towards the end of the first quarter and buy one either way.

 

[Unclepaul]

Car dealers know that there are two classes of buyers. Those that buy new, and those that buy used. Many people, in the always buy used do not shop against purchasing new as the have a predestination to only buy used.

 

[Midpack]

I have to wonder if some potential used Tesla MY customers are under the mistaken impression they would have to wait a long time if they order a new MY and don't realize how much MSRP and discounts are at present, so dealers can get away with higher used MY prices than otherwise. Most people I know still think Teslas cost a lot more than they do nowadays - you see it on non EV forums all the time.

When I bought mine in Nov I planned to order one and was concerned it might not come before the end of 2023 and the 2024 tax credit was tbd at the time. But it was no problem finding exactly what I wanted in inventory, and I took delivery 5 days after I did my test drive. Easy peasy.

 

[Owner4523]

Even if you don’t qualify for the rebate, new is cheaper!

That's not true, I don't qualify for the incentive and bought a used 2023 MY SR AWD Dual Motor with the new battery tech (which I wanted) and Hard 4 cameras with about 1,000 miles on it for around $40,500. The sticker price on this car was almost $50,000. Used cars line this one are in the mid 40's on line. You can get used LR 2023 for around 42,000-44,000 or so but many of these were made before May and have hardware 3. On the Tesla website you can't find any inventory for a LR for less than $42,000. I traded my car in and got a great price for it (about $1,000 more than I would have gotten elsewhere) and saved another $1,000 on taxes by trading in. So I would have had to pay at $4,000 more than I did. I really like the car and there was no
to get into an AWD Dual Motor with premium sound for $40,500 new with the tax rebate. I'm happy with the deal I got.