Late October Telsa gave me a settlement future on my 2020 3P with FSD of £27,500. Now, 2 months later that figure is £19,900!
How the hell can it lose £7,500 in 8 weeks?
How the hell can it lose £7,500 in 8 weeks?
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Crazy settlement figure
- Thread starter Pagemakers
- Start date
Billbrown1982
TM3 LR 2021 | Red | FSD
Settlement or trade in?
If its settlement i'd be over the moon as you have just saved 7.500.
If you mean trade in, its because they offer whatever they want, based on their perceived value of the car, i.e if they actually want it or not. If they are short on stock, price go up etc.
Oxid8ter
Returning Member
If it's a trade in rather than a settlement, I believe it's based on trade value of the vehicle... And since the semi conductor shortage has eased off a bit and new cars are being delivered more consistently, used car prices are tanking. I lost 6.5k on a golf GTD between July and October last year.
Oxid8ter
Returning Member
Seems fairly normal in that case then... It will be trade value and demand that has affected it.
Before I ordered my Highland, I looked at getting a preowned Model 3 LR from circa 2021 (so it was the same age and spec as my previous Tesla, Sherlock [Ohms]) and in Mid November I was seeing prices in the Mid 20's for both M3LR and M3P.
Annoyingly, neither Tesla, nor WBAC, nor any other company factors options (be that alloys, FSD, Paint etc.) when you trade in/sell... As far as they see it, its just an M3P.
It crazy, the value of my 2021 LR has tanked since I bought it 9 months ago.
I though it was a safe bet buying a Used car that had already taken a big depreciation hit, at the time I paid £35k for an 18month old car with 12k miles and a few extras (black paint, alloys, EAP); the original list price was £57k. Auto trader is now giving me a £26.5k trade in value, £28k private, the car is only just over 2yrs old and has depreciated 55%!! Crazy.
I'm not gonna worry about it until I come to sell in around 3yrs though.
I though it was a safe bet buying a Used car that had already taken a big depreciation hit, at the time I paid £35k for an 18month old car with 12k miles and a few extras (black paint, alloys, EAP); the original list price was £57k. Auto trader is now giving me a £26.5k trade in value, £28k private, the car is only just over 2yrs old and has depreciated 55%!! Crazy.
I'm not gonna worry about it until I come to sell in around 3yrs though.
Not too dissimilar here. Purchased a 2021 M3 SR+ for £34k from Tesla approved used in January 2023. Trade in value last month was £21k. Private sale i'm expecting £23k. I definitely thought i'd avoided the big depreciation in buying a 2 year old car....
M3H coming out in UK shortly so I think that's impacting prices quite a bit too. A lot interested in the new model rather than the old.
M3H coming out in UK shortly so I think that's impacting prices quite a bit too. A lot interested in the new model rather than the old.
kelvin 660
White SR+ with LFP battery
If you trade in a (EV) car too soon you will loose money, however when you take into consideration fuel and servicing costs my car could save me over £14K over 8 years compared with an equivalent ICE car. I plan to keep my car for a few years...
Note that breakeven point between ICE and an EV happens in year 3 and my car is the cheapest SR+.
Note that breakeven point between ICE and an EV happens in year 3 and my car is the cheapest SR+.
Oxid8ter
Returning Member
The problem with having bought pre-owned in 2021-22 (even early 2023) was that with the semi-conductor shortage was still in full swing, and/or manufacturers were still playing catch-up and people didn't want to wait, so demand for used cars was up and that inflated the prices. Through 2023 the delivery of new cars became more consistent and with that the demand for used cars dropped off, causing the prices to tank. Its all driven (to an extent) by supply and demand.
Sadly, its not that you lost a large amount during ownership, its that you paid an inflated price.
Using a Personal Example, In 2021 a used Discovery 5 was circa £37k for range topping, I bought in 2022 and it was 44k. When I sold it, a pristine condition one (which mine was not) was fetching around £32k trade in, so would have been on forecourts at around £35k.
Sadly, its not that you lost a large amount during ownership, its that you paid an inflated price.
Using a Personal Example, In 2021 a used Discovery 5 was circa £37k for range topping, I bought in 2022 and it was 44k. When I sold it, a pristine condition one (which mine was not) was fetching around £32k trade in, so would have been on forecourts at around £35k.
phil4
Member
I bought mine in Sept 2020, on PCP. Later this year, I'll be trading it back to replace probably. My PCP value at that point is ~19,000. I don't care if it's less than that, and while it'd be nice if it were worth more, I'm not planning for it to be, and don't expect it. I'll lose no money compared to what the PCP contract says, and loss is Tesla's/Finance companies. I'm happy with that.
I think the over arching message here is cars are pretty much never a wise financial investment...
We don't buy them to make money do we, we buy them for pleasure and to increase our quality of life...
Obviously that can vary depending on when you do it and market conditions as highlighted above, but the common theme here is a car WILL lose you money!
We don't buy them to make money do we, we buy them for pleasure and to increase our quality of life...
Obviously that can vary depending on when you do it and market conditions as highlighted above, but the common theme here is a car WILL lose you money!
This is the only vehicle I’ve ever taken on a PCP (and I’ve done a lot on the same sort of deal) that is worth less than the outstanding value of the car (it wasn’t 8 weeks ago when it was valued at £7500 more).
The Model S that I traded in for my 3 had a great residual value.
My concern however, is not really the value as such. It’s how much the value has dropped in just 2 months.
phil4
Member
I do get your thinking, it's odd that it's dropped massively. For a sanity check have you tried Motorway, WeBuyAnyCar etc? Either way, at least like me, anything below the PCP value means no loss to us. Good luck.
PITA
Model 3 Performance
This ^^^^
I'm going to keep my Model 3 Performance for as long as the thing can still pass an MOT
The huge depreciation it'll help me pay less Corp Tax and keep HMRC quiet when I buy it off my Company for a song.
It'll shut down anti-eco arguments for sustainability as I still own the thing, charge appropriately at low amps and look after the battery properly.
With the ongoing energy savings with the car plugged into our home, I'll likely get free electricity for it and even the 2025 road tax cost won't be bad.
Still makes sense to me.
PITA
Model 3 Performance
What doesn't make sense is flipping these cars every three years. Unless you can afford to subsidise the next car owner.
It's still just a car... internal features updating regularly still.
It's still just a car... internal features updating regularly still.
That was just the used car prices realigning back to non pandemic levels. This is more than that, EVs continue to get so much negative press than no one wants them. Traders are having to value them based on an expectation that they will hang around and continue to depreciate for months before a sale.
I hear what you are saying, but I bought an 18 month old CPO car with 12k on the clock at 39% off the new list price. That didn't feel like an inflated price to me, it felt like a good deal!
Lucky, the BMW X3 deal I moved from (£450 deposit, £450 per month) had me come out with about 7k, so I'm just about net even
.
PITA
Model 3 Performance
So... when China eventually loses patience and invades Taiwan...
Our used Tesla prices will hit £100k each in 2035
... if they survive the Internet Apocalypse leaving the World behind.
Our used Tesla prices will hit £100k each in 2035
... if they survive the Internet Apocalypse leaving the World behind.
Now this is the right viewpoint. Cars are liabilities, if you seek investment buy a painting.
I've always bought my cars, never considered Lease, PCP or any of the other weird and wonderful ways to take possession of a car.
Cant speak for others but I find I'm totally happy with my car, then suddenly out of the blue the idea to change comes to mind, Something sparks an interest and once that starts all I want is that new idea to become reality.
I know my car is worth a lot less than i paid for it to others, I know if I trade in I will get a lowball offer, I know the trader will wash it, add £5K and move it on, but that's life, its how it all works. Of course i could advertise privately and get a bit more for it but I know the tyre kickers will come to look at it, all expect to be able to test drive and get offended when you ask to see their driving licence and proof they are insured, they inspect the car with a microscope and find a blemish that to them is the focus of their haggle - yet arrive in a beat up POS.
Its therefore the safest and most convenient method to sell and buy your car from a bona fide trader - and that has a value which has to be paid for - it also legally provides you with consumer law protection - something a private sale does not.
The new car I buy pleases me so much It never enters my head to be disappointed on the losses of the old car, I have researched beforehand what Autotrader values are for my car, I conjure up with man maths just how much I can add to that figure then set out to find the newest, the lowest mileage, the best condition, the most comprehensively equipped car of the type I'm after within my budget.
I find I'm unable to look objectively at that new car from the perspective the dealer is making a lot of money, that as soon as i take possession the car devalues by thousands - and when its time to sell it I'm going to loose a shedload on it, All of that is as natural as breathing.
The new car brings a lot of pleasure, a lot of pride, I have one life and I'm going to enjoy it, not lament on what mightn't have been if i did things differently, I have in laws that have saved all their life, live quite miserly, always prepared for that rainy day - but have forgotten what a rainy day is, they live basic, no frills and live a life without (to me) any pleasure, they tolerate issues with their house that would drive me up the wall simply because they wont spend money - yet they have immense wealth.
You can save it or spend it, be happy or be miserable, life is about choice, If I loose a lot of money on a car I simply conclude the value to me over the years of ownership was well worth it - I conclude that because I've never looked back and regretted a purchase decision.
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