OP indicated KM. I suppose that's Canadian CAD$, with tax included.
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Devaluation of model X
- Thread starter Jabardo
- Start date
My Model S faced over 50% depreciation in a little over 2 years, when traded in at Tesla. That was hefty indeed. My Audi A8 faced less depreciation in 4 years, around 50%. They both had the same annual mileage rougly, so Model S was half what the Audi was and still depreciated much more faster...
This is of course market dependent and part of that was that Tesla simply offers bad trade-ins for Teslas (excluding perhaps guaranted trade-in prices after a certain number of years). There's a lot of talk on TMC that Tesla offers better trade-ins for non-Teslas than for Teslas because of the rigidity of the Tesla CPO process.
It is my experience that the early-bird game with a Tesla can lead to quite significant depreciation. It is a cost that has to be factored in for those of us who change cars frequently.
This is of course market dependent and part of that was that Tesla simply offers bad trade-ins for Teslas (excluding perhaps guaranted trade-in prices after a certain number of years). There's a lot of talk on TMC that Tesla offers better trade-ins for non-Teslas than for Teslas because of the rigidity of the Tesla CPO process.
It is my experience that the early-bird game with a Tesla can lead to quite significant depreciation. It is a cost that has to be factored in for those of us who change cars frequently.
K-MTG
Sunshade Captain of TMC
I didn't opt for GAP insurance....I always assumed the value of my X wouldn't stagnate. Got a 90D.
Thank you all for your thoughts and experiences. It was purchased in Canadian funds which leads to the 150K.
He totally understands that cars depreciate, what he finds frustrating is that the depreciation is caused by tesla lowering the price of the MX shortly after the purchase by so much and now including many more options. Tesla used to hold their value for quite sometime, which led to his decision in purchasing MX.
I ordered my MS 75D in April (June delivery) while waiting for delivery there was a drop in price, so I was able to get the 100D for a little money, which worked out well for me at the time. Today, if I were to order another one, my price is about 5K less
With a lot more options.
Don’t get him/us wrong, he absolutely loves his MX, as I do my MS. It just seems like a slap in the face, especially after Elon came out at the model 3 realease and basically said the MX/MS prices were at a premium to fund the M3 R and D.
I’m not here to bash tesla, I love the cars and where we are going, Im wondering how many people are experiencing this and if people even know how bad the depreciation really is at this point, seems like nobody is talking about it. I wanted to bring this light, because it seems unfair to customers.
Thanks again all!
He totally understands that cars depreciate, what he finds frustrating is that the depreciation is caused by tesla lowering the price of the MX shortly after the purchase by so much and now including many more options. Tesla used to hold their value for quite sometime, which led to his decision in purchasing MX.
I ordered my MS 75D in April (June delivery) while waiting for delivery there was a drop in price, so I was able to get the 100D for a little money, which worked out well for me at the time. Today, if I were to order another one, my price is about 5K less
With a lot more options.
Don’t get him/us wrong, he absolutely loves his MX, as I do my MS. It just seems like a slap in the face, especially after Elon came out at the model 3 realease and basically said the MX/MS prices were at a premium to fund the M3 R and D.
I’m not here to bash tesla, I love the cars and where we are going, Im wondering how many people are experiencing this and if people even know how bad the depreciation really is at this point, seems like nobody is talking about it. I wanted to bring this light, because it seems unfair to customers.
Thanks again all!
Super_Popular
Well-Known Member
Tesla, most of the time offers $5K to $10K below wholesale on trade in's so it's never a good idea to trade into Tesla unless you have to.
Do you have evidence of this being the worse of the options? Aside from selling it privately, Tesla was easily the BEST source for trading my car in. It would seem that all other car companies have no idea how to price them so they offer far lower trade in values as compared to Tesla.
They were very clear with me that their trade in offer was 5 to 10K below what it would be resold for on their website, not whole sale value. And, I was able to track it - they resold the car for exactly $8,500.00 more than the trade in offer they provided me. That cost included a refresh (detail and inspection etc) and a CPO warranty, which itself would have cost $6,000.00
Depends on the state you are in, you can get sales tax benefit when you trade in. Of course if you live in a state with no sales tax then it's better to sell privately to get more out of it.
For a car that costs 100k the sales tax can be quite substantial and is easily offset by the lower trade in offer.
So he is upset that a year and a half after launching the X Tesla was able to lower their prices, offer customers more value for their money, expand their potential market, and grow the company.
Itsajyaknow
Member
You are exactly right. Tesla offered me 4k over Carmax and gave me the exact $8000 extra they were putting my car on the website for. I still haven't accepted as I'm trying to sell privately. But with Arizona tax rules it actually works out to $6k over with the trade in. I'll probably end up doing this and just having to eat the extra loss if nobody bites on my private sale :-(
You are spot on'
Another issue with Tesla is how rigid they are with the trade-ins. They don't treat CPOs as used car individuals, but as items that need to tick certain boxes to fit into their CPO paradigm. So they do stuff like remove Xpel (deduct the cost) and throw away expensive extra charging cables and winter tires (where such are sold and used), even if they are all Tesla purchased ones - because they don't fit into the CPO paradigm they have. They also hide the actual car behind a rendered, formal database. This means that value is definitely lost on many cars through this process, that would be there for more traditional used car - or even more traditional certified pre-owned - sales.
Tesla's system also leaves much less leeway to the sales location to value a Tesla car, than trade-ins from other makes. Which all means a Tesla sales location often can give a better valuation for a non-Tesla trade-in than for a Tesla.
Tesla's system also leaves much less leeway to the sales location to value a Tesla car, than trade-ins from other makes. Which all means a Tesla sales location often can give a better valuation for a non-Tesla trade-in than for a Tesla.
travwill
Active Member
It's Canadian $, but in general, the good news is a 75D depreciates slower than what a P90D or P100D does. Probably best bet for sustained value now is just a regular 100D. Again, some cars depreciate in their first year in the 30%-35%+ range even and Tesla fairs well to those and is actually better than a number of other luxury cars. Slows down 2nd year and 3rd year. Typically people that finance cars start to even out after 3 years if not a lot down or so, sometimes 2 years left on loan. Sooner if you get some good discounts up front (like inventory or used/with miles) or put a lot down at least.
Super_Popular
Well-Known Member
Yes I do, I flipped them for many years and made pretty good money doing so, I also have two personal friends that work for Tesla, one who does the trade in's.
And if you read this thread it and others on trade in's you will see how pissed off people are when they trade theirs cars in. Yet if they were patient and listed them they wouldn't take such a hit.It's their own fault.
And you got lucky, most do not get your deal.
Second data point: Tesla listed my car for $7500 more than they offered, as a CPO with full 4 year 50k warranty. That seems reasonable given the usual cost of such a warranty.
Flipping cars compared to trading them in isn't comparable or evidence.
Its a depreciating asset. I wasn't overjoyed in losing almost 50% of the value in 3yrs but in this space its to be expected. With a trade in to other car companies its just worse. And, unless you can show comparisons against other trade offers to competing car brands that are better, I just don't believe the argument. From what I saw (several times) was that its a simple calculation that is validated with a visual inspection. Im pretty sure I didn't get any special treatment, except that my car was in demand...but it was clear only Tesla knew that. Other car companies just see them as a Model S - they have very little understanding of what they are buying outside of that.
I also had a re-purchase guarantee as a fall back at the three year mark that they were offering back in 2014 - which they didn't know or factor in when providing me offers (there were multiple over the course of a year until I was ready; all were consistent). What i saw outside of the Tesla offers were embarrassing.
Comparing a private sale to a trade in value isn't a real comparison. Sure if I wanted to go into the used car business I would have made a few thousand extra; however, it doesn't consider the work involved. The time involved and hassle factor translates at the rate of about 10 bucks an hour for those extra few thousand. The math doesn't make sense unless thats your business. Flipping Teslas doesn't seem like a viable business; flipping cars certainly is if you commit to it.
I was on the right side of this reduction by days literally 24hrs.
I can understand how frustrating this might be to someone who purchased earlier or who's, closer to but not close enough to the reduction. On the same model run, you buy a loaded P100DLX in July and pay 170K and then in August the same car with no changes costs $158K (or in my case, $146K with 800 miles on a new inventory July build - which 24hrs before was listed at $168K).
There is no way that doesn't sting.
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Wanting to resell something expensive (house, Car, diamond ring) less then a year after buying it is going to sting but not as bad as needing to sell it!
I really hope that production is gaining efficiency thus lowering costs as they constantly improve...nothing wrong with passing those savings along. 6 years ago everything this company made was hand built.
Also if serious about selling why not look around? If Tesla is offering 110K that should translate to 120-130K in Private sales. Finally was that 150K before or after 10K of Canadian incentives...if it was before that is simply not a fair number to compare.
I really hope that production is gaining efficiency thus lowering costs as they constantly improve...nothing wrong with passing those savings along. 6 years ago everything this company made was hand built.
Also if serious about selling why not look around? If Tesla is offering 110K that should translate to 120-130K in Private sales. Finally was that 150K before or after 10K of Canadian incentives...if it was before that is simply not a fair number to compare.
It's very common in car sales for people to ignore rebates. A truck with an MSRP of $45k and $10k in discounts and rebates is a $35k truck yet people will treat it as a $45k one when trying to trade it in. The tax credits work the same way. In that context it's rather amazing that these high priced vehicle values hold up as well as they do. These cars get an instant $7500 or more discount in addition to the first year, yet they have typical luxury depreciation anyway. It's rather amazing.
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