Does Tesla lowball you to trade in your Tesla?

[Maximapolak]

Does Tesla low ball you when you trade in your Tesla, compared to other places (ie Carmax, Carvana, etc)?

I have a model S on order which is due for delivery in a few days. I received a, way lower than expected, trade in offer from tesla for my current model S.

Would the hassle of a private sale be worth it?

 

[Evee]

Yes

 

[Grabthar]

They don't want to be in the used car business and have been pretty open about this. They are rather reluctant to buy your car (but will if they must). Hence they are typically lower than other companies that are in the used car business.

 

[IslandHydro]

Have to keep in mind the tax implications of either option

 

[ucmndd]

I received a, way lower than expected, trade in offer from tesla for my current model S.

You may find “way lower than expected” offers from everyone… the car market is imploding right now.

The only way to determine if Tesla’s offer is fair is to compare it to others. What does CarMax and Carvana offer? Pretty easy to find out.

 

[Maximapolak]

You may find “way lower than expected” offers from everyone… the car market is imploding right now.

The only way to determine if Tesla’s offer is fair is to compare it to others. What does CarMax and Carvana offer? Pretty easy to find out.

Just did a Carvana quote and it was $1900 more...that's about the same considering the sales tax saving.

 

[calm-one]

Beware of a price drop in recent offers from Tesla too. Per my experience for a Model S and 3.

In my case (Chicago region):
2017 Model S 100D. $116,750 before tax
11/26/22 36,800mi $42,900 - $47,500
09/02/22 33,496mi $56,700 - $62,800
10/07/21 24,500mi $59,000

2018 Model 3 LR $56,200 before tax
11/26/22 33,949mi $28,300 - $31,600
09/02/22 31,001mi $37,400 - $43,000

 

[maximizese]

From my perspective, the answer is absolutely. The difference between their offer price and their resale price is far greater than any other dealership I've ever seen. However, as the purchaser of a used Tesla back when their used car warranty covered 2yrs/when the odometer hits 100K miles I believe I got a very good deal for what it was. While I could have saved 10% buying through a private party, I wanted some assurances that the car would be inspected, warrantied, and I don't mind a business making an honest buck.

Now some might question why the delta between their offer price and sale price is so great, I assume it's because as others have said that Tesla is not focused on being a used car business. It is imperative that they are in the business to at least create their own artificial price floor to stabilize a market for their own product (high-priced, fast-changing technology, & wary consumer), but it's not their focus because I believe their profit margin and market growth is much greater with the production and sale of any new Tesla compared to the resale of a pre-owned Tesla.

Personally I think Tesla would do better if they created a subsidiary that would focus on used Teslas where they can get feedback from high-miles vehicles, fix known design-flaws, and offer greater support for the secondary owner. In the absence of such a business from Tesla creates a market for many 3rd party Tesla mechanics who have spent many hours reverse-engineering Tesla's solutions to suspected problems (see wk057's condition Z work), and in many cases have offered solution alternatives for a fraction of the cost that Tesla Service Center charges.

 

[airborne spoon]

yes, but carmax is worse
always sell it yourself and never to a company if you want the most money. My last car (06 mustang, 470hp at the wheel) carmax offered me $650 i sold it for $11,000 to a person off craigslist.

 

[mswlogo]

I traded in with Tesla twice.
It was by far the best option at the time.

One time it it didn’t work out and I sold it privately.

2017 Jeep Summit Traded with Tesla (CarMax Match)
2018 Model 3 Sold Private
2019 Model X Traded with Tesla (at near peak trades).

Tried selling private both times before I went with Tesla.

One time they match CarMax.

It’s all supply and demand and Tesla is usually ahead of what others will eventually get to.

 

[David.85D]

Does Tesla low ball you when you trade in your Tesla, compared to other places (ie Carmax, Carvana, etc)?

I have a model S on order which is due for delivery in a few days. I received a, way lower than expected, trade in offer from tesla for my current model S.

Would the hassle of a private sale be worth it?

When I sold my S, the numbers for Tesla offer, Carvana, private party sale (which is what I did) were 30k, 40k and $50k.

 

[xxaarraa]

There is a reason carvana is very rapidly going out of business. If I am trading in an S for another S/X and the transaction value is high, its a wash between tesla offer and carmax offer once you factor in sales tax savings.

 

[EvPac]

In my experience, Tesla is definitely low-balling their trade-in offers for used Teslas. They offered me $22,700 for my 2019 M3 LR Dual Motor with 50,000 miles in great condition in trade for a new MY. I paid $49,200 for the car, so the car had lost more than half of its value in 3 years. We are a one-car family, the nearest place to pick up a Tesla is 300 miles away, and interest rates are rising, so it was becoming an expensive proposition to buy a MY with the uncertainty of selling the M3 in a private sale. I cancelled my MY order. I have heard that Teslas don't depreciate as fast as other vehicles, but not in Tesla's eyes!

 

[vcor]

In case not everyone understands the possible sales tax savings - in some states if you do a trade-in, it goes against the purchase price and you pay less sales tax. For example, if a new car is $100K and you have a trade-in of $40K, you only pay sales tax on $60K, the difference. For a 10% sales tax, that's worth $4K. California is one state that does NOT do this, so there are no sales tax savings for a trade-in over selling it elsewhere. Of course, some states don't have a sales tax. Check your state to see if it makes a difference.

 

[nicchs]

I would have loved to traded my car to Tesla to avoid the hassle of paying a lump sum. My trade offer was pending until I called local Tesla, after I did that it was a matter of 2 mins where they provided a quote, assume they are overloaded. Either way, the quote was very low. Went to carman and used that to eek out a few more $'s from others in the area.

 

[calm-one]

For those who have traded-in via Tesla in the past 45 days, what was your experience with the Tesla automated trade-in range estimate versus the actual post photo offer?

Thanks

 

[nicchs]

I would have loved to traded my car to Tesla to avoid the hassle of paying a lump sum. My trade offer was pending until I called local Tesla, after I did that it was a matter of 2 mins where they provided a quote, assume they are overloaded. Either way, the quote was very low. Went to carman and used that to eek out a few more $'s from others in the area.

*carmax

 

[MikeKFE]

For those who have traded-in via Tesla in the past 45 days, what was your experience with the Tesla automated trade-in range estimate versus the actual post photo offer?

Thanks

I traded in a M3P 3 weeks ago. The estimate and actual amount were spot on. The M3 was flawless and I got within $500 of top range.

Just got the photo offer on our 2020 MXLR. Again, flawless condition and the post photo offer was dead middle of the range.

So who knows

 

[n8__]

For those who have traded-in via Tesla in the past 45 days, what was your experience with the Tesla automated trade-in range estimate versus the actual post photo offer?

Thanks

Tesla's trade-in estimate on 12/18: $33,000-$36,600. Actual trade-in offer on 12/28: $27,100.
Carmax actual offer on 12/26: $28,500.
Carvana actual offer on 12/28: $29,259.

 

[n8__]

Tesla's trade-in estimate on 12/18: $33,000-$36,600. Actual trade-in offer on 12/28: $27,100.
Carmax actual offer on 12/26: $28,500.
Carvana actual offer on 12/28: $29,259.