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Helpful info for those considering trading in Tesla Model 3 for a Tesla
- Thread starter tchaimd
- Start date
Glamisduner
Active Member
Glamisduner
Active Member
yeah i guess that makes up for it in a different way? but it still wouldn't reduce the taxable portion of the car I'm buying from Tesla?
Not sure personally. I bought my M3 for cash, and now selling my old car (rather than trade in). In the hope that I get more $$$ selling privately.
Glamisduner
Active Member
yes I'm currently trying to sell my truck towards the form payment but it's hard because i just put 3k into it and it had so many extra truck kinda if things installed... not a single bite yet. then i have to sell my volt after i get the model 3 too. might be worth looking into what they would give my for the volt if it comes off the taxable amount for the model 3.
as a matter of fact I'm replacing my truck battery as i write this...
ℬête Noire
Active Member
Yes. In most, but not all, states the customer does not pay sales tax on the portion that is covered by the trade-in value.
However good chance you haven't heard about this because California is one of the states where it is NOT the case. Helpful info for those considering trading in Tesla Model 3 for a Tesla
Glamisduner
Active Member
Damn I never even knew that was a thing, but I can't say I'm surprised. I wonder if that affects trade in values within the state. We get taxed to death here. One day i will hope to escape this place.
Well at least the tax incentive will cover the tax and double tax and trade in tax and insaine cost of power. it's not going to go as far as i thought though.
I get this time goes along with the buyer parking tax every time a car is sold even if private party. I don't think that is a rule in all States either?
ℬête Noire
Active Member
In effect what it means is that the dealerships have more leverage to lowball on you, so if anything it puts downward pressure on trade-in values.
If you're thinking "Texas" you better move fast. When the oil royalties ("franchise tax") start running low sugar is going to get very ugly here. Like Southern Oregon ugly, where they lived for decades off of the logging taxes which are now drying up.
There is a state sales tax is about equivalent to CA (base 6%, the local top-off on that pretty much everywhere is +2.25%). Property tax isn't quite as high (generally %2 and change up to nearly 5% of property value). There's no State Income Tax but that portion of revenue is covered by the franchise tax revenue, so it's a-coming or(/and) services/support such that they are now are going to go in the toilet.
But if he keeps the car for a year and sells it he will lose a lot more than that in depreciation. And by virtue of the fact that he'll likely be driving his Performance then the car will be sitting around losing value, taking up room and sucking kWh, instead of getting any real use out of it.
artsci
Sponsor
Interesting that Tesla devalues its own cars. What does that say? IMHO, if they had confidence in the quality of the build they'd offer more for their own cars.
seattlite2004
Active Member
Just checked KBB on my 2018 Bolt Premier... KBB value is more than what I paid for the car...wow.
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The rep knows nothing. They are not professional economists. They punch numbers in a computer and read it back to you.
Tesla doesn't resale Bolts. It goes to someone else who does.
As far as Tesla lowballing their own trade ins, they do it because they can capture a convenience premium. Most people don't work hard and just throw their trade in to whoever their new car purchase is coming from.
How much Tesla is willing to pay has nothing to do with build quality, that is reading into something that isn't there.
I sure would be curious on the market distortion factors that allowed that kind of setup. Perhaps we'd see something similar on i3s considering BMW was selling them for 50% of MSRP.
Anycase, I wouldn't buy a Bolt in the first place to dump it. But if I did, I would have done it yesterday if my depreciating losses were low.
ℬête Noire
Active Member
You're really missing the conversation here. It's not about "should I sell the LR?", it's about Tesla low-balling on a Tesla trade-in when they don't do that on other makes of vehicles.
seattlite2004
Active Member
ℬête Noire
Active Member
To buy what? That's why the prices are so firm (subtract the Fed Tax Credit), because factoring in the sales tax it's pretty much a push. I potentially could flip mine to get rid of the miles so far, have room for two $7500 Fed Credits, but then pay sales tax (that isn't a tax deduction anymore) and I'm somewhere +/- break even on $ for my hassle.
To what, drop an extra $10K+ on a Model 3? When the SR rolls around the math changes some, but if the Bolt fit your situation enough to buy it to start with (to wit, you're using it locally rather than for road trips) it's actually a good car.
I never said the Bolt was a bad car. It’s a decent car if I accept the limitations of 115 miles one way.
If the opportunity cost of having a Bolt was not having a Model 3, I’m getting rid of the Bolt.
If it was 10K more, that’s like 200 bucks per month financed over 4 years to drive a better car, at least in my crazy opinion.
If the opportunity cost of having a Bolt was not having a Model 3, I’m getting rid of the Bolt.
If it was 10K more, that’s like 200 bucks per month financed over 4 years to drive a better car, at least in my crazy opinion.
Jedi2155
Model 3 has Arrived.
$200/month is the car payment for most people, so it really depends on the driver
ℬête Noire
Active Member
Especially when it’s the 2nd vehicle. For me a 2nd LR is overkill & more value to depreciate. Plus the Bolt is my “SUV” format vehicle....for as much as I need such.$200/month is the car payment for most people, so it really depends on the driver
We’ll see what happens after a couple months w/the D. If the wife covets it enough & Bolt is still holding value we may trade for a SR. It’ll cost about $4K & some sales tax, because of Tax Credit winding down. We’ll decide when we get there.
I’m not that worried about Bolt depreciation that much. The Fed Tax Credit winding down, even just on Tesla first, is going to be working for me.
EDIT: Something that may be happening as the Tax Credit gets to this price-point. More customers for these vehicles are going to have difficulty using the full $7500 anyway, so that can lessen it's impact on the resale market. As well you do have to carry that $7500 for up to 15 months (Jan until tax rebate Mar of next year). When this is 20% of purchase price that can matter more than just the interest.
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