How Does Tesla Handle Trade-ins

[Runt8]

For any Model S/X owners, how does Tesla handle trade-ins? Specifically:

1. Is Tesla the one taking the trade and dealing with the paperwork, or do they employ a third party that works with you directly?
2. When in the ordering process do you find out the value that they have assigned to your trade-in?
3. Are they willing to negotiate on the trade-in price?
4. Does the trade happen when you pick up your new Tesla, or is it more complicated?

Every time I’ve chosen to do a trade-in instead of a direct sell, there has never been a wait between buying and receiving the new car (ie, the new car has always been in stock on the dealers lot), so the trade-in was always part of the negotiation process, and I would just leave the old car and drive away in the new car. With the Tesla approach of no negotiation and ordering online, I don’t understand where the trade fits in. Any direct experience with trade-ins would be greatly appreciated!

 

[Dwdnjck]

Tesla only sells used Teslas. They do not sell other makes on their lots. They will wholesale all other trade-ins. This can be handled at the time of delivery, or not. You won't know who is actually buying your car. This gives traders convenience, not necessarily the best price.

 

[kort677]

tesla is not like a traditional auto dealership store, and the difference is most evident in their trade in policies. the bottom line is that they really don't care about that part of a transaction. I have only traded in another tesla so my experience isn't very broad but I do know that they employ subcontractors to inspect the car being traded in, they more than likely will not beef up an offer they've made for your car. as for how the actual transaction works, again I traded a tesla in, I gave them my old tesla and they gave me my new one.
FWIW: I think that you should explore other ways to dispose of your old car rather than assuming that tesla will offer you the best deal on that old car.

 

[DrivingRockies]

For any Model S/X owners, how does Tesla handle trade-ins? Specifically:

1. Is Tesla the one taking the trade and dealing with the paperwork, or do they employ a third party that works with you directly?
2. When in the ordering process do you find out the value that they have assigned to your trade-in?
3. Are they willing to negotiate on the trade-in price?
4. Does the trade happen when you pick up your new Tesla, or is it more complicated?

Every time I’ve chosen to do a trade-in instead of a direct sell, there has never been a wait between buying and receiving the new car (ie, the new car has always been in stock on the dealers lot), so the trade-in was always part of the negotiation process, and I would just leave the old car and drive away in the new car. With the Tesla approach of no negotiation and ordering online, I don’t understand where the trade fits in. Any direct experience with trade-ins would be greatly appreciated!

1 - You have your car appraised by CarMax. Tesla handles paperwork (from what I've heard, not done myself)
2 - CarMax will give you a time limit on the quote.
3 - No
4 - After confirmed order, anytime (Again - second hand knowledge)

 

[JohnSnowNW]

1 - You have your car appraised by CarMax. Tesla handles paperwork (from what I've heard, not done myself)
2 - CarMax will give you a time limit on the quote.
3 - No
4 - After confirmed order, anytime (Again - second hand knowledge)

Yes, we did this. Went to CarMax, Tesla applied the trade-in based on the CarMax appraisal. Normally through CarMax it's an appraisal good for 7 days, but they extend it to 14 days if your're trading it in through Tesla. We traded the car in when we picked up our X.

 

[JasJ]

1. Is Tesla the one taking the trade and dealing with the paperwork, or do they employ a third party that works with you directly? Tesla
2. When in the ordering process do you find out the value that they have assigned to your trade-in? They can do it around time of order but will re-do it within two weeks of when you trade the car in
3. Are they willing to negotiate on the trade-in price? Not at all
4. Does the trade happen when you pick up your new Tesla, or is it more complicated? For me it was drop off at pickup. The DS checked the trade was generally in the condition expected and mileage reported.She did this while I was going over my new Tesla.

As my order to delivery timeline ended up being six months, they did not honor the initial appraised value (which was done by a self appraisal and
photographs). I went to CarMax for a separate evaluation and they came in lower, so I took the final value offered by Tesla. As I was trading in a non-Tesla, they sent the photographs off to various 'buyers' (wholesalers I suspect) to obtain a value. I get the sense that Tesla barely looked at my Trade vehicle. I probably could have obtained a little more in a private sale, but it was not worth the hassle. It was a pretty painless process.

 

[zer0cool]

Based on various posts and personal experience, Tesla has terrible trade-in offers because Tesla doesn't sell used cars of other brands. The fact is, used cars have higher margins than new cars, but if Tesla is not selling them, buying a used car is pure expense since they have to go and sell the car wholesale to other dealers... So they have ultra low-ball offers.

If you are going to trade in, I think probably better to do it through CarMax, Vroom, or a local dealership. Generally with more premium cars, CarMax has significantly worse offers than dealerships. With more regular cars, I don't know.

Basically I wouldn't trade in to Tesla.

 

[DrivingRockies]

Tesla has terrible trade-in offers

They told me they use the CarMax offer... I wonder if that changed.

 

[gambit48]

For me, CarMax always comes in about $4-5,000 less than what I ended up selling it for through private party. Only takes me a couple of weekends. Totally worth the "hassle" for me.

 

[boaterva]

I confirmed yesterday, actually, that the only outside quote they (at least my SC, Tysons) will match is CarMax. I had heard rumors of Vroom (who used to be Texas whoever), and others, but my DS says only CarMax. I'm going to head over there and get a quote closer to delivery.

I also have a valuation from KBB for a ballpark/range estimate, but I really don't want to do the private sale route, unless someone is in the market for a really low mileage 2009 BMW 328 xDrive (48K miles). (mostly j/k)

 

[ggies07]

Yes, we did this. Went to CarMax, Tesla applied the trade-in based on the CarMax appraisal. Normally through CarMax it's an appraisal good for 7 days, but they extend it to 14 days if your're trading it in through Tesla. We traded the car in when we picked up our X.

1. Is Tesla the one taking the trade and dealing with the paperwork, or do they employ a third party that works with you directly? Tesla
2. When in the ordering process do you find out the value that they have assigned to your trade-in? They can do it around time of order but will re-do it within two weeks of when you trade the car in
3. Are they willing to negotiate on the trade-in price? Not at all
4. Does the trade happen when you pick up your new Tesla, or is it more complicated? For me it was drop off at pickup. The DS checked the trade was generally in the condition expected and mileage reported.She did this while I was going over my new Tesla.

As my order to delivery timeline ended up being six months, they did not honor the initial appraised value (which was done by a self appraisal and
photographs). I went to CarMax for a separate evaluation and they came in lower, so I took the final value offered by Tesla. As I was trading in a non-Tesla, they sent the photographs off to various 'buyers' (wholesalers I suspect) to obtain a value. I get the sense that Tesla barely looked at my Trade vehicle. I probably could have obtained a little more in a private sale, but it was not worth the hassle. It was a pretty painless process.

So since we don't know when the configure page will open up for each of us, we just wait and they will do the est there on the spot based on the info you provide the system or we have to est. and then go to CarMax and get back with Tesla? I would rather just do a private sell and get more money, but I don't even know where to start. haha.

 

[CarlitoDoc]

I'll probably sell my TDi before I purchase the M3. I do have a question that I have not yet seen on the posts: Referral codes for Model 3 do not apply correct?

 

[gambit48]

There's a delay from when you config and when the car is delivered. I wouldn't bother selling or getting it appraised until you get that config e-mail.

No, referral codes don't apply to the M3. They're there to help upsell the S/X.

 

[boaterva]

I'll probably sell my TDi before I purchase the M3. I do have a question that I have not yet seen on the posts: Referral codes for Model 3 do not apply correct?

No such thing. With a 500K backlog, they don't need 'help' to sell them. Yet.

 

[Krash]

For me, CarMax always comes in about $4-5,000 less than what I ended up selling it for through private party. Only takes me a couple of weekends. Totally worth the "hassle" for me.

This was my experience as well.

 

[azred]

tesla is not like a traditional auto dealership store, and the difference is most evident in their trade in policies. the bottom line is that they really don't care about that part of a transaction

Really? Their trades department contacted me multiple times over a month to get me more money when I balked on buying my S. I finally took the offer when it was close to what I wanted but they came up a lot. I'm in AZ and they found a buyer in Chicago. I imagine it matters if the car you are trading is a somewhat low volume and/or high value model such that KBB et al isn't very accurate. That was my situation. (Otherwise I imagine they will accept a Carmax estimate and make no further efforts.)

 

[kort677]

Really? Their trades department contacted me multiple times over a month to get me more money when I balked on buying my S. I finally took the offer when it was close to what I wanted but they came up a lot. I'm in AZ and they found a buyer in Chicago. I imagine it matters if the car you are trading is a somewhat low volume and/or high value model such that KBB et al isn't very accurate. That was my situation. (Otherwise I imagine they will accept a Carmax estimate and make no further efforts.)

that's an unusual story, I'm glad things worked well for you

 

[Jason Bourne]

... I imagine it matters if the car you are trading is a somewhat low volume and/or high value model such that KBB et al isn't very accurate. That was my situation....

What year make and model of car did you trade?

 

[igotzzoom]

I have done a few trade-ins, but I've always gotten a LOT more money when I've sold private-party. I honestly don't think it's that big of a hassle. At least in CA, you can handle most of the initial paperwork online, at least as a seller. I actually have someone interested in my current car that I'm going to sell PP. Since I have a 3rd car anyway, I'm just going to drive that until my Model 3 arrives.

 

[JohnSnowNW]

I'll just say, and maybe I'm an outlier, but CarMax gave us $1500 more than we were quoted from a Chrysler dealership when I was looking at the Pacifica PHEV. YMMV.

You'll almost always get more out of a private sale, but I'm willing to take a hit to not have to deal with the hassle of selling it myself. Realistically, I only lost about $1000.