This is not a good time to buy a used Model 3. The 2021 model has some significant improvements to it, but it is not quite available yet. Give it a few months. Once Tesla has standing inventory of 2021 Model 3’s, used Model 3’s will be less desirable and sellers will have to adjust. It makes no sense to buy a used Model 3 with 30,000 miles on it for a few thousand dollars less than a brand new 2021 model with all of the added features and improved range. Just be patient.
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How I price a used M3
- Thread starter Palmtree
- Start date
CapeOne
Active Member
Tesla currently has a few 2018 M3 Performance models with clean histories, low miles, PUP, FSD, etc. for under $51k.
22k miles - $50,400
2018 Model 3 | Tesla
21k miles - $50,800
2018 Model 3 | Tesla
31k miles - $50,800
2018 Model 3 | Tesla
C141medic
Active Member
This is an interesting post considering I recently sold my Model 3. I had it listed on a few sites including EBay. I was amazed how many low ball offers I got. Some were even lower than what I would’ve received from Carvana, Vroom, etc. which was around $41K. I received this message from a buyer on EBay which I found totally amusing:
Would like to send you an offer on this car but wanted to send you my "math" without being too lengthy. By means of comparison, I will direct your attention to Ebay Item 264904034941 which ended on Sunday. I'm a firm believer in free markets directing the price of cars like this, especially on Ebay, as these cars get a lot of attention there. Fortunately Model 3s are fairly easy to compare as their options are limited and there are only a few model years. That Model 3 bid up to 52600 and I almost bought it there. It was a no-reserve auction, not a dealer set Buy-It-Now price etc.
Yours, by comparison, it is very similar to this, comparable miles, color, FSD, etc with the following exceptions:
lacks performance option ($8K),1 year older, and NJ kept vs Florida (the former being tougher on cars via both the roads and winters)
Those three factors monetize to an offer of $41500. Maybe you are interested, maybe not. But I wanted to explain myself rather then just blindly throw you a number like many others probably have
Would like to send you an offer on this car but wanted to send you my "math" without being too lengthy. By means of comparison, I will direct your attention to Ebay Item 264904034941 which ended on Sunday. I'm a firm believer in free markets directing the price of cars like this, especially on Ebay, as these cars get a lot of attention there. Fortunately Model 3s are fairly easy to compare as their options are limited and there are only a few model years. That Model 3 bid up to 52600 and I almost bought it there. It was a no-reserve auction, not a dealer set Buy-It-Now price etc.
Yours, by comparison, it is very similar to this, comparable miles, color, FSD, etc with the following exceptions:
lacks performance option ($8K),1 year older, and NJ kept vs Florida (the former being tougher on cars via both the roads and winters)
Those three factors monetize to an offer of $41500. Maybe you are interested, maybe not. But I wanted to explain myself rather then just blindly throw you a number like many others probably have
CapeOne
Active Member
C141medic
Active Member
It’s in my signature profile. Final price was $45K. Miles were 7K. Was basically a fully loaded 2018 Dual Motor which I paid approximately 63K for back in 2018.
If you can be happy with a white LR AWD with black interior and 18” wheels, buy a 2021 model for $47K. You are not going to find a better overall value in the used market.
If you must have color/wheel upgrades and you are going to spend the money on those upgrades, and you happen to find a used car with the exact upgrades you are looking for, you might find the used deal to be attractive. But personally I would rather have a brand new 2021 car with the improved range and the power trunk than being overly picky on the color of the car.
If you must have color/wheel upgrades and you are going to spend the money on those upgrades, and you happen to find a used car with the exact upgrades you are looking for, you might find the used deal to be attractive. But personally I would rather have a brand new 2021 car with the improved range and the power trunk than being overly picky on the color of the car.
ChadS
Last tank of gas: March 2009
Thanks for the links; that's very interesting. (To recap, Tesla offered $47k for my 2018 P3D with PUP, FSD and 15k miles; with WA's sales tax waiver, I'd get almost $52k by trading it in).
The examples you gave all had more miles than my car, but that's not huge - it clearly indicates that Tesla isn't marking these up much after they take them in on trade - a clear break from what they've often done with trade-in values in the past. In fact, they are marking them up less than the sales tax waiver from the state...so that could make it difficult for someone like me to sell on the private market for as much as I could get by trading in. I wonder if Tesla is giving great trade-in values on all cars, or only doing that on late-model, low-mile, loaded vehicles with the specific intention of getting those of us that don't really have a serious need to dump our cars a reason to upgrade to a new Tesla. It might work...
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CapeOne
Active Member
How much Tesla makes on a car can depend on how long it takes to sell. Two of the cars I posted had been around for at least a few weeks and were originally priced closer to $55k.
Right now, it looks like Tesla has seven 2018 M3 Performance models ranging in price from $47,800 to $53,900.
Options always take the biggest hit on resale. The best resale value based on percentage of original price will be the SR or SR+ with no options.
Considering a $7,500 tax credit, was this effectively $55.5k purchase price? So you "paid" $10k for 2 years and 7,000 miles of use?
Exactly this. At current prices, it's better to just buy new, because of how well used prices have held up.
rtanov
Member
OP, that is very interesting thought - if you find a used TM3 with 100k miles you should be able to get it for free if we follow that train of thought
There must be something wrong in the assumptions, right OP, that is very interesting thought - if you find a used TM3 with 100k miles you should be able to get it for free if we follow that train of thought
You forgot about the $10k down payment. However, I would expect the depreciation to slow down as it ages. In 2023 with 100k miles I would expect it to be worth more than $10k but I'm not sure how much more.
My point is that either used prices are too high or new prices are too low (only speaking for myself). If i'ts going to cost me around $12k to drive a new M3 AWD for 18 months (that's not including the $10k down payment) it seems reasonable to expect it to cost someone else nearly the same.
C141medic
Active Member
Pretty much. I also added around 6K in extras. One of which was full coverage Xpel PPF. I know you never get the full value of added extras but they do add some value.
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I really don't take resale value into my calcuations because I tend to drive cars until they die or at least until the resale value is negligible.
Just had an interesting thought about FSD and resale:
Why would anyone pay $8000 to add FSD to their current car? If you own a 2018 M3 AWD without FSD you can sell for $44k and then buy basically the same car from Tesla with FSD included for around $47k, you just saved yourself several thousand dollars.
Just had an interesting thought about FSD and resale:
Why would anyone pay $8000 to add FSD to their current car? If you own a 2018 M3 AWD without FSD you can sell for $44k and then buy basically the same car from Tesla with FSD included for around $47k, you just saved yourself several thousand dollars.
Used car values right now are UP for some reason, chalk it up to 2020. If you don't believe me, google it. You'll find several stories about it.
The Model 3 was already a low depreciating car, this trend UP for used car values make it even less depreciating. If you can afford to wait, wait, if you cannot afford to wait, well, perhaps new is the better buy at this moment in time.
Sometimes with some creditors interest rates are higher for used cars as opposed to new. If this is the case with your financial institution, the gap to jump from used to new may be even less if you consider the difference in total interest paid. Assuming your financing and not paying cash.
The Model 3 was already a low depreciating car, this trend UP for used car values make it even less depreciating. If you can afford to wait, wait, if you cannot afford to wait, well, perhaps new is the better buy at this moment in time.
Sometimes with some creditors interest rates are higher for used cars as opposed to new. If this is the case with your financial institution, the gap to jump from used to new may be even less if you consider the difference in total interest paid. Assuming your financing and not paying cash.
Used car prices going up is relatively normal during recessions. People prefer going used instead of new to save $$$. It’s not entirely rational when the price gets up high enough so it’s really temporary. This happened in 09 as well based on CPI data from the BLS that has separate used and new car price indices.
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