How is it Possible my 2023 MYLR Trade in value is so low?

[Marktm250]

We were offered $13,000 trade in for my 2021 Leaf SV+ when we recently purchased a red MYLR. Although convenient to do the trade with tax advantage, etc, I decided to "private sell". Luckily I found an on-line dealer that acts as a trusted seller intermediary and sold it for $21,950 . This top sale price was in part because the buyer qualified for the $4000 tax credit, so his actual cost will be closer to $18,000 - a fair private sell price. But also, the Leaf had everything you could add (plus) and was in excellent condition - essentially like new. Something to consider if you are willing to be patient and take the time to advertise on all platforms available (including with a for sale sign near a McDonalds - just kidding).

 

[Hoosier-Daddy]

I probably did buy at peak. Overall I'm completely happy with my purchase. I love the way it drives and handles, especially next to combustible cars.

Wait. I read that Teslas are very combustible.

 

[Dr. D Flier]

I went to Tesla Service and wanted to see about upgrading my MYLR for a Model X and this is what I'm told my car is worth ($40K). My MYLR is Black with White Interior. Has 18,400 miles. I paid $71,000 for this vehicle ordered Feb 2022. I've heard some Model X and S Owners complaining about how their vehicles trade-in value has either plummeted or stagnated.

Back to my MYLR....if you go online say Tesla Used Car Inventory, you'll see 2020 MYLR are priced for sale at $50,000+

What is the deal. Not a happy Customer right now!

Thanks for hearing me out and sharing any experiences like this you had.

Timing and tax laws are the issue plain and simple.

I bought a 2023 MYLR in Nov. 2023. Base: $48,990 plus white paint $1,000 plus white interior $1,000 plus trailer hitch $1,000 minus referral bonus of $250 so the total price was $51,740 plus $1,390 destination fee. I also got the $7,500 tax credit so out the door (not including tax) was $45,630.

Why would anybody pay more for a used vehicle than a new one. Makes no sense.

Used EV's basically don't qualify for the EV tax credit because of cost and age, therefore used cars can't compete price wise.

For what it's worth I have a friend who has a MYLR and a MXPlaid. He was out $30,000 three weeks after he took delivery. TIMING!!

 

[Msicario]

Timing and tax laws are the issue plain and simple.

I bought a 2023 MYLR in Nov. 2023. Base: $48,990 plus white paint $1,000 plus white interior $1,000 plus trailer hitch $1,000 minus referral bonus of $250 so the total price was $51,740 plus $1,390 destination fee. I also got the $7,500 tax credit so out the door (not including tax) was $45,630.

Why would anybody pay more for a used vehicle than a new one. Makes no sense.

Used EV's basically don't qualify for the EV tax credit because of cost and age, therefore used cars can't compete price wise.

For what it's worth I have a friend who has a MYLR and a MXPlaid. He was out $30,000 three weeks after he took delivery. TIMING!!

I’ve grown to live with the insane depreciation of what I thought was a prestigious name brand; The reality is that Musk only cares about money and will do whatever it takes to take everyone’s money.
There is absolutely no protection or guarantee value on any Tesla.
Any particular model can fluctuate in price at any given day.
So just enjoy the vehicle and ignore the devaluation process.
Consumer Tesla loyalty is up to individuals.

 

[ucmndd]

I’ve grown to live with the insane depreciation of what I thought was a prestigious name brand; The reality is that Musk only cares about money and will do whatever it takes to take everyone’s money.

If only the company gave us some sort of indication or warning that their entire objective from day one was to accelerate the world’s transition to sustainable energy…

 

[Marktm250]

Used EV's basically don't qualify for the EV tax credit because of cost and age, therefore used cars can't compete price wise.

There is a used EV tax credit of up to $4000. The hitch is that an individual must go through an on-line dealer, so the deal will qualify as a "dealer" sale. Also, there are (like the $7500) specific tax qualifications. It worked for me to sell my Nissan Leaf. It worked very well and adds a higher level of security also.

 

[passhard]

Elon is a scammer

He's not here to save the planet, he's here to become a Trillionaire!!!!

 

[petercc9]

Timing and tax laws are the issue plain and simple.

I bought a 2023 MYLR in Nov. 2023. Base: $48,990 plus white paint $1,000 plus white interior $1,000 plus trailer hitch $1,000 minus referral bonus of $250 so the total price was $51,740 plus $1,390 destination fee. I also got the $7,500 tax credit so out the door (not including tax) was $45,630.

Why would anybody pay more for a used vehicle than a new one. Makes no sense.

Used EV's basically don't qualify for the EV tax credit because of cost and age, therefore used cars can't compete price wise.

For what it's worth I have a friend who has a MYLR and a MXPlaid. He was out $30,000 three weeks after he took delivery. TIMING!!

Yeah this is the new car price reality...it's nowhere near $71K anymore. You can get a brand new one for almost his trade in value.

Design Your Model Y | Tesla

Design and order your Tesla Model Y, the car of the future.

www.tesla.com

 

[patmurphey]

Low 40 thousand value is right for used because you can by new inventory at about that price with Federal credit. You mentioned FSD - there is a window for transfer this month...

 

[petercc9]

Low 40 thousand value is right for used because you can by new inventory at about that price with Federal credit. You mentioned FSD - there is a window for transfer this month...

All of our cars will be worthless soon with these 400+ mile batteries that are about to be added

CATL's M3P battery expected to be installed in Tesla models, report says

CATL is still in the process of developing and validating the M3P battery with Tesla, and the exact timing of the installation is not yet clear, according to local media.

cnevpost.com

The M3P battery will primarily target the market with a range of more than 700 kilometers

Report confirms Tesla Model Y getting M3P battery with insane range & charging​

 

[Unclepaul]

Cheap shots against Elon are perhaps out of line here.
He has shown many times that he will put his financial accumulation aside for value goals.
He put his total PayPal gains on the line to make Tesla successful.
He paid way too much for Twitter to eliminate the free speech issues evident there.
He took the risk, and put his last dollar on the line to save both Tesla and Space X.
He worked for $1 year at Tesla and staked all his financial reward only if amazing and unprecidented goals would be attained.
He does not care as much about money as many of the people posting here do.
He begged Mercedes to take over Tesla when times were tough and begged Apple to purchase Tesla when their technical skills and financial deep pockets would insure better chances of success.
Show me one person that has done more...better.

 

[petercc9]

Cheap shots against Elon are perhaps out of line here.
He has shown many times that he will put his financial accumulation aside for value goals.
He put his total PayPal gains on the line to make Tesla successful.
He paid way too much for Twitter to eliminate the free speech issues evident there.
He took the risk, and put his last dollar on the line to save both Tesla and Space X.
He worked for $1 year at Tesla and staked all his financial reward only if amazing and unprecidented goals would be attained.
He does not care as much about money as many of the people posting here do.
He begged Mercedes to take over Tesla when times were tough and begged Apple to purchase Tesla when their technical skills and financial deep pockets would insure better chances of success.
Show me one person that has done more...better.

People are complaining that the price of new Teslas are going down instead of up.
People seem to be forgetting his stated goal was to make a car for the masses at $35K (not $70K ) to accelerate EVs going mainstream.

So far he seems to be heading in that downwards direction...while others certainly aren't.

 

[Tha_Ape]

Cars bottom out. Leasing is the safer option if you're worried about resale. It's a known loss. However, if you plan on keeping cars >5yrs, owning is the way to go.

The great thing about the Model Y is there are millions of them so parts will be readily available a decade from now. I can't say the same for some low production EVs

 

[mborkow]

If you bought your Model Y at the height of its pricing, as it appears you did, you will never recoup that money. The only way to get value out of that purchase is to keep the car and enjoy it for many years to come. I’ll give you a parallel example: I was granted a set of PayPal stock options that during the pandemic was was worth close to $150k. Currently they are valued at $27k. Pricing (for cars and certain stocks) from 1.5 to 3 years ago was an anomaly. Lots of ppl made lots of mistakes based on those prices. Mine was not selling that PayPal stock…I think you know what yours was. I’d also point out, your mistake was the lesser of these two mistakes. You can still enjoy the car you spent too much money on…I can’t derive any enjoyment out of that unsold stock.

 

[holmgang]

the really naive belief that a single person, or a single entity, determines the trade-in value of your car as if it's a discretionary choice.

the value of your car is determined by the entire used car market and its tens of millions of participants, which is influenced by the new car market and its tens of millions of participants. your car is worth as much as people are willing to pay for it, against the price at which they can buy a new version of it.

yes tesla has the ability to set the new car price, but its constrained by how much people are willing to pay for it. and they also have a business mandate to earn profit. just like the people who pay your salary have the same mandate. and like you yourself wanting to pay the absolute least amount of money you have to to get the product you want.

its each and every party's self-interest which makes a natural, functioning market. dont be childish about the thing.

 

[Msicario]

the really naive belief that a single person, or a single entity, determines the trade-in value of your car as if it's a discretionary choice.

the value of your car is determined by the entire used car market and its tens of millions of participants, which is influenced by the new car market and its tens of millions of participants. your car is worth as much as people are willing to pay for it, against the price at which they can buy a new version of it.

yes tesla has the ability to set the new car price, but its constrained by how much people are willing to pay for it. and they also have a business mandate to earn profit. just like the people who pay your salary have the same mandate. and like you yourself wanting to pay the absolute least amount of money you have to to get the product you want.

its each and every party's self-interest which makes a natural, functioning market. dont be childish about the thing.

Why prestige car brands like Porsche, BMW, Lexus, Lamborghini, Ferrari and the likes have protected their name brand value through out many years and have not dropped like the Tesla brand that’s now competing with Toyota Camry and Honda Accord?

Many Tesla owners paid $65-150K thinking they were up at the same level of the prestige brands I named; Only to see them drop half their value and more in a few years. Then up and down again.. Crazy!

Yes all vehicles will eventually drop in value, but not as crazy as Tesla.. they are playing a new dangerous game with consumers.

Don’t even want to mention the difference in quality build and control of those other prestigious name brands vs Tesla mediocre build and customer service..

Live and learn.

 

[patmurphey]

It is naive not to understand that Tesla's mission is to make EVs available to as many people as possible. It has always meant that cost of building and therefore retail prices would follow a downward curve. The 2022 price bubble was a result of extraordinary demand leading to year long waits for delivery. Anyone who paid the $69,000 price for a Y LR did it because they wanted the car and accepted the price as fair. The very messy implantation of the IRA resulted in an abrupt change in pricing, good for new customers, but understandably troubling for those who paid bubble prices. To put it all in perspective, the MSRP today for a Y LR, white/white is almost identical to what I paid in 2021, not drastically cheaper. My 3-year depreciation is reasonable considering that a new buyer gets the $7,500 Federal discount up front.

Remember Tesla's a retailer, prices need to go up and down with demand in addition to manufacturing cost. OEM prices vary most with their dealer network - you see things like $10,000 ADMs or 10% discounts with thousands in manufacturer incentives.

BTW, the issue of "luxury" includes the multiple features include in all Tesla's. My prior Audi Q5 had lots of bits and bobs trim features, but it would have cost me a great deal more to get features to match Tesla's. And, for example the $2,000 (extra) navigation stank. I like the open, airy, uncluttered environment of my Y, and I don't need a bunch of buttons to operate things that work so well automatically.

 

[holmgang]

Why prestige car brands like Porsche, BMW, Lexus, Lamborghini, Ferrari and the likes have protected their name brand value through out many years and have not dropped like the Tesla brand that’s now competing with Toyota Camry and Honda Accord?

Many Tesla owners paid $65-150K thinking they were up at the same level of the prestige brands I named; Only to see them drop half their value and more in a few years. Then up and down again.. Crazy!

Yes all vehicles will eventually drop in value, but not as crazy as Tesla.. they are playing a new dangerous game with consumers.

Don’t even want to mention the difference in quality build and control of those other prestigious name brands vs Tesla mediocre build and customer service..

Live and learn.

there is no world in which any sensible person would have thought the prestige and business model (not to mention ‘quality…’) of tesla is similar to ferrari or lamborghini. its not worth dignifying that argument with the millions of ways that that is wrong.

pricing is not a ‘game’ by tesla, and shouldnt be a game by you the consumer.

my decision to buy a tesla — or any other car — is whether this particular vehicle delivers more of what i want than other vehicles at this particular price.

 

[davelv]

A new car is a depreciating asset. The higher its MSRP price, the greater is the dollar lost upon resale. Assume minimum of 25% of real cost (ie minus $7500 ev credit) the second you buy it and then 10-15% more each year thereafter. Don’t buy new if you can’t afford this level of depreciation.

And then there is technology depreciation. A new battery design could make all existing ev values drop in half within weeks.

 

[drtimhill]

Many Tesla owners paid $65-150K thinking they were up at the same level of the prestige brands I named; Only to see them drop half their value and more in a few years. Then up and down again.. Crazy!

Hmmm those "luxury" brands you mention also have pretty bad depreciation. In fact, its cars like Toyota that retain their value, not Ferrari etc.