I am mad with Tesla trade in

[Indpowr]

Ah, got it. I would like to go though them as it will help with Tax dollars.

 

[RRM998]

I also suggest going to Carmax. If they offer a better deal, take it. If not, you know that Tesla's offer was fair (as defined by the current market value for your vehicle).

My DS said they would honor a Carmax offer at Tesla.

As someone mentioned, depending on your state, trading into Tesla may reduce your sale tax so be sure to factor that in.

 

[dark]

I just got back from Carmax, OMG, their offer is 11k less than what Tesla originally quoted me in October. Tesla just got back to me after I screamed at them, they adjusted their offer and now is 2200 less than the original offer. I can tolerate that.

This is so out of my expectation, Tesla's resell value is horrible when your car's hardware is out of date. I don't know if it is too late, but I am considering to lease my X instead of purchase, since I heard they will change the battery next year?

I was planning to keep my S for at least 8 years when I purchased it 2 years ago, but I never thought the tech could change so much in less than 2 years. Now I am concern with the X, in 2 years (2019), my X would easily lose 60% value. Maybe, leasing it would be a better option.

 

[Vitold]

S

I just got back from Carmax, OMG, their offer is 11k less than what Tesla originally quoted me in October. Tesla just got back to me after I screamed at them, they adjusted their offer and now is 2200 less than the original offer. I can tolerate that.

This is so out of my expectation, Tesla's resell value is horrible when your car's hardware is out of date. I don't know if it is too late, but I am considering to lease my X instead of purchase, since I heard they will change the battery next year?

I was planning to keep my S for at least 8 years when I purchased it 2 years ago, but I never thought the tech could change so much in less than 2 years. Now I am concern with the X, in 2 years (2019), my X would easily lose 60% value. Maybe, leasing it would be a better option.

So, in the end, what was your depreciation?

 

[dark]

using my trade in value, divided by my MSRP before tax and before rebates = 48%. 2 yr 3 months of ownership with 48k miles.

Just for comparison, my X MSRP is 95,750, say after 3 years of ownership with 45k miles, using the same 48% residual, my X resell value would be 45,960. my lost would be 95750-45960-10,000 rebate = 39,790

Compare to a lease program with the same option, 6975 down, 1280/mo for 36 months, 15k miles/yr. after 3 year, I would have paid 53,055-2500 rebate = 50,555.

Leasing it I would lose over 10k more assuming I would be selling it after 3 years. probably purchasing it would be a right choice for me, since I don't plan on selling this one.

 

[Indpowr]

Please tell us more about a new battery next year? if so that will really hurt the values of used Ms

 

[Indpowr]

If your buying a car every 2 to 3 years and don't want to lose your pants get a the newest cpo you can buy. true for any car

 

[bonaire]

Please tell us more about a new battery next year? if so that will really hurt the values of used Ms

The supposition is that the GF will produce 2170 cell sizes (21mmx70mm) - and those cells will be arranged in the battery pack in a new manner either allowing for more capacity (ie. 110 kWh) or lighter weight in the current capacities. Since it doesn't apply to the driving conditions (unless it allows even MORE acceleration) it shouldn't be a huge factor. New cells from a new factory using new production processes should be good in the long run and warranty should stand to replace any newer-production issues should they arise. If batteries operate the same, the novelty of owning a car with "GF batteries" over "Panasonic Japan-sourced" batteries could be of interest. GF batteries supposedly help reduce the import taxation going into Canada due to higher levels of N. American parts content. GF cells make Teslas far more than the (roughly) 50% N. American parts content as they are now. The Monroney sticker should indicate the current N. American parts content percentage.

 

[ecarfan]

Please tell us more about a new battery next year? if so that will really hurt the values of used Ms

@bonaire has explained the new battery type that will be produced in the Gigafactory. I just want to point out that Tesla is constantly improving their cars and that in part contributes to their older cars losing value. However, the primary driver of depreciation is no different from other any other car: age and mileage. All new cars depreciate dramatically in the first few years. Teslas are no different.

 

[bonaire]

Definitely. There is panache with having the latest while still, a P90D from January 2016 is just as much fun for the most part as one built Dec 2016, it won't have new fascia (looks and slight airflow improvement), AP2.0 (novelty? Requirement? No matter, older one won't have it.). But does it really cause a true $30-40k depreciation as they sold those older ones off for during Q3? A guy I know has a Vin # 23xxx RWD 85 and enjoys his but realistically has a trade in value now $40k or lower. As someone once told me...."The value of a service or product decreases immediately, sometimes exponentially, after the sale." Because the purchaser has a lot of psychological expectations for that good or service before it happens. A highly touted architectural drawing can bring more money to build that thing than the building has once it is operational. And eventually, entropy sets in. Many beautiful office buildings in decling cities, such as Houston, rust belt and certainly Detroit show that eventuality.

The price of cars includes current hypothetical expectations for future use. This is why stocks go crazy in price (fuel cell stocks in 2000 for instance) and why weddings cost so much. And I think we can agree that Tesla plays off this with constant tactically-timed improvements, upgrades and even slight but attractive acceleration increases. This causes churn and trade ins so people want the latest improved models. It also is a reason as to why Tesla would remove the minimum resale value promise this last July. Model 3 will offer a lot of value and may slightly impact resale values of Model S even more. So many of those original era -2012 EVs initially built by GM, Nissan and even Tesla have slacking resale values now. A really well maintained Volt from 2011-2012 has a trade in value about $8k even though they drive like new and let the used car buyer get all the same benefits of driving mostly electrically as someone buying a new one in the mid $35k range.

The motto from 2010 still stands today. "You don't buy an EV to save money..." But today, i think we need to change it to "You don't buy a New EV to save money...". Buying CPO or used private sale may be one where a driver can see some benefits. One reason why Quebec used car dealers were importing a lot of Used USA Volts and Leafs for resale where electricity is cheap and fuel is more costly than the USA.

 

[ChadFeldheimer]

Just for comparison, my X MSRP is 95,750, say after 3 years of ownership with 45k miles, using the same 48% residual, my X resell value would be 45,960. my lost would be 95750-45960-10,000 rebate = 39,790

Compare to a lease program with the same option, 6975 down, 1280/mo for 36 months, 15k miles/yr. after 3 year, I would have paid 53,055-2500 rebate = 50,555.

Leasing it I would lose over 10k more assuming I would be selling it after 3 years. probably purchasing it would be a right choice for me, since I don't plan on selling this one.

Does the lease include sales tax? If so, sales tax should also be accounted for on the purchase option. This helps close the gap somewhat.

However, if you don't plan on selling the car in 3 years, you should plan on purchasing and not leasing. With the lease, you'll give up the $7500 federal tax credit if you end up purchasing the car.

 

[PedanticOne]

Does the lease include sales tax? If so, sales tax should also be accounted for on the purchase option. This helps close the gap somewhat.

However, if you don't plan on selling the car in 3 years, you should plan on purchasing and not leasing. With the lease, you'll give up the $7500 federal tax credit if you end up purchasing the car.

That is not completely true. While you can't take the deduction yourself (the leasing company would), the residual is adjusted for the tax credit. This does mean you need to stay in your lease for the full term in order to reap the benefits of your $7500.

 

[FlatSix911]

I was told that they will deduct 25 cents per mile, and they told me thats all I have to worry about. I asked them if they are sure so many times that I feel that I was annoying.

I put over 2500 miles and it should be 625 less to be exact. They told me there is a significant depreciation on my car since October. So they took off 4k. I am so mad right now, I dont even want my X anymore.

I thought Tesla quoted $1/mile for CPO cars .... not $0.25?

 

[carter_seattle]

While you can't take the deduction yourself (the leasing company would), the residual is adjusted for the tax credit. This does mean you need to stay in your lease for the full term in order to reap the benefits of your $7500.

This is incorrect and the main reason Tesla leases aren't a good value. The $7500 is used to lower the lease payments, but it gets added back on if you choose to purchase the car at the end of the lease. There are numerous threads that break this down in more detail.

 

[PedanticOne]

This is incorrect and the main reason Tesla leases aren't a good value. The $7500 is used to lower the lease payments, but it gets added back on if you choose to purchase the car at the end of the lease. There are numerous threads that break this down in more detail.

So how does that change what I said? If you end your lease at term, you still reap the benefits. Especially if, as I keep hearing, that things like AMT might effectively nullify your tax credit.

EDIT: My assumption being that most would abandon the car after lease term expires. You are right that if you purchase at that point, you will undo your savings and gain nothing.

 

[ggnykk]

I am so mad right now, I dont know where else I can vent this out besides here. In October, Tesla gave me a trade in value for my S, I thought it was do able, so I ordered my X.

This week, my X is in production and they said they need to reappraise thr car. I was like ok, since I was told they will only deduct 25 cent per extra mile I drove. Now, they low ball me and knock off 4k from the value they gave me in October.

WTF man, anyone have this issue with your trade in? I ask to cancel my X and they said no. They should have told me up front.

I heard that Tesla also match CarMax offer for trade-in. Try getting an appraisal from CarMax and then show the offer to Tesla, so they can match it.

 

[Indpowr]

Just came down from Tesla today stating that now 0 car after 12/31 will be grandfathered in even CPOs for unlimited SC. This sucks as we were buying in Jan. Now, if we choose a car now 1000 down and have 4 days to get a carmax quote and dont even know if they will come close to that quote when we trade it in in 3/4 weeks (time it takes to get a CPO ready) plus having to choose a car NOW. UGH.

Now, what if I go this route now and then they change the "grandfathered" in again on us taking away the unlimited. Which looks like may cost me a few 1000 up front jumping on a car now vs. late Jan. 17

 

[Canuck]

Just came down from Tesla today stating that now 0 car after 12/31 will be grandfathered in even CPOs for unlimited SC.

Interesting. If it applies to CPOs, it must also apply to private sales. That's exactly what I said I thought would happen but a lot of people here took issue with my prediction.

So "free" supercharging will only apply for as long as we own our current vehicles. That means our vehicles will take an even more depreciation hit since free supercharging would have been a real plus to a purchaser. Not that it really matters to me. If my investments depreciate I get down but my vehicle is not an investment. I fully expected my new vehicle to depreciate, and significantly, right from the time I drove it away from the service center.

I'm glad we now have idle fees, no more free supercharging for new vehicles, and even more superchargers being built every day. It's going to make long distance travel so much better and sustainable for Tesla owners since we won't be met with crowded superchargers.

 

[mmd]

Interesting. If it applies to CPOs, it must also apply to private sales. That's exactly what I said I thought would happen but a lot of people here took issue with my prediction.

So "free" supercharging will only apply for as long as we own our current vehicles. That means our vehicles will take an even more depreciation hit since free supercharging would have been a real plus to a purchaser. Not that it really matters to me. If my investments depreciate I get down but my vehicle is not an investment. I fully expected my new vehicle to depreciate, and significantly, right from the time I drove it away from the service center.

I'm glad we now have idle fees, no more free supercharging for new vehicles, and even more superchargers being built every day. It's going to make long distance travel so much better and sustainable for Tesla owners since we won't be met with crowded superchargers.

If this is true, it seems quite deceptive on Tesla's part. Did they mention this when they sold so many cars with free super charging and charged some others $2000 extra for lifetime (of the car) supercharger access?
This feels like Tesla is changing the rules of the game when is it no longer favorable for Tesla.

 

[Canuck]

Please provide me with a citation for this:

for lifetime (of the car) supercharger access?

Everywhere I have read Tesla specifically says "your" and not "the".

Also, none of my paperwork says that "free" supercharging passes to a new owner upon sale.