If you do not mind, Please post your trade in offer from Tesla so we can compare note

[djdotcom]

2014 S85 delivered Sept 19
985 miles
Original price paid (net of tax credit) - $86,470
Tesla trade-in offer - $83,600

Only reason I am considering this is because I have yet to register in VA and pay state sales tax. VA is a state where you pay the sales tax regardless of any trade-in applied so hypothetically I could "trade up" to an 85D with the exact same options for ~$7000 ($2870 depreciation + $4000 for AWD).

To follow-up on a couple of points:

My DS gave me a call this morning that my original quote was wrong but they would still honor the $83600. He also said Tesla could not buy back w/o the car being registered which means I have to pay the sales tax before trading in. As others have said...it was too good to be true but good for Tesla for honoring the mistake price.

There is still a bunch of employee education that needs to happen because the DC sales staff had given me a ton of bad info...

 

[Seesaw]

To follow-up on a couple of points:

My DS gave me a call this morning that my original quote was wrong but they would still honor the $83600. He also said Tesla could not buy back w/o the car being registered which means I have to pay the sales tax before trading in. As others have said...it was too good to be true but good for Tesla for honoring the mistake price.

There is still a bunch of employee education that needs to happen because the DC sales staff had given me a ton of bad info...

Not knowing the sales tax penalty, I would still take the trade offer. You would probably make most of the changeover back in higher resale if you decide to sell or trade the D down the track compared to the 2wd.

 

[Tedkidd]

To follow-up on a couple of points:

My DS gave me a call this morning that my original quote was wrong but they would still honor the $83600. He also said Tesla could not buy back w/o the car being registered which means I have to pay the sales tax before trading in. As others have said...it was too good to be true but good for Tesla for honoring the mistake price.

There is still a bunch of employee education that needs to happen because the DC sales staff had given me a ton of bad info...

I'm confused, how is there a sales tax penalty on anything but the depreciation? Do you have to pay full sales tax on both cars?

In NY when you trade in you only pay sales tax on the incremental cost.

- - - Updated - - -

P85+ (Pearl White / Tan / Obeche Gloss)Every option except Paint armor
3 weeks old 650 Miles

Sticker $132,170
Other Taxes ~$3,500
Tax Rebate $13,500
Net Paid $118,670

Tesla Trade in offer $105,000
Net walk away cost $13,670
Net walk away cost including Taxes at time of purchase $17,170

...Less 2nd tax rebate, $3670?

 

[breser]

I'm confused, how is there a sales tax penalty on anything but the depreciation? Do you have to pay full sales tax on both cars?

In NY when you trade in you only pay sales tax on the incremental cost.

Virginia requires sales tax on the full purchase price of the vehicle not just the incremental cost.

 

[Brick Pilot]

My car is a P85+, black on gray interior. $115K new on 9/12013. Tesla offered me $76,800 trade in and said it was firm because the 2nd buyer doesn't get the $7500; federal tax credit and WA sales tax waiver. I'm not in agreement with that logic, and I declined their "generous offer". I'm sticking with my rocket for a few more years.

 

[Chuck P85D]

February 2013 P85
Sticker $100,250
after tax $92,750
19,000 miles, excellent condition
Tesla offer: $64,500

Um.... i will be selling privately.

 

[PlanB]

Looks like Tesla's "CPO" program is off to a gloomy start.

 

[Tedkidd]

Looks like Tesla's "CPO" program is off to a gloomy start.

Maybe P+'s are unnaturally depressed due to glut.

Many with the resources for that car are totally pumped for the D and aren't bothered by the the loss of a few pennies. Not seeing so many S' being broomed.

Can't blame them, life is short.

 

[Bighorn]

I appears that Tesla is low-balling trades and wholesaling the cars to dealers who mark them up around $20K--not sure how much Tesla is charging as an intermediary. No real proof that the retail market has softened.

 

[3lectronica]

Maybe P+'s are unnaturally depressed due to glut.

Many with the resources for that car are totally pumped for the D and aren't bothered by the the loss of a few pennies. Not seeing so many S' being broomed.

Can't blame them, life is short.

According to sales reps, the resale guarantee is based on 50% of the base price and 43% of the options.

That means folks with a P85s and 85s will see a bigger drop in value, and S60s will see less of a drop in value according to this formula.

 

[breser]

According to sales reps, the resale guarantee is based on 50% of the base price and 43% of the options.

That means folks with a P85s and 85s will see a bigger drop in value, and S60s will see less of a drop in value according to this formula.

We're not talking about the resale guarantee. Nobody has even had their Tesla long enough to be eligible for that since it kicks in at 3 years. Based on the quotes people are getting they most certainly are not getting quotes based on that formula since they are far too high for that.

 

[lolachampcar]

It does look like cars that are in the 18 to 24 month old range are seeing roughly $1/mile in depreciation for the 60s and significantly higher than that for the optioned up 85s. In a way, it confirms the often quoted idea that options are a super high margin portion of the sale. Obviously, Tesla does not value those options as highly when they are "purchasing" them. It all makes sense.

 

[yobigd20]

If you do not mind, Please post your trade in offer from Tesla so we can comp...

it confirms the often quoted idea that options are a super high margin portion of the sale. Obviously, Tesla does not value those options as highly when they are "purchasing" them. It all makes sense.

Uhmmm like $1000 for premium $0.99 interior lights...like dohhhhhhh

 

[yobigd20]

If you do not mind, Please post your trade in offer from Tesla so we can comp...

I don't know why anyone would "trade in" their car to tesla because that's basically just throwing away $10k-$20k vs privately selling. I would think most of us Tesla buyers here are smarter than that and know the value of money and wouldn't just throw it away like that. Their price estimates are low balled as I would expect from any typical dealer that's just going to detail and flip it and make a solid $10-$20k at least. And for people that think they are going to get a good price buying used CPO they've got no idea. Just look at their previous roadster CPOs. Some used ones were practically the same price as they were bought brand new.

 

[Pollux]

@Pilot4Hire +10

Completely agree with you.

You pay what's on the sticker.

Until Tesla starts reducing the sticker price, I don't see why anyone pretends that the price is lower. It's not like you're paying sales or excise tax on a smaller amount. It's not like your insurance is priced any lower. Tax incentives even vary state to state. Is a buyer supposed to value a Kentucky ($7K credit? $14K?) P85+ at a lower amount than an April 2013 Massachusetts (no state tax credit then) P85+?

It's foolish to pretend that the car costs less than it does. And, worse, to act as if that tax credit should be passed *in full* along to the next owner. The first owner took the risk of buying the car at full price. The second owner is getting quite a bit better bargain.

I don't understand why we even mention the Fed Tax Credit.
I have purchased 2014 85, blue, gray 21", sunroof, tan leather, Air, Stereo, tray, Tech, anyway, sticker $100,700.00 It has less then 9K miles, like new, they offered $72K in trade for a smilier "D", it's in the shop getting tinted windows, bra, about $1.500 with Tesla mats etc, $90K I would deliver (drive to where ever)

 

[breser]

It's foolish to pretend that the car costs less than it does. And, worse, to act as if that tax credit should be passed *in full* along to the next owner. The first owner took the risk of buying the car at full price. The second owner is getting quite a bit better bargain.

I don't see how you can say that. If you take a low mileage and very new vehicle and use the $1/mile + $1000/month formula you will quite easily end up with only a few thousand under original price paid. In my state there is no sales tax on the new vehicle, but a used buyer will have to pay sales tax. That means vehicles being turned around for quick sale either have to be transported out of state or sell for quite a bit less. A vehicle has to roughly be $15k under new price to even start to make sense for a buyer compared to buying new. The only offset to that is that you can have the vehicle immediately. But again, if you want a Model S immediately and are flexible on color/options you can just go to Tesla and get an inventory car and get both of those benefits. Things will change if the incentives start to expire. But if your intention is to swap up to a newer Tesla, the incentives expiring don't really help you much.

Older vehicles that have considerable depreciation on them already and that are already under those thresholds can probably start ignoring the incentives.

 

[lolachampcar]

The the argument is-

How much is new so I can figure out if used makes any sense?

One side says new is sticker.

The other says it is sticker minus the rebate.

Well, it is simple. The actual sale price on the secondary market will answer this question. Arguing with a potential seller about if they choose to include or exclude any one incentive just does not seem to make any sense. Take a look at what sellers are succeeding in doing and you will have your answer.

 

[Drymr]

Tesla's Extremely Disappointing Model S Resale Offer

Hi all,

I'm not sure what I hope to get out of this post but I need to vent. I was thinking about selling my Model S and upgrading to the D but to my great disappointment, Tesla only offered $75,000 for my fully-loaded 15 month old Model S I paid $130,000 (CDN) for. That's a 34% per year depreciation rate, which is pretty offensive considering it has the highest safety and customer satisfaction ratings ever, not to mention the performance, and considering Elon Musk guaranteed a 50% value after 3 years which means my car should be worth about $104,000 (CDN) now. Cars.com puts the value at around that as well. Anyway (deep breath), I was wondering if anyone else had a similar experience. Does anyone have any suggestions on other methods to sell my car?

 

[breser]

Well, it is simple. The actual sale price on the secondary market will answer this question. Arguing with a potential seller about if they choose to include or exclude any one incentive just does not seem to make any sense. Take a look at what sellers are succeeding in doing and you will have your answer.

Anyone that buys a used Tesla for more than they would have paid for a new vehicle (after accounting for taxes and incentives) is a chump. I have no doubt that there are some small group of ignorant people out there that are making this mistake.

 

[mitch672]

Anyone that buys a used Tesla for more than they would have paid for a new vehicle (after accounting for taxes and incentives) is a chump. I have no doubt that there are some small group of ignorant people out there that are making this mistake.

not exactly. not everyone fully qualifies for the $7,500 tax credit. how about retired people on a fixed income, with retirement savings?
they can afford a new or used Model S paying cash, but they don't qualify for the $7,500 federal tax credit, since they don't pay that much federal tax.
There are many different situations, though I agree in general, most will not be willing to spend anywhere near what they can buy a new Model S for.