Model 3 as short term investment...

[11thIndian]

Hey everyone- I was having a Tesla conversation with my wife last night and a crazy thought occurred to me.

Stepping back for a second, my plan up to now has been to wait for the release of the Model Y- it's the style of vehicle I prefer generally, and with the kid, the dog, and the storage concerns- it seems like the right chose (short of an X, which I can't afford).

So here's my nutty idea. Should I be reserving a Model 3 as a way to make some money for my Model Y? So, here in Ontario we can get $14,000 off the price of the car. That's a big chunk of change. What I'm wondering is if I order a Model 3 and receive it sometime in 2019, might I be able to resell it to someone who didn't reserve, and would rather pay an extra 5 or 10 thousand dollars rather than wait the 6 months or a year to get a new one right from Tesla.

People made loads of money doing this with Condos in Toronto, buying when the project were announced and then selling at a profit to buyers who wanted something they could move into immediately.

Am I crazy in considering this as an investment towards my Model Y purchase? Does this make me an unethical scumbag? Would there still be that kind of demand for Model 3's by early 2019?

In a best/worst case scenario, I can always get my reservation refunded if the Model Y is launched earlier than we thought, or if the resale market is soft.

Thx.

 

[phigment]

Hey everyone- I was having a Tesla conversation with my wife last night and a crazy thought occurred to me.

Stepping back for a second, my plan up to now has been to wait for the release of the Model Y- it's the style of vehicle I prefer generally, and with the kid, the dog, and the storage concerns- it seems like the right chose (short of an X, which I can't afford).

So here's my nutty idea. Should I be reserving a Model 3 as a way to make some money for my Model Y? So, here in Ontario we can get $14,000 off the price of the car. That's a big chunk of change. What I'm wondering is if I order a Model 3 and receive it sometime in 2019, might I be able to resell it to someone who didn't reserve, and would rather pay an extra 5 or 10 thousand dollars rather than wait the 6 months or a year to get a new one right from Tesla.

People made loads of money doing this with Condos in Toronto, buying when the project were announced and then selling at a profit to buyers who wanted something they could move into immediately.

Am I crazy in considering this as an investment towards my Model Y purchase? Does this make me an unethical scumbag? Would there still be that kind of demand for Model 3's by early 2019?

In a best/worst case scenario, I can always get my reservation refunded if the Model Y is launched earlier than we thought, or if the resale market is soft.

Thx.

When you buy the car you'll also have to pay HST. Will there be many people willing to give up their $14k discount, plus pay their HST, plus your HST, plus your mark up?

 

[SmartElectric]

Sigh. It's on the main page of the program:

Electric vehicles incentive program

If you own the vehicle, you must keep it for 12 months from the date it is registered and plated; if you do not, you must return the incentive in full. If you lease your vehicle, you must maintain the lease for the term specified in the lease agreement and in no case can you lease the vehicle for less than 12 months.

 

[strider]

If you're not a current owner and you reserve now, by the time your car is built Tesla will have hit production targets such that someone walking off the street will only have to wait a few weeks for a car. IMO it would be an incredibly risky investment.

 

[11thIndian]

Thanks for the input guys. I had been well considering that I was too late to the party for this to be worthwhile, with the production ramp and the need to hold onto the car for 12 months.

 

[11thIndian]

When you buy the car you'll also have to pay HST. Will there be many people willing to give up their $14k discount, plus pay their HST, plus your HST, plus your mark up?

Well, good news is as a sole proprietor I would get to write off a good chunk of the HST.

I've been debating on putting a reservation down on a M3 since before the launch, and have been flip flopping ever since... but I knew ultimately that the Model Y was the better option for me. I just wish it wasn't so far out. If I did get a M3, I'd be happy to hold onto it for a year, but by then (2020) strider is right that the delay window may have shrunken quite a bit.

 

[hingisfan]

I'm definitely considering selling mine after a year, the price would be very attractive to a non Ontario/Quebec resident, or even someone from the USA. The Y is my preferred vehicle as well, but I won't be too upset if a sale doesn't pan out and I'm "stuck" driving a 3.

 

[11thIndian]

I'm definitely considering selling mine after a year, the price would be very attractive to a non Ontario/Quebec resident, or even someone from the USA. The Y is my preferred vehicle as well, but I won't be too upset if a sale doesn't pan out and I'm "stuck" driving a 3.

I hate being this big a fan of the company and potentially not owning one of their cars for another 3 years. I love my wife- she asked why we needed the Model Y, since her VW Golf could do the heavy lifting after we got rid of the Forester... I don't think it can do everything the proper SUV can- but then again we haven't seen the Model Y yet, so we don't know what it's limitations will be.

Hmmm...

 

[RAM_Eh]

I hate being this big a fan of the company and potentially not owning one of their cars for another 3 years. I love my wife- she asked why we needed the Model Y, since her VW Golf could do the heavy lifting after we got rid of the Forester... I don't think it can do everything the proper SUV can- but then again we haven't seen the Model Y yet, so we don't know what it's limitations will be.

Hmmm...

If you are not a current owner, you would be put at the bottom of the list in terms of receiving it. Not sure there is much in the way of a money making flip left at that point.

 

[11thIndian]

If you are not a current owner, you would be put at the bottom of the list in terms of receiving it. Not sure there is much in the way of a money making flip left at that point.

You could be right- I guess it depends on how strong the reservations are after this point. If I order now, and then after the final reveal and after the cars start to hit the road, there's a flood of new orders- then the supply could outstrip demand for quite a while. Knowing I'd have to hold onto the car for 12 months to get the 14K rebate- it would mean there'd need to still be a long wait list into well into 2020.

Now, I as much as anyone hopes that's not the case, cause the faster they can ramp up production on Model 3, the sooner they'll likely to release the Model Y. Which is the vehicle I really want anyway.

 

[sitter_k]

If you are not a current owner, you would be put at the bottom of the list in terms of receiving it. Not sure there is much in the way of a money making flip left at that point.

I don't even know how much margin there would be as an owner. You're essentially asking someone to spend 14k more than directly from Tesla.

I guess if you're from a lesser rebate State or province and the exchange rate vs. Tesla pricing is attractive, lots of ifs.

 

[11thIndian]

To be clear, I didn't think I'd ever be able to make back the full 14K in profit- depending on the market, I was thinking optimally $5,000.

The other possibility to consider is that at a certain point the 14K rebate gets reduced or eliminated, which would make the resale potentially more attractive.