Model 3 Delivery - Trading Current Car In

[BOBEDIGITL]

I've tried searching for an answer everywhere but haven't been able to find anything. Has anyone gone with the option of trading in their current vehicle during the model 3 ordering process? Or does anyone know what the process entails? Thanks in advance!

 

[shokunin]

When you configure you can indicate if you're doing a trade-in. They will send you a link to fill out a questionnaire on the car (VIN, mileage, has it been in an accident etc.) and then they want you to upload a ton of pictures, Front, Back, Left/Right, VIN Plate, odometer, Front Dashboard, Front Seats, Tire tread remaining (insert a penny into the tread). Based on that they give you a trade in value offer.

I ended up not doing the trade and sold it elsewhere.

 

[PoitNarf]

I’ll be trading in my current car as well so I’m very interested to hear from someone that has gone through the whole process. I’m assuming if you’re not happy with their proposed trade in value you’re still free to explore other options or sell it on your own? It would be interesting if those who did do a trade in documented on the forum what car model they traded in, how many miles, amount offered for the trade in and how far off that amount was from the KBB trade in value.

 

[Zaphod]

Go in with minimal expectations on the trade-in value. Tesla isn’t and doesn’t want to be in the used car (non-Tesla) business. Think of it more as a convenience that they offer the option. You will most likely get a low offer as they will just dump the car to wholesalers.

Can’t hurt to see what they offer, but almost guarantee you will not find it acceptable. Far better off private party sale or selling to Carmax or auto dealers like that.

 

[Mika]

I had originally planned to trade in my 2013 Model S, and late last year had sent in an inquiry to have it appraised. The offer was comically bad, so I began looking into other convenient options. I ended up selling it to vroom.com just this past week, who gave a pretty reasonable offer ($5500 more than Tesla had offered, on the higher end of KBB estimates) and it was pretty painless. In short, if you want easy cash from your current car, look at vroom or carmax. Tesla doesn't want your car, even if its an older Tesla.

 

[shokunin]

If you're trading in a Tesla, then expect a very low offer. I suspect if they CPO your car, they have to put substantial $$ plus offer a CPO warranty, probably new tires, etc that eat into their trade offer.

Carmax gave me nearly 40% more on my trade than Tesla offered.

 

[BOBEDIGITL]

Thanks everyone for the help! My first option was going to Car Max and trying to see what sort of offer I would get there. I did not know what the whole process is with Tesla but from what I understand, whatever they appraise your car for, they knock it off the price. I figured I would pay lower taxes. I'm trading in a Honda Accord EX-L with 66k miles on it. I figured they would low ball me but my whole thing is trying to make things as easy as possible for myself in regards to a private sale. Appreciate everyone's advice!

 

[DR61]

I figured I would pay lower taxes.

You will pay sales tax on the whole price of the car in California, regardless of how you pay Tesla (cash or trade+cash).

 

[Daniellane]

You will pay sales tax on the whole price of the car in California, regardless of how you pay Tesla (cash or trade+cash).

A great perk in Washington state is that sales tax is net of trade-in.

 

[Need]

Thanks everyone for the help! My first option was going to Car Max and trying to see what sort of offer I would get there. I did not know what the whole process is with Tesla but from what I understand, whatever they appraise your car for, they knock it off the price. I figured I would pay lower taxes. I'm trading in a Honda Accord EX-L with 66k miles on it. I figured they would low ball me but my whole thing is trying to make things as easy as possible for myself in regards to a private sale. Appreciate everyone's advice!

Tesla only asked for photos, VIN, odometer. Car Max actually looks under your hood, and test drive it. With our trade in, the KBB trade in price was $4100 to $6300 on a "Very Good" car. We got $5100 from Tesla, which I think it was really good. Our car looks good, but our mechanic told us the "transfer case" will need to be replace very very soon and it would have been over $3000. And then he said after that something else (I think transmission) will break (based on his experience) and it will be another $3000 to replace. It was a 2008 BMW X5 with 160K miles BTW.

I may have sold it privately for $6000 or even $7000, but I would feel bad knowing that the person who bought it would have to pay $6000+ in under a year to fix it.

 

[forcey]

A great perk in Washington state is that sales tax is net of trade-in.

The Model 3 is eligible for sales tax exemption, so don't count on the tax savings of trade-in

 

[Daniellane]

The Model 3 is eligible for sales tax exemption, so don't count on the tax savings of trade-in

Exemption is only for the first 32,000.

 

[BOBEDIGITL]

You will pay sales tax on the whole price of the car in California, regardless of how you pay Tesla (cash or trade+cash).

I thought the taxes was from the discounted price. Good to know!

Tesla only asked for photos, VIN, odometer. Car Max actually looks under your hood, and test drive it. With our trade in, the KBB trade in price was $4100 to $6300 on a "Very Good" car. We got $5100 from Tesla, which I think it was really good. Our car looks good, but our mechanic told us the "transfer case" will need to be replace very very soon and it would have been over $3000. And then he said after that something else (I think transmission) will break (based on his experience) and it will be another $3000 to replace. It was a 2008 BMW X5 with 160K miles BTW.

I may have sold it privately for $6000 or even $7000, but I would feel bad knowing that the person who bought it would have to pay $6000+ in under a year to fix it.

I might just end up doing both and see which one gives me the best deal.

 

[Daniellane]

I thought the taxes was from the discounted price. Good to know!

I might just end up doing both and see which one gives me the best deal.

Trade in is not a discount. It’s more like a cash payment. In CA getting an inflated tradin price on an inflated above market price on the purchased vehicle resulting in a lower net price would yield a higher sales tax.

 

[CAF]

At least in the past (May of 2017 for me), Tesla would match a bonafide CarMax quote. So get Tesla's offer before your delivery day, then when you get close (Carmax's offer is only good for limited time--a week or two, as I recall) get a Carmax offer.

Email your Tesla owner advisor and see if they'll match the Carmax quote, if higher. It's more convenient to just get rid of your old car to Tesla when you pick up your new car, plus as others have pointed out you may save on sales tax in some states.

If you have a decent car and want to get maximum dollar you're always better off selling it yourself, but that's inconvenient and you have to deal with picky and sometimes sketchy yahoos coming to your door. You could also try a premium used car lot; they'll often offer a commission sort of deal to sell your car and that eliminates having strangers come to your door.

 

[smak]

How long did it take Tesla to get back with their offer?

 

[preilly44]

Tesla offered me $2,250 more than CarMax did for my trade-in. I was pretty happy with it even though I decided not to trade in my car (for other reasons). Tesla offered $15,250.

 

[gregincal]

So I have a question for those who have gone through this. I’ve decided not to take the Tesla offer. On my Model 3 page there is only one button that says “Confirm trade-in”. If I press the button do I get a chance to confirm I don’t want the trade-in, or do I leave it alone and speak to my delivery advisor?

 

[cpa]

Our trade in is a 2005 Acura RL with 73,000 miles. No accidents. There are a few small scratches along the side of the car and a small dent that can easily be popped out. Kelley Blue Book said wholesale was $3,800-$4,800 and private party was about $5,000-$6,000.

Tesla offered us $4,400 for the trade-in, pretty much smack-dab in the middle of the wholesale price. We took their offer. Neither my wife nor I wanted to list the car for resale, haggle with prospective buyers, go down to AAA to transfer title, get the cash checked by a bank for counterfeit, etc. etc. for maybe another $750.

And we all know that the sales price goes down the longer it takes to sell the car.

 

[gregincal]

Our trade in is a 2005 Acura RL with 73,000 miles. No accidents. There are a few small scratches along the side of the car and a small dent that can easily be popped out. Kelley Blue Book said wholesale was $3,800-$4,800 and private party was about $5,000-$6,000.

Tesla offered us $4,400 for the trade-in, pretty much smack-dab in the middle of the wholesale price. We took their offer. Neither my wife nor I wanted to list the car for resale, haggle with prospective buyers, go down to AAA to transfer title, get the cash checked by a bank for counterfeit, etc. etc. for maybe another $750.

And we all know that the sales price goes down the longer it takes to sell the car.

Sure, at that price I wouldn't bother either. When you are talking about a Model S that Tesla sells for 50K, private parties advertise for 45K and Tesla offers 31K as a trade-in it's another matter.