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Model 3 For Sale (Phoenix)

People should really stop buying Model 3s with the intent of selling them. Take a look at this forum - the market is saturated with people trying to sell Model 3s for a quick profit. No offense intended here. In the 10 or so most recent posts, probably half of them are people selling brand new model 3s.
Production capacity increasing will solve this.
 

DrMike

Member
Sep 1, 2017
213
155
Dover, NH
Making a quick $7500 tax deduction. Supply and demand is a wonderful thing :). Why should people stop trying to sell their model 3? It's their choice just like every other car up for sale here. OP GLWS
I think I didn't word my point very clearly. My intent wasn't to say that they shouldn't be allowed to do it - but rather that they should stop doing it with the expectation of making a quick profit, because the market seems to be saturated with people trying to do this. In other words - I doubt they will be successful.

So if a person is only buying a Model 3 with the intent of flipping it for a quick profit - it may not be a wise investment at this point. Between this forum, the facebook group, and ebay, I've seen a whole lot of Model 3s up for sale - and it doesn't seem like many of them are selling.
 

Bafflerock

Member
Jan 30, 2018
111
136
Atlanta
I think I didn't word my point very clearly. My intent wasn't to say that they shouldn't be allowed to do it - but rather that they should stop doing it with the expectation of making a quick profit, because the market seems to be saturated with people trying to do this. In other words - I doubt they will be successful.

So if a person is only buying a Model 3 with the intent of flipping it for a quick profit - it may not be a wise investment at this point. Between this forum, the facebook group, and ebay, I've seen a whole lot of Model 3s up for sale - and it doesn't seem like many of them are selling.

If sold listings on Ebay is any indication (in addition to people willing to share their sale prices) this is not true. I expect this deal will go away soon but that's not happening right now.
 

DrMike

Member
Sep 1, 2017
213
155
Dover, NH
I was curious, so I checked ebay. There are currently 10 Model 3s for sale. In the past 3 weeks, 8 have sold, most for between $50-55k (most of the others have been "best offer accepted", so we can't see how much they sold for). But it seems like people aren't making much money on them, if any, other than from possibly claiming the tax credit - which brings the potential risk of tax fraud (since the credit is not available if a person if buying the vehicle with the intent to sell - and with people advertising them before they have even picked them up from Tesla, or the day after, it would be hard to argue to the IRS that that wasn't the case).
 

Bafflerock

Member
Jan 30, 2018
111
136
Atlanta
Unless the sellers aren't disclosing features, the first 4 cars that came up on most recent model 3 sales sold for more than what their sticker would be. In addition, reservations seem to be going for $1500-$2k. The few 3's I've seen on other websites are going for about $2k over sticker as well.

Couple that with your irresponsible comment about tax fraud and it seems the market is still doing ok. It wouldn't surprise me if it slows down soon but I don't see that it's happening now.
 
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I was curious, so I checked ebay. There are currently 10 Model 3s for sale. In the past 3 weeks, 8 have sold, most for between $50-55k (most of the others have been "best offer accepted", so we can't see how much they sold for). But it seems like people aren't making much money on them, if any, other than from possibly claiming the tax credit - which brings the potential risk of tax fraud (since the credit is not available if a person if buying the vehicle with the intent to sell - and with people advertising them before they have even picked them up from Tesla, or the day after, it would be hard to argue to the IRS that that wasn't the case).

I agree. The market isn't as strong as I think people were expecting. To go through all the trouble to make some money on a $7500 credit and maybe only get half or less than half of that seems silly to me, and a good deal to the 2nd buyer who gets at least part of the $7500 up front in cash. I give it 90 more days until we see cars selling for under water from these speculators, maybe sooner.
 
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DrMike

Member
Sep 1, 2017
213
155
Dover, NH
In what way is my comment about tax fraud irresponsible? People are clearly intending to claim the tax credit on vehicles bought purely for resale. Read the tax code:
https://www.irs.gov/pub/irs-pdf/i8936.pdf

Note: "The following requirements must be met to qualify for the credit.... You acquired the vehicle for use or to lease to others, and not for resale."

Is discouraging tax fraud "irresponsible"?
 

Bafflerock

Member
Jan 30, 2018
111
136
Atlanta
I agree. The market isn't as strong as I think people were expecting. To go through all the trouble to make some money on a $7500 credit and maybe only get half or less than half of that seems silly to me, and a good deal to the 2nd buyer who gets at least part of the $7500 up front in cash. I give it 90 more days until we see cars selling for under water from these speculators, maybe sooner.

So which is it? The market isn't as strong or we have 90 days before an almost arbitrage opportunity ends?
 

Bafflerock

Member
Jan 30, 2018
111
136
Atlanta
In what way is my comment about tax fraud irresponsible? People are clearly intending to claim the tax credit on vehicles bought purely for resale. Read the tax code:
https://www.irs.gov/pub/irs-pdf/i8936.pdf

Note: "The following requirements must be met to qualify for the credit.... You acquired the vehicle for use or to lease to others, and not for resale."

Is discouraging tax fraud "irresponsible"?

How is it irresponsible? Are you a tax expert or have you consulted with one?
 
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Bafflerock

Member
Jan 30, 2018
111
136
Atlanta
Not recently, certainly it has happened. Hard to always know exactly what the final sale price was, and differences geographically.

As I said above, the first 4 cars I looked at on eBay were sold above sticker, again with the caveat that I assume the seller is including all options in the description. I didn't bother looking further because at this point 4 data points is enough (along with sale prices on other sites) to indicate that sellers are still getting over sticker. Also, it's really easy to see on eBay that reservations are going over $1k.
 
As I said above, the first 4 cars I looked at on eBay were sold above sticker, again with the caveat that I assume the seller is including all options in the description. I didn't bother looking further because at this point 4 data points is enough (along with sale prices on other sites) to indicate that sellers are still getting over sticker. Also, it's really easy to see on eBay that reservations are going over $1k.

This will be an intriguing space to watch regardless. Also interesting to see what happens to RWD values as AWD variants, and hardware upgrades come in future for M3. The EV space historically has been a tough residual value market, even with Tesla product, although Tesla has performed far better than Nissan, BMW, and Chevrolet... As the adoption rates of EV's advance I think we'll also see some normalization across brands, and a more predictable depreciation curve - but it's still very much the wild west.
 

deonb

Active Member
Mar 4, 2013
4,061
4,361
Redmond, WA
Making a quick $7500 tax deduction. Supply and demand is a wonderful thing :). Why should people stop trying to sell their model 3? It's their choice just like every other car up for sale here. OP GLWS

If someone just wants to commit tax fraud, why even bother buying the car? Go to a Tesla showroom, write down one of their vins and deduct it from your taxes next year.


PS: This is not meant as "tax advice". Just meant as "more efficient way to commit fraud advice" ;)
 
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