Model 3 Really Holding it’s Value!

[Llama.]

I took delivery of a white Model 3 LR in March 2021. Just managed to squeak in with the £3,000 U.K. govt grant. So my cash price was £46,990

Out of curiosity I checked We Buy Any Car.
They are offering £47,815 on my LR M3 with 5,000 miles. It’s actually gone up by £400 in the last month!

I’ve never bought a car from new like this before so I am keeping an eye on resale values. Probably with an eye to selling it privately at the end of my PCP rather than just handing it back

There is an option to make a final payment of the projected residue value of £18,496.

So I’m thinking that I can sell the car privately at the end of the PCP in March 2025 and use this difference as a deposit on the next car.

After 8 months and £5,000 the car appears to be holding its value extremely well and seems to have even gone up in value!

Surely it will have to start to loose value soon, but is it reasonable to think my M3 will be worth more than the Tesla projected residual value at the end of PCP term? And if so by how much?

 

[Peter 224]

The chip and consequent new car shortages mean that all used car prices are higher than expected. Tesla M3s are limited by production, rather than chip shortages and their market success has fuelled demand. Jaguar Land Rover quite 12 months delivery on all cars.
This will not end until the car makers are not restricted by supply chain issues. I was talking to a pal who is in the Mercedes car trade and they re-price weekly, at the moment it is upwards. There are NO deals or discounts.
This is not an unique situation, it was normal in the 1960s and 70s.

 

[gangzoom]

I took delivery of a white Model 3 LR in March 2021. Just managed to squeak in with the £3,000 U.K. govt grant. So my cash price was £46,990

Tesla has just put up prices of the base 3/Y in the US by another $1000, that's in additional to the other recent price changes, so I suspect the base Model 3 in the UK will be £42,990 soon!

The issue with rising prices is everything is going up in price. Who knows maybe soon £45k will be the entry price for a Model 3 next year?? It's a far cry from the $35k price tag Elon promised.

 

[bingbongbing]

I took delivery of a white Model 3 LR in March 2021. Just managed to squeak in with the £3,000 U.K. govt grant. So my cash price was £46,990

Out of curiosity I checked We Buy Any Car.
They are offering £47,815 on my LR M3 with 5,000 miles. It’s actually gone up by £400 in the last month!

I’ve never bought a car from new like this before so I am keeping an eye on resale values. Probably with an eye to selling it privately at the end of my PCP rather than just handing it back

There is an option to make a final payment of the projected residue value of £18,496.

So I’m thinking that I can sell the car privately at the end of the PCP in March 2025 and use this difference as a deposit on the next car.

After 8 months and £5,000 the car appears to be holding its value extremely well and seems to have even gone up in value!

Surely it will have to start to loose value soon, but is it reasonable to think my M3 will be worth more than the Tesla projected residual value at the end of PCP term? And if so by how much?

Its a rising market at the minute, which will be massively masking things, also the gov grant which helps

I've just sold an e400d all terrain, which is an amazing car, for £10k more than I paid for it 9 months and 10000 ago.

Other thing, given the quantity of model 3's coming across/being sold, they'll be more on the market in 4 years time. They're now one of the cheapest lease company cars.

So basically, don't bank on it, however as you've a final payment, you'll be able to find out instantly if its worth it or not.

 

[Js1977]

Swings and roundabouts.

You could sell now and make a profit but you then be at the buyers end.

2025 is a while away and there is no telling what cars come out and what interest rates will be then since you seem to be reliant on this.

Finding a way to reduce or get rid (if you can) of the interest you will have paid by then is imho a better path as a sure thing and I fear you (and maybe others) might be overlooking this.

Regardless, Its most probably fair to say that your car will be worth more than its projected residual.

 

[Jason71]

Its a rising market at the minute, which will be massively masking things, also the gov grant which helps

I've just sold an e400d all terrain, which is an amazing car, for £10k more than I paid for it 9 months and 10000 ago.

Other thing, given the quantity of model 3's coming across/being sold, they'll be more on the market in 4 years time. They're now one of the cheapest lease company cars.

So basically, don't bank on it, however as you've a final payment, you'll be able to find out instantly if its worth it or not.

There are very few right now since they were mainly bought on 3-4 year leases / PCP. So the volume on the second hand market should swell significantly starting June next year. This has to affect residuals but I still think the OPs going to beat his minimum Guaranteed value by +£10K unless something pretty dramatic happens.

 

[Mike44]

There are very few right now since they were mainly bought on 3-4 year leases / PCP. So the volume on the second hand market should swell significantly starting June next year. This has to affect residuals but I still think the OPs going to beat his minimum Guaranteed value by +£10K unless something pretty dramatic happens.

I sold my M3P- (stealth) September 19,69 plate to We Buy Any Car for 1k more than I paid for it.Ordered a Kia EV6 AWD for early next month delivery.When for March/April 22 delivery but car has arrived early.I always intended to sell my M3 before 3 years as you have pointed out many PCP/leases are up and I feel residuals may drop.

 

[GeorgeSymonds]

It’s the same for lots if cars. My wife’s petrol car is worth more now than when we bought it 18 months ago. Supply and demand and all that. I think taycans are also over list because of the lead time.

The smart move would be if you can bag a new inventory car and flip the old car, although I suspect the price to replace your car with a new one will be a couple of grand more than you paid for yours. I must admit I’ve thought about doing that with my 2020 car.

 

[hcdavis3]

When I traded my Model 3 LR to Tesla for my current car, Tesla gave me 1K less than I paid for it with 15k miles on the odometer.

 

[SpareHeadOne]

I ran the numbers for my 11 month old M3 with a colossal 3k on the clock (thanks to WFH since I got it). Tesla offered £41k trade-in against a new one, but Motorway offered £48½k, which is basically what I paid for it.

I don't expect these numbers to continue, but I'm hopeful that it'll mean more equity in the car when I do eventually change it.

 

[Llama.]

I don't expect these numbers to continue, but I'm hopeful that it'll mean more equity in the car when I do eventually change it.

Yes, I think this summarises my hopes too.

Although you can’t really bank equity until you sell. So it may just level out over the length of a PCP and come out marginally better than the Tesla offer.

 

[Liquidv]

What's the chances I could sell my brand new LR for more than I paid for it come end of this month?
(Thinking I could use the extra cash to upgrade to a M3P and collect next year) lol

 

[Jason71]

What's the chances I could sell my brand new LR for more than I paid for it come end of this month?
(Thinking I could use the extra cash to upgrade to a M3P and collect next year) lol

The waiting list for new is Feb. And people are pretty impatient so who knows. I can't imagine you would get much over. Just Drive it would be my advice. P is well overpriced. P's cost 11.5K more than LR but sell for 3K more. If you are that bothered about depreciation P is not the way to go.

edit
In Germany the P is 5K euros more than the LR. Here it is £11.5K. But as long as people keep buying them at that they will keep selling them.

 

[bingbongbing]

I sold my M3P- (stealth) September 19,69 plate to We Buy Any Car for 1k more than I paid for it.Ordered a Kia EV6 AWD for early next month delivery.When for March/April 22 delivery but car has arrived early.I always intended to sell my M3 before 3 years as you have pointed out many PCP/leases are up and I feel residuals may drop.

EV6 AWD is a great choice, I would have had one over a model 3, however I was told that its 6 month wait for new orders.

 

[GraGor]

The used car market is mental right now. I bought a C class at end of April this year for £23,400 and Tesla have bought it off me for £29,000. I wasn't actually in any rush to get a new car but when I saw the mark up I thought it would be daft not to sell it.

 

[Alistairuk]

I just valued my 2020 M3 SR+ with Cazoo and got quoted £41k for it! I wonder what the odds are of the second-hand market remaining so good until next year - as if I order a new one, delivery looks to be mid-February at moment!

 

[Mike44]

EV6 AWD is a great choice, I would have had one over a model 3, however I was told that its 6 month wait for new orders.

Long delays if ordered with heat pump,I didn't spec pump.RWD shorter delivery times I believe.

 

[bingbongbing]

Long delays if ordered with heat pump,I didn't spec pump.RWD shorter delivery times I believe.

yeah, I asked for AWD and was told at least 6 months, same with the other premium EV's, thats why I ended up just going for a model 3.

 

[Torokruger]

I am in the process of selling or trading my 19 plate P- for a new LR (end of Nov) is there any where that tells you the steps to transfer ownership/ remove car from account and your details to say Motorway/WBAC obviously its straightforward if I trade in to Tesla.

 

[Alistairuk]

I am in the process of selling or trading my 19 plate P- for a new LR (end of Nov) is there any where that tells you the steps to transfer ownership/ remove car from account and your details to say Motorway/WBAC obviously its straightforward if I trade in to Tesla.

You just tell Tesla you no longer have the vehicle so they remove it from your account... Motorway/WBAC deal with all the rest.