Model 3 resell values have plummeted.

[T3SLAROD]

The flipper flooded Tesla with demand while those who needed a Tesla couldn’t wait and overpaid for cars sold by the flippers to dealers. Basically used car dealers thought there was “demand” because Tesla couldn’t keep up…. But it was really the flippers creating this fake “demand”.

Just look at the Tesla used in inventory, low mileage M3P’s with FSD in the low $50ks sitting there for days.

 

[Unclepaul]

Car dealerships had a heyday full year. They were able to overcharge with huge "Market adjustments" and force buyers to cough up thousands of $ for the cars they needed to get to work or transport their family. The resulting huge profits are now giving back as the public hates what was done to them. This has left many buyers under water, and with a bad taste in their mouths towards these dealerships. Now the dealerships are suffering, but few will morn their plight.

 

[Kandiru]

To complete the above, prices will also continue to fall as the galloping inflation has left a lot of hand-to-mouthers more and more torn between eating or buying gasoline. Corporate greed knows no boundaries though, the tough times are just starting.

 

[Druidv1]

LOL. If I had the choice of buying new or used stocks, I wouldn't buy new stocks, sell them at a loss, then watch the market for a dip in used prices.

Maybe you should buy a few more new M3Ps and sell them at a loss while you wait for used prices to fall?

I don't understand why you're so mad about my decision.... It's pretty straight forward, take a loss of 2k or take a loss of 25k, I chose to take the 2k loss and potentially buy a used one in the near future.

 

[zannman]

Just like always, if you like what you have now, keep it!

If you don't, take today's price and try to parlay it into something you like better.

The difference today from 6 months or a year ago is that it's getting more obvious that Carvana and the Used auto market with it is getting ready to crater. Your car's value might be 20% under the peak but is also probably 25% higher than it will be a year from now, assuming the dust settles a bit by then.

I still believe after the dust settles that Model 3/Y resale will be above average even if both don't stay there through the turmoil.

 

[ThomasD]

 

[texas_star_TM3]

anyone who bought "way over market" anything during 2021 through early 2022 will be in for a rough surprise. Doesn't matter if it's a used Tesla at fantasy prices or a Rolex watch from a grey market dealer or a house...

Cars are a depreciating asset (unless they come with a horse or bull badge and are from Italy) and the moment you drive them off the lot you will see your residual value go down and down and down. Not linear though but the notion that you can buy a car, drive it for 3 yrs and then sell it for MORE than what you paid wasn't sustainable.

 

[T3SLAROD]

anyone who bought "way over market" anything during 2021 through early 2022 will be in for a rough surprise. Doesn't matter if it's a used Tesla at fantasy prices or a Rolex watch from a grey market dealer or a house...

Cars are a depreciating asset (unless they come with a horse or bull badge and are from Italy) and the moment you drive them off the lot you will see your residual value go down and down and down. Not linear though but the notion that you can buy a car, drive it for 3 yrs and then sell it for MORE than what you paid wasn't sustainable.

Especially with the EV credit coming back….