Model 3 resell values have plummeted.

[mpgxsvcd]

I was offered $65,800 for my 2022 Model 3 Performance over the summer from Vroom.

Now their offer is over $20,000 lower at $45,483. Carvana’s latest offer was about $47k so not much better. The market has officially collapsed for Model 3s. The online car dealers have so many of these cars available that they paid WAY too much for.

The market will come back once these dealers can dump their current overpriced inventory but right now these cars aren’t in high demand like they once were.

 

[SlimJim]

Shoulda sold it and bought back now

 

[UncertainTimes]

Oh yea well my 401k says hold my beer

 

[_tb_]

Elon must have bought Vroom and didn't tell anyone...

 

[SantaCruzOMB]

There's a list of reasons why they were in higher demand back then including peak gas prices, lower interest rates, longer wait times for a new one, and the wealth effect tied to real estate and stock prices. All that considered I don't think that's a reasonable offer. Nada is still pretty high and Carvana is listing comparable ones in the mid 60's. Maybe that's Vrooms way of saying they have too many but if you want to give it away they'll take it.

 

[mpgxsvcd]

There's a list of reasons why they were in higher demand back then including peak gas prices, lower interest rates, longer wait times for a new one, and the wealth effect tied to real estate and stock prices. All that considered I don't think that's a reasonable offer. Nada is still pretty high and Carvana is listing comparable ones in the mid 60's. Maybe that's Vrooms way of saying they have too many but if you want to give it away they'll take it.

View attachment 865957

Carvana’s offer was barely above Vroom’s offer. The issue is that both companies have a lot of these cars that they overpaid for and can’t sell now. They give you ridiculous low ball offers right now while they try to dump their overpriced inventory. Once that clears things will go back to normal. That “normal” will be what it was before the pandemic. Not crazy high or crazy low. Just somewhere in between.

 

[Dan9571]

This isn't a Tesla or Model 3 "issue", it's just the car market. Prices were at a super artificial high with all the shortages. They're correcting now.

 

[holmgang]

. The market has officially collapsed for Model 3s.

Just for the model 3?

welcome to the economy

The jump in used car prices | FRED Blog

fredblog.stlouisfed.org

Used car inflation has started to slow down | FRED Blog

fredblog.stlouisfed.org

 

[toolman335]

I sold my 2019 model 3 on Aug 5 for what I paid for it 3 years ago to a local Chevy dealer through the KBB instant cash offer. People said I was crazy and could have gotten a higher price. I was comfortable with it and my new one was only $4k more.
The dealer said Teslas are in high demand and that's why they were looking for them.
The price dropped $500/week until it finally sold this week!

 

[Darmie]

Love to locate a reasonable price unicorn. I'm waiting for the price drop on an 18 long range RWD.

 

[nate704]

Average car depreciates about 20% during the first two years.

 

[terranx]

Eh, good thing I actually like the car and had no plans to sell any time soon.

 

[T4M3]

Going back to "normal" prices.

Interesting though that used ICE cars with manual transmissions are still holding their higher than normal values. I know since I did quite a bit of research and bought a 2014 Focus ST for my son who wanted to learn to drive stick shift before they are finally gone

I bought the car from a private seller for $14.5K and Carvana right now is offering $15.5K.

 

[mpgxsvcd]

Just for the model 3?

welcome to the economy

The jump in used car prices | FRED Blog

fredblog.stlouisfed.org

Used car inflation has started to slow down | FRED Blog

fredblog.stlouisfed.org

View attachment 866060

The Vroom and Carvana offers for my Ford Expedition were up from a couple months ago. Prices are down on average but that doesn’t mean all cars have lost value like the Model 3 has in the last few months. Losing $20k in value in a few months is not the norm.

 

[afadeev]

This isn't a Tesla or Model 3 "issue", it's just the car market. Prices were at a super artificial high with all the shortages. They're correcting now.

That's not accurate.
I am shopping around for a new car, and priced out my 3 cars for actual "cash" offers (not paper estimates from NADA/KBB/etc).

• BMW has continued appreciating for the past 24 months. Currently +15% of where it was a year ago.
• Honda is holding stead.
• 2019 Tesla Model 3 Performance is down to 56% of the new price after 3.5 years of ownership.

Not an end of the world, but the depreciation is definitely hitting Teslas harder as of late, than the other brands.
No big deal. I am keeping TM3P as a winter beater.

Shoulda sold it and bought back now

Sounds like you are ready and qualified for a new career as a Certified Financial Planner (CFP)!

 

[Lindenwood]

I don’t feel like anyone should be surprised when a tower made of twigs doesn’t stay up forever…

 

[charlieaf92]

WHAT?! I'm absolutely shocked, gutted, floored that used car prices are now LOWER than new car prices?! This is a catastrophe.

 

[jjrandorin]

Losing $20k in value in a few months is not the norm.

It is (the norm) when those used cars were selling for more than new for silly reason.

 

[phaheem]

The market has officially collapsed for Model 3s.

No, the market is returning to valuing used cars correctly, as all the comments below say:

There's a list of reasons why they were in higher demand back then including peak gas prices, lower interest rates, longer wait times for a new one, and the wealth effect tied to real estate and stock prices.

This isn't a Tesla or Model 3 "issue", it's just the car market. Prices were at a super artificial high with all the shortages. They're correcting now.

Going back to "normal" prices.

WHAT?! I'm absolutely shocked, gutted, floored that used car prices are now LOWER than new car prices?! This is a catastrophe.

 

[cdubois]

I placed an order for a 2022 M3P FSD on June 23, 2022, based on an offer from Tesla to trade in my 2019 M3 LR AWD FSD. Just before I was to take delivery in late August, Tesla repriced my trade in over 25% lower, citing "market conditions." That is right -- 25% lower in less than 2 months. I had to cancel the deal, as there was no negotiating with Tesla. The sales associate said that Tesla "does not make money" on reselling Teslas (BS - as a stock holder I would want them to make money on trades). Even worse, the fact is, their web site was still listing similar 2019 used configurations for the same price that triggered me to start the deal back in June. Plus, the FSD option should have further increased the value of the trade as the FSD price increase occurred in that timeframe.

Similarly, in early July, we started the same deal with my wife's 2020 MY LR FSD trading it for a 2022 MYP FSD. Same deal. The trade in offer plummeted and we canceled that one too.

Needless to say, I was quite disillusioned with the whole process. It started with so much excitement & anticipation and ended with disdain.