Model 3 Returned Vehicle Opportunity

[mgoldst3]

Hi all,

Completely new here and never owned a Tesla before. I'm interested in the Model 3 Performance and was offered an existing inventory car (400 miles) that's technically 'used' since it was titled and returned within 7 days. Discount is $3,600. Any advice on how to weigh the trade-offs here? Besides the fact that I can't access tax credits, any consideration of the used designation that I should think about. Would that impact resale?

Trying to decide vs. buying new. Thanks!

 

[mgoldst3]

(I'll also clarify that this is a 2020, offered through Tesla directly).

 

[PNWLeccy]

It looks like CA has at least $2k tax credit so the real difference in price is $1600. Now, if the car is treated as Used, it may not include the $1200 doc and destination fee (my used purchased from Tesla didn't) so you're up to a possible difference of $2800 from a new model.

If it was returned within 400 miles it could've had substantial issues that caused it to be returned. Most things are fixable but may require multiple trips to SC to resolve them and some people don't find it worth the hassle w/ a new car. My car "looked" pretty good when I bought it from Tesla used but I've had a couple of pesky issues (specifically rattles, creaks) that have really annoyed me. Some people couldn't care less about those issues.

 

[glide]

Don’t take on someone else’s problem. Get a new one.

 

[captain_sahaj]

I bought a used long range model 3 from tesla. It only had 196 miles on it. It is flawless

 

[CapeOne]

Find out why the car was returned. Did they choose another M3, maybe an LR or Performance instead of a SR+ or vice versa? Did they choose a different Tesla model entirely? Maybe they decided that they didn't like the exterior or interior colors. Maybe they lost their job or their commuting circumstances changed. Maybe they simply concluded that EVs just aren't for them. There can be all sorts of reasons why a car is returned that have nothing to do with mechanical problems, defects, or whatever.

Assuming it wasn't returned due to defects and you otherwise like the car, you should be fine as long as the numbers work regarding loss of any EV credits/rebates, etc. If the savings aren't sufficient (however you choose to gauge that), I'd say go with a new one.

 

[MJP.P3D-]

Find out why the car was returned. Did they choose another M3, maybe an LR or Performance instead of a SR+ or vice versa? Did they choose a different Tesla model entirely? Maybe they decided that they didn't like the exterior or interior colors. Maybe they lost their job or their commuting circumstances changed. Maybe they simply concluded that EVs just aren't for them. There can be all sorts of reasons why a car is returned that have nothing to do with mechanical problems, defects, or whatever.

Assuming it wasn't returned due to defects and you otherwise like the car, you should be fine as long as the numbers work regarding loss of any EV credits/rebates, etc. If the savings aren't sufficient (however you choose to gauge that), I'd say go with a new one.

Agree with this! I’ve had two Model Ys offered to me that were returned within the 7-day window. First was due to a “harsh ride” per the original buyer (yes, it was a Performance with the uberturbines) and the second was due to a job loss. In both cases, the cars were perfect (just not my color of choice). Get more info on why the car was returned and then make an informed decision. Good luck.

 

[mgoldst3]

Thank you all, incredibly helpful!

Cape/MJP, any guidance on how to find out the reason? The sales rep and his manager said that the system won't disclose. Perhaps I can try to call the sales location closer to the car (different part of the state) for more intel.

Also, I'm not eligible for the tax credits, so bit more of a wash there, but indeed can save the $1,200 delivery/government fee which is notable. Super helpful!

 

[kevin1]

$2800 really isn’t that much of a discount for a slightly used luxury car with potential issues.

Ex: car fax says “Our data shows that cars can lose more than 10 percent of their value during the first month after you drive off the lot”
Car Depreciation: How Much Value Will a New Car Lose? | CARFAX

As another point of comparison, Toyota offers manufacturer rebates as high as $5k on new cars whenever they feel like moving some inventory.

I would push for a larger discount that prices in the used status & potential future issues. It’s not a good deal for you atm.

 

[kevin1]

Thank you all, incredibly helpful!

Cape/MJP, any guidance on how to find out the reason? The sales rep and his manager said that the system won't disclose. Perhaps I can try to call the sales location closer to the car (different part of the state) for more intel.

Even if they have access to the previous owner’s complaints, the sales rep has no incentive to tell you. I would treat the condition of the car as a wildcard and act accordingly.

 

[jeremymc7]

It looks like CA has at least $2k tax credit so the real difference in price is $1600. Now, if the car is treated as Used, it may not include the $1200 doc and destination fee (my used purchased from Tesla didn't) so you're up to a possible difference of $2800 from a new model.

Also SCE is $1k check. While other counties in CA can be substantially more.

 

[CapeOne]

Thank you all, incredibly helpful!

Cape/MJP, any guidance on how to find out the reason? The sales rep and his manager said that the system won't disclose. Perhaps I can try to call the sales location closer to the car (different part of the state) for more intel.

If they are unwilling/unable to share that information, then I guess there's little you can do. I would not assume that the car was returned due to a serious problem but you can ask them what, if anything, they’ve done to the car after it was sold or since being returned. If the car had a flaw or defect, they presumably would've checked on it and tried to fix it. Perhaps they'd be willing/able to tell you what the customer did after returning the car e.g., bought a different M3 or different Tesla model? These are all common and perfectly reasonable questions when buying any used car.

If you can't get anywhere with them on details about the car, you might as well go new IMO. The savings doesn't seem significant enough to risk worrying or wondering about the "quality" of the car going forward. I think it is probably fine but why have that added concern or doubt in the back of your mind?

 

[mgoldst3]

Much appreciated. I took your advice. Passing on this one and put in a custom order. Not worth the risk.

 

[Ilikestuff]

FWIW I bought a used 2018 LR-RWD from a private party with less than 1000 miles, and it has been perfect. Have had it well over a year.

 

[jeremymc7]

Much appreciated. I took your advice. Passing on this one and put in a custom order. Not worth the risk.

Good call. In my experience used late model Tesla's aren't worth the savings. Maybe if Tesla still had an official quality cpo problem.