Model 3 Trade-In Tesla Offer - Need Advice!

[Mattzilla]

I have a March 2019 Model 3 in excellent condition that I paid cash for.

4,000 miles later, and after the announcement of Raven, I'm considering trading my 3 for a new X.

I paid $37k for the 3 (standard range plus).

Tesla made me an offer today of $28k for the 3 (appreciating asset, huh?).

So that's a $9k loss (or a $5,250 loss with the tax credit factored in).

I'm not a car trading expert so I'm asking here for advice.

Which is most accurate:

1. This is a reasonable trade-in offer. Take the deal and enjoy your new Raven Model X.
2. This is just sort of a "meh" deal. Kind of neutral.
3. This is a "low ball" offer. Sale private party or find some other service (Carmax, etc.).

Thanks all.

 

[JulienW]

4. It is a reasonable offer but it is nearly insane financially to buy a car and 3 months later trade when the highest depreciation just happened.

 

[cgrubbe]

A trade-in is never going to be the best offer you can get just due to the nature of the transaction. They need to get it low enough to make some profit when they resell it. If you're willing to go through the process a private sale will get you closer to what you've got into it, but you're still going to take a hit for depreciation with a car this new.

 

[g0dfather]

Don’t forget that when you trade in, you’ll save that amount’s tax on the X (depends on the state). I think it’s a good offer factoring in the rebate, miles, and the fact that you are at the steepest part of the depreciation curve.

 

[OCR1]

Don’t forget that when you trade in, you’ll save that amount’s tax on the X (depends on the state). I think it’s a good offer factoring in the rebate, miles, and the fact that you are at the steepest part of the depreciation curve.

Good point. If WA sales tax is 6.5% you save another $1,820 by trading it into Tesla versus a private party, so that means you would need to sell if for at least $29,820 to break even versus trading it in. And you got a $3,750 tax credit, so it’s really not that bad. Almost makes me want to trade in my LR RWD for one of those new P3D- stealth cars.

 

[Mattzilla]

Good point. If WA sales tax is 6.5% you save another $1,820 by trading it into Tesla versus a private party, so that means you would need to sell if for at least $29,820 to break even versus trading it in. And you got a $3,750 tax credit, so it’s really not that bad. Almost makes me want to trade in my LR RWD for one of those new P3D- stealth cars.

In WA you are taxed on the difference in value between your trade-in and the new car.

So a new X is 85k and with 28k value on my 3 I would only be taxed on 57k.

 

[rickdogg82]

Sell private party or you are throwing money away. Should be much easier considering you own the car outright.

 

[Mattzilla]

Also, I forgot about the $1,875 that is still remaining on the tax credit which would help on the new X. Hmmm...

 

[tvad]

At the very least, get a trade-in price from Carmax. Tesla seriously low-balled their offer for our 2013 BMW 528i, offering nearly 10% less than Carmax, and 40% less what we sold it for only a week later to a private party.

 

[T3SLAROD]

Go to Carmax?

 

[NmbrsNvrLie]

Two thoughts, I think you could really sell this car private party for $35k. If you don’t want that hassle, give carvana and Vroom a shot. I sold them a car and was shocked by how seamless it was.

 

[Leafdriver333]

If I wanted x really bad I would just do it.
Trade in had tax benefit like some mentioned. So you would have to ask it private party for at least $31000 to do better.
Is it worth the trouble?
Without AP are you sure it will sell for more than $31000?

 

[Zaxxon]

Sanity-check the offer with CarMax.

But in the end, enjoy your X. Or take the route we did and keep the 3, and also get an X.

 

[TampaRich]

You sell a car after 4 months, you eat the depreciation no matter what brand you’re dealing with.

 

[derekmw]

At least take it to CarMax. My MR purchased in December without AP was quoted $40k at CarMax. Tesla offered me $31k.

 

[cbaaz]

Sanity-check the offer with CarMax.........

Agree 100%. And if you decide to sell it them, it’s a totally hassle free and fast transaction.

 

[john85775]

+1 Carmax.

 

[pdx_m3s]

Don’t bother with carmax, or if you, don’t expect a miracle. If you have the time, and patience, sell it private party.

 

[Mattzilla]

Thanks y'all. Some mixed opinions but definitely some good food for thought on both sides of the isle.

 

[ReddyLeaf]

@Mattzilla and @acarney maybe you should get together and discuss.