Model S depreciation??

[IndyD]

I have a 2015 Model S 85D with 14,000 miles. Flawless condition. Cost $94k. I am looking to trade it in on a new Model X.
Tesla is offering a trade in value of $57,000. This seems significantly low to me- 40% depreciation in 24 months, 14k miles?!
There is not a lot of comparison to be made in the marketplace (except two nearly identical cars in pre-owned inventory on Tesla web site listed for ~$80,000).
Does anyone have experience or decent insight here......I love my Model S, but makes me a bit hesitant to invest in another Tesla if they are taking such a beating on the resale market.
Thanks,

 

[SD_Engnr]

They seem to have a standard depreciation formula of $1 per mile plus $1k per month of ownership. Unless you receive a tax break on trade in, you would do much better through a private party sale.

 

[FlatSix911]

50% depreciation over the first 3 years is typical in the premium car segment.

 

[Super_Popular]

Why are you posting this in the For Sale section?

Tesla trade in offers are always below wholesale, sell it yourself.

Ebay, criagslist and you can run a free ad on cars.com.

 

[Lithivm]

I ordered a CPO 85d 2015 with the same mileage for 69k so they refurbish it and jack the price up. If you're going to sell it send me the details....CPO 4-6weeks plus.... its insane!

I have a 2015 Model S 85D with 14,000 miles. Flawless condition. Cost $94k. I am looking to trade it in on a new Model X.
Tesla is offering a trade in value of $57,000. This seems significantly low to me- 40% depreciation in 24 months, 14k miles?!
There is not a lot of comparison to be made in the marketplace (except two nearly identical cars in pre-owned inventory on Tesla web site listed for ~$80,000).
Does anyone have experience or decent insight here......I love my Model S, but makes me a bit hesitant to invest in another Tesla if they are taking such a beating on the resale market.
Thanks,

 

[Boourns]

If you are concerned about depreciation for resale purposes, it will nearly always be better to lease or buy used. This is true with any car.

 

[tsblue]

I have a 2015 Model S 85D with 14,000 miles. Flawless condition. Cost $94k. I am looking to trade it in on a new Model X.
Tesla is offering a trade in value of $57,000. This seems significantly low to me- 40% depreciation in 24 months, 14k miles?!
There is not a lot of comparison to be made in the marketplace (except two nearly identical cars in pre-owned inventory on Tesla web site listed for ~$80,000).
Does anyone have experience or decent insight here......I love my Model S, but makes me a bit hesitant to invest in another Tesla if they are taking such a beating on the resale market.
Thanks,

I would be interested in your 2015 Model S 85D, What is the color of the vehicle?

 

[IndyD]

Gray metallic
Black interior

 

[IndyD]

I ordered a CPO 85d 2015 with the same mileage for 69k so they refurbish it and jack the price up. If you're going to sell it send me the details....CPO 4-6weeks plus.... its insane!

 

[jaguar36]

I have a 2015 Model S 85D with 14,000 miles. Flawless condition. Cost $94k. I am looking to trade it in on a new Model X.
Tesla is offering a trade in value of $57,000. This seems significantly low to me- 40% depreciation in 24 months, 14k miles?!

Its not really 40%, you're ignoring the $7500 tax credit (which even if you didn't get effects the resale value). Other tax credits/incentives also effect the resale, even if they aren't in your state. So you're really looking at 34% which is pretty good. If you were in NJ where we don't have any sales tax on EVs, you'd be effectively looking at under 30% which is fantastic.

 

[Tampaukfan]

Used prices were holding strong before 2015 but now with AP1, AP2 new nose and the M3 prices are plummeting are there are LOTS of used S's for sale. Once the 3 deliveries begin expect an even bigger hit, especially if the projected range is true.
Tesla buyers are like Iphone customers, the vast majority wants the latest and greatest Tech. However the 200-300 hit on an iphone is nowhere nearly as painful as 40k hit in two years.
Just be thankful you didnt buy a Maserati..

 

[zer0cool]

Honestly, Tesla trade-in offers are insulting, don't ever sell to Tesla unless you have to. I can't even imagine the bloodbath people will take when they trade-in their S's for model 3 say a year form now. This is bound to happen if projected range is true. I mean if the highest range Model 3 is at 300, you will see many 60-75's trading in their cars. There will be a huge influx of S's with little demand.

The guy who's buying this car CPO right now for 70k must be ready for some massive depreciation. Almost certain the car would garner <35k trade-in in a couple years.

So actually no, it's not cheaper to buy used-cars (in terms of cost to own), unless you can find a cheap one.

 

[GQbed]

Tesla's CPO price is also increased due to the 4 year additional warranty... that in no means justifies the lowball offer on a 2 year old car that still has2 years of full warranty on it

 

[AMPd]

Honestly, Tesla trade-in offers are insulting, don't ever sell to Tesla unless you have to. I can't even imagine the bloodbath people will take when they trade-in their S's for model 3 say a year form now. This is bound to happen if projected range is true. I mean if the highest range Model 3 is at 300, you will see many 60-75's trading in their cars. There will be a huge influx of S's with little demand.

The guy who's buying this car CPO right now for 70k must be ready for some massive depreciation. Almost certain the car would garner <35k trade-in in a couple years.

So actually no, it's not cheaper to buy used-cars (in terms of cost to own), unless you can find a cheap one.

Everything you said is wrong.
Model 3 is not competing with the model S.
Elon even confirmed this via twitter.

Why are some people having such a difficult time grasping the fact that model 3 and S are DIFFERENT vehicles

Why are people buying S classes or 7 series when the C class or a 3 series is available! Both are powered by gasoline!

 

[Brewcitpizza]

I agree that while a model 3 is a Tesla, it's not a "TESLA" the model S is in a class of its own.

 

[Terras]

While I agree that S and 3 will each be in a class of their own, I do think there's more cross-over in this case because the market is hungry for good electric and/or autonomous cars. That's something the S and 3 will both accomplish.

Therefor, someone considering an S today may never have even considered it if the 3 was an option they could buy today. Similarly, there will be large group of buyers who will never consider the 3 because they want all of the luxury features and storage capabilities of the S.

In another decade, give or take, it will be analogous to an S class vs. a C class, but for now the EV and FSD features change the game a little.

 

[Hey_Hey]

Honestly, Tesla trade-in offers are insulting, don't ever sell to Tesla unless you have to. I can't even imagine the bloodbath people will take when they trade-in their S's for model 3 say a year form now. This is bound to happen if projected range is true. I mean if the highest range Model 3 is at 300, you will see many 60-75's trading in their cars. There will be a huge influx of S's with little demand.

The guy who's buying this car CPO right now for 70k must be ready for some massive depreciation. Almost certain the car would garner <35k trade-in in a couple years.

So actually no, it's not cheaper to buy used-cars (in terms of cost to own), unless you can find a cheap one.

I can't think of a single time in which the financially wise thing to do is buy a new car, especially if you plan on owning that care for less than 5-10 years. Someone may be willing to take the financial hit to buy a new car for many reasons (they value a new car that much, they want the latest tech, etc) but it is not in their financial best interest to do so. Tesla is not immune from car depreciation.

New cars are worth ~80% of the sale price after year one, ~65% after year two, and ~55% after year three. In three years, a $100,000 car will by worth around $55,000, meaning $45,000 of that person's wealth has disappeared (and trade in value is even lower than private sales). Now compare that to buying that same 3 year old car used for $55,000. After one year that car is now worth $45,000, after year two the car is worth $37,000 and after year three the car is worth $30,000. Three years of ownership causes approximately $25,000 of value to disappear.

If the car is covered by a warranty, like Tesla's CPO program, then the repair costs are essentially the same whether you by new or used. However, the used car owner will have $20,000 less in depreciation and lost wealth over that three year period. There is no question that buying used versus new is the better financial choice. What is harder to determine is whether a person values a new car over a used car so much that the $20,000 is worth it to them.

For me, I am planning on buy a 2014 S85 in approximately 6 months through the Tesla CPO program. I can afford a new Model S, but I would rather own a 3 year old Model S and use the money I save on something else. Specifically, with the money I save on buying a CPO Model S, I could put 5-10KW of solar panels on my roof, which I may actually do. I would rather have a 2014 Model S85 AND solar panels on my roof than a 2017 Model S100 alone with no solar panels (obviously, you could exchange lots of things for the solar panels).

 

[zer0cool]

Everything you said is wrong.
Model 3 is not competing with the model S.
Elon even confirmed this via twitter.

Why are some people having such a difficult time grasping the fact that model 3 and S are DIFFERENT vehicles

Why are people buying S classes or 7 series when the C class or a 3 series is available! Both are powered by gasoline!

Model 3 and S are in different classes, definitely, but they most certainly impact each other's value. This is like saying the Porsche Macan has no impact on the price/demand of the Cayenne. It most certainly does. The market and people across Porsche forums confirm this. Moreover, the S and the 3 are not like a 7 series vs. a 3 series. Tesla cars are sports oriented instead of luxury, that's why Elon used 5/6 series BMW as an analogue to Model S. He's totally right and understands the kind of car he's building. I cross-shopped BMW 5 and 3, and I prefer to drive a 3 honestly (I like nimbler cars, owned a 2014 5 series and still own a 15 3 series).

This cross-class consideration is even more so on an EV. This is because range is king for an EV. Many people have said that on this forum. I didn't understand it before but now fully understand it after 2 years of EV ownership. I would gladly give up features and acceleration for longer range.

The fact is, range is an immensely important stat for an EV, and honestly a longer range, say 300+ is a luxury feature in and of itself. Since it means being able to put the cabin at a higher heat in the winter, drive a little faster, and most importantly save tremendous time on a road trip.

I can't afford a 100D, but I want a 300 mile range Tesla. If that's the model 3, I would definitely give up the shorter range S for the greater range. Moreover, I like that the 3 is a lighter and nimbler car, which I would actually enjoy more driving. Basically, I bought an S because a 3 didn't exist before. I don't think I am the only one who did that.

 

[FlatSix911]

Good analysis Hey_Hey
You may want to consider a 2015 CPO so that you at least have AP1 features and improved resale value

I can't think of a single time in which the financially wise thing to do is buy a new car, especially if you plan on owning that care for less than 5-10 years. Someone may be willing to take the financial hit to buy a new car for many reasons (they value a new car that much, they want the latest tech, etc) but it is not in their financial best interest to do so. Tesla is not immune from car depreciation.

New cars are worth ~80% of the sale price after year one, ~65% after year two, and ~55% after year three. In three years, a $100,000 car will by worth around $55,000, meaning $45,000 of that person's wealth has disappeared (and trade in value is even lower than private sales). Now compare that to buying that same 3 year old car used for $55,000. After one year that car is now worth $45,000, after year two the car is worth $37,000 and after year three the car is worth $30,000. Three years of ownership causes approximately $25,000 of value to disappear.

If the car is covered by a warranty, like Tesla's CPO program, then the repair costs are essentially the same whether you by new or used. However, the used car owner will have $20,000 less in depreciation and lost wealth over that three year period. There is no question that buying used versus new is the better financial choice. What is harder to determine is whether a person values a new car over a used car so much that the $20,000 is worth it to them.

For me, I am planning on buy a 2014 S85 in approximately 6 months through the Tesla CPO program. I can afford a new Model S, but I would rather own a 3 year old Model S and use the money I save on something else. Specifically, with the money I save on buying a CPO Model S, I could put 5-10KW of solar panels on my roof, which I may actually do. I would rather have a 2014 Model S85 AND solar panels on my roof than a 2017 Model S100 alone with no solar panels (obviously, you could exchange lots of things for the solar panels).

 

[AMPd]

Model 3 and S are in different classes, definitely, but they most certainly impact each other's value. This is like saying the Porsche Macan has no impact on the price/demand of the Cayenne. It most certainly does. The market and people across Porsche forums confirm this. Moreover, the S and the 3 are not like a 7 series vs. a 3 series. Tesla cars are sports oriented instead of luxury, that's why Elon used 5/6 series BMW as an analogue to Model S. He's totally right and understands the kind of car he's building. I cross-shopped BMW 5 and 3, and I prefer to drive a 3 honestly (I like nimbler cars, owned a 2014 5 series and still own a 15 3 series).

This cross-class consideration is even more so on an EV. This is because range is king for an EV. Many people have said that on this forum. I didn't understand it before but now fully understand it after 2 years of EV ownership. I would gladly give up features and acceleration for longer range.

The fact is, range is an immensely important stat for an EV, and honestly a longer range, say 300+ is a luxury feature in and of itself. Since it means being able to put the cabin at a higher heat in the winter, drive a little faster, and most importantly save tremendous time on a road trip.

I can't afford a 100D, but I want a 300 mile range Tesla. If that's the model 3, I would definitely give up the shorter range S for the greater range. Moreover, I like that the 3 is a lighter and nimbler car, which I would actually enjoy more driving. Basically, I bought an S because a 3 didn't exist before. I don't think I am the only one who did that.

Model S will be superior in most, possibly even all categories.
If someone is looking for a long range EV and don't care about having a larger vehicle, technologically advanced vehicle then yeah they'll buy the 3
But people who are looking to buy top of the line will go for the S because that's the flagship model with all the bells and whistles.
The model S will have its own type of buyer, those that want the best and can afford it.
Model 3 will be for those who want a long range ev and don't need the best of what technology has to offer.