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Model S Plaid huge depreciation
- Thread starter edx1105
- Start date
The top, top, top models of any car ALWAYS suffer the most depreciation. That's the product of Tesla charging around $40,000 for the same car with a more powerful rear motor. Same reason why FSD for $12,000, or now $15,000 will never be recaptured fully in resale value.
Naturally, there are buyers who want the INSANE acceleration the Plaid offers. But, 95% of buyers have no need for that kind of acceleration. Plus, when the standard version for $30,000 or $40,000 less still does 0-60 in what, 3.1 seconds and blows the doors off almost anything on the road and is already far more than they'll ever need, the pool of buyers for the top end cars is always going to be limited.
But, I guess at least consider yourself fortunate that you're not one of the buyers that paid close to $170,000 for a fully loaded Ludicrous mode car. Back when Tesla kept raising prices "because the could" and a fully, fully loaded Performance pushed right to $170,000. They finally found the point where even the most loyal buyers said, enough is enough and the prices plummeted a couple of months later. I loved it. Got my car for $20,000 less than what it was a month or two prior. Because of the market we're in, Tesla is back to the same tricks. Jacking up pricing until they price out enough buyers.
They're not the only ones. I wouldn't want to buy a new EV today. 6 months ago, before the price hikes by many, they made sense. Now, because they can't build them fast enough due to shortages, not because of a real increase in demand, they're taking advantage. This market will change again. Those paying astronomical prices today for EV's will certainly feel the pain when they go to sell them in 3, 4 or 5 years.
The only way it stops is when buyers have had enough and they stop paying the prices. Unfortunately, we're not there yet. Had I not got my two of my last three EV's based on pre-order pricing from 2+ years ago, I would have just kept my Tesla. Got the Rivian and F-150 Lightning at pre-price hikes. Wouldn't have purchased either at today's prices. Got the Mercedes as well. Despite clearly being able to afford them, I didn't get where I am today by being silly with my money. They will have value to many buyers up to a certain price point. I love EV's and would struggle to ever go back to an ICE. But, they finally reached the price point where it's just too much of a premium to pay. I'm good with the cars I have for at least 3 years. Will see where things are at then. From what I'm reading on several forums for different vehicles, many EV's have reached price points where buyers are backing away. Hopefully more will follow and it will be better for all consumers.
Naturally, there are buyers who want the INSANE acceleration the Plaid offers. But, 95% of buyers have no need for that kind of acceleration. Plus, when the standard version for $30,000 or $40,000 less still does 0-60 in what, 3.1 seconds and blows the doors off almost anything on the road and is already far more than they'll ever need, the pool of buyers for the top end cars is always going to be limited.
But, I guess at least consider yourself fortunate that you're not one of the buyers that paid close to $170,000 for a fully loaded Ludicrous mode car. Back when Tesla kept raising prices "because the could" and a fully, fully loaded Performance pushed right to $170,000. They finally found the point where even the most loyal buyers said, enough is enough and the prices plummeted a couple of months later. I loved it. Got my car for $20,000 less than what it was a month or two prior. Because of the market we're in, Tesla is back to the same tricks. Jacking up pricing until they price out enough buyers.
They're not the only ones. I wouldn't want to buy a new EV today. 6 months ago, before the price hikes by many, they made sense. Now, because they can't build them fast enough due to shortages, not because of a real increase in demand, they're taking advantage. This market will change again. Those paying astronomical prices today for EV's will certainly feel the pain when they go to sell them in 3, 4 or 5 years.
The only way it stops is when buyers have had enough and they stop paying the prices. Unfortunately, we're not there yet. Had I not got my two of my last three EV's based on pre-order pricing from 2+ years ago, I would have just kept my Tesla. Got the Rivian and F-150 Lightning at pre-price hikes. Wouldn't have purchased either at today's prices. Got the Mercedes as well. Despite clearly being able to afford them, I didn't get where I am today by being silly with my money. They will have value to many buyers up to a certain price point. I love EV's and would struggle to ever go back to an ICE. But, they finally reached the price point where it's just too much of a premium to pay. I'm good with the cars I have for at least 3 years. Will see where things are at then. From what I'm reading on several forums for different vehicles, many EV's have reached price points where buyers are backing away. Hopefully more will follow and it will be better for all consumers.
This isn't a Tesla issue. The bubble has popped, and prices are starting to come back down to earth. Tesla increased the prices several times over the past two years, but the car really isn't worth what Tesla is charging for it today. The market will fix that just like it's doing in this instance. Same goes for everyone else that paid over MSRP or even in some instances, MSRP for their cars no matter what brand or manufacturer it is from.
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Probably slightly newer don’t think there are any 2021 model x plaids only 2022s vs there are already 2021 model s plaids so a full year extra of depreciation. Also the X plaid now has a higher cost than the S plaid though for the longest time, the X plaid was considerably cheaper. I was able to get mine when they were $119k and the s plaid was selling for $129k which made no sense to me. X has the auto doors so I figured it would have to cost more to make… idk.
2putt4
Member
This is only true for the Model S and I'm not surprised. Model 3 and Y are both still in high demand with a huge backlog of orders. $120k+ cars is not a high volume seller and after the first wave of affluent buyers, demand will eventually taper off. This is the reason why Giga Berlin, Austin, and Shanghai are all focusing on high volume models. I don't plan on selling my MSP until the warranty runs out to only get whatever is available next from Tesla. I've accepted the fact long ago that cars are a luxury, not an investment, and expect to lose 30-50% after 4 years.
Something is really wrong / funny with resale value of Teslas
Here used model 3 standard range (rwd) have crazy high resale values (much higher than msrp) while LR have about same resale value as rwd
Older model X have very high resale values also
Older model S have quite good resale too, but yeah plaid have no good resale value while used model S lr resell above msrp
All in all I don't understand what going on with all this
Here used model 3 standard range (rwd) have crazy high resale values (much higher than msrp) while LR have about same resale value as rwd
Older model X have very high resale values also
Older model S have quite good resale too, but yeah plaid have no good resale value while used model S lr resell above msrp
All in all I don't understand what going on with all this
ucmndd
Well-Known Member
Sounds to me like a very normal (or returning to normal) used car market.
Price conscious customers are already more likely to entertain used cars to begin with. The cheap versions of the cars are the most backlogged right now so some people are willing to pay premium to jump the line.
People who can spend big money on a Plaid generally don’t want a used performance car that someone else has flogged. Only reason to entertain that is if there’s a substantial wait for a new copy. Now that Plaids are more or less available on demand, the market of people looking for a used one has dropped substantially, and therefore prices have too.
The long wait time for non-performance versions of new Teslas is what is propping up the used market right now.
2putt4
Member
Model X is still in short supply and there is a wait. Model S Plaid supply has caught up with demand. LR models is what the average EV buyer prioritizes on. No one needs a Plaid and only wants it. It's a luxury and not a necessity. This is the reason why expensive cars depreciate a lot faster unless you go ultra rare or limited run models. My 911 Carrera S has a better resale depreciation relative to a GTS. If you're thinking long term and ultimate best resale, your best bet is to go with LR on the Model S/X. People need the space and range, rarely do they need a 2s 0-60.
2putt4
Member
Nesconset NY vs Miami, FL are two different markets. You will see this if you just scan for similar cars on auto trader across locations.
I routinely see used base model3 (2019-2020) sell for more than I paid my 2022 LR.. That is what I find absolutely abnormal
2putt4
Member
I'd love to see more detail on this comparison, but some of the older cars may have FSD or transferrable unlimited supercharging or who knows. Are you looking at these used base model 3 in the same zip code / area as you?
2putt4
Member
This is another reason why Lucid may not be successful is because they need a volume seller. They lowered their delivery numbers from 12k to 6k cars this year but they've only delivered 1k cars so far. Not sure how they are going to make up the remaining 5k. They have 37k orders in the backlog, but once those are fulfilled, it will die down as their cars are so expensive. Not sure behind their logic to build a Sapphire edition rather than focusing on a volume seller. I understand that they are a luxury EV maker, but BMW and Mercedes both have volume sellers in their 3 series and C-Class. Lucid will run out of juice and those cars are going to depreciate like a rock.
Yes its in canada prov of quebec
Here used model 3 sr+ sells for anything between 59 - 70k$
I paid brand new model 2022 model 3 lr 67K a few month ago
Not sure about Canada vs US here. It’s true earlier this year the used is selling more than new because new takes a long time to get it and used is readily available. Today, if you visit the Tesla site, new M3 sr can be ordered and deliver in Oct-Dec, LR won’t be available till next year. In general, the more expensive version usually depreciate faster than mass market model, especially now going to increase in price, used model already have it and readily available….sometimes people are just desperate or too much motivated for “must have now” and willing to pay more and then regret later … I even saw a Hyundai marked up 6k over MSRP for a toy truck, that’s 15% … crazy market.
Model S Plaid supply is good, you can now to Tesla inventory and pick up with 0 wait time (just confirm build date and quality to confirm if it is not a rejected car) but regardless there is inventory thus used cars price will drop
Model X LR, X Plaid and S LR are not available thus, used ones are selling high
Model X LR, X Plaid and S LR are not available thus, used ones are selling high
Ya tesla lists their cars with no added markup for add ones. A car with same miles and year with 21's and not black interior vs 19s and black interior is the same price. Also they add FSD to all their used cars so trading it in to tesla is a bad idea honestly. Selling a car to carmax you would get the most for it. Im selling my 22 M3p with 2k miles right now before I pickup my plaid next week. and they are offering me 2k under what I originally paid for it and that's 8k less than what tesla offered me and 6k than carvana and a few of the other online only car places. Carmax IMO is the best place to sell your car its so easy.
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