Model Y Trade-In Values, decreasing? Bait&switch? (Trade In: Model 3)

[jimmy-buffett]

How is Tesla doing for everybody else on trade-in values on recent Model Y deliveries?

I bought my Model 3 last September, and started the order process for a Model Y on April 8th. The trade-in offer was respectable:

2019 Model 3, 5529 miles. 4/8/2020 - $41,400 from Tesla

Then on Wednesday (2 days ago), they called to schedule my Model Y delivery AND to discuss the new revised trade-in offer, $2400 less than their original offer:

2019 Model 3, 7010 miles. 6/24/2020 - $39,000 from Tesla

The sales associate at Tesla recommended taking the car to CarMAX, which I did:

2019 Model 3, 7018 miles. 6/24/2020 - $42,000 from CarMAX

And a friend recommended Carvana, which I did yesterday:

2019 Model 3, 7031 miles. 6/25/2020 - $42,717 from Carvana

For where I live, Tesla's $39K offer with sales-tax (8.5%) trade-in benefit is $42.3K. So my impression is that they were offering the lowest amount they could to be equal to market value on trade-in by including the sales tax benefit. Meaning, it looks like they're trying to take the entire sales-tax benefit for themselves.

Is anybody else seeing this on their trade-in offers? I get that "car dealers gonna car dealer", but to take the entire sales tax benefit? Split it with me, at least.

I'm taking the Carvana offer. $400 more for me, and likely $5000 or more less for Tesla. Excited to get my Model Y, but this seems like some bone-headed decision at HQ that will end up costing them money from anyone with 20 minutes to go to CarMAX or get on Carvana.

 

[pbd87]

Used car prices have been a roller coaster the last few months. And are projected to continue to be a roller coaster. Tesla doesn't want to be in the used car business anyway, they're probably just taking the car to the nearest wholesale auction and don't want to lose money on it. Plenty of people have had reduced trade-in offers lately. Your quote was over 2 months ago, that's an eternity in this economy. CarMax might've offered you even more back in April as well.

 

[jimmy-buffett]

Used car prices have been a roller coaster the last few months. And are projected to continue to be a roller coaster. Tesla doesn't want to be in the used car business anyway, they're probably just taking the car to the nearest wholesale auction and don't want to lose money on it. Plenty of people have had reduced trade-in offers lately. Your quote was over 2 months ago, that's an eternity in this economy. CarMax might've offered you even more back in April as well.

Straight from the Tesla sales associate at the store, they're the leading seller of used Telsas. Trade in something else, they'll probably auction it. Trade in a Tesla? They resell it.

2019 Model 3 | Tesla

Same year / color / drivetrain as mine (LR AWD), 3K more miles, I have the upgraded 19-inch wheels, $44.8K. Which likely puts them listing mine in the $45K+ range. They wanted to make $6K on my car, that's why their trade-in offer was so low.

As for "2 months ago": when CarMax and Carvana both come in within $700 of each other, and the Tesla offer is $3000 lower, that's not "the market". That's Tesla corporate making a conscious decision to under-value trade-in's.

$400 more for me from Carvana cost Tesla $6000. If this business decision makes sense to you, I hope you don't own a business.

 

[dgstan]

Very clean 2018 Model 3 LR/RWD/19" wheels, white/black, w/21,000 miles (no EAP/FSD):

Tesla - $31,900
Carmax - $26,000
Carvana - $22,000

I'm shocked to hear people say these other places are offering more than Tesla. It's pretty clear to me neither were the least bit interested in my car. I'm selling privately and as long as I get at least $32,000 for it, I'll consider it a "win".

 

[seesharp4me]

I was supposed to be picking up my Y last week. Week before last they reduced my trade-in by $2,000.00 and then last week the day of pick-up they conveniently dropped it another $4,000.00. You can't tell me in a week my car dropped $4,000.00 in a week. BTW - the offer matched exactly what my payoff was... So, at this time I am keeping my Model 3 and I am not picking up my Y, which is not such a bad thing.

 

[Juanpelota]

This thread sounds suspicious. The trade offers are good for 30 days. And if you accept it, and put your reservation in, you are locked in at that trade in value even if the car takes longer than 30 days to deliver.

 

[myMY808]

This thread sounds suspicious. The trade offers are good for 30 days. And if you accept it, and put your reservation in, you are locked in at that trade in value even if the car takes longer than 30 days to deliver.

That’s not what my delivery advisor told me — even though I had an MVPA showing the higher trade amount, which I had accepted back in March, I was told the trade-in would be re-valued since over 30 days had passed. As my June delivery date grew closer, they dropped the trade-in offer by $2k and re-did the MVPA.

Granted, their ability to renegotiate trade values over a set number of days seems fair since I was able to also change my mind and not take delivery in June, so it works both ways.

 

[pbd87]

Straight from the Tesla sales associate at the store, they're the leading seller of used Telsas. Trade in something else, they'll probably auction it. Trade in a Tesla? They resell it.

2019 Model 3 | Tesla

Same year / color / drivetrain as mine (LR AWD), 3K more miles, I have the upgraded 19-inch wheels, $44.8K. Which likely puts them listing mine in the $45K+ range. They wanted to make $6K on my car, that's why their trade-in offer was so low.

As for "2 months ago": when CarMax and Carvana both come in within $700 of each other, and the Tesla offer is $3000 lower, that's not "the market". That's Tesla corporate making a conscious decision to under-value trade-in's.

$400 more for me from Carvana cost Tesla $6000. If this business decision makes sense to you, I hope you don't own a business.

LOL, and Tesla sales associates have never, ever, been wrong or misinformed about anything. Good one, dude. They're sold used Teslas at auctions, and will continue to do so.

Tesla doesn't give 2 shits about their used car business. It's a side hustle, at most, nothing more. They want to sell new cars. Period. End of story. I'm 100% certain they could squeeze more profit out by getting really involved in the used car game, but I'm also 100% that's not their business. It's not their core competency. It's not their value-add. You don't spend your effort and your money in areas where you'll never be more than a bit-player. Used cars will never materially contribute to their margins, so they only deal with them as they have to.

Why do you think Tesla in some places now charges over $100 to rotate your tires? Because any auto repair or tire shop on the planet can rotate your tires, that's not Tesla's core competency, that's not their value-add. Same exact thing with selling used cars. They'll take your car if you really want them to take it. But otherwise, they're not going to. But if you really, really want them to take your car, they're going to make sure they get plenty of money for it.

And you completely misunderstand my point about 2 months ago. If Carvana and Carmax will both give you more money now, they ALSO would've given you more money 2 months ago! You can't even keep your own argument straight. Is your problem that Tesla reduced their offer after 2 months? Or is your problem that Carmax and Carvana will pay you more than Tesla? I'm pretty certain Carmax and Carvana would've given you more money 2 months ago too, but you weren't complaining then, you just didn't realize it. The market has definitely changed, that's why Tesla dropped their price from 2 months ago. But everybody has adjusted their prices, you probably could've gotten more from other companies back then too.

 

[Juanpelota]

That’s not what my delivery advisor told me — even though I had an MVPA showing the higher trade amount, which I had accepted back in March, I was told the trade-in would be re-valued since over 30 days had passed. As my June delivery date grew closer, they dropped the trade-in offer by $2k and re-did the MVPA.

Granted, their ability to renegotiate trade values over a set number of days seems fair since I was able to also change my mind and not take delivery in June, so it works both ways.

 

[Hblick48]

Tesla has ONE thing over everyone else in the used Tesla market, their warranty.

I originally purchased a used 2016 MS from Carvana. Original factory warranty was about to expire. After I purchased, called them to inquire about purchasing extended warranty. Was told that they will not write a warranty policy for a Tesla.

Cancelled that order and purchased a 2016 MS with 40,000 miles from Tesla for about the same price with 4 year, 50,000 warranty.

I haven't found any other warranty company that will cover a Tesla. Interesting that when you search for used Teslas online, most are out of warranty, or just short on original one expiring.

Wouldn't own one without warranty, just too expensive to repair.

BTW, Tesla's trade in offer was $1,000 more than Carvana, just sold old car privately, I came out way ahead.

 

[jimmy-buffett]

LOL, and Tesla sales associates have never, ever, been wrong or misinformed about anything. Good one, dude. They're sold used Teslas at auctions, and will continue to do so.

I linked you a comparable used Tesla to mine from Tesla.com, they sell used Teslas on their own website. I have no reason to disbelieve the salesperson that they are the leading seller of used Teslas. Based on used inventory counts by brand at other dealers, this seems to be a trend in the car business. It makes sense: if someone can't afford a new Tesla, then Tesla would rather sell them a used Tesla than no Tesla at all.

And you completely misunderstand my point about 2 months ago. If Carvana and Carmax will both give you more money now, they ALSO would've given you more money 2 months ago! You can't even keep your own argument straight. Is your problem that Tesla reduced their offer after 2 months? Or is your problem that Carmax and Carvana will pay you more than Tesla?

My complaint is that I got a fair offer from Tesla 2 months ago -- more than CarMax and Carvana when you factor in the benefit of sales tax reduction -- and then they revised that offer downward substantially 2 days before I was set to get my car. It felt like a bait&switch.

Tesla could have stood by their earlier fair offer and made $4K off my used car, rather than trying to make $6K at my expense 2 days before delivery. As it is, their offer + the sales tax benefit was roughly equal to CarMax / Carvana's offers without the sales tax benefit. Ergo, CarMax / Carvana's offers ($700 apart) seem to represent the market trade-in price for the car. I don't appreciate that Tesla changed the deal 2 days before delivery to offer $3700 below that fair market trade-in price.

I get it, you're a true believer. I like what this company is trying to do too, that's why I've bought two cars from them. That doesn't make me ignore a bad customer experience though, especially when it didn't have to happen in the first place.

 

[dgstan]

I was so disgusted with Tesla's lowball offer ($31k), CarMax's laughable offer ($26k), and Carvana's downright insulting offer ($22k) that I decided to list it on Craigslist this morning.

Within 20 minutes, I had 10 messages, some offers (none lower than Tesla's), and appointments with a few people to come see it. The first guy that came bought it cash for $34k. Still much lower than KBB, but I'm happy.

No sales tax incentive here in the Golden State.

 

[pbd87]

My complaint is that I got a fair offer from Tesla 2 months ago -- more than CarMax and Carvana when you factor in the benefit of sales tax reduction -- and then they revised that offer downward substantially 2 days before I was set to get my car. It felt like a bait&switch.

Tesla could have stood by their earlier fair offer and made $4K off my used car, rather than trying to make $6K at my expense 2 days before delivery. As it is, their offer + the sales tax benefit was roughly equal to CarMax / Carvana's offers without the sales tax benefit. Ergo, CarMax / Carvana's offers ($700 apart) seem to represent the market trade-in price for the car. I don't appreciate that Tesla changed the deal 2 days before delivery to offer $3700 below that fair market trade-in price.

I get it, you're a true believer. I like what this company is trying to do too, that's why I've bought two cars from them. That doesn't make me ignore a bad customer experience though, especially when it didn't have to happen in the first place.

I don't know if you've noticed, but the economy has changed a bit since April. There's been a lot of stuff going on, but maybe you haven't noticed? Their offer changed after 2 months, during one of the most dramatic economic upheavals in history. Shocker.

Tesla doesn't care about your sales tax incentive, and they shouldn't care. Tesla doesn't care about selling used cars, and they shouldn't care. They made you an offer, you didn't accept it. Move on, man.

I'm also FAR from a true believer. Elon is a pompous asshole who behaves like a spoiled child. Tesla as a company: I actually find it unfortunate that the best cars on the planet, that I would prefer to drive above any other, are made by a company that can be actually pretty shitty as a whole. But this isn't a problem on their part. It's not a legitimate complaint. I save my anger for legitimate complaints.

 

[notrhj]

Tesla will never buy a car for more money then it costs them to make One.
Brand new retail. Eight days later wholesale ? Nope.
Much much less.

 

[SarasotaGuy]

Don”t be fooled, as per Manheim auctions, used car prices went back UP sharply in June!

 

[Bentesling]

No offense meant, but have you ever traded in a car with Tesla, or purchased a Tesla, that took over 30 days? I mention this to help others, not to point out what you are saying or the chat screenshot is incorrect. Tesla will re-evaluate if more than 30 days, and change the trade-in amount they are offering (likely lower but could be higher in rare cases). That Tesla chat representative is incorrect.

 

[Juanpelota]

actually she's not.. it's the same thing the sales agent says too right now.

 

[Bentesling]

For reference, and to help others out, I took delivery of my Model Y 4 days ago. I originally placed the order in March, along with a locked in trade-in value like mentioned above. 2 days after confirming the delivery date, Tesla re-appraised my Model 3 I was planning to trade in, offering a few thousand less than originally quoted. I elected to keep my model 3, purchased the model Y Tuesday without trading anything in, and then sold the model 3 to Carvana a few days later.

I wish you the best of luck if you take the Tesla chart person at their word, but be warned that my example is less than 1 week old. So, ideally things changed like the chat your screenshot showed as that would be great, but be prepared if you try to take delivery and the final trade-in value changes unexpectedly.

Contrasting what Tesla may say over the phone or chat vs what occurs when you make final payment and pickup the car is all I’m trying to point out here. Fingers crossed for everyone picking up a new model Y. I miss the model 3 slightly, but would never go back from the Y to the 3.

 

[rick]

I’ll make it short. Ordered and Configured Model Y 15 months ago. Generic text early June. “Accept or delay in June”. Replied “accept”. Then received a text on June 14 Th.”-prepare to receive your Model Y in two weeks or less”. I accepted Tesla’s trade in offer on my model 3, cancelled two other offers (sales tax and delivery convenience). No car. 30 day trade in limit runs out next week . I asked them to extend the 30 days Tesla said no. My fourth Tesla. Love the product and the philosophy. Unhappy with communication,service,delivery,customer appreciation, pr,ethics. I understand the quarterly push — its just money

 

[Biturbowned]

They re-evaluated my trade in and quoted me zero dollars. Classic.