Need help deciding which Tesla to sell

[Jazbo Jenkins]

Hello fellow Tesla Model Y owners, My wife and I are trying to get out of pickle of our own doing.

We have two Tesla I will call them Tesla 1 and Tesla 2 both are model Y's LR's, my wife and I are trying to figure out which one to sell. I need some advice. I will describe both and if someone could help us decide, we would really appreciate it.

Tesla 1 2022 Model Y Long Range white (free color at the time) with Black interior, 20" Induction wheels, tow package, 24,000 miles, we put PPF on the front and ceramic coated the whole car (5K in labor and products) APR 2.49% we owe 45,200 and have been paying on the car for 18 months KBB says value is between 35,700 and 41,100 (purchased for 68,000 in July 2022)

Tesla 2 2023 Model Y Long Range Grey (free color at the time) white interior, 20" Induction wheels, 8,000 miles, no ppf or ceramic. APR is 5.24% we've been paying on it for 5 months (it qualifies for the 7500 IRA tax rebate (which we have our tax appt on Feb 23) we owe 54, 200 and KBB says its value is between 40,500 and 45,500 (purchased for 56,399 in August 23)
The reason for the sale is that we just found a Rivian R1T at a price that we could not pass up (which is what we really wanted/needed for our lifestyle before buying Tesla #2) 5 months ago, and we purchased the rivian last week.

Please help, we really appreciate you all.

 

[ATPMSD]

Let me get this straight, you are upside down on both cars to the tune of about $10K each and after buying the Rivian you now want to sell one car and take $10K loss? Maybe consider renting the car out via something like Turo to cover the payments and just keep them both - at least until you can break-even on a sale.

 

[carpendj]

Model Y values have tanked due to price reductions and the state of the EV marketplace. Interest rates are pretty high too. Rivian on the other hand has not reduced their pricing and their truck is super expensive. If its not too late to get out of it, I would cancel the Rivian order and work on paying off the two Tesla's. If it is too late to cancel the Rivian, then I would sell the 2023 as that has the loan with the highest interest rate. Though that decision could also depend on your tax situation. Losing the rebate might be more painful than the interest you would pay on the car or maybe you have to file your taxes before you sell it. The rebate stuff is not my area of expertise. Others likely have thoughts on that. You guys have really got yourselves into a pickle here for sure and its going to hurt your pockets. It looks like you did not put down much of a deposit either and took on big loans. If you put almost nothing down for the Tesla's, then I suspect you are putting little down on a Rivian that must be costing you a fortune.

I too would love a Rivian or a Cybertruck, but it makes no financial sense for me to get one. I can now buy a Model Y performance for less than I paid in 2022. My Tesla is currently valued around the same as what I owe on a 2.2% loan. If I purchased a Rivian, it would mean I would have zero equity and would have to take on a larger loan at a higher interest rate. I will just keep my car longer and pay it down and this is what I feel you should both be doing if that is still a possibility.

 

[Jazbo Jenkins]

Thank you both for your responses. I appreciate the time you took and will consider your ideas.

 

[Buckeye614]

Put them both up for sale at the price you want and see which one sells first. I would hope the older one sells first.

 

[fiehlsport]

There's really no decision that makes financial sense for anyone that got a 2022 or 2023 at the inflated pricing of the time. Most people are now upside-down or breaking even on their loans unless they put down a sizable downpayment. Best course of action is the least fun - continue paying it down and see what happens with the EV market over the next year or two. We're in a slump right now, things could change.

 

[JayPaul]

Unfortunately, without having cash to pay the difference in selling price and what you owe, you won't be able to sell either... If you are going to pay the difference, you might as well put them both up for sale, and only accept the one that costs you out of pocket the least.

People can pick up a new Performance for $41k with the point-of-sale tax credit.

I bought my used 2021 7-seater in June for $58,900 from Tesla. I did come with AB and FSDb (which I use every drive). I luckily had the cash to pay it off in full, but right now, I could get a performance + FSDb + money in my picket for what I paid. In the end, I'm happy with my Y, and see no reason to worry about the value, since I'm not selling it. Sorry your situation is different, you might just be better selling the Rivian, it might be worth more than you paid for it, since they are harder to get.

 

[Mateo83]

I read this post as you didn't make wise financial decisions and are about to make another one.

 

[Kairide]

Sounds like you should spend the money on a financial advisor, not an R1T.

 

[tradosaurus]

Keep both and accept your fate.

 

[rogersmj]

I read this post as you didn't make wise financial decisions and are about to make another one.

Yeah..."I'm already underwater on two cars, but I bought another one at a price I couldn't pass up" translates to "salesmen can see me coming from miles away."

I echo the others...forget the Rivian, you can pass it up, and realize that you've already made your bed and now you have to sleep in it. If you can't back out of the Rivian deal, either sell it, or if you're really going to keep the Rivian, sell Tesla #2. It has the higher APR and it doesn't have PPF (you'll never get your money back for PPF when you sell the car, so you might as well keep the one with PPF and enjoy it).

 

[Mateo83]

Yeah..."I'm already underwater on two cars, but I bought another one at a price I couldn't pass up" translates to "salesmen can see me coming from miles away."

I echo the others...forget the Rivian, you can pass it up, and realize that you've already made your bed and now you have to sleep in it. If you can't back out of the Rivian deal, either sell it, or if you're really going to keep the Rivian, sell Tesla #2. It has the higher APR and it doesn't have PPF (you'll never get your money back for PPF when you sell the car, so you might as well keep the one with PPF and enjoy it).

I have a friend like this, always trading in for newer cars to impress tinder dates. Then complaining that they cost too much and he can't get ahead in life

If you don't have cash or a decent down payment and are already underwater, why compound the issue?

 

[ForTheHalibut]

I would swap the wheels on the cars (assuming you haven't already bought new tires for #1), then sell tesla #2. The PPF and low APR on #1 will go a long ways.

And dont listen to these guys, enjoy the hell out of the Rivian!

 

[cbdream99]

It seems like you have money to spent and it is not an issue for you, but you are already in 3 holes and wanted to dig yourself out from one, I will say sell the newer Y since you owe more and at a higher interest rate, the tax rebate can lessen your out of pocket expense.

 

[Dennisis]

Seeing as you've already purchased the Rivian the choice seems clear - sell #2, pay off the loan and then hang on to your 2 remaining vehicles for as long as possible, or at least until they're paid off. Good luck and enjoy your cars so this expensive lesson isn't for naught.

 

[Volkie]

As others have said, you've made your purchase so you're committed at this point.

I'd suggest selling car #2 given the higher financing burden however if car #1 can bring you materially more money then you'd need to consider that.

Regardless, I hope you enjoy the Rivian and put these purchases in the rear-view mirror once you close the deal.

 

[Sephiroth]

Ramit Sethi. Look him up.

 

[Jazbo Jenkins]

Thank you all for your suggestions, we are definitely going to learn from this!

 

[Iron]

I have a 2023 MYLR and an old ICE pickup. With a Rivian, I could get rid of both of em, but I won't. Rivian needs a price war to bring down those prices. Maybe CT will help with that.

 

[Hurricane4911]

Hello fellow Tesla Model Y owners, My wife and I are trying to get out of pickle of our own doing.

We have two Tesla I will call them Tesla 1 and Tesla 2 both are model Y's LR's, my wife and I are trying to figure out which one to sell. I need some advice. I will describe both and if someone could help us decide, we would really appreciate it.

Tesla 1 2022 Model Y Long Range white (free color at the time) with Black interior, 20" Induction wheels, tow package, 24,000 miles, we put PPF on the front and ceramic coated the whole car (5K in labor and products) APR 2.49% we owe 45,200 and have been paying on the car for 18 months KBB says value is between 35,700 and 41,100 (purchased for 68,000 in July 2022)

Tesla 2 2023 Model Y Long Range Grey (free color at the time) white interior, 20" Induction wheels, 8,000 miles, no ppf or ceramic. APR is 5.24% we've been paying on it for 5 months (it qualifies for the 7500 IRA tax rebate (which we have our tax appt on Feb 23) we owe 54, 200 and KBB says its value is between 40,500 and 45,500 (purchased for 56,399 in August 23)
The reason for the sale is that we just found a Rivian R1T at a price that we could not pass up (which is what we really wanted/needed for our lifestyle before buying Tesla #2) 5 months ago, and we purchased the rivian last week.

Please help, we really appreciate you all.

I'm going to say this, but understand, I'm not being mean...
You and your spouse need to learn how to handle your money better.

My seasoned advice?
Sell both
Settle your current debts
Forget the Rivian