Need some advice on trade in

[yesla4tesl]

I am in the process of trading in my 2018 X for a 2019 3 Performance (3k miles).
Tesla offered 69k for trade, I owe 73k. I have been told that Carmax might offer a better price for the X. My SA told me the other day that if I trade it in with Carmax I would have to pay some tax, but if I trade the X in, I would not have to pay the tax. Hope this makes sense to someone as it does not to me. I am in Florida if that helps. Delivery is on Sunday.

Cheers

 

[Romand]

why would you go from an x to a 3 sounds very silly

 

[yesla4tesl]

why would you go from an x to a 3 sounds very silly

Cost is a big reason. I am cutting my payment by 1/3. Wife does not like it. The falcon doors are cool but I find myself getting annoyed with them with kids. They open the door as I open my driver door and the falcons pause and then only go up a little... or I end up getting stuck due to the door only opening a little bit. (mainly in my garage due to wife's Model S)
Just many reasons I want to switch out to the 3. I feel the 3 is the best value for any Tesla..

 

[Romand]

Cost is a big reason. I am cutting my payment by 1/3. Wife does not like it. The falcon doors are cool but I find myself getting annoyed with them with kids. They open the door as I open my driver door and the falcons pause and then only go up a little... or I end up getting stuck due to the door only opening a little bit. (mainly in my garage due to wife's Model S)
Just many reasons I want to switch out to the 3. I feel the 3 is the best value for any Tesla..

understood maybe wait for the model y? as it will be the same price bassically and be a closer size to your model x and have the latest tech

 

[yesla4tesl]

understood maybe wait for the model y? as it will be the same price bassically and be a closer size to your model x and have the latest tech

True, I did think of that but the X is very $$ and I just do not feel comfortable paying that cost. The other reason is range. My X is a 75 so I get 200 miles @ 90%. I was actually going to go with the 2020 LR and had it ordered till I saw the 19 performance for 1k more. It also only has 3k miles on it so its basically new (to me)

I do wish I could drive it before I sign and take ownership. That is what confused me when I bought my wife's S. It was also used and no test drive. How do you even know if the car runs or if there is a vibrating/squealing noise till you own it.

 

[jjrandorin]

In states that allow trade ins to offset tax, the amount of your trade in can be deducted from your tax liability on the new vehicle. California is not such a state, but maybe florida is (sounds like). What that would mean is, since your trade in vehicle is worth more than the one you are buying (most likely) you wouldnt pay tax, however your upside down 4k trading it into tesla.

You will need to do a bit of math to see how it works out. What would tax be on your new vehicle on trade in, vs how much carmax or someone else offers you.

Example.. tax on your model 3 without trade in, lets say the model 3 is 60k (unlikely) = 3600.

If car max offered you 2k more for your car, but then you had to pay 3600 tax for the new car, you would lose on that transaction, even though carmax offered you more. Plug in your own numbers to figure it out and get a price from carmax and see if tesla will match it anyway and allow you to trade in.

 

[yesla4tesl]

In states that allow trade ins to offset tax, the amount of your trade in can be deducted from your tax liability on the new vehicle. California is not such a state, but maybe florida is (sounds like). What that would mean is, since your trade in vehicle is worth more than the one you are buying (most likely) you wouldnt pay tax, however your upside down 4k trading it into tesla.

You will need to do a bit of math to see how it works out. What would tax be on your new vehicle on trade in, vs how much carmax or someone else offers you.

Example.. tax on your model 3 without trade in, lets say the model 3 is 60k (unlikely) = 3600.

If car max offered you 2k more for your car, but then you had to pay 3600 tax for the new car, you would lose on that transaction, even though carmax offered you more. Plug in your own numbers to figure it out and get a price from carmax and see if tesla will match it anyway and allow you to trade in.

whoa.. awesome explanation. Car is 58k. So your numbers are not off by much. I just did Vroom and they offered 61k. The X has FSD too. Ah well, I think I am going to just accept Tesla's and call it a learning experience. Thank you for that awesome explanation.

 

[Lasttoy]

As said on here a thousand times, dont trade into Tesla, they low ball u. Sell it yourself on internet, easy fast get true market value.

 

[outdoordawg]

I am in the process of trading in my 2018 X for a 2019 3 Performance (3k miles).
Tesla offered 69k for trade, I owe 73k. I have been told that Carmax might offer a better price for the X. My SA told me the other day that if I trade it in with Carmax I would have to pay some tax, but if I trade the X in, I would not have to pay the tax. Hope this makes sense to someone as it does not to me. I am in Florida if that helps. Delivery is on Sunday.

Cheers

Take it to carmax when you are ready to trade-in and settle the payment on your M3, Tesla does match carmax offers. Yes Tesla does low ball you on the tradeins, but if you get a better carmax offer you can get that matched.

 

[jjrandorin]

As said on here a thousand times, dont trade into Tesla, they low ball u. Sell it yourself on internet, easy fast get true market value.

In states that have the tax advantage for trading, one would need to do the math, just like trading to carmax... and then also deal with doing a private party transaction for somewhere in the 65-70k range in this OPs case, along with tire kickers, the stress of test drives, etc etc/.

its not for everyone, and some people are willing to pay to avoid it (I know I am).

 

[OCR1]

This is a very unusual situation in that the trade in is worth more than the new car. So if the new car sells for $50K and the sales tax rate is 6.5% that is an extra $3,250 in sales tax you would have to pay if you sell the Model X privately.

But you should at least look at what private party selling prices are to see how far off they are from the trade in price and then you can make an informed decision on which way to go.

 

[AZjohnInCA]

My highest buying offer quote was Carvana. Took just a couple minutes online (unlike having to go to CarMax for offer). Two days later Carvana rep shows up to door with check, I sign one form, hand over keys and it’s done.

Very happy experience but I agree with previous posts, get as many offers as you can, do the math, and go from there.

 

[Lasttoy]

Great result. Glad you had success.

 

[OCR1]

Carmax quoted me $14K for my Lexus. I put an ad on Craigslist and sold it to the first guy who showed up to look at it for $18K.

 

[ofcorona]

I had different experience. Tesla offered me more than CarMax.

 

[AlanSqB]

I had different experience. Tesla offered me more than CarMax.

Same here by $500. I also get the benefit of about $3k off in taxes due to the fact that Washington State allows sales tax exemptions for the agreed value of the vehicle on trade despite what is still owed. Well worth not fussing around to try to sell it myself.

 

[scherer326]

so tesla will match offer from carmax to buy model 3 that i can use as trade-in for model y? I thought that they wouldnt or am I wrong here. I am planning on going to carmax in boynton to see what they will give me for my model 3 and then convey that number to Tesla.

 

[bjadams]

My highest buying offer quote was Carvana. Took just a couple minutes online (unlike having to go to CarMax for offer). Two days later Carvana rep shows up to door with check, I sign one form, hand over keys and it’s done.

Very happy experience but I agree with previous posts, get as many offers as you can, do the math, and go from there.

I was offered 12K by Car Max and 12.5K by Tesla which, with the tax break in Florida, works out to about 13.2K. Carvana offered me 13.7k and they are coming tomorrow to get the car.

 

[Okninja]

I was offered 12K by Car Max and 12.5K by Tesla which, with the tax break in Florida, works out to about 13.2K. Carvana offered me 13.7k and they are coming tomorrow to get the car.

make sure you were honest about imperfections etc I heard carvana can change offer on pickup after inspecting car in person.

 

[AZjohnInCA]

make sure you were honest about imperfections etc I heard carvana can change offer on pickup after inspecting car in person.

As they should if someone isn’t honest.
If I remember correctly, the highest condition you can rate your car with Carvana is good, not excellent. But yes, if not as described correctly by seller deal should be off (this really goes for everything in addition to cars).