Ordering Model S but unsure what to do with Trade-In?

[theslimshadyist]

I have always sold my cars on Craigslist and Autotrader with very good success. It sometimes can take a while but just be patient and you will get top dollar compared to any trade. I have always taken the position that I have a premium product and I'm not in a hurry to sell and in due time, you will find the right buyer with the same high standards.

 

[joebiker25]

Not sure if this is available in Michigan but after being lowballed by Tesla and CarMax, I went with Beepi.com. They sent an appraiser to my office and within a day gave me an offer 28% higher than CarMax! I got to keep the car and drive it as usual while they listed the car on their website (the appraiser took tons of photos). If the car sells within 30 days, they come by with a flatbed to pick it up and leave a cashier's check for the offer amount. If I doesn't sell in 30 days, they come by with a flatbed to pick it up and leave a cashier's check for the agreed upon amount. The most painless experience ever and I didn't have to deal with the CL crazies.

 

[bigjoefatz]

@DougS - they do not match with Autonation. I am in the process of doing a trade in for my 2016 Model S 70D to Tesla and they refused to match AutoNation's offer.

Speaking of Trading-In - I am trying to figure out how much of a hit it would cost me to upgrade my car from the S 70D to a P100D. I've outlined my calculations below but would appreciate it if folks can attempt to verify/poke holes in what I am doing.

My car is a 2016 (March, pre-refurbish) Tesla Model S 70D, 23,000 miles (I drive a lot). AutoNation has given me a quote of $65,000 for the car.

The cost of the 70D, with sales tax (got to love NY), was approximately $93,000. So in order to break even, I need to have received $93,000 worth of value for my car.

Trade In Amount - $65,000 (no sales tax reduction on my future Model S purchase since I am buying from Tesla but selling to AutoNation)

Gas Savings over the last 10 months - $2000 (just assume this is right)
Federal Rebate for Model S 70D Purchase - $7500
Federal Rebate for Model S P100 Purchase - $7500
Use of Car - $8000 (I am particularly interested if folks think this is a valid value to include - the way I figure it, if I did not have a Model S, I would have had to spend $800 a month on a similar car for the last 10 months).

So, Value-Received-In Total = 65K + 7500 + 7500 + 2000 + 8000 = $90,000

Net loss = approx. $3000 (not including other soft benefits such as cheaper insurance I experienced, the need to replace my tires anyway, no maintenance needed etc).

Please let me know your thoughts.

Thanks,

Joe

 

[AvengerBB]

@DougS - they do not match with Autonation. I am in the process of doing a trade in for my 2016 Model S 70D to Tesla and they refused to match AutoNation's offer.

Speaking of Trading-In - I am trying to figure out how much of a hit it would cost me to upgrade my car from the S 70D to a P100D. I've outlined my calculations below but would appreciate it if folks can attempt to verify/poke holes in what I am doing.

My car is a 2016 (March, pre-refurbish) Tesla Model S 70D, 23,000 miles (I drive a lot). AutoNation has given me a quote of $65,000 for the car.

The cost of the 70D, with sales tax (got to love NY), was approximately $93,000. So in order to break even, I need to have received $93,000 worth of value for my car.

Trade In Amount - $65,000 (no sales tax reduction on my future Model S purchase since I am buying from Tesla but selling to AutoNation)

Gas Savings over the last 10 months - $2000 (just assume this is right)
Federal Rebate for Model S 70D Purchase - $7500
Federal Rebate for Model S P100 Purchase - $7500
Use of Car - $8000 (I am particularly interested if folks think this is a valid value to include - the way I figure it, if I did not have a Model S, I would have had to spend $800 a month on a similar car for the last 10 months).

So, Value-Received-In Total = 65K + 7500 + 7500 + 2000 + 8000 = $90,000

Net loss = approx. $3000 (not including other soft benefits such as cheaper insurance I experienced, the need to replace my tires anyway, no maintenance needed etc).

Please let me know your thoughts.

Thanks,

Joe

Curious what Tesla said your car is worth and how that compared? I have almost the exact same as you (March 70D with 16K miles). Have you asked if they will match autonation?

 

[bigjoefatz]

They will not Match. I asked. Tesla said my car is work 56,800 (not including trade in credit). Any thoughts on my car trade-in analysis?

 

[bigjoefatz]

meant to say "worth" not "work"

 

[Burnt Toast]

@DougS - they do not match with Autonation. I am in the process of doing a trade in for my 2016 Model S 70D to Tesla and they refused to match AutoNation's offer.

Speaking of Trading-In - I am trying to figure out how much of a hit it would cost me to upgrade my car from the S 70D to a P100D. I've outlined my calculations below but would appreciate it if folks can attempt to verify/poke holes in what I am doing.

My car is a 2016 (March, pre-refurbish) Tesla Model S 70D, 23,000 miles (I drive a lot). AutoNation has given me a quote of $65,000 for the car.

The cost of the 70D, with sales tax (got to love NY), was approximately $93,000. So in order to break even, I need to have received $93,000 worth of value for my car.

Trade In Amount - $65,000 (no sales tax reduction on my future Model S purchase since I am buying from Tesla but selling to AutoNation)

Gas Savings over the last 10 months - $2000 (just assume this is right)
Federal Rebate for Model S 70D Purchase - $7500
Federal Rebate for Model S P100 Purchase - $7500
Use of Car - $8000 (I am particularly interested if folks think this is a valid value to include - the way I figure it, if I did not have a Model S, I would have had to spend $800 a month on a similar car for the last 10 months).

So, Value-Received-In Total = 65K + 7500 + 7500 + 2000 + 8000 = $90,000

Net loss = approx. $3000 (not including other soft benefits such as cheaper insurance I experienced, the need to replace my tires anyway, no maintenance needed etc).

Please let me know your thoughts.

Thanks,

Joe

That is some feel good creative accountancy to say the least.

 

[NOLA_Mike]

Please let me know your thoughts.

I can't comment on your accounting because it made my head spin. . Seriously, it would require more thinking than I am capable of doing ATM.

All you need to know is:

Trade in/sale of 70D = $65,000.
Purchase of P100D = $155,000 + $12,500 tax - $7,500 tax credit

means you need to come up with about $95k to complete this transaction. Ouch. But I fully understand....

Mike

 

[bigjoefatz]

lol NOLA. Basically I'm just trying to figure out if I received 93k worth of value in my car. I think the 65k trade in, 15k in fed rebates and 1500 in gas savings are legit. So I view that as 81.5k received in value thus far. I also think it's fair to assume that I would have paid 6.5k to rent a Tesla out for 8 months. So that brings me to about 88k of value. I'm just trying to figure out if it's fair to give value to that last point.

 

[bigjoefatz]

Really? I think maybe the last point is - but the other costs savings are legit, no?

 

[NOLA_Mike]

lol NOLA. Basically I'm just trying to figure out if I received 93k worth of value in my car. I think the 65k trade in, 15k in fed rebates and 1500 in gas savings are legit. So I view that as 81.5k received in value thus far. I also think it's fair to assume that I would have paid 6.5k to rent a Tesla out for 8 months. So that brings me to about 88k of value. I'm just trying to figure out if it's fair to give value to that last point.

All I can say is if you can afford it, these Tesla Halo cars (currently the P100D) are phenomenal.

You're counting the $7.5k tax credit from both cars as "value" toward the 70D - I don't think that is going to pass GAAP scrutiny either...

 

[bigjoefatz]

But it does. I'm only going to pay cash out of pocket equal to the difference between the 70d and the 100d. Think about it - if you buy 10 Tesla's at 75k each, the 10th one is free due to the fed rebate.