Owner Frustrated with Tesla Depreciation

[TMeister]

These kinds of posts are the most entertaining on the forum. I hope that's not too snippy to get moved.

This type of forum behavior has been going on since the earliest days of newsgroups in the 80's. A newby shows up, posts some controversial stuff and the responses fly.

Reasoned explanations are attempted.
Counter arguments are posted.
Banter about word meanings proliferate.
Huffing and puffing begins.
Eventually the post fades with nothing accomplished.

So maybe it's time to just let this one fade. All the arguments have already been made.

It'll lose its entertainment value but that's OK.

 

[seattlite2004]

The performance model Dodge Charger is the Hellcat which starts at 85k: V8 engine and has a top speed of 220 mph, the fastest for any production car.

While the SP100D has the fastest acceleration from 0 to 60, the Charger Hellcat has the highest top speed for production cars/not super cars. Although the P100D has beaten most supercars in the 1/4 mile.

Did you mean the Challenger? The Challenger Red Eye Wide Body is a freakin BEAST....too bad it ain't a manual.

 

[Tic-tac-toe]

Did you mean the Challenger? The Challenger Red Eye Wide Body is a freakin BEAST....too bad it ain't a manual.

Yes! My son isn’t here to correct his mother. Haha!

I can’t drive manual. Slinks away in shame....

 

[SDRick]

While the subject of depreciation may invoke differences of opinion and perhaps some controversy, the title of this thread, as written, is at best misleading or more likely just a waste of time!

 

[Cycle11111]

Are you serious. If you are buying a NEW car for any aspect of financial gain or performance you are not thinking it through unless you have an intent to collect "collectable cars". If you are so concerned about depreciation never buy new and always buy used and let someone else take the hit. I owned a E320CDI and it had a very similar depreciation curve - great car but expensive and it lost value quickly. I just sold a 4.5 year old Sonata Limited Turbo for $9500 after trying for three months - I paid almost $40K for that car and really liked it but never did I let the depreciation curve effect my enjoyment of it. Sounds to me that you should buy a used Tesla.

 

[Eevee]

I'm a CPO buyer - part of the group that is responsible for your depreciation. Sorry.
I have some thoughts about your post:

- As a CPO buyer I was not interested in a high end, all options, performance model. I think a lot of us are in that boat. We want a reliable electric car with more range than a Leaf. A lot of us are just not really in the market for luxury or performance cars.

- I spent $50k on my car and to me that's an enormous amount of money. It's not about what I can or cannot afford, it's about my values. Again, I think many of us who buy used are just more frugal. In many ways, our group of consumers is different than those of you who bought new.

- I would put you in the category of 'early adopter' and me in the category of 'early majority'. The very first Tesla owners are the 'Innovators' and they have a high risk tolerance. Both the Innovators and Early Adopters will pay more than the Early or Late Majorities.

- Until people realize the longer-than-average lifespans of these cars and lower maintenance costs, mileage will play a larger role than is warranted in the market for used cars. This means that some cars will take a bigger depreciation hit than may seem 'fair'.

- While Elon has made many promises he hasn't kept, this particular promise about depreciation was not really in his control and it was unreasonable to expect this particular promise to be kept.

- I have bought and sold a number of used cars in my life (just for my own use, not as a business or hobby) and I've managed to sell some for more than I bought them. But that's only really possible when you buy used. Cars are (generally) depreciating assets. I've done the same with timeshares - sold for more than I bought. Again, can only do this if you buy used in the first place, the premium on 'new' is too much to overcome during the selling process.

- The best way to get the most value when you sell is to do good marketing and to wait for the right buyer - be patient. I think it IS possible to get the sales price you want for your car, you just have to find that particular, rare buyer who has the money and desperately wants all those options you chose. It will take time to find him/her and you will have to put effort into marketing (ad in autotrader etc).

Good luck on selling your car. Or just enjoy it for now

 

[Uncle Paul]

If the OP is right, then he should not be shopping for a brand new Tesla, but shopping on the used market to take advantage of the rapid depreciation.

If you want to see rapid depreciation, look at the Mercedes S Class, not the Model S Tesla. In addition, the Mercedes S Class does not receive the +/- $10.000 consumer tax credit.

 

[acoste]

Study: Tesla Model X and Model S continue to hold values better than rivals

It is always suspicious to me when someone changes the usual metrics when comparing things. People compare depreciation in years. This article came up with miles. Why?

Where's the SEC now? Shortie alert, ten posts.... hummm...

Lets talk depreciation, all Performance models drop faster than the more modest twins.
6 of the top 10 are European: BMW(3), MBUSA(2) and Jaguar(1).

10 Cars With Fastest Depreciation - Cars With Lowest Resale Value

https://jalopnik.com/5982789/the-most-depreciated-cars-of-the-past-ten-years
9 of 10 are European.

And the winner is...
1.) 2003 Mercedes-Benz CL55 AMG — Down $99,000
AMG Mercedes-Benzes are the undoubted kings of depreciation, with ruinously expensive (and frequent) trips to the mechanic, and a disposable quality that makes last year's model worthless to any self-respecting plutocrat.

We found one of these pretty S-Class coupes that had lost 86% of its value, dropping from $114,600 to $15,500. Damn.

2.) 2005 Mercedes-Benz SL65 AMG — Down $140,000
The twin-turbo V12 SL65 AMG started at $185,000 back in 2005. Now you can get one for $45,000. Now that's depreciation.

My favorite is the Maybach, which dropped $200K !!!!!

Folks do your math!!!!

2003 BMW M5 — Down $54,000 falling from around $71,000 to just $17,000. In 10 years!
>>> that is 13.3% annual depreciation!!

AND THE WINNER

2003 Mercedes-Benz CL55 AMG — Down $99,000
We found one of these pretty S-Class coupes that had lost 86% of its value, dropping from $114,600 to $15,500. Damn.
>>>> THAT IS 18.1% annual depreciation!!!!

 

[seattlite2004]

Someone help me do the math on a 2012 Tesla Model S...here is the chart..... ~100K to about ... lets say 45K. Thats only 7 years unlike the 16 years for the 2003 cars above. Wonder what a 16 yo Mod S is gonna be worth...

 

[patrick40363]

So I purchased my first Tesla just over 2 years ago. I ended buying the Tesla Model S P90DL. At first I absolutely loved the car and today I still love it but it has depreciated 50% of the original value in just over 2 years! I don’t care how much I love any car, this is completely unacceptable and I will never buy another one again! Most cars especially luxury cars lose 55% over 5 years! The 2016 P90DL that cost $145K are selling in the $60k’s and $70k’s range! And most if not all the blame falls on Tesla themselves because it’s their used vehicles that are determining the value since they are basically giving them away! On top of that they have lowered the price on the P100DL etc, which is completely the wrong thing to do when manufacturing cars. Every other luxury car slightly increases the price year after year. The people working at Tesla are either some of the dumbest individuals or they are the dumbest individuals and are ruining Every aspects of ownership of having a Tesla. I remember reading Elon Musk promise that Tesla’s would keep their value better than or equal any other manufacturer when it came to Tesla’s retaining their value. He even went as far as saying that he would guarantee that they would hold their value or they would buy the car back at top price in order to convince owners to purchase their cars and not to worry of the car depreciating like other luxury cars. Well they aren’t, they are the most depreciating in history and they need to fix this before everyone like myself decides never to buy another Tesla again! At this point the only way to not lose a fortune would be too lease the car otherwise you can expect to lose everything you put down and much more when you decide to sale. I have never seen any car go from $145K to $70k in the matter of 2-2 1/2 years. As much as I love the car they will never get my business again and this doesn’t include tons of other shady lies and restrictions they have been caught doing in order to keep them from having their batteries. At this point I have lost all faith, trust, and desire to ever be part of the Tesla family again. If your contemplating purchasing a Tesla DON’T! The resale value is nothing less than pathetic and clearly Tesla does not care, on the contrary it seems like they are trying to accomplish this and succeeding. I can’t wait to get rid of this money pit and never buy another Tesla again. With so many other ev vehicles poised to be released, it’s only a matter of time that they lose every customer since they have no clue how to keep their vehicles maintaining the value they should. Which should not be that hard considering the warranties they offer as well of the fact that they are supposed to be able to get 500k miles yet they lose 50% of their value in a measly 2 years! Farewell Tesla your time is UP!!!

You should have bought the 90D not the P. What did you think was going to happen? Perhaps do some research next time.

 

[acoste]

Someone help me do the math on a 2012 Tesla Model S...here is the chart..... ~100K to about ... lets say 45K.

This is 19.5% annual depreciation (100k to 42k in 4 years)


Adding to this:
Cars in the 2000s had less depreciation than in the 2010s due to their simpler technology. After 2010 V8 turbo engines became super complicated and the BMWs and Mercedes depreciated 19-21% annually due to their added complexity.

OP's car: 144950 - 7500 fed - 2500 state = 134950 to 70k in 2.2 years
>>>> this is 25.8% annual depreciation

 

[MarcusMaximus]

View attachment 363019

Nope 2016.5 P90DL Msrp $144,950
No Facelift model s ever had V1 battery. Only V2 or V3 and they get 270 miles instead of 253 for the V1. So $144,950-$7,500=$137,450
Too bad you missed this thread

I’m guessing, based on your posts, that you make enough to not have been eligible for the $2500 CA rebate(I see you’re in LA)? Regardless, you’re competing against that as well.

 

[MarcusMaximus]

Someone help me do the math on a 2012 Tesla Model S...here is the chart..... ~100K to about ... lets say 45K. Thats only 7 years unlike the 16 years for the 2003 cars above. Wonder what a 16 yo Mod S is gonna be worth...

View attachment 363131

Prices are likely about to go up a bit, as the tax credit expires.

 

[ucmndd]

Prices are likely about to go up a bit, as the tax credit expires.

Dunno, I wouldn’t hold my breath on this.

 

[Xenoilphobe]

It is always suspicious to me when someone changes the usual metrics when comparing things. People compare depreciation in years. This article came up with miles. Why?






Folks do your math!!!!

2003 BMW M5 — Down $54,000 falling from around $71,000 to just $17,000. In 10 years!
>>> that is 13.3% annual depreciation!!

AND THE WINNER

2003 Mercedes-Benz CL55 AMG — Down $99,000
We found one of these pretty S-Class coupes that had lost 86% of its value, dropping from $114,600 to $15,500. Damn.
>>>> THAT IS 18.1% annual depreciation!!!!

You forgot to add in the $2500 quarterly visits to fix the car after the warranty expires. My friend just took his older Model 5 series in and it needed new headlamp assemblies - quote was $4000 (parts and labor) due to some weird headlight balancing system and another $6000 for the leaking steering rack....he said F it, and traded the car in.

 

[hacer]

It is always suspicious to me when someone changes the usual metrics when comparing things. People compare depreciation in years. This article came up with miles. Why?

It's so much better driving a Tesla that they get driven a *lot* more than other makes do.

 

[CarlK]

It is always suspicious to me when someone changes the usual metrics when comparing things. People compare depreciation in years. This article came up with miles. Why?

You can stop your consipation theory for facts you don't like. Autolist is a large used car meta-search platform with a huge data base. It has been publishing studies like this for years. There is no reason why it wants to play tricks to favor Tesla over others.

BTW mind to share with us if you own a Tesla or have a stake in the company or the industry? A lot of awefully strange comments I hear from you?

 

[CraZ8]

I know I will take a hit on my P85DL when I trade it in. That’s just the nature of buying a new luxury car. Same thing happened with the last merc, Audi, BMW and Wifys Land Rover. I used to buy 2/3 year old cars coming off lease but now getting older and decided to have something new is a personal change in my thinking. I managed to buy a few cars that appreciated over time but it’s tough to have a crystal ball. My Z8 has doubled in value in 11 years ( but I’ll never sell it). The BMW 3.0csi has tripled in value but I’ve had to own it 30 years. I’ll sell this spring. So who knows, hang onto that p90d for 20 years and maybe it will appreciate like those original apple computers when they were building them in the garage

 

[roblab]

You bought a $145K tech gadget masquerading as a car. What did you think was going to happen?

And don’t feel bad. The same thing is going to happen to all the people currently buying AP 2.5 vehicles who are expecting them to be FSD capable.

The real lesson here is; only buy used Teslas.

I fixed your typo. And I'm not sure what you mean. I bought a Tesla Model S and a Model 3 and never thought of them as a tech gadget. My cars work very well, and I have not been to a gas pump for six years, and never an oil change. Pretty sure the savings on one helped buy the second, though I agree, no one needs a performance model since they are all performance models anyway.

I bought new because there were no used when I first bought Model S. I bought new again because there were too many features to ignore on the new models. And I don't give a rip about FSD. I wonder why so many people are afraid to drive and want the car to do it for them. Not me. I buy new Teslas because they are superior, at least on my check sheet. My check sheet does not have exhaust noise or miles per gallon or zero to sixty times. I know, sad, ain't it. I put roughly 150,000 miles on my cars in the last six years, hardly any of those being on even TACC. It is so easy to drive.

 

[acoste]

You can stop your consipation theory for facts you don't like. Autolist is a large used car meta-search platform with a huge data base. It has been publishing studies like this for years. There is no reason why it wants to play tricks to favor Tesla over others.

BTW mind to share with us if you own a Tesla or have a stake in the company or the industry? A lot of awefully strange comments I hear from you?

I googled for "depreciation site:www.autolist.com'" and that is the only article that came up with this subject.

I'm just an engineer, who hates when numbers or facts are represented falsely. This is why we can't agree on the human vision as well.