Owner Frustrated with Tesla Depreciation

[Sg911]

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!!!

That’s a stupid comparison. Any vehicle above $75k drops pretty hard!! $100, and above, even AMG’s , Rolls, Lamborghini is even a steeper slide, unless it’s limited production rarity. While I have my grievances with Tesla and its shoddy customer service I’ve experienced from day 1. Car companies like Tesla don’t control the market, and the market is predominantly moving towards SUV’s and crossovers!! The market for $100 k cars is small, and the choices wide. Cars are tanking all over and the modern world economics is shifting away from car ownership as millennials don’t yet have the means. Car owership of new cars is heading more towards car sharing , and autonomous Uber, Lyft, Tesla are the next big path...

 

[ydw1988913]

The real lesson here is; only buy used Tesla’s.


I disagree. I was looking at CPO cars for months. I also looked at used from individuals. At the price point of used late 2016 or early 2017, the cars I saw had too many paint chips/issues, or hadn’t been properly cared for by the previous owner.

To me, it was worth it to spend the extra $25K-$30K to get a brand new beauty that no one else has driven. Got my 2018 MS 100D last month. I’m going to put 20K miles plus per year on it. I don’t care what it’s value is tomorrow, next month or next year.

I love the car, and will drive it until I sell it for scrap and then buy another one.

And this is from someone who got out of a depreciating Audi A8L and Nissan GT-R. Talk about sucking money. Not only did they depreciate like crazy, the maintenance costs were astronomical. $3500 for a brake job on the Audi!

In factoring your expense on your car, don’t forget to subtract all that money you would have spent on gas, oil changes, brake pads, etc.....

When did you buy your GTR? I got mine for 75k in 2014 and it still worth at least 65k almost 5 years later...

 

[NoMoPetrol]

I purchased a CPO 2013 S85 in 2017. I love the car I have and hope to see mile number 500,000 logged on the odometer before I am too old to drive. I now see newer versions of the car with AP1 for $8-12K cheaper than when I purchased mine and celebrate the increased opportunities for more people to convert to EVs. I stopped worrying decades ago about the things I've missed out on in life if I only waited for a better deal. I got my deal, and I love it!

 

[Sg911]

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 Tesla’s.

Agreed. Wonder how my Model 3 Performance will hold out in early 2019 ? Only 1200 miles right now lol

 

[LasVegas2019]

My 2017 Nissan Titan depreciated worse than your Tesla.

 

[mspohr]

There is the one good thing you said. For people who want the latest and greatest all the time, a lease is the best solution.

And something is 'worth' a certain value only if you wish to sell it. My Model S is two years old and of course has lessened in value if I were to sell it. But I plan on keeping it and enjoy driving it too much to sell it. So even if it were worth nothing I would not care because I do not plan on disposing the asset.

I agree.
I buy cars new and keep them a long time. By the time I get rid of them, they have fully depreciated. You always lose a lot of money on depreciation when you sell a car with after only a few years. My second car is a 20 year old, 190,000 mile Land Rover that is fully depreciated but still runs great and has great utility for me.
Leasing is always more expensive but if you plan on replacing a car after a few years, you can have the peace of mind knowing the cost to get rid of it. The leasing company has to pay the depreciation and get their profit and they price that into the lease. You can usually do better selling on the private market but some people just don't want to bother.

 

[Stratusbill]

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!!!

I love my S after one year. Best computer I’ve ever owned. Will get a 3 soon. You should have bought a Bolt.

 

[dww12]

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!!!

Your problem is the Performance 3 came out. All the people looking for used P85Ds and P90Ds decided the P3 with AP2 and possibility for FSD, more range, better efficiency and track mode was a better option. The MS still looks better and is quicker. I doubt the PMS will fall much more now... until used P3s hit the market in two years. Look at the X, it has not fallen nearly as much, because it is a much different car from the 3.

 

[Hawtsauce]

Supply and demand.... You are venting to the wrong audience. We are either avid new Tesla purchasers or savy CPO purchasers. In either case, both are spending to a self-prescribed $$ limit. Even if your used Tesla was a Rolls Royce, it still boils down to supply and demand (at that particular moment in time).

Exactly. I want a Powerwall for the house and Tesla recently raised the price almost $1000. Why because more people want them at a rate faster than they can produce them. Yeah it sucks I have to pay more but that’s how supply and demand works. Maybe people would rather have a new Tesla customized vs second and so the market is flooded. That’s how the game works.

 

[MrMannilow]

I'm the guy who looked at a used S with AP1 and thought the Model 3 was the better value for autopilot alone... But Tesla is the worst customer service I've ever seen now that they have my payment in full. I'll likely be looking to sell mine with less than 800 miles on it

 

[SO16]

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 could have just made payments on your MS and then invested the cash in TSLA. You probably would have gotten the car for free (perhaps a couple times over). I wish I would have done that when I bought my MS. My MS would have been free within 6 months. But I’ll settle for a free PM3 since I have invested in TSLA.

 

[SO16]

I'm the guy who looked at a used S with AP1 and thought the Model 3 was the better value for autopilot alone... But Tesla is the worst customer service I've ever seen now that they have my payment in full. I'll likely be looking to sell mine with less than 800 miles on it

Ok. Bye

 

[SO16]

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 Tesla’s.

If money is a concern, then only buy used anything. Especially vehicles.

 

[Tobyw]

If used Teslas are under priced, then buy one!
Used car prices are often determined by the local prices of repair and insurance among other things.

 

[Eberkram]

If money is a concern, then only buy used anything. Especially vehicles.

The only issue for me would be upgradability.

The x I have is inferior to this years and mostly because of outdat components like front camera recording. I can put on new tires. I want to add the upgrade

 

[Guy V]

My old 2013 P85 just acquired renewed admiration and respect from the younger generations of my family with last weeks update. They are clambering anew for rides now that it can Fart On Demand and play Atari games!

 

[CUBldr97]

Seems that Dodge Charger doesn't depreciate as much....interesting...guess its supply and demand and all that...

View attachment 363076

sorry but a 2017 charger at $45k, in Jan 17 is only worth avg $25 k in sept 2018, you say that's not bad? 45% in 19 months? that's huge.

 

[DPinky52]

If you "absolutely love the car", drive it. How can it be the "worst car" you've ever owned if you "absolutely love the car". Its resale is only relevant if you are ready to sell it. Have you looked at your Stock Portfolio recently? Similar situation. If you need to sell, it's a bad time, but if you don't.....
Try looking at the depreciation of a Bentley Continental GT convertible!

 

[HawaiiMike]

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!!!

Interesting... There have been several independent stories from national news over the years on how Teslas have maintained resale value better than any car in their class.

 

[SO16]

The only issue for me would be upgradability.

The x I have is inferior to this years and mostly because of outdat components like front camera recording. I can put on new tires. I want to add the upgrade

That’s because you “want to add the upgrade”. But it isn’t like the car is going to truly be obsolete. It will still do everything it did when it was purchased. The nice thing about Tesla is that it will do more even after purchase. Albeit maybe not everything if it requires new hardware that isn’t replaced. Perhaps in a few years, a rich rebuilds will come along and can upgrade more components.