P100D Value Loss 70k in 1 year.

[dirkbike1]

As someone who bought a used P100D pre price decrease and lost 30% valuation overnight, I can't see how anyone would not consider this as outrageous and unprecedented depreciation of a used vehicle.
I've said all along that the car is awesome enough for me to not loss sleep over it, but I did not see that coming.

 

[mswlogo]

We aren't comparing apples to apples for so many reasons here.

For starters, you're talking about a 50% number that's by no means the best the OP can do on their car. In fact, you couldn't produce a less flattering legitimate deal to compare to. Tesla is KNOWN to offer the absolute worst trade values of anyone offering trade values. The OP could do much, much, MUCH better. So that 50% figure is completely arbitrary. The real world number is probably more like less than 40% or so. We'll keep it on the high side for purposes of this discussion. Either way, still a lot of money on such an expensive purchase price but at let's at least be realistic about the figures we're talking about here.

Next, that 10% per year isn't linear so you can't even say 10% compares favorably to 40% because it's not a real comparison. Over a 5-year-average it may be 10% depreciation per year. The first year is probably more like 30% followed by 20% the 2nd year, 10% the 3rd year and then it levels off to somewhere under 10% each year thereafter.

Comparing real #'s here it's probably more like 30% versus 40% difference. That's 10% or less for the latest whiz-bang thing the buyer had to have. As you stated, "I'm happy with it being reasonable, 10% is reasonable. You get what you pay for."

I'm glad we're in agreement.

A couple of anecdotal stories I could tell about buying new vehicles: I'll spare you the details but one involves a friend's dad who bought a 1992 MKIII Toyota Supra brand new for like $35k literally weeks before the all-new and now iconic MKIV Supra came out. He wished he had lost only 50% of his purchase price a month or two later. The other involves a friend of a friend who bought a brand new, fully loaded Saturn SUV full sticker price w/ extended factory warranty shortly before discovering the company was defunct and would be closing shop. Ouch.

Moral: Buying vehicles is a total crap shoot. Vehicles aren't an investment and buying new is an even worse investment for a myriad of reasons. One of which is new models coming out and discounts of new models which consumers don't control. Don't like it? Don't buy new. Minimize your exposure to risk by buying a used car that has already taken the biggest hit and thus minimizing your chances of exposure to depreciation.

If you stop comparing apples to aardvarks I think you'll see that this isn't as much of an outrage as some make it seem.

Call it what ever you like, what ever number you like.

The OP was screwed.

He won’t get more than $85k, which still sucks way more than most any other car.

And if he can’t trade it, into the company he wants to buy a car at, he’s screwed on taxes as well.

So if he did manage to sell it for $85k, he’ll have to pay the full tax on his next Tesla. So that’s like getting $80k for it.

$80k, so that makes it 58%, still sucks.

And personally I would not pay $85k for used Model S (despite it being a Performance), shorter range, maybe no free supercharge, older suspension, less warranty.

Anyone knows cars are not an investment, new or used. We are talking about excessive depreciation. That’s the Last time I’m saying that. I’m Blocking you out after this post, because you are just a waste of time and just trolling.

Sorry you are having such a difficult time seeing the difference between normal / reasonable depreciation (even on a high priced luxury car) and excessive.

Most folks know Tesla doesn’t do great trades on Tesla’s, Mostly because they don’t “buy back” any software. Some folks are willing to accept that. But a starting point of $70K is essentially, a slap on the face. Anyone knows you can get more privately, and you will lose an automatic $5k due to lack of reducing taxes on the new car and it’s a fair amount of work to sell a high priced car. I just went through it, It’s not fun.

So many people think, no problem, just list it for a $115k in the forum and people will be banging his door down to buy it and quit your whining. No that’s not gonna happen.

 

[tomas]

Fake news

Fake person.

Say what you want. “Fake news” is the most BS lazy response to anything ever. If you think something is wrong, you’d better come with evidence.

 

[tomas]

Call it what ever you like, what ever number you like.

The OP was screwed.

He won’t get more than $85k, which still sucks way more than most any other car.

And if he can’t trade it, into the company he wants to buy a car at, he’s screwed on taxes as well.

So if he did manage to sell it for $85k, he’ll have to pay the full tax on his next Tesla. So that’s like getting $80k for it.

$80k, so that makes it 58%, still sucks.

And personally I would not pay $85k for used Model S (despite it being a Performance), shorter range, maybe no free supercharge, older suspension, less warranty.

Anyone knows cars are not an investment, new or used. We are talking about excessive depreciation. That’s the Last time I’m saying that. I’m Blocking you out after this post, because you are just a waste of time and just trolling.

Sorry you are having such a difficult time seeing the difference between normal / reasonable depreciation (even on a high priced luxury car) and excessive.

Most folks know Tesla doesn’t do great trades on Tesla’s, Mostly because they don’t “buy back” any software. Some folks are willing to accept that. But a starting point of $70K is essentially, a slap on the face. Anyone knows you can get more privately, and you will lose an automatic $5k due to lack of reducing taxes on the new car and it’s a fair amount of work to sell a high priced car. I just went through it, It’s not fun.

So many people think, no problem, just list it for a $115k in the forum and people will be banging his door down to buy it and quit your whining. No that’s not gonna happen.

Wasn’t screwed. Screwed themselves. If you buy the top of the line car with all the extras including a “speculative” FSD and only intend to hold a year... well, you’ve got nobody else to blame.

 

[Ostrichsak]

I’m Blocking you out after this post, because you are just a waste of time and just trolling.

Thank Allah for this. Saved me the three clicks because I can tell you'll never post anything useful based on what I've read this far.

 

[glide]

Fake person.

Say what you want. “Fake news” is the most BS lazy response to anything ever. If you think something is wrong, you’d better come with evidence.

Okay. Captain Serious.

Here’s the evidence: the depreciation rate of OP’s car is real. Same with every other vehicle Tesla makes.

We can put together a chart of secondary market sale prices vs. MSRP if that will help you sleep better. But it sounds like you’re just going to keep your head in the sand.

 

[Xenoilphobe]

Used Tesla Model S P100Ds for Sale in Centreville, VA | TrueCar

 

[mswlogo]

Used Tesla Model S P100Ds for Sale in Centreville, VA | TrueCar

Asking prices mean nothing. I like to use Ebay "Sold" items as a metric for actual prices sold.
But sometimes you don't see the final agreed price either unless it was an Auction.

 

[HumanGenome]

Fully expected this going into my purchase and regret absolutely nothing.

 

[NoMoGas]

Appreciate the report! Very Interesting. Thanks.

However Don't think this is taking P100D, its top model, into consideration. Mine has already lost 52% even with the $7500 tax credit, if you go by trade in value vs retail. Tesla mostly sell the lower models. Same thing on the Mercedes. The lower models held their value and the high end AMG don't hold value at all.

No car should cost anyone 70k for 1 year or $5800 per month. Should it? Guess I should of leased....Lol. I could of leased a Lambo for $4,000 per month and saved money! oops.

Trade in value IS NOT the value of the car. 2018's are going close to 100k depending on mileage/condition.

 

[Ostrichsak]

Fully expected this going into my purchase and regret absolutely nothing.

This is the right attitude when buying ANY car.

 

[tomas]

I’ve never understood people who want to flip cars frequently. It’s a terrible proposition. Early depreciation is high, sales tax and transaction costs are totally non recoverable... there are a few Marques (Ferrari, some Porsches) that hold value because of a rich, sentimental owner base... but a Tesla may arguably be the worst car to flip, as new prices have been trending down, and Tesla frequently adds new functionality. IMO You have to buy with at least a 3 year plan to keep the car, probably more. I bought my 2012 S expecting to keep 10 years. Never mind that trade in is now $28k... it’s worth much more to me to keep. Our 2 Model 3s will also probably be 10 year deals.

 

[Destiny1701]

I’ve never understood people who want to flip cars frequently. It’s a terrible proposition. Early depreciation is high, sales tax and transaction costs are totally non recoverable... there are a few Marques (Ferrari, some Porsches) that hold value because of a rich, sentimental owner base... but a Tesla may arguably be the worst car to flip, as new prices have been trending down, and Tesla frequently adds new functionality. IMO You have to buy with at least a 3 year plan to keep the car, probably more. I bought my 2012 S expecting to keep 10 years. Never mind that trade in is now $28k... it’s worth much more to me to keep. Our 2 Model 3s will also probably be 10 year deals.

Completely agree above. If one must flip however, at least purchase a 3-4yr old and reduce the total depreciation hit.

 

[Oldschool496]

I bought a P100D a year ago for a sticker of 144k,

Firstly two plus years ago in Georgia I saw a fully loaded P100D on the lot for 156,000 plus tax. Saved 12 grand right there.

Secondly, you can't look at the depreciation right now, unless your selling the car.

You gotta look at like your keeping the car for 5-6 more years.

Thirdly- I am sure without looking your car is worth more than 70 grand. I'd say its worth more like 85-100 Grand currently depending on a lot of metrics. Possibly more.

So unless your selling today, all this figuring out of what your car is worth today is not worth looking at because your most likely keeping the car. Right. If your not and your hurting for the funds, then yes, your gonna take a bath.


Now a whole lot of people, thousands bought inventory cars that were sitting around a year ago(non-RAVEN cars), and while they got great deals then, their cars are not what the new Ss are today for a lot less money. They got Ludicrous upgrades- on and on. They were happy as clams and many shut their mouths over the whole thing then. Now if you would ask them I am sure they feel some of the burn your feeling.

I bought a 75D from the showroom Sept 2016. The 100D came out right after that week(s). There was the 60, 70, 75, 75D, Used P85s in every iteration. and the top dog then P90D, which as we know now had, has it difficulties along with every other one on this list in some form or another then and now.

At first this brand was about(at least for me)bringing the advent of full electric. Elon in fact many times THANKED the older owners many times, I was on the far edge of that Thank You. That was not just to thank them for buying the car. That was to thank them for buying a terribly over-priced car and helping the company to keep moving. All I can say is you knew it when you heard it, his thank you's were well received and understood by many to the extent that thank you reached.

SO that leads me to number four:

New cars are not investments, in fact cars in general are the worst investment you'll ever make. We all know this. Cars are weakness' especially for most Men. They are a means to an end. A device to get you from A-B in reality.

How you get there is what all this difference is about. IF you bought a P100D for 144,000, you made a decision to get from A-B in ways few, very few will ever experience ever in their lifetime. Enjoy it, take care of it, its a great car I am sure.

Safe Travels to you sir in your electric car, with free energy while your traveling. Free of gas, Free of so many things.

Your a lucky guy, now go make some more money so you can buy your next car. Life is short.

 

[Oldschool496]

Fully expected this going into my purchase and regret absolutely nothing.

This is the right attitude when buying ANY car.

We all measured this when we bought our cars, measured every metric, know it was gonna be great, knew it was not going to be the greatest financial decision I ever made. Expectations have all been met.

 

[vickh]

If OP wants a low depreciation car they should have picked a CPO facelift 75D @ ~$40K (I almost did)

 

[BestRadar]

Trade in value IS NOT the value of the car. 2018's are going close to 100k depending on mileage/condition.

Who would pay close to $100k for a 2018 when a brand new one is $110k with all options including $4500 wheel package?

 

[bhzmark]

All luxury cars have substantial depreciation.

Non-Tesla luxury cars now have even more depreciation thanks to Tesla.

How The ‘Tesla Effect’ Is Crushing Used Luxury Car Values

 

[Kiwiadventure]

Tesla is a long term purchase as their's no need to update as Tesla as you all know updates their vehicles in your garage. I purchased a M3 standard plus as this will have the least depreciation and as Musk has said many times this is the best long term M3 to buy. I plan in10-15 years to buy new again and properly dump my M3 at the tip for Tesla's. If you purchased a $40k M3 then it's going to cost you $4k a year to replace in 10 years or $2666 in15 years. This is a new way of ownership as I usually replaced our vehicles every 3-4 years. If your Tesla is owned by your company then it's going to cost a lot less say 45% less due to tax depreciation. There is always going to be the cost of maintenance but that's running costs.

 

[mswlogo]

Tesla is a long term purchase as their's no need to update as Tesla as you all know updates their vehicles in your garage. I purchased a M3 standard plus as this will have the least depreciation and as Musk has said many times this is the best long term M3 to buy. I plan in10-15 years to buy new again and properly dump my M3 at the tip for Tesla's. If you purchased a $40k M3 then it's going to cost you $4k a year to replace in 10 years or $2666 in15 years. This is a new way of ownership as I usually replaced our vehicles every 3-4 years. If your Tesla is owned by your company then it's going to cost a lot less say 45% less due to tax depreciation. There is always going to be the cost of maintenance but that's running costs.

Bet you don’t keep it longer than 5 years.

I used to keep my cars for 10+ years and 200K+ miles. But that seems to be getting shorter and shorter lately (my fault) but because of tech.

Do you think your battery will be good, drive units in 15 years and still getting OTA updates. When WIFI and LTE don’t even exist any more?

Does your Model 3 grow a hatch and storage space as your family grows too?

Bet you Tesla’s have one of the shortest length of ownership (to buy another Tesla). I’d be curious on the stats compared to other brands. I already upgraded my Model 3 to an X within one year, that I originally planned to keep for a while.

Lot of Model 3 owners plan to get a Y and the Model 3 is just to hold them over.