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Questions about trading in a vehicle for our new Model S

Discussion in 'Model S' started by BigAirHarper, Jun 28, 2016.

  1. BigAirHarper

    BigAirHarper Member

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    Wife and I live far from a store/service center (5 hr drive) and I was wondering if anyone could comment on trading in a vehicle through tesla. I've received their offer for her old car which I will take, but what's been everyone's experience beyond this point? I've heard they could even come pick the car up from us?
     
  2. msnow

    msnow Active Member

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    I was going to trade my car in to Tesla but the price was way too low. Lower than Carmax and priced to sell to wholesalers. I got double their offer via private party.

    Regarding the process; as I remember (and assuming you have agreed on price in writing) about a week or two before delivery of the new car someone from Tesla arranges for someone to come to your house for an inspection. Then on delivery day you drive the old car to the Service Center/Sales Office and they deduct from what you owe and you drive home in your new car. At least that's how I remember how it was going to work.
     
  3. Chopr147

    Chopr147 Active Member

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    I am in the process of a trade-in right now so I can't comment on how smoothly it will go.
    But, the Tesla rep. told me that they work with over 200 car-buying companies and will "fight for you" to get the best price. Another advantage I did not think of: You will save on the taxes at the local rate depending on trade-in price. Example: I was offered $15,000 for my Yukon and at 8.5% will save $1275 on the vehicle tax. IDK if they will pick up for me though. Did not ask that :(
    I told him I was looking to get more like $18,000 for the car and he sent the offer back asking for a higher trade-in. Nice! So far I am lving the car buying experience thru Tesla :)
     
  4. Chopr147

    Chopr147 Active Member

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    Another question I did not ask :( That would work perfectly for me. No need to bother my wife to take off work or kids or a friend to drive me.
     
  5. PA70D

    PA70D Member

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    Had an offer through Tesla, ended up selling to Carmax at 58% higher trade in value. Selling to Carmax was very easy.
     
  6. tagpats

    tagpats Member

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    Agreed on CarMax. Received a preliminary number from Tesla for my trade in on the day I ordered my MS. The final trade in offer came a week or so before delivery of the car and inexplicably dropped by 30% despite no change in the condition of the car. Tesla took it back to bidders and bumped it slightly, but CarMax was still 30% higher than Tesla's best number. Wasn't pleased with what felt like a generous offer when I was ordering the car and then a low ball on the cusp of delivery. Since I can't count on the preliminary being close to the final, I will go through CarMax or private sale when I trade in for the M3.
     
  7. Atlantan

    Atlantan Member

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    I traded mine in for a CPO. Before the inspection I looked up (via a family member) the Low, Mid and High MMR value for my trade. My trade was in top shape and I asked for the low MMR value. Tesla was able to use this number with the buyer(s) and gave me full asking trade price. Tesla gave me $2K more than the independent dealers and I only paid state tax on the trade in delta. Process was smooth, much better than any car I have traded in before.
     
  8. msnow

    msnow Active Member

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    I'm sure you know that MMR is the auction price index and you asked for the low end of that spectrum for a car that was in top shape. Tesla shops your trade-in to various brokers to get the best price for you but it's always going to be auction price offers which is the bottom end. It's lower than KBB, lower than dealer trade-in value, lower than CarMax and signicantly lower than private party. Are you saying Tesla got you $2k more than the low MMR auction offer?
     
  9. Atlantan

    Atlantan Member

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    #9 Atlantan, Jun 29, 2016
    Last edited: Jun 29, 2016
    Yup...I am aware that MMR is auction price. Tesla gave me $2K more than dealer-trade in value, this is based on 3 other offers I had received from Independent luxury car dealers. The trade-ins offered locally were $2K less than low MMR, add to that the dealer doc fee and higher NADA evaluation of the car they were selling me. I didn't even bother going to CarMax. Based on my research I may have gotten $1K more had I sold retail, but the hassle of retail and I then paying state tax on the full purchase price of the Tesla made me trade it in at Tesla.

    Just for reference, I purchased my trade New 9 months ago, put 8500 miles on it and only lost $1900 during the course of the time, relative to what I paid out-the-door. Not bad in my book.
     
  10. msnow

    msnow Active Member

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    That's excellent, nice job!
     
    • Like x 1
  11. Chopr147

    Chopr147 Active Member

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    I may check Carfax to see what they will offer. I have never traded in a car before, I don't mind selling on my own. But this time around I just don't want the hassle. Cleaning car, waxing, getting scratches out, interior detailing etc........Yukon XL is a BIG car :)
    If I save $1500 on the tax (approx.) I have to remember to add that number as well to the trade-in value. Rep. said he would get back to me in the next couple of days with a better offer. If true I will most likely take it. Just hope it doesn't get lower nearing delivery like tagpats
     
  12. msnow

    msnow Active Member

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    It should only get lower by a little based on the miles you put on it after the inspection and offer.
     
  13. ishop4more

    ishop4more Member

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    I just took delivery of my car last week (the 24th). I ended up trading in my old car to Tesla earlier in the month (the 9th).

    Tesla's offer was lower than the CarMax and Texas Direct Auto offers I received (which were identical). By the time Tesla sent their offer to me, the other offers had expired. I got another Texas Direct Auto offer (because they were more convenient)--the appraiser just issued a new offer to me . . . I had explained I was waiting for my new car to be built and couldn't sell yet. Tesla matched the currently valid offer. When I said it was more convenient to sell to Texas Direct, my DS offered to Uber me home. It was pretty painless--she had all the paperwork ready to sign when I arrived. Ironically, on the other end of the North Houston Service Center is a Texas Direct Auto.

    So, the advantage is that that you pay sales tax on the delta. I probably could have sold my old car (a hybrid, but with gas prices much lower than when I bought it . . . and they were not high then, so not much demand) since lots of people lost their cars in flooding here this spring, but I simply didn't want to deal with the hassle and am fortunate enough to have another car to drive (since I was carless for nearly 2 weeks).

    I imagine also the you technically have to pay income tax on the sale if you do a private sale.
     
  14. msnow

    msnow Active Member

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    I don't think you would have to pay any income tax on money you were already taxed for.
     
  15. ishop4more

    ishop4more Member

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    You're not taxed on the amount of the trade in . . . that's deducted from your purchase price. If you sold the car, it would be income. The purchaser is paying sales tax. People often ignore the fact that if they sell items in a garage sale, they are technically supposed to pay income tax on it.
     
  16. msnow

    msnow Active Member

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    In my state it's not deducted from the purchase price. You pay sales tax on the entire amount and your trade-in is deducted from total. But that's *sales tax* not income tax.
     
  17. ishop4more

    ishop4more Member

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    I'm referring to reporting the income in a private sale, not a trade in.
     
  18. msnow

    msnow Active Member

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    We are going to going to have to agree to disagree on this one. A car is a deprecating asset. If you sell it for more than you paid for it then yes you have to pay tax on the capital gain or profit but that's the only scenario that I know of.
     
  19. CapeOne

    CapeOne Member

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    As a private individual, you should not have to pay income tax on the sale of a car, garage sale item, etc. UNLESS you made money (capital gain) on the sale e.g. bought the car for $12K and sold it for $14K, bought the lawn mower for $150 and sold it for $300, etc.
     
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  20. Cnasty

    Cnasty Member

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    Anyone advice on how to sell on a very new loan (less than a year that is upside down)? Carmax offered me $17k which is about $5k less than payoff.

    Maybe a private sale but very concerned on that. Tesla offered $16k
     

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