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Resale calculation

Discussion in 'Model S' started by dfdtruckie, Jan 25, 2015.

  1. dfdtruckie

    dfdtruckie Member

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    I want to apologize because I'm sure this question has been answered. I'm trying to figure out how you guys are calculating used MS values. Is it $1 a mile, until a certain mileage number of course. How about the model year? Thought I read a certain percent is subtracted per month. Thanks everyone
     
  2. yobigd20

    yobigd20 Well-Known Member

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    *TESLA* uses that formula for selling their loaner vehicles (MSRP - ($1/mile + 1% per month)). This is *not* the formula that should be used for selling private party.

    Take my case for instance, 2013 P85 loaded $102k sticker (at the time, same configuration is about $117k now due to Tesla's price major P85 increases). But taking mine, at 23 months ownership and $1/mile for 62k miles, my car would be worth something like $16k. I believe my loaded P85 is worth much much MUCH MUCH MUCH more than $16k. (and if you want to factor out the $7500 rebate too, then it would be like $9k, LOL).

    so regarding that formula, just no way. that formula only works for *basically new* loaner vehicles that are only a few months old with a few thousand miles.

    so really its very YMMV what the real selling price is. I've seen P85's resell as high as mid 80s that had decent mileage on them too. Clearly a big discrepancy. Valuating the car is also a major headache for insurance companies too because they also don't have a clue what the real valuation should be. Best bet is maybe to go off of recent Tesla sales on Ebay. Make sure to search SOLD listings (not COMPLETED listings). The range seems to be anywhere between $60k-$80k depending on S60, S85, or P85. Mileage is scattered so honestly I really don't feel like mileage plays a huge factor in the valuation of the car. Its not like a traditional ICE car where the engine wears out over time. Electric motor's (in general) are orders of magnitude more reliable and last much much longer than an ICE engine would. Plus aluminum vs steel, and tons of other reasons why EVs should be valued higher (mostly due to the lack of thousands of necessary parts that could break in ICE engine vehicles). I mean these Tesla Model S's are built to last decades. Battery degradation is also pretty irrelevant with the chemistry they used and their sophisticated battery management system (even at 62k miles, I still get about 258 on a range charge, showing less than 1% degradation and has remained steady like this). So mileage is irrelevant. FWIW there were a few P85s that have sold with high mileage. I know there was one was at 48k miles and sold for around $85k last summer (though P85s have dropped at least $10k since the introduction of the P85D). Honestly I would price it basic on model and options somewhere between $60k-$80k.
     
  3. wayner

    wayner Active Member

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    Is the MSRP I that formula today's MSRP or the MSRP when you bought the car? This is most relevant outside of the USA since many countries experienced an increase in the MSRP this week due to a strengthening USD and weakening domestic currency.
     
  4. smac

    smac Active Member

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    There's another option.

    Here in the UK we have a firm called "webuyanycar.com" basically you enter your cars details and they offer you a guaranteed value (if it's not absolutely mint they will knock off the value for minor blemishes). This gives you a fair idea of what a trade buyer thinks your car is worth.

    My car is worth £39k according to the site. (6 month old S60 without Supercharging, but with + Tech + Leather, 5k miles on the clock. New it was £55k)
    A similar age and spec P85, with 10k miles on the clock. £47k
     
  5. yobigd20

    yobigd20 Well-Known Member

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    That's going to get you the equivalent of a "low trade in price", not private party resale price. Webuyanycar needs to make money somehow when reselling it so obviously their estimate is going to be way low.
     
  6. luster

    luster Member

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  7. yobigd20

    yobigd20 Well-Known Member

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    Nice. Last time I checked KBB it wasn't listed. Good to know that my P85 at 62k miles is still worth a decent amount. So much for that $1/mile formula.

    3aeb993f6a7beb2dacf5ea093d273eb8.jpg

    Looks like they don't really distinguish trade in vs private. From this ill get more trading it in vs selling it private haha that's the first I've seen that.

    bdc1e5609d4fa10626af4cf3e4f33d3e.jpg

    4c9bcbc89f7a8b753ceddbb4969d6f98.jpg
     
  8. luster

    luster Member

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    I'm suprised/happy with the values too. Not even close to the level of depreciation that I was expecting
     
  9. tga

    tga Active Member

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    Don't get too excited by those KBB prices. I hate to be the bearer of bad news, but I don't think those are based on real world sales.

    I've been following the used market for a while. I've seen a lot of loaded S85's (12-18 months old, <20K miles) with asking prices in the $70k-$72k range, and more than a few P85's for $75K or just over.
     
  10. dfdtruckie

    dfdtruckie Member

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    So, basically KBB is not a reliable source and ebay is better estimating a price? I've seen a few Model S's going for quite a bit and also some for a more reasonable number on Ebay.
     
  11. tga

    tga Active Member

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    Well, how about: 2013 P85

    Re Ebay: Only look at completed sales, not open auctions. Those are asking prices. You only care about what the cars sold for.
     
  12. Papafox

    Papafox Active Member

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    #12 Papafox, Jan 30, 2015
    Last edited: Jan 30, 2015
    I've been pricing used Model S 85s because I need a car for touring the mainland this summer. I'm keeping my Hawaii model S, which has small battery and no supercharger. Certain versions of the car hold value well. The 85kwh battery is much in demand, so it's a good choice. I strongly suspect that the new tech package with autopilot will be perceived as having long-lasting value.

    On the other hand, the P85 and P85+ have been very thoroughly eclipsed by the P85D and consequently you see a lot of P85s on the market because their owners have upgraded to P85Ds with the new autopilot/tech package. The P85 and P85+ consequently will take a larger hit in value than the generic S85 because the new P85D is such a massive jump forward.

    Thus, your resale value will vary with your choices of model and options. Remember, too, that the sellers of used Teslas have already stuck a $7500 tax credit in their pockets and so the depreciation of the car is a whole lot less than it would appear at first indication. I'm expecting to pay more than $70,000 for a used model S 85 without the new tech package and with moderate mileage.
     

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