Residuals M3LR vs M3SR+

[Katic1972]

Hi all still waiting to pull the trigger on my first Tesla.

My main issue is that I really want a MY and given that (if rumours are true) then in the UK the site will be open to orders imminently.

I think however at some point, most likely by the end of this week I will get fed up waiting and place an order for a M3.

Im in the lucky position of being able to afford the M3LR, I like the additional toys but not to bothered re speed. The SR+ will for the majority of my trips be more than adequate but one question arose as I trawled YouTube opinion pieces on the differences from LR to SR+ is that given the incoming new EV cars, will the SR+ start to look a bit light of miles in say 4-5 years (when I will change my car).

Is this a valid consideration? I’ve been massively impressed by Tesla residuals right now, but then again the used car market is also nuts.

Will the LR retain a higher percentage of its value over the same period as the SR+ ?

I am swaying towards the SR+ At this point, but do like the awd aspect of the LR and having those extra miles in the “tank” to alleviate any wifely range anxieties.

 

[Limey]

2-3 years and I think it'll hold its value well. Beyond that the "model 2" will bring down the entry price of a performance EV with 250 miles and have an impact on used model 3 like the 3 had on used s prices.

I have a SR and I'm getting another SR over LR. LFP holds its range, there is 25 miles difference over 100% charged LFP Vs 90% charged LR NMC that has degraded 10%. I'm not planning 5 years ahead, gonna keep an eye on the market.

 

[pgkevet]

Ah, forecasting..
Option A) In 5 years there will be recharging facilities everywhere and range is a non-issue as the whole country sweeps towards the EV revolution.
Option B) We're a 3rd world backwater where energy prices are too high to travel, fundamentalists have blown up the Chunnel, Germany owns the LSE and the French farmers have a permanent block on the ports.

 

[kelvin 660]

I'm in the same dilemma. I had a SR+ MIU (NCA batteries) and have just swapped to a SR+ MIC (LFP batteries). I had the MIC SR+ for 1 year and if taking into account savings in petrol it cost me only £600 or £50/month! The MIU appeared to have lost 9% of battery and was down to 215 miles at 100%. Only charging to 80% gave me 180 miles to use each day. In the winter that would go down to ~130 real miles, so only 100 miles of short stop and start range. With the MIC I've got 260 miles at 100% and I can charge to that level ever day. So in the winter I might have ~180 miles of stop start range. Maybe more with the heat pump...
When the Y comes out it's going to be expensive £50 to £60K for the base model, so there will be still demand for a used SR+ at £38K. Whereas the higher price of the LR (~£45K) or performance (~£55K) will be directly competing with the Y...

 

[Mr H]

I'm in the same dilemma. I had a SR+ MIU (NCA batteries) and have just swapped to a SR+ MIC (LFP batteries). I had the MIC SR+ for 1 year and if taking into account savings in petrol it cost me only £600 or £50/month! The MIU appeared to have lost 9% of battery and was down to 215 miles at 100%. Only charging to 80% gave me 180 miles to use each day. In the winter that would go down to ~130 real miles, so only 100 miles of short stop and start range. With the MIC I've got 260 miles at 100% and I can charge to that level ever day. So in the winter I might have ~180 miles of stop start range. Maybe more with the heat pump...
When the Y comes out it's going to be expensive £50 to £60K for the base model, so there will be still demand for a used SR+ at £38K. Whereas the higher price of the LR (~£45K) or performance (~£55K) will be directly competing with the Y...

Whilst i would agree with most of your points, the general buying public are not as clued up as we are, they just look at the headline figure regarding range. They see the 'Long Range' and immediately think it goes a lot further than the SR+ when, in reality, it's all due to driving style. This is the reason. i think, that the LR will be more popular as a used buy. I guess time will tell

 

[GRiLLA]

Currently I would say that SR+ is holding it's value better that LR, as per the example above people are swapping them after a year for negligible loss. Predicting the future is hard, but as my 2019 LR Battery started at 310 and is now down to 290 I am a little concerned that the %age loss might become concerning to future owners.

 

[Mr Miserable]

Don't forget that not only do you get a bigger battery with the LR but you also benefit from faster charging speeds too (250kW compared to 170kW).
It's also worth noting that you don't operate an EV with a full tank ie 100%
On a long journey I rarely charge above 60 -70% and don't go below 10%. It means a quick splash and dash at superchargers resulting in a faster (and less tiring) journey. With a LR the 10 - 70% equates to around 45 kW or about 160 - 180 miles (2 - 2.5 hrs driving) whereas on an SR+ that figure is much less and so you end up spending more time charging (slower) to reach the next supercharger. It can really add up on a long journey and so if you drive to South of France or Spain regularly (some do) then the LR is the best option by far. If you confine your journey's to Tesco with the occasional outing to IKEA then the SR+ will be absolutely fine!
As far as residuals are concerned, the Model 3 seems to be holding its value surprisingly well - take a look at Autotrader. I expected to see the prices drop much further as a flood of 2 year lease vehicles came onto the market but so far the prices appear to be holding up. I suspect though the SR+ will be easier to sell as the real benefits of the more expensive LR are not readily apparent to your average punter.
The big problem with high residuals is that it encourages long term ownership and there is little incentive to buy second hand and so I still expect to see those Autotrader prices to drop.

 

[Irata]

I have never seen an advert where the actual range displayed at 100% is shown.

People, maybe unfortunately, just look at the badge. But the same has always been true, the MPG of an ICE drops with age but they still quote the as new figures.

 

[Kenners]

Hi all still waiting to pull the trigger on my first Tesla.

My main issue is that I really want a MY and given that (if rumours are true) then in the UK the site will be open to orders imminently.

I think however at some point, most likely by the end of this week I will get fed up waiting and place an order for a M3.

Im in the lucky position of being able to afford the M3LR, I like the additional toys but not to bothered re speed. The SR+ will for the majority of my trips be more than adequate but one question arose as I trawled YouTube opinion pieces on the differences from LR to SR+ is that given the incoming new EV cars, will the SR+ start to look a bit light of miles in say 4-5 years (when I will change my car).

Is this a valid consideration? I’ve been massively impressed by Tesla residuals right now, but then again the used car market is also nuts.

Will the LR retain a higher percentage of its value over the same period as the SR+ ?

I am swaying towards the SR+ At this point, but do like the awd aspect of the LR and having those extra miles in the “tank” to alleviate any wifely range anxieties.

Main thing is that the supply of second hand EVs is fixed and relatively limited while demand will only go one way. So the debate between the different Tesla models is not relevant. The size of the mkt will be many multiples of the number of Tesla’s and other EVs sold so far and over the next few years. So if you buy any of them you are going to be pleasantly surprised by the cost of ownership. That’s even before the fuel savings!

 

[gangzoom]

will the SR+ start to look a bit light of miles in say 4-5 years (when I will change my car).

Is this a valid consideration? I’ve been massively impressed by Tesla residuals right now, but then again the used car market is also nuts.

Will the LR retain a higher percentage of its value over the same period as the SR+ ?

Unless something bizarr happens with used values the cheapest versions of any car will always hold better relative value than more expensive versions as they age.

4.5 year old 75D Xs on the used market currently costs barely any less than 90Ds, infact some are priced cheaper!! Despite the £10k+ difference in new price.

I also wouldn't worry about range of the SR+, its essentially the same range (if not more) than our 75D X and we have taken ours to Scotland, Devon, France and next year Norway.

As others have mentioned the number of Superchargers in the UK is increasing all the time, range really isn't an issue for any Tesla sold today.

There are plenty of reasons to get the LR 3 over SR+, faster 0-60 time, AWD, faster charging, but from the finance point of view retaining value the SR+ is the best choice.

 

[Peter 224]

Another reason to get the LR is the very much better audio system...if music matters to you.
Music, AWD and faster charging did it for me.

 

[Mr H]

Another reason to get the LR is the very much better audio system...if music matters to you.
Music, AWD and faster charging did it for me.

I agree, having had both, the premium audio is sublime

 

[GeorgeSymonds]

There won’t be a model 2 in 2 years, at best they may announce one but how long ago was the MY announced and it’s still not in the U.K.. same with the cyber truck, roadster and new MS.

The LFP battery is said not be great in the cold, it will warm up but in winter you may find slower charging and compromised range on short trips which may counter the benefit of allowing a 100% charge. I have a friend in Europe who rejected his because of this. Tesla may have found a way around it, we will soon find out if they have or haven’t.

Some will like the higher performance and all wheel drive so the LR will carry a premium over the SR+.

That all said, it’s a 7.5k premium for the LR when buying new which will of course shrink as the cars age and depreciate. 2020 cars on average have a 6k difference and 2019 cars have a 5k difference - that’s about £100 a month extra depreciation for the LR. On a low depreciation car some might think that’s a lot, others may think on a low depreciating car it’s ok to spend it on the LR model, it’s still relatively cheap.

I guess it boils down as ever to whether you value what the LR has over the SR+.

 

[Llama.]

I think buyers expectations of range will continue to increase over time meaning that longer range used EVs will command a premium.
I think this will put the LR in a class above the SR+, which will likely be lumped in with all the other 250ish mile range EVs.

That said, I agree that the gap between the models will shrink over time.

Personally I think there is a significant difference in range in the two models, and the LR will be the used EV of choice for years to come.

 

[roadcred]

This whole discussion is BS at the moment. I am now on my third Model 3 and lost nothing on depreciation on the other 2 after 12 months. The Tesla should never be bought on a lease as depreciation is negligible and may well remain so until 2030. I will continue to renew once a year as each year gives me free 1000 supercharger miles, and the newer model, and frankly with my latest a far superior build from China!

 

[GeorgeSymonds]

This whole discussion is BS at the moment. I am now on my third Model 3 and lost nothing on depreciation on the other 2 after 12 months. The Tesla should never be bought on a lease as depreciation is negligible and may well remain so until 2030. I will continue to renew once a year as each year gives me free 1000 supercharger miles, and the newer model, and frankly with my latest a far superior build from China!

Unfortunately:
-Past performance is not a guide to future. Figures have already been posted on depreciation
-low depreciation recently has been helped by the prices effectively going up, a combination of the removal of the grant, plus the whole used market being strong for all makes of car at the moment
-free referral miles has ended
- model s owners thought this a few years ago and then Tesla knocked 40k off the price of the top spec car causing heavy overnight depreciation across the range, and that was at a time when they sold everything they made etc. They can’t knock 40k off a M3, but don’t assume Musk won’t make price cuts if he wants to.

 

[Katic1972]

My reason primarily for posing the question was that I intended to buy the car and keep for longer than I usually do. Maybe 5-6 years instead of 2-3. I plan on stopping working in 4-5 years and was just trying to speculate what would be my position then and whether the LR or Sr+ would have retain more value.

I’ll not be in a position to pay a significant car loan at that point and I’m fairly sure the free miles and interest free (£28k) loans afforded to us now by the Scottish Government will be a thing of the past.

Just trying to gather as much info as I can to make an informed buying decision.

 

[Js1977]

Don't forget that not only do you get a bigger battery with the LR but you also benefit from faster charging speeds too (250kW compared to 170kW).
It's also worth noting that you don't operate an EV with a full tank ie 100%
On a long journey I rarely charge above 60 -70% and don't go below 10%. It means a quick splash and dash at superchargers resulting in a faster (and less tiring) journey. With a LR the 10 - 70% equates to around 45 kW or about 160 - 180 miles (2 - 2.5 hrs driving) whereas on an SR+ that figure is much less and so you end up spending more time charging (slower) to reach the next supercharger. It can really add up on a long journey and so if you drive to South of France or Spain regularly (some do) then the LR is the best option by far. If you confine your journey's to Tesco with the occasional outing to IKEA then the SR+ will be absolutely fine!
As far as residuals are concerned, the Model 3 seems to be holding its value surprisingly well - take a look at Autotrader. I expected to see the prices drop much further as a flood of 2 year lease vehicles came onto the market but so far the prices appear to be holding up. I suspect though the SR+ will be easier to sell as the real benefits of the more expensive LR are not readily apparent to your average punter.
The big problem with high residuals is that it encourages long term ownership and there is little incentive to buy second hand and so I still expect to see those Autotrader prices to drop.

Some valid points here but...Im on the same boat as the op. I think we need to keep focus on this. ie its only a stop gap.

Bottom line imho is buy the sr+ to tie you over if you must. You won't regret it, its a very capable car.

I was also on the same boat last year but the model 3 is not really my thing for not being a hatchback. For the Mrs however this does not come into the equation and she loved it hence this solved my dilemma a bit. Bought it for her then borrowed it from time to time as to quench the thirst.

This year I sold both my cars with the model Y in mind and borrowed the kids cars + her car + used the bike. However, with winter looming the thought of last year being able to precondition the car on a frosty morning, residuals being good plus even if a Y was available now I would not see it for months, I treated the mrs to a newer 3 and her old one is now my stop gap.

Prices for the model 3 will go down but that means the price of other cars in the used market will have to follow suit. Do bare in mind that that when I say have to, its not a given but you can see where this is going...

Now slightly off topic but inline with what some have said. Think of what you are doing over a 12 month period for 99% of the time and what constraints will that 1% give you on the SR+ vs LR (not taking into account other personal preferences). I you have a long history of driving, You can also look back and reflect on this. People are different and its one discussion the we all have to agree to disagree.

 

[Jason71]

-low depreciation recently has been helped by the prices effectively going up, a combination of the removal of the grant, plus the whole used market being strong for all makes of car at the moment

The LR costs the same to buy today as it did in 2019 when I bought mine. When the grant went Tesla lowered the base price. That is why the difference in price between the LR and P is now about 3 times what it was in 2019.

 

[pgkevet]

Reasons why people buy a car... 'because they fancy it' is No1 without any real logic probably vested in bragging rights and flaunting their believed success etc. Reasons they tend to state are things like reliability, economy, performance, environment etc. Most is a crock of poo.
If someone buys a car for it’s performance then that implies they're going to drive it like a pratt with the usual belief that they are a better driver - until they run out of talent because most folk are just average. The old saying is that 90% of drivers self-identify as above average.
If one was truly after economy then any old cheap to insure banger would do and scrap it if it has problems because however fancy and fast a car is the other reality is that it will still only average 60mph on the motorway or at very best 65mph if you drive like a dick (and survive)
If it's environmental benefit then an old banger avoided building the new car and the year or two on fossil fuel before it’s scrapped will equate to the new EV on footprint. And if you really wanted to be environmentally friendly then taxis and public transport.
Lastly if you have to borrow to finance the vehicle then you shouldn't be buying it with any pretence of economy because you're giving money to a third party.

I bought mine 'cos I fancied it. In 50 years of driving I’d never had a new car. I wrongly believed that automation would be better than it is and that it’d help an old fellow if he starts to go a bit ga-ga and I can afford the loss of value (even if it does hurt my cheap psyche). But frankly my 28yr old other car is as much fun to drive, albeit carefully 'cos it really is showing its age and a bit rumbly on suspension but on a long trip it'll get there quicker just due to refuelling speed.