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Roadster: Which is worth more on open market? BRO OR Upgraded Battery?

Discussion in 'Roadster' started by bonnie, Dec 17, 2015.

  1. bonnie

    bonnie Oil is for sissies.

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    #1 bonnie, Dec 17, 2015
    Last edited: Dec 17, 2015
    I'm considering (not fully decided) at selling my 2011 Roadster Sport. I did purchase the Battery Replacement Option (BRO) for $12k back at purchase.

    The BRO is:
    - Fully transferable
    - Entitles a buyer to a new battery
    - If not executed, every year from year 6 to year 10, get $1k refunded.
    - Must execute by year 10
    - Entitles you to purchase the $30k upgraded 3.0 battery for $6k (a $24k savings)

    So. If I add onto the base price for a Roadster like mine, what is the unexecuted BRO worth, vs. just offering it with the $30k 3.0 battery?

    Opinions welcomed :).

    - - - Updated - - -

    By 'fully transferable', it means the BRO follows the car. I cannot sell it separately to another Roadster owner. (But good try, youknowwhoyouare!)
     
  2. MileHighMotoring

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    I'd want the BRO as is. That gives me the most flexibility, with no downside.
     
  3. bonnie

    bonnie Oil is for sissies.

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    That's the consensus in pm, too. But will the market understand the worth?

    And what is an unexecuted BRO worth? Just the $12k paid? That doesn't seem right, since it will be traded for so much more.
     
  4. thefortunes

    thefortunes Member

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    #4 thefortunes, Dec 17, 2015
    Last edited: Dec 17, 2015
    So I'm not the only one PMing :rolleyes:. Only my mom calls me "youknowwhoyouare."

    I'll start the valuation discussion...

    A new battery is $30k. A purchase with BRO is $6k, therefore the max value for a BRO should be $24k.

    I believe that unless you need the replacement immediately, you need to discount that value by 1) TVM 2) Risk of lower cost battery replacement within the next 6 years 3) Evaluation of the usefulness of the upgrade.

    1) I'll let each of you decide what discount factor to use for TVM.
    2) I do not believe that there is a significant risk of Tesla developing another battery replacement for the Roadster at a lower price in the near term, so the $1k annual refund should offset that risk.
    3) Without fast-charging capability, I personally do not see a significant increase in the usefulness of the upgrade until the time when your existing battery actually needs replacement so I would suggest a significant discount for this factor

    Taking all these into account, I would place the value of the BRO on the open market (to me) at somewhere near $14k-$15k. For those who are nearer a replacement, it would obviously be higher. Since it has to stay with your car, and I assume that your battery is in good health, I would default back to the $14k-$15k.
     
  5. bonnie

    bonnie Oil is for sissies.

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    Good input - but since my battery is in good health, a replacement could be delayed - meaning that $1k will be refunded each year starting at year 6, until year 10.
     
  6. strider

    strider Active Member

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    I think it also depends on the state/mileage of your current battery. If it's good then the buyer could wait quite awhile before exercising the BRO which would increase its value. If the current battery is good it'll also be easier to sell as-is. If your battery is not doing very well then I would I would get the upgrade and sell it with a brand new battery.

    The other thing to think about is ease of selling/sophistication of the buyer. Selling the car as-is w/ the BRO is a more complex sale as the buyer has to understand what the BRO is and how to value it. You'll need a more sophisticated buyer. If you do the upgrade then it's a much more simple transaction of, here's the car, here's its range, battery is new, off you go.
     
  7. bonnie

    bonnie Oil is for sissies.

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    Battery is in good shape (range charges to about 222 or so, 35k miles, last CAC check about a year ago was 154. My plan has always been to wait until year 10, get the maximum reimbursement, and cross fingers that battery technology would have made even a few more incremental improvements.

    And yes, buyer sophistication is part of the equation. Luckily, a couple of folks at Tesla have expressed interested if & when I decide what I'm going to do.
     
  8. smorgasbord

    smorgasbord Active Member

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    BRO, schmo. Say it ain't so that you'd really part with your Roadster!
     
  9. bonnie

    bonnie Oil is for sissies.

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    Hahah. I know, right? I keep thinking that it will sit unloved in the garage, once the X arrives. But then I walk in the garage and wonder what in the world I'm thinking. This is def a first world problem to have.
     
  10. NigelM

    NigelM Recovering Member

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    You could get a replacement battery for $12k but most people would be more likely to go for the discounted 3.0 battery at only an additional $6k; in other words the real discount on the 3.0 battery is $12k (cost is $30k, you effectively pay $18k). I'd suggest to split the 3.0 discount 50/50 so the buyer inherits a great deal on the 3.0 battery purchase and you get some reward for your early investment on the BRO.

    IOW, your BRO is worth $18k.
     
  11. Chickenlittle

    Chickenlittle Active Member

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    I believe you would do better to upgrade the battery. People will be suspicious of transferring agreement
     
  12. ecarfan

    ecarfan Well-Known Member

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    I predict you will come to your senses and not sell your Roadster. [emoji1]
    I agree. Pay Tesla the $6K to get the new 3.0 battery, get it in writing from Tesla that the battery will be installed "when available" and then price the car some amount over comparable 2.5 cars. If you just add $6k to the price it would be a steal. I would add much more.
    But I think you won't be selling...
     
  13. gregd

    gregd Member

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    If the choice is between upgraded (past tense) battery or Battery Replacement Option, the upgraded (past tense) battery would be worth more than just the $$ value. It's time and work that's already been done, less hassle, and a proven solution. BRO is more flexible, yes, but the $6k cost for the new battery is less than 10% of the price of the car. Probably way less. (If not, give me a call :) ) Promises do have value, actual kit has more.

    Now, if you did the new battery, and also added the $3k JdeMO DC Fast charge option being developed, that would be an awesome road car...
     
  14. Doug_G

    Doug_G Lead Moderator

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    In the unlikely event that you sell baby turtle, I think you'd get more money for a 3.0 ready to roll. It's a lot simpler and more tangible.
     
  15. ViperDoc

    ViperDoc Roadster 1305

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    Say it ain't so!

    As someone in a similar Roadster (2011 2.5 Sport with a good battery and BRO but planning on stretching it to year 10), I would say that if I were looking at a Roadster, buying it with the BRO would be more useful (though harder to accurately price). It does give flexibility and it offers the buyer the same potential that you have—that upgraded battery technology might lead to a "better" battery before the 10 year limit on the BRO was up. And if you are buying the car with a "green" intent, then you can also feel better about holding off dumping a perfectly good battery until you are sort of contractually obligated to do so.

    As an aside though, even though my family has a Model S (Sig, so not performance and no autopilot), I can't imagine preferring to make the X or S a daily driver over my Roadster—and even if I were to have an X to be my winter car, I would want the Roadster for "top off" summer drives. No way I would get rid of my Roadster (unless say the "new" Roadster appeared unexpectedly with Supercharging and all the new technology we see in the S and X!)

    As you said though, it is a nice problem to have!

    Enjoy.

    David
     
  16. Chickenlittle

    Chickenlittle Active Member

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    Can you sell the BRO separately? Can ownership of the BRO be sold to another owner? If so I bet that would be your best return, by selling car and BRO to separate parties. BTW always curious, if roadster were totaled what would happen to money paid for BRO if not transferable?
     
  17. wiztecy

    wiztecy Active Member

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    For myself, the only car that could replace or fill in for a Roadster is another Roadster. The S & X are totally different styles of driving experience and cars if comparing. They can't match the intimacy, nimbleness and lighter feeling the Roadster gives. Also having a top off is such a thrill, although pana roofs are very nice, they really are not the same.

    If Tesla gets the next generation Roadster dialed in right, that would be the only upgrade path that would match and even surpass our current Roadster in terms of having that wide Tesla grin and good old loving feeling while driving down the coastline or through a wooded mountainside.

    But I still don't think I could have the heart to trade in or sell my #268, its been good to me and I really love & enjoy it no matter what season or time of day.
     
  18. Mitrovic

    Mitrovic Member

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    I think that a Roadster with installed 3.0 battery would fetch more interest ( and money ) on the market. Because it would not be better, but simpler for the future buyer.

    Myself I am in a similar position. Too many cars, delivery of my Model S is on tuesday. That would be my 4th electric car. However I think I will keep the roadster. It is unique!
     
  19. simonog

    simonog Member

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    I am lucky enough to have a Model S and subsequently bought a Roadster.

    we love them both.

    my wife says that when she can manage ion a single handbag (US = purse) I can manage on one car.

    Such a wise approach! Am considering the 3.0 upgrade though told there are long delays as only a couple of packs made a week.
     
  20. felixtb

    felixtb RsEU502,Sp+14274,XpEUSig4

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    You will definitely use the Roadster for short trips in spring and autumn, when it is nicest to drive with the top down...... even in southern cal. KEEEEP IT! I sure have and will till eternity I hope :)
     

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