Secondary Market For New Model 3?

[Desert Night]

Now, I know this is going to be an unpopular topic with some folks, so this thread is not for trolling, but the discussion about what might inevitably happen. As I was standing in line, several people were discussing why they were ordering 2 cars, and it wasn't because they wanted them both in their driveways. Some folks are opting to sell the second car once they have possession of it, while it is still brand new.

Did this occur with the Model S? Did people actually shell out more than sticker price to get a car sooner than if they entered the queue later than the folks that ordered right away?

Trying to understand if those guys will actually be walking away with some profit, or if they're wasting their time. I'd be lying if I said that after hearing those discussions, the thought didn't cross my mind...

 

[EV-Bull]

Now, I know this is going to be an unpopular topic with some folks, so this thread is not for trolling, but the discussion about what might inevitably happen. As I was standing in line, several people were discussing why they were ordering 2 cars, and it wasn't because they wanted them both in their driveways. Some folks are opting to sell the second car once they have possession of it, while it is still brand new.

Did this occur with the Model S? Did people actually shell out more than sticker price to get a car sooner than if they entered the queue later than the folks that ordered right away?

Trying to understand if those guys will actually be walking away with some profit, or if they're wasting their time. I'd be lying if I said that after hearing those discussions, the thought didn't cross my mind...

My guess is that it would be tough to make enough off that for it to be worthwhile. It would likely need to be a loaded M3 and any premium on it would push up against MS prices (at least for slightly used ones).

 

[MikeC]

I think with the expiring tax credit, there is certainly potential for people to make money flipping them.

With the S/X, you would see people attempting to sell their reservation number but not sure that ever worked out for anyone. The demand was never as ridiculous as it is for the Model 3 and the wait was only a matter of months and not years. The expiring tax credit was also not a factor for the S/X.

 

[Az_Rael]

Early on you used to see used Model S's going for more than Tesla retail online. There just wasn't a used market - they were hard to get and no one was selling theirs once they got it. I don't know if those cars sold, just that you would see them listed.

However, with the Model 3 being a much cheaper car and a potentially much harder car to get a hold of due to the large demand, there might end up being a secondary "scalping" sort of market. For those few people who have to be "first" on their block with the latest and greatest.

The tax credit complicates the calculation. Only the original buyer can claim it, and you aren't supposed to claim it if you are just reselling the car. So I suppose you could flip the car and claim the credit on your taxes and "make" at least $7500, but you would potentially be running afoul of the IRS.

 

[Jason Bourne]

I think there will definitely be a market, and for briefly-used Model 3s also. If the wait is still at least a year at the time deliveries actually start, people will be willing to pay a premium to not have to wait.

 

[gregincal]

As somebody else wrote, in the US the tax credit is definitely a problem. Buying and flipping the car nobody can claim the tax credit, which automatically makes it $7500 more expensive.

 

[harry]

Bear in mind that not everyone lives in areas where there are tax rebates at all, or have tax situations in which they could take advantage of a rebate if it existed in their juristiction. Our Province in Canada has nothing -- ditto the Feds. In those situations there would be no rebate loss for the second buyer, and no tax advantage for the original buyer (now seller). Given the huge queue it wouldn't be implausible that someone would pay a small premium to get the Model 3 a year or more early.

 

[CO-Steve]

I got a reservation wanting one for myself but, not knowing what my life circumstances will be in two years, I think there's a decent chance I'll sell mine upon delivery. Right now I regularly make a drive that I couldn't even do with a 90D (tried 2x) and going via a supercharger adds way too much time and headache. With Federal and CO state tax credits, I think I ought be able to do pretty well if I have to sell it, once I figure out all the rules...