Selling Model 3 reservations

[s14ghost]

I am considering canceling my Model 3 reservations but would like to see if anyone would be interested in "taking over" my reservation. I have started a new business venture and the added cost would not be something I'd like to tack on.
We can coordinate transfer of the vehicle with when the delivery of the car takes place, or take joint ownership of the car and then immediately sign off with DMV afterwards. I will need a buyer before my delivery estimate as early as Jan-Mar 2018 so that the options customization can be done to the specs of the buyer.


The buyer must either a) allocate their own means of financing b) or pay cash. A binding contract will be initiated between myself and the potential buyer after the PARTIALLY-REFUNDABLE (if another buyer can be found) $4500 is paid which will be followed by choosing the options of your Model 3. The buyer may or may not be eligible for the Federal Tax incentives - please consult with your tax professional for further details. I will only deal with buyers in person for contract and actual purchase/delivery.

 

[Max*]

I don't think Tesla allows that. You posted your RN number, they can track who you are. Good luck though.

 

[run-the-joules]

I don't think Tesla allows that. You posted your RN number, they can track who you are. Good luck though.

 

[daniel]

Good luck finding someone willing to hand over $4,500 to a total stranger in the belief that you will keep your end of the bargain, or that they'll get their money back when Tesla finds out what you're doing and cancels your reservation. And of course nobody gets the tax credit. You don't get it because you bought the car specifically for resale, and the buyer doesn't get it because he bought a used car. Because the original title from Tesla will be in your name. From your post: "The buyer may or may not be eligible for the Federal Tax incentives" should actually read "The buyer will not be eligible for the Federal Tax incentives." So the buyer is paying an extra $7,500 + $4,500 = $12,000 for the car. Given the obligatory options and LR battery on early cars, your buyer could have gotten a CPO Model S for what they'll end up paying for this car.

 

[Surfer]

If Tesla does allow it, I would sell my reservation for $50K plus cost of car. My reservation is super early Nov 17-Jan 18. You can put the money in escrow.

 

[run-the-joules]

Given the obligatory options and LR battery on early cars, your buyer could have gotten a CPO Model S for what they'll end up paying for this car.

To be entirely fair, not everyone wants a model s instead of a 3. Given a choice at any given price between a brand new 100D vs. a Model 3 LR-P, I would take the 3. P100D would be a little different story, admittedly

 

[daniel]

If Tesla does allow it, I would sell my reservation for $50K plus cost of car. My reservation is super early Nov 17-Jan 18. You can put the money in escrow.

Ha ha ha. For that money someone could get a pretty nicely optioned Model S.

 

[daniel]

To be entirely fair, not everyone wants a model s instead of a 3. Given a choice at any given price between a brand new 100D vs. a Model 3 LR-P, I would take the 3. P100D would be a little different story, admittedly

You'd pay $100,000 for a Model 3? Really? I think for most people, the appeal of the Model 3 is that it costs so much less than a Model S. (For me, the S is way too big a car. But I have no interest in paying a scalper to improve my place in line. People are too impatient. All things come to those who wait. Wait a bit and everyone who wants one can get a Model 3 for MSRP. And waiting a bit will mean less chance of early-production bugs.)

 

[run-the-joules]

You'd pay $100,000 for a Model 3? Really? I think for most people, the appeal of the Model 3 is that it costs so much less than a Model S. (For me, the S is way too big a car. But I have no interest in paying a scalper to improve my place in line. People are too impatient. All things come to those who wait. Wait a bit and everyone who wants one can get a Model 3 for MSRP. And waiting a bit will mean less chance of early-production bugs.)

I’m not saying I’d pay 100k for a Model 3, I’m saying cost isn’t the reason I’m buying a 3. If the 100D were 60k I’d still get the 3LRP because for me it’s the better car, at least on paper. I tried to talk myself into buying a new S but it’s not the right car.

I also wouldn’t pay a scalper, mind you.

 

[abbottj123]

I was wondering about this too. If you remember back when the Model X came out, a nearly first reservation holder sold his to Ford. He never even saw the car, just had it shipped to Chicago (or similar location) and the buying party took control. I am not going to buy the Model 3 but I have a reservation from day 1 pre-release. There has to be people out there that are willing to pay a premium for my spot, especially if it means they will definitely get the tax credit.

 

[daniel]

I was wondering about this too. If you remember back when the Model X came out, a nearly first reservation holder sold his to Ford. He never even saw the car, just had it shipped to Chicago (or similar location) and the buying party took control. I am not going to buy the Model 3 but I have a reservation from day 1 pre-release. There has to be people out there that are willing to pay a premium for my spot, especially if it means they will definitely get the tax credit.

As noted elsewhere, they won't get the tax credit because the title will be issued in your name, so they will be buying a used car. And you won't get it because buying for resale voids the credit. Ford would not have cared about such things, nor would cost have been an object to them.

 

[llngoc]

Ford, Audi and some other car manufacturers were buying some "Day One" Model X for competitive analysis so may be you can sell your day one car to them after you take delivery since they would not care about the $7500. You may even be qualified for the $7500 Tax Credit if you can take delivery before the new Tax Act axed the credit. But since you are in CO, I doubt you will be in the first delivery batch as proximity to Tesla factory (i.e. CA) has priority.

However, for an average buyer, he/she will never get the $7500 tax credit as you will need to title the car first (since Tesla do not allow transfer of the reservation and the car can only be titled to the original reservation holder) and then sell it to him as an used car. (also paying sales tax twice in the process) Not sure if many buyer of a $50k car will be willing to do that. Or you will to need lose money on the sales tax. A $250000 Roadster potential buyer may be okay to stomach that kind of monetary cost but definitely not a $50k buyer. May be you should switch your reservation to a Founder Series Roadster if you want to make some buck.

I was wondering about this too. If you remember back when the Model X came out, a nearly first reservation holder sold his to Ford. He never even saw the car, just had it shipped to Chicago (or similar location) and the buying party took control. I am not going to buy the Model 3 but I have a reservation from day 1 pre-release. There has to be people out there that are willing to pay a premium for my spot, especially if it means they will definitely get the tax credit.

 

[daniel]

... You may even be qualified for the $7500 Tax Credit if you can take delivery before the new Tax Act axed the credit. ...

Nope. Cars bought for re-sale do not qualify. I don't know if there's a hard-and-fast cut-off time, but selling the car within a few days of buying it would make it clear to the IRS that you bought it to sell, even if that was not your intention when you placed the initial reservation.

The Model 3 is just not the sort of car that people are going to be willing to pay an exorbitant mark-up on to get it early.

 

[abbottj123]

Thanks for the thoughts. Seems like a bummer to let the spot go to waste. Unfortunately, my car got totaled over the weekend, so I need to buy a new one asap. I was thinking of getting a junker to hold me over until my M3 comes available. But I was on the fence about getting anyway, as I have not been a big fan of the interior. Oh well, I keep the reservation until my number is called then see if I change my mind or other options exist. Thanks

 

[HankLloydRight]

I would think it's possible to title and register a new M3 in the names of two independent people as tenants in common (say like a non-recognized civil union, partnership, investment, friends, etc), or as a revocable trust with two trustees (one being the reservation holder). Then after sale, either owner can claim the full tax credit (likely the reservation buyer) and then the reservation holder is simply removed from the registration and/or trust. IANAL.

This way Tesla is not transferring the reservation and the original owner can claim the tax credit.

 

[daniel]

Thanks for the thoughts. Seems like a bummer to let the spot go to waste. Unfortunately, my car got totaled over the weekend, so I need to buy a new one asap. I was thinking of getting a junker to hold me over until my M3 comes available. But I was on the fence about getting anyway, as I have not been a big fan of the interior. Oh well, I keep the reservation until my number is called then see if I change my mind or other options exist. Thanks

Sorry to hear about your car. I hope nobody was hurt. FWIW, I don't much care for the interior, either, but for me that pales into insignificance compared to everything the Model 3 brings to the table: All the advantages of an EV in a smaller, less expensive package than the S, and with Tesla's superb commitment to safety.

Note that your place in line does not "go to waste" if you decide not to get the car. Everybody after you in line moves up one spot.

 

[GarrickS]

Hey guys, Tesla doesn't care about the names on the title of the car or who finances it. Whoever makes the reservation just puts in whatever name they want.

I'm not buying my car from my reservation. My girlfriend wants it. I just placed the order last night and typed in her name for the title/registration paperwork. I even called Tesla yesterday to confirm. So long as the reservation isn't transferred, they don't care.

 

[HankLloydRight]

Hey guys, Tesla doesn't care about the names on the title of the car or who finances it. Whoever makes the reservation just puts in whatever name they want.

I'm not buying my car from my reservation. My girlfriend wants it. I just placed the order last night and typed in her name for the title/registration paperwork. I even called Tesla yesterday to confirm. So long as the reservation isn't transferred, they don't care.

That's what I also figured would happen. Even in the store at delivery, the 20-something year olds working at Tesla aren't going to be in a position to start checking legal/familial documents to prove if someone is "immediate family" or not. My (half) brother has a different last name from me, but if I wanted to give him my reservation (which is "allowed"), exactly what "proof" would Tesla require to prove that? And do they have the authority and knowledge to vet those documents? There are plenty of examples along the same lines... not sure how Tesla is going to know the difference between say, two half-brothers and a reservation buyer and seller.

@GarrickS's example bodes well for people who might want to sell their Roadster Founder/Referral editions.

 

[barjohn]

If the federal tax credit goes away, it is only state incentives that are at risk. Therefore, one would be free to turn right around and sell the vehicle for a profit to someone that didn't want to wait for their vehicle. One could even line up the buyer before one took delivery. Upon taking delivery one could immediately transfer title to the new buyer. I don't know how much of a profit one could make but I would guess it would be at a minimum $5k and probably a lot more. With the tax credit loss no longer in the picture it would no longer be a factor.

 

[Kcrlanders]

I was looking into buying someone's reservation from eBay They were trying to sell it for $5000 should I not go through with it What are your thoughts on this