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Selling my Model X... thoughts?

Discussion in 'Model X' started by lonemedic, Jul 22, 2014.

  1. lonemedic

    lonemedic Member

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    My reservation number is in the 1900's and I am guessing I should get my Model X by Spring 2015. I am not sure I still can afford to keep the car.
    Any thoughts on buying it and reselling immediately? I figure I won't benefit from the tax rebates, but I could still make a profit.
    I spoke to one of the store managers and he made it very clear that I can't "sell my number", but that after I purchase it, I can sell it again.

    If could get a fully loaded one at just over $100k, and then list it for twice the price. I figure some people might go for it.
    I heard that the Model S cars were sometimes selling higher once used. But I plan to sell it to someone the moment they drop it off, without driving it at all.

    Thanks for your thoughts.
     
  2. dsm363

    dsm363 Roadster + Sig Model S

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    You think you'll be able to sell it for around $220,000? That might be on the high side. You might be able to make some money off of it.
     
  3. sigurdi

    sigurdi Member

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    Some people have more money than patience, so it can work.
    But not dubble price.
     
  4. lonemedic

    lonemedic Member

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    Maybe with a $50k premium then...
    Thanks.
     
  5. dsm363

    dsm363 Roadster + Sig Model S

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    I doubt even that much. If you had Signature 10 or something like that maybe. You can try of course and maybe you'll get lucky.
     
  6. sigurdi

    sigurdi Member

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    If not you get stuck with a nice car. So win win he he
    The people with more money than patience will have fully loaded, but normal to smart to by overpriced. :)
     
  7. lonemedic

    lonemedic Member

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    I totally agree with you. If someone pays a premium, they will want fully loaded. Worst case scenario is that I keep it.
     
  8. dsm363

    dsm363 Roadster + Sig Model S

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    You said you are not sure you could afford to keep the car. If that is the case and you can't find anyone to buy the car then that could be an issue.
     
  9. Lloyd

    Lloyd Active Member

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    You are gambling that you will be able to sell it for more than the cost of the $10,000 in tax credits that you both, buyer and seller, will loose.
     
  10. sigurdi

    sigurdi Member

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    To sell it for cost price or smal margin should not be to big of a problem, if the preorders continues at the same rate.
    When you get your car it can easely be a year deliverytime for new reservations.
    The problem you do not know what will happend in the future, so keep reservation until it is time to configure the car or cansel. Se what have happend in the marked, reservations, production volums of model S......
     
  11. lonemedic

    lonemedic Member

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    I guess its more of not being sure it is worth it for me, rather than being able to pay for it.

    Where is the best place to list it, by the way? Autotrader?
     
  12. Lloyd

    Lloyd Active Member

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    I'd say cancel your order, get your deposit back and be done with it. Not worth the hassle or risk.
     
  13. abasile

    abasile Independent Software Eng.

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    It's your call, but taking the $7.5K federal tax credit would be dicey. Before even buying the vehicle you're expressing in public here the intention to not keep it. The IRS states that the EV tax credit is only for vehicles purchased for your use, not for resale. To make matters worse, it's doubtful that the buyer would be able to take the tax credit since the vehicle would be secondhand. Granted, many tax questions are not black and white, but why chance it?
     
  14. Canuck

    Canuck Active Member

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    In BC, we have to pay tax on used cars. If it's the same in California, then the OP will have to pay sale's tax, as will the purchaser, and both won't be entitled to the electric vehicle rebates. I guess the purchaser has to pay sale's tax anyway on a new one, but the lost tax on the original purchase and lost rebates may eat up any profit and make it not worth the risk. That's assuming you have tax on used cars in California.
     
  15. lonemedic

    lonemedic Member

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    I obviously would not take advantage of any tax breaks if I resold it, since that would be illegal.
     
  16. ecarfan

    ecarfan Well-Known Member

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    I cannot imagine that anyone would pay anywhere near double the list price for an X. As far as I know when the S launched no one could have quickly resold their new S for twice what they paid for it.

    Maybe you could immediately get as much as $10K more than what you paid for it, but to the buyer that would be over $17.5K what they would pay if they waited since they would get the Federal tax credit if they waited but would not get t if they bought from you.

    If you can't afford it, don't buy it.
     
  17. Paul Carter

    Paul Carter Active Member

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    If I moved to the US and Tesla wouldn't transfer my Model S Signature from Canada, I would offer you, $5,000 (your deposit) + 1% per month saved to jump the US queue at the switch time. So say its 12 months jump, that means my offer would be $6,200 over base (tax/rebate impact TBD). That's a real potential offer for holding the spot for you. Now that means I would have to move to the US first and Tesla turning me down 2nd. ;) However, I think you'll loose the tax paid. So I suggest move out of the line and make someone else happier!
     
  18. andrewket

    andrewket 2014 S P85DL, 2016 X P90DL (soon 100)

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    You will be able to flip it. The question is for how much. 5-10k I think is possible. Like others have said, a buyer willing to pay the premium and lose out on the tax credit will be looking for a max optioned car.
     
  19. lonemedic

    lonemedic Member

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    Thanks for all the feedback. :)
     
  20. bonaire

    bonaire Active Member

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    #20 bonaire, Jul 22, 2014
    Last edited: Jul 22, 2014
    Financially, if you reserved the car, you can cancel the reservation now without any $ loss at all. There is no committment yet to go through with it.

    You won't be able to scalp it for a big profit and you risk losing money if you try to. My guess is you have to finance it in order to buy it and then re-sell it to pay off the loan quickly. You cannot take the tax credit? If not, then don't bother. See once you title it, the buyer loses that 7500 tax credit benefit and also the first-registration rights for your state's rebate. Now, if you want a "grey area" situation - you can buy it, not take the tax credit and sell it to someone. They "could" get away with taking the tax credit on the Vin # because you didn't file a tax return using it. If a Vin # goes to the IRS only once, it may not get flagged. But don't take this as advice, only guesswork.

    I suggest cancelling the reservation and trying to invest in some good stocks or growth mutual funds. $100K invested for a year could gain you 10-20%. That is more than the money you could make on the flip.

    Remember, Tesla is building a high speed assembly line. Can make 1000 units per week. The backorder queue is currently about 17,000 (based on the postings here in the Tally). That is maybe a half year at most when mixing in with MS production. I doubt people ordering now will have to wait much more than late summer of 2015. USA orders will come first, of course, so with the reservation profile as it stands, they could "theoretically" build all the current USA reservations on the books now in just over one quarter's time.
     

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