Selling used Tesla vehicles. Why people dont have realistic expectations?

[dmurphy]

Simply: because someone’s paying it.

You’d be shocked how many people still think there’s a year+ waiting list for a Model 3 ...

So they go straight to the used market, to avoid the “wait.”

Can’t tell you how many times I’ve been asked “wow, nice car, how many months did you have to wait after ordering?” “Uh, about 2 weeks.”

 

[Bigriver]

What someone lists a car for and what they actually get may be 2 totally different things. The beauty of the free market system, price ultimately is set by demand. The price comes down until someone is willing to pay that amount.

What someone paid new for a car is not relevant. All that matters is current cost/savings to the buyer relative to other options at that time. It is relevant to the ultimate sales price whether the buyer is saving on sales tax - just as Tesla sold cars for more when the buyer was getting a Federal tax rebate.

 

[InfinitySky]

One guy wanted $40k for his 2 yr old M3 with 20k miles.

When i told him i can buy new one for that price he told me "yes but you are saving on sales tax".

But why he does care about my tax?
Its like he is more concerned about my finance then what he is getting.

I know he ended up trading his M3 with Tesla, losing many $$$.
He is my neighbor (next street from me) and now he is even avoiding me

It’s not that he’s concerned about your tax, it’s that he’s in a position of bargaining power because he knows he has the upper hand by “saving you from sales tax”

 

[OCR1]

In December 2018 we purchased a LR RWD Model 3 for $49,000. Three months later we bought the exact same car for $43,000. Yes, the tax incentive was cut in half for the 2019 purchase, but KBB likely doesn’t not keep track of tax incentives. And sellers often forget they got those incentives, or simply don’t feel like they should play into the depreciation schedule when they put their car up for sale.

 

[MacGreiner]

Market has power. Don't like the price - don't buy it.
It will work for you once you own one.

 

[Uncle Paul]

Sellers are requesting high prices because the demand is high. People are willing to pay almost new prices because they still feel it is good value.

 

[SageBrush]

I was considering buying used Tesla

If memory serves, you confidently posted a couple years ago that you would buy a cheap Model 3 when they were ~ 2 years old.

Not so much, ehh ?

 

[SageBrush]

Keep you chin up, OP
I'm sure you will find a car at the price you want .... eventually.

 

[SlimJim]

I pay sales tax on used cars in this state... Car sales keep on giving to the state even if it is the same one car that changes ownership.

 

[Phlier]

I offered him $35k and he refused. He wanted $40k.
He tried lower it to 33k days before giving it to Tesla but then i refused.

After being married for 26 years, I've learned when I need to swallow my pride. This would have been one of those times.

Your decision to not swallow your pride cost you a very good deal on a car, and your friend a lot of lost money, too.

Was you making your point worth the money lost to both parties?

I can understand you wanting to make your point, but at what point do you draw the line and simply say it's not worth it? The pain of swallowing your pride might have lasted a few days. Maybe a week. But the joy of driving a car that you got a great deal on would have lasted far, far longer.

 

[vegas888]

The point is that sellers are losing money trading in their vehicles with Tesla instead to lower price for 2-4k and sell it privately.
This has nothing to do with demand.
This is about their mentality, they want top price for their car and when they see they can not get it then decide to "trade it" with Tesla losing a lot of money.
Someone said why i just don`t buy new car.
I will.
And other one said why i want to buy used car?
To save money, is there any problem with that?

One guy was selling his MS (2015) for MONTHS on FB marketplace refusing to at least match the price from Tesla site.
His car was nice, clean,driving excellent. Just small damage on side door. But no warranty (Tesla was giving 4 yr warranty for same car at that time)
After while he pulled his listing form marketplace i assumed he sold it.
Next month i was at Audi dealership and saw that car!
Audi was selling it for $2K LESS then what that guy was asking me.
So you can imagine how much he lost with that trade.
Asked sales person about it and got answer "this is local trade, guy is doing often long trips and wanted to switch to ICE".
Good. He lost at least 5k not selling this car to me and i lost car i wanted.

 

[vegas888]

Why don’t you just buy new then?

No one is forcing you to buy new or used or a Tesla.

Sometimes people decide to buy used car to save some money.

 

[vegas888]

Some people do have unrealistic value expectations for their cars. I think too many look to "book values" like KBB and NADA to set price but those can be high when pricing Teslas. If a seller's price is truly unrealistic, they won’t get much traffic and will have to lower it eventually if they are genuinely looking to sell.

At the same time, a buyer's price expectation can be unrealistic. What are you basing your pricing/offers on? For example, what would you consider to be a fair price on a 2019 M3 SR+ with average miles, premium paint color, 19" sport wheels, and FSD that originally sold for $50k (plus tax) new?

That is very true.

But with Tesla we have different situation.

Used Tesla`s (2018-2021) cost more then new ones or they are very close.
Tesla is artificially inflating the price on their website.
Now we have private seller who says " i will ask the same price as Tesla" and someone will buy the car from me because there is no sales tax. (and when you tell him about Tesla offering additional warranty his answer is usually "there is nothing to brake,this is not ICE, no maintenance is required)

And after weeks/months of waiting for someone to buy his car he decide to trade it with Tesla AND LOSING A LOT OF $$$ only because he does not want ME to get his car for less $$$ then what he paid for 3 years ago !!!.

 

[vegas888]

After being married for 26 years, I've learned when I need to swallow my pride. This would have been one of those times.

Your decision to not swallow your pride cost you a very good deal on a car, and your friend a lot of lost money, too.

Was you making your point worth the money lost to both parties?

I can understand you wanting to make your point, but at what point do you draw the line and simply say it's not worth it? The pain of swallowing your pride might have lasted a few days. Maybe a week. But the joy of driving a car that you got a great deal on would have lasted far, far longer.

You are right, but i refused it for some other reason,my plans changed , and i agree 33K was very good price at that time.

 

[vegas888]

I pay sales tax on used cars in this state... Car sales keep on giving to the state even if it is the same one car that changes ownership.

In NV we don`t pay sales tax for private sale.
And if we "trade in" our vehicle for new one we get tax credit.
But there is another problem.
Because of that dealerships will give you very low $$$ for your trade in .
Carvana and Vroom will give you A LOT more if you sell car to them but then you lose your tax credit (which is around 8%).
Tesla gave me estimate 29K for my almost new MDX and i sold it for almost 46 to VROOM !
That is over 16K / difference.

 

[glide]

Sometimes people decide to buy used car to save some money.

Well if you are finding that buying used is as expensive, or more expensive than buying new, what is your game plan?

Would you prefer to complain about the private seller who can save you several thousand on sales tax, try to start a market correction on a forum? Or buy new, or don’t buy a Tesla at all?

 

[SageBrush]

The point is that sellers are losing money trading in their vehicles with Tesla instead to lower price for 2-4k and sell it privately.
This has nothing to do with demand.
This is about their mentality,

You misunderstand. They settle for a lower price to not deal with buyers like you, or with scammers
You are being charged the PITA fee

 

[SageBrush]

And what is wrong with me Mr Sage?
You dont like my post then put me on ignore.
This is public forum where people share their opinions, you like it or not.
Why you are insulting me?

I wasn't really trying to insult you, more to explain what you fail to understand.
I checked how much Vroom would buy my car for this week. They gave me a price sight unseen, they pick up the car at my home, and send me a check. That is a lot of convenience, no risk and no hassle. No haggling. No waste of my time by buyers arguing with me what a "realistic" price should be. No test drives. No worry that a buyer is a scammer, or infected with Covid-19. No attempts by the buyer to go over the car with a magnifying glass to find any possible imperfection in hopes of lowering the price. No concern that the check will bounce. No follow-up calls by the new owner complaining of whatever. No need to give out my personal information and address and take on the risk of ID theft. No slew of scammers amid the few truly interested buyers. No need to restrict my buyer pool to local buyers, or deal with the risks and hassles of distant buyers.

The list goes on.
Compared to Vroom, you are one huge PITA (or worse) I do not want unless it saves me a lot of money.

 

[CapeOne]

Used Tesla`s (2018-2021) cost more then new ones or they are very close.
Tesla is artificially inflating the price on their website.

I wouldn't necessarily say that.

An example: 2019 M3 SR+ with clean history, 22k miles, 19" sport wheels, and FSD on the Tesla website for $40k.
2019 Model 3 | Tesla

That car new today would be $49,690.