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Should I upgrade my 2019 SR+ with a 2021 SR+?

pjferr

Member
Jan 18, 2020
28
146
Ontario, Canada
Hi Everyone. In July 2021 I put a deposit down on a new SR+ when I saw the resale value of my existing SR+ on Auto Trader & Kijiji was appearing to be mid to high $40K's. I use my vehicle for business and personal and qualify for a higher Zero Emission Vehicle credit than the standard $5000 Federal Credit that is available to everyone who purchases a new SR+. My thought at the time was if I can upgrade to a new vehicle with a new warranty, new battery, new tires and all the improvements/upgrades that have been made to the 3 in the past 2.5 years for as little as $5,000 - $10,000 difference when you factor in the amount I would receive for selling the vehicle privately, the ZEV credits, etc that it makes sense even though it is counterintuitive to how I've always approached normally fast depreciating ICE vehicles. What seems to make the math work is the high resale value of my 2019 SR+ which I believe I can sell for $48,000 - $49,000 privately in the Greater Toronto Area. My plan would be to finalize and take delivery of the new SR+ by the end of this year and once I have it list the old SR+ for sale privately. What's holding me back so far is that my current vehicle is a 2019 SR+ Red with Black in very good condition with just over 50,000 kms. Tesla lowballed me $26,000 for a trade in which is a little disconcerting. It is putting doubts in my mind as to whether I can get mid to upper $40's in a private sale for the vehicle. Anyone ordering an SR+ now has to wait until April - July 2022 for delivery which should help used SR+ prices. Would appreciate anyone who has sold or bought an SR+ recently commenting on what they think I will get in the private market. Also, can anyone else who may be in my situation in that they qualify for the larger ZEV credits for business use comment on whether they have chosen to sell privately and upgrade to a new vehicle based on the math.
 

djlee

Member
Jun 7, 2019
26
16
Vancouver
@pjferr - I am doing the same thing. Selling 2019 M3 SR+ and have a new order for M3 SR+ with EDD oct 20 - nov 3. Now that my delivery window is more accurate I will be selling my 2019. Tesla also lowballed me so a trade in won’t be happening. I am in Vancouver and think I can fetch ~48K. My M3 has 26K KMs. I received some estimates from $45,500-$48K from dealers. I might be able to fetch more privately but the added risk and time isn’t worth it. I will keep you posted on my situation
 
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pjferr

Member
Jan 18, 2020
28
146
Ontario, Canada
Thanks djlee. This helps a lot. You can't find hardly any used 3's in Southern Ontario listed for under $50K so it sure seems to me like a sellers market with the wait for new deliveries to April - July 2022. Would appreciate any updates once you finalize the sale.
 

CanadaGoose

Not as skilled as MarcoRP
Dec 26, 2019
436
685
Ottawa, ON
I have been debating on doing the same.

1. Sell Model 3 SR+ 2020
2. Purchase Model 3 SR+ 2021/2022 with 8k + 5k rebate again

Does anyone have a recommended place to sell their model 3?

I am with an Ontario Model 3 2020. And moving over to the Quebec side soon, will claim that rebate again.
 

Threader

Member
Apr 16, 2019
593
408
Montreal
the issue with waiting to sell your SR+ until your order may appear is that your risking that current market conditions will remain in place in April-July 2022. If Tesla start popping out SR+ and wait time becomes 4-6 weeks again your SR+ market value is diving back to Kelly Blue book values. You are risking 10-15 K.
Sell it now ASAP and figure out an alternate way to travel/commute while you wait that won't eat in too much into your windfall of a tesla sales margin. Or try your luck at Tesla Canada inventory with a website monitory app like I did. Grab a fresh one and cancel your pre-existing order. My 2.5 year old SR+ was already paid for so I only had one car loan to deal with for my new model y. YMMV.
 

pb2000

Member
Dec 22, 2019
325
343
Calgary
I have a '19 as well, but I think I'd jump to the LR, as the range in even slightly cool temperatures is just abysmal for the SR+ and I doubt the extra 39km of range and heat pump would help that much.
 

djlee

Member
Jun 7, 2019
26
16
Vancouver
I have a '19 as well, but I think I'd jump to the LR, as the range in even slightly cool temperatures is just abysmal for the SR+ and I doubt the extra 39km of range and heat pump would help that much.

I would only recommend upgrading to new SR+ if you are in a province that has a rebate to stack on top of the federal $5K rebate. Also with delivery timelines for new orders now 6-9 months out that is another consideration.

BC has a $3K rebate and I ordered back in august so it was a gamble worth taking for me. I expect to pay out of pocket $3-5K which is minimal depreciation for the 2.5 yrs I’ve owned my 2019 M3. Personal situations will vary of course
 
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djlee

Member
Jun 7, 2019
26
16
Vancouver
sharing my personal experience in Vancouver. Sold my 2019 M3 SR+ today 26K KMs black on black with Aeros in excellent condition. EDD on new M3 SR+ is Oct 24-Nov 5. Out of my pocket is $2400. Pretty happy with the outcome. Anyone in Vancouver area looking to sell their Tesla send me a PM and I can refer to the GM at the dealership.
 
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stcptl

Member
Oct 6, 2021
110
113
Toronto
Hi Everyone. In July 2021 I put a deposit down on a new SR+ when I saw the resale value of my existing SR+ on Auto Trader & Kijiji was appearing to be mid to high $40K's. I use my vehicle for business and personal and qualify for a higher Zero Emission Vehicle credit than the standard $5000 Federal Credit that is available to everyone who purchases a new SR+. My thought at the time was if I can upgrade to a new vehicle with a new warranty, new battery, new tires and all the improvements/upgrades that have been made to the 3 in the past 2.5 years for as little as $5,000 - $10,000 difference when you factor in the amount I would receive for selling the vehicle privately, the ZEV credits, etc that it makes sense even though it is counterintuitive to how I've always approached normally fast depreciating ICE vehicles. What seems to make the math work is the high resale value of my 2019 SR+ which I believe I can sell for $48,000 - $49,000 privately in the Greater Toronto Area. My plan would be to finalize and take delivery of the new SR+ by the end of this year and once I have it list the old SR+ for sale privately. What's holding me back so far is that my current vehicle is a 2019 SR+ Red with Black in very good condition with just over 50,000 kms. Tesla lowballed me $26,000 for a trade in which is a little disconcerting. It is putting doubts in my mind as to whether I can get mid to upper $40's in a private sale for the vehicle. Anyone ordering an SR+ now has to wait until April - July 2022 for delivery which should help used SR+ prices. Would appreciate anyone who has sold or bought an SR+ recently commenting on what they think I will get in the private market. Also, can anyone else who may be in my situation in that they qualify for the larger ZEV credits for business use comment on whether they have chosen to sell privately and upgrade to a new vehicle based on the math.

@pjferr Whats the business incentive beyond the $5k federal incentive? I am also considering an EV purchase for business use.
 

Darthbenji

Active Member
Mar 27, 2018
1,062
639
Ontario
Thinking of doing the same. New car reserved at old price and sky high resale of SR+ makes it an easy choice. Was thinking of the LR but eventual resale seems to be much softer than SR+.
 

thomyas

New Member
Jul 17, 2021
2
2
Vancouver
sharing my personal experience in Vancouver. Sold my 2019 M3 SR+ today 26K KMs black on black with Aeros in excellent condition. EDD on new M3 SR+ is Oct 24-Nov 5. Out of my pocket is $2400. Pretty happy with the outcome. Anyone in Vancouver area looking to sell their Tesla send me a PM and I can refer to the GM at the dealership.
vancouver here as well, looking into selling my 2021 M3 SR+ .. still have that contact info?
 

pjferr

Member
Jan 18, 2020
28
146
Ontario, Canada
It looks like that article is now behind a paywall. Here is its:

Consider Jane. She’s an employee who purchases a new zero-emission car in 2019 (after budget day) for a total cost of $55,000. She’s ordinarily required to work away from her employer’s place of business and is entitled to deduct vehicle costs (see my article from 2016 for these rules: tgam.ca/cardeductions). Jane keeps a log of her kilometres driven for work, and uses her car 30 per cent of the time for business, so she’ll be able to claim 30 per cent of her vehicle costs. When it comes to CCA on her car, the budget changes will allow her to deduct the cost of her car in 2019 (the first year). In her case, the $55,000 must be prorated because only 30 per cent of her driving is for work. So, the deduction she can claim is $16,500 ($55,000 x 30 per cent). That’s a pretty sizable deduction against her employment income. If she’s in the top marginal tax bracket in Ontario, for example, that $16,500 deduction will save her $8,832 in taxes in 2019. These are big dollars. THE NUANCES Keep in mind that the federal budget is not yet law. If you want the tax savings I’ve talked about here, you’d be wise to wait to purchase your new vehicle until the budget receives royal assent. Further, be aware that if you sell the car later after deducting the full cost as CCA, you’ll have to include in your income the price you receive upon selling (for example, if Jane were to sell her car for, say, $20,000 later, she’d have to include 30 per cent – her business use – in her income, or $6,000). Finally, the 2019 federal budget is also proposing a federal purchase incentive of up to $5,000 if you buy a zero-emission vehicle (program details have not yet been released). If you claim this incentive, you can’t also take advantage of these new CCA rules. Tim Cestnick, FCPA, FCA, CPA(IL), CFP, TEP, is an author, and co-founder and CEO of Our Family Office Inc. He can be reached at [email protected]
 

stcptl

Member
Oct 6, 2021
110
113
Toronto
It looks like that article is now behind a paywall. Here is its:

Consider Jane. She’s an employee who purchases a new zero-emission car in 2019 (after budget day) for a total cost of $55,000. She’s ordinarily required to work away from her employer’s place of business and is entitled to deduct vehicle costs (see my article from 2016 for these rules: tgam.ca/cardeductions). Jane keeps a log of her kilometres driven for work, and uses her car 30 per cent of the time for business, so she’ll be able to claim 30 per cent of her vehicle costs. When it comes to CCA on her car, the budget changes will allow her to deduct the cost of her car in 2019 (the first year). In her case, the $55,000 must be prorated because only 30 per cent of her driving is for work. So, the deduction she can claim is $16,500 ($55,000 x 30 per cent). That’s a pretty sizable deduction against her employment income. If she’s in the top marginal tax bracket in Ontario, for example, that $16,500 deduction will save her $8,832 in taxes in 2019. These are big dollars. THE NUANCES Keep in mind that the federal budget is not yet law. If you want the tax savings I’ve talked about here, you’d be wise to wait to purchase your new vehicle until the budget receives royal assent. Further, be aware that if you sell the car later after deducting the full cost as CCA, you’ll have to include in your income the price you receive upon selling (for example, if Jane were to sell her car for, say, $20,000 later, she’d have to include 30 per cent – her business use – in her income, or $6,000). Finally, the 2019 federal budget is also proposing a federal purchase incentive of up to $5,000 if you buy a zero-emission vehicle (program details have not yet been released). If you claim this incentive, you can’t also take advantage of these new CCA rules. Tim Cestnick, FCPA, FCA, CPA(IL), CFP, TEP, is an author, and co-founder and CEO of Our Family Office Inc. He can be reached at [email protected]

So one can either get the $5000 incentive or deduct it all up to $55,000 in year 1. I wonder if you can still get the $5000 incentive if you deduct it over multiple years like a non-EV vehicle.
 

Casmium

Member
Sep 14, 2018
349
352
Mississauga
So one can either get the $5000 incentive or deduct it all up to $55,000 in year 1. I wonder if you can still get the $5000 incentive if you deduct it over multiple years like a non-EV vehicle.
as of Nov 23, the model 3 no longer qualifies for the $5000 federal incentive

.
Canada Federal
  • Up to $5,000 rebate for individuals purchasing vehicles with a base MSRP* under $45,000 before including delivery centre fees. Trims of the same Model qualify up to MSRP* $55,000 before delivery centre fees.
  • Eligible orders placed prior to the price change on November 23, 2021, are expected to remain eligible, conditional on program funding and customers meeting all other eligibility criteria.
  • For details regarding customer/program eligibility and the treatment of Tesla orders placed prior to the price change on November 23, 2021, please visit the Transport Canada website on November 24.
 

stcptl

Member
Oct 6, 2021
110
113
Toronto
as of Nov 23, the model 3 no longer qualifies for the $5000 federal incentive

.
Canada Federal
  • Up to $5,000 rebate for individuals purchasing vehicles with a base MSRP* under $45,000 before including delivery centre fees. Trims of the same Model qualify up to MSRP* $55,000 before delivery centre fees.
  • Eligible orders placed prior to the price change on November 23, 2021, are expected to remain eligible, conditional on program funding and customers meeting all other eligibility criteria.
  • For details regarding customer/program eligibility and the treatment of Tesla orders placed prior to the price change on November 23, 2021, please visit the Transport Canada website on November 24.

Yes, Tesla increased price to $60k today.
 

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