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.
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Should I upgrade my 2019 SR+ with a 2021 SR+?
- Thread starter pjferr
- Start date
@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
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.
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.
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
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.
@pjferr Whats the business incentive beyond the $5k federal incentive? I am also considering an EV purchase for business use.
vancouver here as well, looking into selling my 2021 M3 SR+ .. still have that contact info?
@stcptl the tax incentives for business use are fairly well explained in this article:
www.theglobeandmail.com
Budget change could offer sizable tax savings on a new car
If you’re thinking about buying a new car, the federal budget tabled this week may present an opportunity for you – particularly if you’re looking to buy an electric or hybrid vehicle
www.theglobeandmail.com
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]
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.
as of Nov 23, the model 3 no longer qualifies for the $5000 federal incentive
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They will honour your order price.
Just don't be a douche and try to sell it the next day on Kijiji.
Oh I know they will. It’s the rebate I’m waiting to see on. Thinking the used market just got another boost since ya can’t get in one now for less than 60k
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