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So how do you price a used Model S? Seriously.

Discussion in 'Model S: Ordering, Production, Delivery' started by redi, Oct 10, 2014.

  1. redi

    redi 2013 P85+ with HumanPilot Technology

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    The only thing I have found/read in the forums is the -1K/month + 1K/thousand miles.

    Unfortunately I have not found any data in the typical blue book value sites.

    How is Tesla doing it?

    Thinking about putting my P85+ up for sale at some point for a P85D.

    Thanks.
     
  2. swaltner

    swaltner Member

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    You're close. Don't forget to subtract the $7,500 Federal Tax Credit off the price also. If you're not passing most/all of that tax credit on to the buyer, why wouldn't they just buy an new vehicle and be able to claim it for themselves. You'll also be competing with Tesla loaner vehicle pricing, which uses the same discount formula, but does allow the buyer to claim the tax credit, since the buyer is the first person to register the vehicle.
     
  3. mitch672

    mitch672 Active Member

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    not everyone is eligabile for the full $7,500 rebate. also applies to only new vehicles.
    the $1K month of ownership, $1/mile is how Tesla discounts the loaner fleet for sale.
    i've submited a request for Tesla to trade in my Model S, its 22 months old with 21,000 miles on it.
    I paid $90K for it in January of 2013. Let's see what Tesla offers on it... i'll update when I get the offer.
     
  4. efusco

    efusco Moderator - Model S & X forums

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    Yipes, if that formula is correct I'm going to have to pay someone to take my S off my hands in a few months! 41K miles, 22 months of ownership= $63k, I just paid 82K before the tax credit, so $75. Guess I should sell now for $12k before it gets worse1 #notgonnahappen
     
  5. EarlyAdopter

    EarlyAdopter Active Member

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    This formula only works for 1-3 month old cars, intended for service loaners that aren't expected to stick around very long. Depreciation is at its worst at this time. After that, it tapers off some so a different formula would be necessary.
     
  6. vgrinshpun

    vgrinshpun Active Member

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    I would gauge depreciation on Model S to be approximately the same as for a comparable premium car. I think the closest peer to a P85+ that I have would be Audi RS7. I went to Edmunds.com used car price calculator and priced Audi RS7 using the same year/mileage as my P85+, and then calculated what percentage of the new car average selling price (not MSRP) the used car price would be. This exercise produced about 20% depreciation.

    As my P85+ cost around $115 back in 2013, the approximate fair value would be 0.8 x 115 = $92K
     
  7. shelbri

    shelbri Member

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    Forget formulas. List it as close to your purchase price as you think someone is willing to pay (ask yourself if you'd pay that price for a used one) and see what happens. You can always lower the price if there isn't much action.
     
  8. yobigd20

    yobigd20 Well-Known Member

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    P85 with almost 60k miles, manufactured Feb 2013. so lets see. $103k purchase price - $20k for 20 months ownership - $60k for mileage - $7500 rebate = anybody want my immaculate condition P85 for $15.5k??
     
  9. brianman

    brianman Burrito Founder

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    Yes and I'll pay cash. :)
     
  10. Lump

    Lump Active Member

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    $15.6k...Done deal!...you drive a hard bargain!
     
  11. Pollux

    Pollux Member

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    #11 Pollux, Oct 11, 2014
    Last edited: Oct 11, 2014
    @yobigd20,

    @brianman's a nice guy, but I hear he make his "cash" on a printing press in his basement. I'm told his rather handsome visage graces the wall of post offices and FBI field offices across the land.

    PM me your bank account info, and I'll wire $15.5K into your account Monday morning (are the banks open on Columbus Day?) and stop by later that day to pick up the car.

    Thanks in advance; I've been looking for a great deal, and this is it! :)

    Alan

    P.S. I notice the bidding is starting to get frenzied. I'll also toss in $200 in free burritos.
     
  12. FreeOfPge

    FreeOfPge Member

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    #12 FreeOfPge, Oct 11, 2014
    Last edited: Oct 11, 2014
    Way too low. Take a look at cars.com http://www.cars.com/for-sale/searchresults.action?stkTyp=U&tracktype=usedcc&mkId=28263&AmbMkId=28263&AmbMkNm=Tesla&make=Tesla&AmbMdNm=Model%20S&model=Model%20S&mdId=21655&AmbMdId=21655&prMx=&rd=100000&zc=76513&searchSource=QUICK_FORM&enableSeo=1

    Note: Many cars listed as Performance are not P85's, this is especially true below the $90k price point. They're listed as a performance vehicle, not a P.

    (EDIT: Maybe not way too low, but definitely low...it would be a quick sell.)
     
  13. Pollux

    Pollux Member

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    On a more serious note... I've been thinking about the re-sale price of a 2013 P85+, purchased in August, 2013, with 22K gentle, New England miles on it. Strictly hypothetically.

    And that $1/mile, $1K/mo formula just doesn't cut it for me after the initial depreciation hump. But what *is* reasonable?

    And what about 4-year extended warranty option? And 4-year extended service option?

    And... how does one value owner additions, such as:
    + Full-body Xpel
    + OptiCoat everywhere
    + Tinted windows, hatch & sunroof
    + Extra set of 19" wheels & winter tires

    Is there a formula for major accessories, e.g., 50% of original purchase price? 5%?

    I get it that the car depreciates. And, boy, do I get it that it's all about what the market will bear. But I'm so sick of negotiating with auto dealers on trade-ins and re-sales, and even sick of negotiating with private sellers. I'd love to have a sense of what's "reasonable", and go from there. I'm more interested in a price that's good for both parties than in a price that's great for one party and the other gets screwed. But where to start?

    Thanks,
    Alan

    P.S. Not at all influenced by the D announcement or possible December delivery. Really. Not. At. All.
     
  14. yobigd20

    yobigd20 Well-Known Member

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    Fyi there's an 18 month old P85 with 48k miles that sold on eBay very recently at $85k. So much for your formula.
     
  15. Tedkidd

    Tedkidd Member

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    EBAY

    One of the best place to determine market value for almost anything is ebay "completed listings", and this seems particularly true for Teslas.

    Used model s are bringing well above guaranteed buyback.
     
  16. FreeOfPge

    FreeOfPge Member

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  17. efusco

    efusco Moderator - Model S & X forums

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    I'm gonna wait a few months so you'll pay me to take the POS off your hands!
     
  18. NOLA_Mike

    NOLA_Mike Active Member

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    To whom or where did you submit the request to trade? I want to do the same thing but am not sure where to start. Very interested in what you hear from them.

    Mike
     
  19. yobigd20

    yobigd20 Well-Known Member

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    You want SOLD LISTINGS. Not COMPLETED LISTINGS. completed listings include cars NOT sold. So you could have 300 model S listed at $200k that never sold but that doesn't represent their value whatsoever. That's like if you listing your house on the market for 3x it's market value. You can't appraise the value of your property by listing prices. You must look at the SOLD listings instead.
     
  20. rlcordeiro

    rlcordeiro Member

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    I submitted a request to tesla for my P85 12/12 37k mi 100k sticker and was offered 66k. Squirming around cant wait to get my hands on a D.
     

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