Tanked Model 3 values?

[Durzel]

It’s teslas fault they have such scope to reduce prices significantly though. BMW etc do not. That’s what’s killing used teslas. Moral of the story is don’t buy a Tesla. Second and last for me. Crazy company. Awful boss.

I'm not sure how it's a "fault" that they have so much margin across the cars. That's something other manufacturers can only dream of.

Unfortuately Tesla's only meaningful revenue stream is selling cars. Whatever they make from aftersales is surely negligible, given they don't even mandate servicing for warranty, etc. This means they are highly motivated to keep increasing volume, even if that means reducing the OTR price of the cars. Consequently it's people who actually buy the cars who suffer, as it stands to reason the greater the choice on the second hand market, the less likely any individual selling their car is going to get top money for theirs.

 

[Medved_77]

US data so not sure how that will translate to the UK market however it suggests used car prices (in general) are rising again:

Wholesale Used-Vehicle Prices See Increase in First Half of March - Cox Automotive Inc.

The mid-month Manheim Used Vehicle Value Index shows wholesale used-vehicle prices for the first 15 days of the month.

www.coxautoinc.com

 

[ringi]

Consequently it's people who actually buy the cars who suffer, as it stands to reason the greater the choice on the second hand market, the less likely any individual selling their car is going to get top money for theirs.

Tesla does not force people to unnecessary replace cars every few years.

 

[Durzel]

Tesla does not force people to unnecessary replace cars every few years.

They don't, but people's circumstances change - for the good or the bad - so residual value can often be a factor in spite of best laid plans.

 

[UrbanSplash]

I'm not sure how it's a "fault" that they have so much margin across the cars. That's something other manufacturers can only dream of.

Unfortuately Tesla's only meaningful revenue stream is selling cars. Whatever they make from aftersales is surely negligible, given they don't even mandate servicing for warranty, etc. This means they are highly motivated to keep increasing volume, even if that means reducing the OTR price of the cars. Consequently it's people who actually buy the cars who suffer, as it stands to reason the greater the choice on the second hand market, the less likely any individual selling their car is going to get top money for theirs.

Do you sleep in Tesla PJs? Have a Tesla quilt cover and matching curtains. Cute.

 

[MrT3]

But I can’t help wondering whether Tesla’s aggressive discounting has compounded the market conditions.

That combined with many M3s ending their 3 year lease/finance terms and also many owners upgrading to MY that has left an over supply of used vehicles.

But the ‘aggressive discounting’ is just correcting their price hikes over the previous 12 months back to normal levels.

 

[btc1k]

They don't, but people's circumstances change - for the good or the bad - so residual value can often be a factor in spite of best laid plans.

So if residual value is a concern, based on if your future circumstances might change - then you can lease and not be beholden to residuals which cannot be accurately predicted.

 

[AutomaticMan]

That combined with many M3s ending their 3 year lease/finance terms and also many owners upgrading to MY that has left an over supply of used vehicles.

But the ‘aggressive discounting’ is just correcting their price hikes over the previous 12 months back to normal levels.

That’s true - if I were one of the people who bought during the temporary massive price hike and was needing to sell now I think I’d be crying myself to sleep every night for a month (Sorry to anyone reading who actually is in that situation!!)

I had a look earlier at a US used car website… interestingly, M3 values don’t seem to have collapsed over there to anywhere near the extent that they have here. I wonder if there is a bit of a uniquely British phenomenon going on here (or perhaps European?) where the combination of the oversupply you mention, plus the huge electricity tariffs at the moment have hit Tesla used values extremely hard. If that is the case, if electricity tariffs start going down over the year perhaps the value of UK cars might recover a little bit? No way of knowing I guess… hard to know whether I should cut my losses and attempt to sell now or hold on a few more months to see if prices recover.

 

[HaggisMan]

No some of our US cohort are experiencing similar except with other models

What is the re-sale value of plaids?

I recently did an appraisal on my Model S plaid that I bought last year for $170,000 total after taxes and fees (FSD too), and it came back to $88,000... WHAT! I did trade-in estimate with Tesla and it only gets worse, at a $76,000 value, what is going on?

teslamotorsclub.com

I suspect something similar will manifest with the M3 soon, however our market is much smaller so I would guess a glut of second hand cars would appear faster.

 

[ringi]

I had a look earlier at a US used car website… interestingly, M3 values don’t seem to have collapsed over there to anywhere near the extent that they have here

I don't know how the US tax credits for used EVs work.

 

[Doudeau]

The main stream media, despite all of their scaremongering on climate change, love bashing EVs imo and I notice that Teslas are often used as the poster boy when showing queues at charging stations.

It must put off a lot of people from transitioning to an EV and hence limit demand.

I’ve accepted and quite content that I’ll probably keep my M3 for longer than any car I’ve had before - maybe long enough that EAP will be good enough to purchase for it at some point .