Tax Credit for the customer or Tesla?

[Ostopuck]

Do not try to trade your used Model 3 in to Tesla. They don't wholesale cars, so the price they offer isn't based on the market. You're trying to sell your car to the company that makes them.

Used Model 3s are still strong in the wholesale market. Surprisingly high in fact.

Thank you, Has anyone bought a used one. I haven't seen any sale figures?

 

[JamesBrown]

Mid, Prem, 18inch, blue paint, EAP. $57,077. was called and told $34,700. I wish it wasn't true.

You forgot about that tax credit and a trade in offer isnt the same thing as value. They offer below wholesale to make a profit. If you were offered $34.7k for trade in, it doesnt mean someone told you that your car is worth $34.7k.

 

[Ostopuck]

You forgot about that tax credit and a trade in offer isnt the same thing as value. They offer below wholesale to make a profit. If you were offered $34.7k for trade in, it doesnt mean someone told you that your car is worth $34.7k.

Agreed, Tax Credit is a person, not a company. no way should be calculated. if it was a company it wouldn't go to the customer. no trade in. I asked for a buyback. not trade in. What would one go for on the open market? maybe I just bite the bullet and sell it for a lost and chalk it up to a learning experience and taken for a ride. Thank you for your time.

 

[redgt]

Mid, Prem, 18inch, blue paint, EAP. $57,077. was called and told $34,700. I wish it wasn't true.

you are including sales tax and registration which really is not part of "purchase price"

your msrp should have 52500ish

like others are saying get more offers for your car. you should be able to get $40k or somewhere close to that

so more like 24% depreciation (40000/52500 = .76)

if you include the $7500 tax credit your net purchase price would have been $45000 or 12% depreciation. (40000/45000 = 88%)

 

[Krazaak]

You forgot about that tax credit and a trade in offer isnt the same thing as value. They offer below wholesale to make a profit. If you were offered $34.7k for trade in, it doesnt mean someone told you that your car is worth $34.7k.

It's more than that. Tesla doesn't offer wholesale on Teslas because Tesla doesn't wholesale them. They beat CarMax offers for the 2 BMWs I traded in on the Model X and 3, because they just play middleman in those deals. Since they don't wholesale their own vehicles, you're directly competing with their manufacturing costs. The second thing to consider is that software options have absolutely no value to them. The trade-in for an AP/FSD vehicle and one without AP is identical as far as Tesla is concerned, because they can add it for no cost to themselves.

The problem is even worse than in the traditional dealer model, because the profit is split between manufacturer and dealer. A BMW dealer might be willing to pay more than wholesale for a high demand model or particularly clean/low mileage example because they can still turn a profit. They don't make the cars themselves, so they have a limited allotment, especially for really high demand models.

Personally, since Tesla has stopped reconditioning pre-owned vehicles, I think they should get out of the used market entirely and partner with a national used car chain like CarMax, Carvana, Vroom, etc. By keeping Teslas out of the wholesale market, they're doing a large disservice to their owners and hurting brand loyalty. Certify somebody like CarMax to recondition cars, let the market drive wholesale trade values and stop low-balling their loyal owners.

 

[JamesBrown]

Agreed, Tax Credit is a person, not a company. no way should be calculated. if it was a company it wouldn't go to the customer. no trade in. I asked for a buyback. not trade in. What would one go for on the open market? maybe I just bite the bullet and sell it for a lost and chalk it up to a learning experience and taken for a ride. Thank you for your time.

It 100% absoultly should be calculated. You are literally complaining about losing $22k in value. But you are ignoring the fact that you received a large tax credit off setting the cost. You can also private party making at least 40k.

Either way, not one single person at Tesla told you that your car lost 40% in depreciation in 2 months.

 

[Ostopuck]

It's more than that. Tesla doesn't offer wholesale on Teslas because Tesla doesn't wholesale them. They beat CarMax offers for the 2 BMWs I traded in on the Model X and 3, because they just play middleman in those deals. Since they don't wholesale their own vehicles, you're directly competing with their manufacturing costs. The second thing to consider is that software options have absolutely no value to them. The trade-in for an AP/FSD vehicle and one without AP is identical as far as Tesla is concerned, because they can add it for no cost to themselves.

The problem is even worse than in the traditional dealer model, because the profit is split between manufacturer and dealer. A BMW dealer might be willing to pay more than wholesale for a high demand model or particularly clean/low mileage example because they can still turn a profit. They don't make the cars themselves, so they have a limited allotment, especially for really high demand models.

Personally, since Tesla has stopped reconditioning pre-owned vehicles, I think they should get out of the used market entirely and partner with a national used car chain like CarMax, Carvana, Vroom, etc. By keeping Teslas out of the wholesale market, they're doing a large disservice to their owners and hurting brand loyalty. Certify somebody like CarMax to recondition cars, let the market drive wholesale trade values and stop low-balling their loyal owners.

Well written

 

[Ostopuck]

It 100% absoultly should be calculated. You are literally complaining about losing $22k in value. But you are ignoring the fact that you received a large tax credit off setting the cost. You can also private party making at least 40k.

Either way, not one single person at Tesla told you that your car lost 40% in depreciation in 2 months.

I do understand what you are saying, I still disagree. if the credit was meant for Tesla it would have been a Tesla credit, not the customer. Tesla knowing gamed the system and its a shame (they should have been upfront with it). Instead, they said Make sure you get your order in before you lose your tax credit. maybe not bait and switch but dishonest something Tesla was good about not being in the past.

if what you are saying is correct. Chevy or Nissan will lower the price of the vehicle after the tax credit expires?

Tesla should have just said. they are overcharging for the cars with tax credits.

Another question is did you get a tax credit?

 

[Uncle Don]

I got my tax credit. It was on the forms in TurboTax. I got the full $7500 from the feds and I'm still waiting for my $2500 check from the state, although it's already bee approved.

Didn't you get yours? All you needed to do was check the right box on the forms.

 

[OCR1]

If the demand in Q1 had been stronger Tesla would have not reduced their prices so much. But with the reduced federal tax credit they couldn’t sell as many cars as they were producing so they had no choice but to drop the price. I can’t blame them for it. They can only sell them for the prices that enough people are willing to pay for them.

 

[whatthe2]

I do understand what you are saying, I still disagree. if the credit was meant for Tesla it would have been a Tesla credit, not the customer. Tesla knowing gamed the system and its a shame (they should have been upfront with it). Instead, they said Make sure you get your order in before you lose your tax credit. maybe not bait and switch but dishonest something Tesla was good about not being in the past.

if what you are saying is correct. Chevy or Nissan will lower the price of the vehicle after the tax credit expires?

Tesla should have just said. they are overcharging for the cars with tax credits.

Another question is did you get a tax credit?

Why did you buy the car at the price you were happy with? People get different pricing all the time on cars. No different here. If you didn’t like the price, you should have waited longer.

 

[JamesBrown]

I do understand what you are saying, I still disagree. if the credit was meant for Tesla it would have been a Tesla credit, not the customer. Tesla knowing gamed the system and its a shame (they should have been upfront with it). Instead, they said Make sure you get your order in before you lose your tax credit. maybe not bait and switch but dishonest something Tesla was good about not being in the past.

if what you are saying is correct. Chevy or Nissan will lower the price of the vehicle after the tax credit expires?

Tesla should have just said. they are overcharging for the cars with tax credits.

Another question is did you get a tax credit?

Nothing Tesla did was dishonest. They sold a car for a price they feel would maximize profits and adjusted price when sales decreased. Car manufactures adjust price all the time based on demand. Just last year Volvo released the new XC90 Excellence for $110k. Due to very few people willing to pay $110k for a Volvo, they dropped the price $40k months later. This is an extremely common practice. I can guarantee you that Chevy/Nissan will adjust their prices as well when sales dip.

 

[killua]

My friend people on the same airplane pay different prices for the same seat.

 

[dsvick]

34,700 is the amount. I rounded it up to 35k. has 4,400 miles. and I paid $57,077. I understand its unbelievable. I explained that in a loud voice

You can't include tax into your price, your cost for a MR, with paint and EAP in December should have been about $50K. Tesla is offering you $34,700, this is not the value of your car, this is what Tesla is offering you so they can turn around and sell and make a profit. If you want to sell your car for its value then you need to sell it yourself.

no trade in. I asked for a buyback. not trade in.

Unless there is something wrong with your car why would you think Tesla would do that.

What would one go for on the open market?

That's going to vary by market, the car, time of year and all sorts of other variables. Your best bet is to check the classifieds in your area and see if there are any comparables, then use some of the online valuation tools and put it up for sale.

 

[dsvick]

I can guarantee you that Chevy/Nissan will adjust their prices as well when sales dip.

They already are

 

[Ostopuck]

Why did you buy the car at the price you were happy with? People get different pricing all the time on cars. No different here. If you didn’t like the price, you should have waited longer.

mostly because they only sold one type of at the time MR. and if you don't get one now the tax credit went down. I didn't want to loose out on the credit. i guess that is on me. Also, when tax credits went down. Tesla started to produce for other countries. January is normally a slow period and with stealing demand from Jan to Dec they knew sales would be soft. Lowering the price of the car was planned ahead.

 

[dsvick]

mostly because they only sold one type of at the time MR. and if you don't get one now the tax credit went down. I didn't want to loose out on the credit. i guess that is on me. Also, when tax credits went down. Tesla started to produce for other countries. January is normally a slow period and with stealing demand from Jan to Dec they knew sales would be soft. Lowering the price of the car was planned ahead.

Yes, lowering the price was planned ahead, but they lowered it by less than the tax credit declined, the tax credit went down $3,750 and the price reduction was only a little over $1K if I recall.