Tesla Model 3 Performance value at CarMax - appraisal lower than expected!

[UngaBunga1989]

Sorry, but if u buy a car and then sell it within two months you are going to take a financial drubbing — especially after putting 7500 miles on it in two months. If something bad happened in your life that necessitated the sale I am very sorry for you. If you just decided to sell a brand new car after two months of ownership and it was NOT caused by some event in your life then you really should not get any sympathy. That is just a tremendously impulsive move with an asset class as front-loaded for depreciation as a car.

 

[EVDRVN]

Perhaps car max read this first:

How far are you willing to keep your Tesla

 

[Dudemcnally]

I didn't get the full 7500 tax credit because I didn't make around $80,000 a year from what my tax person told me that I made around 45,000 so I was qualify for about $2,500 to $3,000.. so that's another thing I got screwed from..ugh

Yikes, remind me to keep an eye on the subprime auto-bond market.

 

[OCR1]

I see one M3 for sale on CarMax within 250 miles of my home (So Cal). $48K with 8K miles. Nowhere in the description does it state LR, MR, RWD or AWD, AP or not. It would seem that whoever posted the listing on their website had no idea what information they needed to provide to an informed Tesla buyer of what the specs on the car are. That tells me that CarMax is not the right place to sell a Tesla.

 

[pipestem]

is it clear if the OP wants to sell the car or if he just wants to get valuations?

if you want to sell I'll give you $carmax+$1

 

[ChadS]

In November I took my 3 LR RWD with 2k miles in to CarMax. They offered $36k.

Tesla offered $46,200, plus I'd get a ~10% sales tax credit on the trade-in. I sold it privately in a few days on Craigslist for $51,500; that took very little effort.

CarMax's $30k offer didn't have much to do with the value of the car.

 

[CCIE]

You may need a better imagination because I can think of many reasons.

I can imagine plenty of bad reasons. None make financial sense.

If you need a loan to buy a car, you should be buying the least expensive car that will meet your minimum transportation needs. Most people aren’t that logical, but that doesn’t mean I’m wrong.

 

[EVDRVN]

I can imagine plenty of bad reasons. None make financial sense.

I can imagine plenty of bad reasons. None make financial sense.

If you need a loan to buy a car, you should be buying the least expensive car that will meet your minimum transportation needs. Most people aren’t that logical, but that doesn’t mean I’m wrong.

If you need a loan to buy a car, you should be buying the least expensive car that will meet your minimum transportation needs. Most people aren’t that logical, but that doesn’t mean I’m wrong.[/QUOTE]

You seem to think that everyone makes decisions based on your financial values and information. Your statement above is ridiculous because you define your logic as correct when it's simply a matter of opinion and lifestyle choices. Perhaps you would like the OP to tell you how to spend your money and lead your life? Perhaps there are things you may buy that others think are a complete waste of money and are irresponsible?

 

[robski]

That’s what jumped out at me too. Unless the OP is retired with 7+ figures in savings, and controlling the income that savings is generating, I can’t imagine a financially sound justification buy an $80k depreciating asset on a $45k income.

I would agree that indeed on the surface the numbers do look off balance, but apparently it's doable in Bloomfield, NJ. I'm sure there's lots of folks on here from parts of the country where the numbers look more favorable, but factor in the cost of living in those areas and they're in a similar situation. My 2c.

 

[focher]

I can imagine plenty of bad reasons. None make financial sense.

If you need a loan to buy a car, you should be buying the least expensive car that will meet your minimum transportation needs. Most people aren’t that logical, but that doesn’t mean I’m wrong.

I'm always amused when people start talking about buying a car and financial sense in the same sentence. There's no combination of those two things that enter the equation when buying a Tesla, that's for sure.

 

[CCIE]

You seem to think that everyone makes decisions based on your financial values and information. Your statement above is ridiculous because you define your logic as correct when it's simply a matter of opinion and lifestyle choices. Perhaps you would like the OP to tell you how to spend your money and lead your life? Perhaps there are things you may buy that others think are a complete waste of money and are irresponsible?

I actually think most people don’t have any financial values or sense. Most are up to their eyeballs in debt and living paycheck-to-paycheck.

The OP is free to spend his money as he wishes. I’m free to say it was foolish, especially since he’s now surprised that the car’s value has dropped like a stone.

 

[CCIE]

I'm always amused when people start talking about buying a car and financial sense in the same sentence. There's no combination of those two things that enter the equation when buying a Tesla, that's for sure.

Agreed. There can be a need to own a car. But, no one needs to own a $50k car, unless it’s being used for a business purpose. For personal transportation, stripped Honda Civics make the most sense.

 

[MXWing]

You seem to think that everyone makes decisions based on your financial values and information. Your statement above is ridiculous because you define your logic as correct when it's simply a matter of opinion and lifestyle choices. Perhaps you would like the OP to tell you how to spend your money and lead your life? Perhaps there are things you may buy that others think are a complete waste of money and are irresponsible?

@EVDRVN is running a Tesla semi over everyone lmao.

I would like to add as well that unless you have access to everyone’s credit scores, income sheet, balance sheets, and terms of credit there is no way to know if a loan is a “bad idea” or not.

My LTV on my Performance Model 3 was 90% before taking delivery and LTV was 110% within a week.

Without context that’s a disaster.

Thankfully it was only 35K so not that expensive of a toy.

Agreed. There can be a need to own a car. But, no one needs to own a $50k car, unless it’s being used for a business purpose. For personal transportation, stripped Honda Civics make the most sense.

How good a deal was that 15K when an Escalade runs into your Civic?

You shouldn’t need nor justify a 50K car if your annual salary was 50K.

There’s something called diminishing marginal utility curves where 10,000 units of ramen and water gets a return of 0 and you’d like to drive around in a nice car?

Leisure has a negative value if you are starving and a positive value if you are not.

Context.. context and context.

 

[PDX-JP]

As everyone else has stated, Carmax is not the place to sell very new cars and/or unique ones. 3 years from now the M3 will probably get a more competitive offer as there will be a big volume of them out there.

Based on my experience a 4-6 year old fairly high demand vehicle that is in good condition except for significant dings/scratches Carmax gives you a good price. They can fix the blemishes cheaply, way less than if you take it to a body shop. Thus they will give you more than trying to sell it privately without bodywork and a much better net price than fixing and then selling.

 

[MXWing]

As everyone else has stated, Carmax is not the place to sell very new cars and/or unique ones. 3 years from now the M3 will probably get a more competitive offer as there will be a big volume of them out there.

Based on my experience a 4-6 year old fairly high demand vehicle that is in good condition except for significant dings/scratches Carmax gives you a good price. They can fix the blemishes cheaply, way less than if you take it to a body shop. Thus they will give you more than trying to sell it privately without bodywork and a much better net price than fixing and then selling.

^^^^ this man knows.

Though a Model 3 of any usage has strong support at 35,000 and damn near unlimited at 27,500.

You are an idiot If you buy a stripped down 3SR with stripped exterior and interior if you can buy the 3LR for same price or marginally higher.

How bargain basement does a 3.3 second car get? I would offer 50,000 without hesitation for a 3P if I was in the market for one. That’s also a low ball offer.

Twin Turbo Supra’s are not being given away and those are over two decades old.

They are just so fast compared to current Toyota’s.

 

[SageBrush]

Your statement above is ridiculous because you define your logic as correct when it's simply a matter of opinion and lifestyle choices.

Tell that to the banks. They have this crazy notion that some people should pay higher interest rates than others and they even refuse loans if they judge the risk of default too high.

Do you think that the bank is practicing lifestyle discrimination ?

 

[Halloween81]

If what I'm reading here is true, and Carmax is unable to identify trim, then theoretically, I should be getting a 47k appraisal for my "2018 Model 3 4DR Sedan" (LR RWD) as well, which for me would be a steal of a deal. I paid 56k for it and will be eligible for the full 7500 credit refund. I didn't pay sales tax because it doesn't exist in NH. So I'd be out $1500.

If I didn't get EAP, I'd be pocketing money at 47k.

Yeah it with your scenario if definitely plays out more profitable than my scenario but I just believe that the computers are recognizing what the vehicle capabilities are and that the model 3 hasn't been out long enough for consumers to appraise it at a high demand but since it was a top selling luxury car that outsold BMW Mercedes Lexus an Audi you with consider and think that holds its value

 

[EVDRVN]

I actually think most people don’t have any financial values or sense. Most are up to their eyeballs in debt and living paycheck-to-paycheck.

The OP is free to spend his money as he wishes. I’m free to say it was foolish, especially since he’s now surprised that the car’s value has dropped like a stone.

Tell that to the banks. They have this crazy notion that some people should pay higher interest rates than others and they even refuse loans if they judge the risk of default too high.

Do you think that the bank is practicing lifestyle discrimination ?

Not relevant to my point in any way.

 

[EVDRVN]

Agreed. There can be a need to own a car. But, no one needs to own a $50k car, unless it’s being used for a business purpose. For personal transportation, stripped Honda Civics make the most sense.

Wow, you seem to know what is good for everyone. Do you have a home loan? Any loans or debt? If so I think YOU are foolish and irresponsible and living outside your means. That's how I live so you should too! Do you realize how you sound professing you know everyones full financial status now and in the future? I can think of dozes of points you don't consider but more importantly you seem to think your values and statements are valid and those of others are irresponsible based on your arm chair assessments and judgements. I may not agree with the OP on many levels but I would be a Ass** H** to profess I know his full situation and decision process. Perhaps you can post a buying decision chart for us. I could not imagine your decision process for ordering at a restaurant on a date. "Please order what meets you minimum nutritional requirements:

 

[EVDRVN]

Yeah it with your scenario if definitely plays out more profitable than my scenario but I just believe that the computers are recognizing what the vehicle capabilities are and that the model 3 hasn't been out long enough for consumers to appraise it at a high demand but since it was a top selling luxury car that outsold BMW Mercedes Lexus an Audi you with consider and think that holds its value

Value is not a function of "top selling", many market factors determine value not withstanding lack of valuation data. If you want to sell your car and know it's market value post it on Craig's list or list it on Ebay with a reserve. You have no risk and you can get your answers and a higher price. I sold my Model S on CL to someone six states away for a price no one said I could get. Why bother with a place that has to add massive markup for risk and overhead? I'm not sure you know what you want to do or that you are serious seller yet but if you are you need to test the market.