TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker and becoming a Supporting Member. For more info: Support TMC
Start a Discussionhttps://teslamotorsclub.com/tmc/tags/

Tesla seems not to believe in the longevity of their own cars..

Discussion in 'Model S: Ordering, Production, Delivery' started by joer00, Dec 8, 2016.

  1. joer00

    joer00 Member

    Joined:
    Jan 26, 2013
    Messages:
    321
    Location:
    Tampa
    My Tesla just hit 50k miles and I thought I rather put the 4k for extended warrant against payment to get a P100D.

    So for my 12/31/2014 build 01/2015 delivered fully loaded with NG seats front and back and the + suspension which the original price was 135k Tesla gave me the HIGH trade in value of 65k !!! So more than 50 % loss in a little less than two years.

    I have been told it is due to the mileage. Tesla tells us there is almost no maintenance, fever parts to break than with an ICE and the drive train is good for 1 million miles. So I have 5% on my drive train and my car is worth less than 50 % ! Tesla clearly does not believe in their own cars longevity. KBB is at about 75k, a value I somehow expected, low but fair.

    I saw the same issue with my old P85. It was sold for an unbelievable low price for that great car. I think there are two issues here which hopefully change for better values in the future:

    1.) Tesla needs to establish a track record of RELIABLE cars. Don't just talk about less parts to break and 1 million miles drive train, deliver !

    2.) Any garage should be allowed to repair and service a Tesla to overcome the fear of no option and bring repair prices down.

    3.) The public needs to understand the difference between an ICE and a Tesla. No ICE has a 8 year unlimited warranty on engine, torque converter and gearbox ! The Tesla has NOT a significant higher value than a BMW or MB from what I see.

    I hope the future will look better :(
     
    • Informative x 2
    • Like x 2
  2. jerry33

    jerry33 S85 - VIN:P05130 - 3/2/13

    Joined:
    Mar 8, 2012
    Messages:
    13,291
    Location:
    Texas
    Regardless of brand, the higher priced cars depreciate much more initially. Most do it because of mechanical issues. I'd suggest that with Tesla it's because of the new features and computer related items. If you think about how much a three year old computer depreciates, it's far more than a three year old Tesla (as a percentage of original cost). Regardless of how reliable the car is, an older car will never have AP (for example).
     
    • Helpful x 2
  3. sdorn

    sdorn Director of Awesome

    Joined:
    Oct 9, 2016
    Messages:
    901
    Location:
    Georgia
    That is why I went with a lease. No surprises when it is time to turn it back in. I have owned several BMWs, Porsches, etc. and every time I go to trade in I feel like I got screwed over (which I probably did).
     
    • Like x 1
    • Funny x 1
  4. jerry33

    jerry33 S85 - VIN:P05130 - 3/2/13

    Joined:
    Mar 8, 2012
    Messages:
    13,291
    Location:
    Texas
    Trade in value is always wholesale value or less. If you want a good "trade in" sell the car privately.
     
    • Like x 2
    • Helpful x 1
  5. sdorn

    sdorn Director of Awesome

    Joined:
    Oct 9, 2016
    Messages:
    901
    Location:
    Georgia
    Too much work.
     
    • Funny x 2
    • Like x 1
  6. jerry33

    jerry33 S85 - VIN:P05130 - 3/2/13

    Joined:
    Mar 8, 2012
    Messages:
    13,291
    Location:
    Texas
    #6 jerry33, Dec 8, 2016
    Last edited: Dec 8, 2016
    True, it's more hassle. However, the last car I sold privately got 3.5x what was offered by the dealer.

    My problem with leasing is that if you're a business or can write off the expenses, it's great. For an individual there is too much uncertainty. If you suddenly drive much more (new job further away for example) then then you might have a very large bill at the end of the lease term.
     
    • Like x 1
  7. thefortunes

    thefortunes Member

    Joined:
    Jun 14, 2013
    Messages:
    604
    Location:
    Wisconsin
    Let me know when you are trading in your next car. I will buy it at trade-in value.

    I have never traded in a car and the longest I had one for sale was probably a week.

    Last sale was literally one day - probably 3 hours of my time - for $2,000 delta.
     
    • Like x 2
  8. brkaus

    brkaus Active Member

    Joined:
    Jul 8, 2014
    Messages:
    2,125
    I'll do trade in price plus $1.99. :)
     
    • Funny x 1
  9. Saghost

    Saghost Active Member

    Joined:
    Oct 9, 2013
    Messages:
    4,772
    Location:
    Delaware
    Take it to CarMax? Tesla honors CarMax values for non-Tesla trade-ins, so they might for one of their cars, too - and certainly it'll give you a better feel for where the market is.
     
  10. kort677

    kort677 Active Member

    Joined:
    Sep 17, 2015
    Messages:
    4,599
    Location:
    florida.
    so you want to avoid any extra work but you want the benefits of someone else doing that work?
    that's not how it works!
    are you aware that the money given to you if you sold the car to tesla will lower your sales taxes on the new car that you're planning to purchase that's about $7k over what they offered you on the trade in, do you think that you could garner $7k more in a private sale?
    the value of the car is not about how many miles are left on it, it is determined by the market place and for one thing your older tesla is not as well equipped as a newer one, and that alone makes it less valuable. Also how many people looking to purchase a used car have access to the $70k or so you want? believe me I would take the offer tesla gave you and be happy.
     
    • Like x 2
    • Informative x 1
  11. sdorn

    sdorn Director of Awesome

    Joined:
    Oct 9, 2016
    Messages:
    901
    Location:
    Georgia
    I think you meant to quote the OP.
     
  12. apacheguy

    apacheguy S Sig #255

    Joined:
    Oct 21, 2012
    Messages:
    4,483
    Location:
    So Cal
    How does this compare to a Mercedes S class? Elon has repeatedly stated that Tesla will guarantee the trade in value given comparable mileage.
     
  13. sdorn

    sdorn Director of Awesome

    Joined:
    Oct 9, 2016
    Messages:
    901
    Location:
    Georgia
    They stopped doing that earlier this year I believe.
     
  14. brkaus

    brkaus Active Member

    Joined:
    Jul 8, 2014
    Messages:
    2,125
    True. It's stopped. But, it is a good point, the OP may have purchased when it was valid. However, I don't recall the terms. I think it was three years.
     
  15. SD_Engnr

    SD_Engnr Member

    Joined:
    Mar 24, 2016
    Messages:
    263
    Location:
    San Diego
    As someone that's looking for a used/CPO Model S, I would have to agree that it's the mileage that's hurting the trade-in. P85D or not, there's not many people (including me) who want to pay north of $65k for a car with 50k miles on it. The 2 reasons I won't, is that I would prefer not to own the car outside of warranty, and the assumed "wear and tear" on a vehicle with 50k miles.
     
    • Like x 1
  16. animorph

    animorph Member

    Joined:
    Apr 1, 2016
    Messages:
    483
    Location:
    Scottsdale, AZ
    I keep thinking a high mileage S would be a great deal for the buyer.
     
    • Like x 2
  17. apacheguy

    apacheguy S Sig #255

    Joined:
    Oct 21, 2012
    Messages:
    4,483
    Location:
    So Cal
    Yes, up to 3 years from purchase:

    Elon Musk will personally guarantee Tesla buyback values

    Where was the announcement that Elon stopped the program? I didn't get the memo.
     
  18. Saghost

    Saghost Active Member

    Joined:
    Oct 9, 2013
    Messages:
    4,772
    Location:
    Delaware
    I dunno. Having the warranty, especially when you first get the car, is certainly a good thing.

    OTOH, that's an amazing car for the money compared to anything else in the price range, and I tend to expect Teslas to hold their miles a lot better.

    If I hadn't decided to wait and pay for the X, there's a good chance I'd take the gamble with something like this, even though I really don't think I need PxxD power.
     
  19. SD_Engnr

    SD_Engnr Member

    Joined:
    Mar 24, 2016
    Messages:
    263
    Location:
    San Diego
    Yeah, a P85D with 50k miles at $65k would be a decent deal. However, the OP isn't interested in selling it for that amount, and you certainly won't easily find one for less than $80k.
     
  20. brkaus

    brkaus Active Member

    Joined:
    Jul 8, 2014
    Messages:
    2,125
    LMGTFY

    I believe it was tied up in the accounting practices requirement for how to account for it. Made the sales more like a lease.
     

Share This Page