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Tesla Trade In Value Is Bizarre, What Is Our 2016 S P100D Worth?

Discussion in 'Model S' started by A2Sirbill, Aug 10, 2017.

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  1. A2Sirbill

    A2Sirbill Member

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    I thought I would post this to the community to see if Tesla is way off the mark trade in value wise or is it just me expecting to much?

    Background:

    We bought our model S on 12/30/16. So the car is about 7.5 months old. The car is fairly well loaded.

    Model S P100D:
    Gray
    AP2 Hardware/Software
    Premium Upgrade Pkg.
    Adjustable Air Suspension
    Black Leather Interior W/upgraded Heated/Cooled Seats
    Black Alcantara Headliner
    Upgraded Carbon Fiber Accents
    Upgraded Premium Sound
    Fully Opening Sunroof
    Unlimited Supercharging Attached To The Car

    Mileage is currently 6,700 miles.

    The car originally was in the mid $150,000 range. I did receive a discount because it was a showroom car and had 150 miles on it.

    After driving the car, we decided we need a little more room for luggage because we travel a fair amount, So, back in May we contacted our local Tesla store and said we wanted to look at getting a model X. At the time the car had about 3,500 miles on it. So we have added about 3,000 miles since that time. In May we asked what Tesla would give us on a trade in. They came back with a price of $125,500 and we could keep the car until our New X would come in. We got busy and waited until a week ago and decided it was time to order our model X. So, we went to the Tesla store again. We asked what they would give us with the additional 3,000 miles on the car and three months older, I was floored.....$117,000. SAY WHAT. They dropped the trade in value by almost $10,000 with only 3,000 additional miles and three months of age added.

    When we talked to them in May they told us they typically mark up the trade ins by about $10,000. The last CPO P100D with AP2 I saw on Tesla's site just a short time ago went for around $138,000+. They are selling for upper $130s to low $140 on EBay. I just found it very Bizzzzzare that in such a short time and with only 3,000 more miles they would drop the price so much. Especially when they are getting the sale of a new loaded model X 100D along with the trade in. It is usually typical that you get a higher price when trading in and buying a new car.

    So, what is my car worth? I think since it has the unlimited supercharging attached to the car it should go in the $138,000 range? I would love to hear other peoples opinions on value. I think trade in value at more then $35,000 less then sticker price in about 7 months and 6,700 miles is crazy. Maybe I am wrong?

    Thanks,
     
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  2. b team

    b team Member

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    Unlimited supercharging is only worth a couple thousand dollars over the life of the car. Electricity is cheap. Typical depreciation in the first year of car ownership is more than 15% depending on which car. Depreciation for luxury sedans is typically higher. This is probably because anyone who can afford a $100,000 used car, can probably afford and would prefer a $120,000 new car.
     
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  3. ada43952

    ada43952 Member

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    I'm willing to bet that TESLA agrees with this statement and I bet you do too because you then state this...

    Remember Tesla is in the business to make profits, so they aren't going to buy your car for $138k+ then turn around recondition it and re-sell it for $138k. I'm willing to bet you'd get what you want if you sold it to a private party, but as a trade-in you won't get the true value of it.
     
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  4. MXWing

    MXWing Active Member

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    The biggest explanation I can think of for the drop off is Model S and Model X have gone through significant vehicle upgrades in just these few months.

    This in turn has lowered values on inventory vehicles.

    Your vehicle would have taken at minimum identical or even possibly outsized hit.

    You can try a CarMax trade in or look at classifieds and see what you could get for it.

    Sorry about your situation best of luck on getting the best value exchange.
     
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  5. chillaban

    chillaban Active Member

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    I hate to say it, but I don't think Tesla is way off, and I don't think Carmax would tell you differently (in fact on newer Teslas they tend to come in lower than Tesla's trade-in offers)

    Tesla trade-ins are meant for Tesla to be able to turn a profit after reconditioning and remarketing/reselling the car. The price that you're looking for is basically an ideal private party sale price (a CPO car has the added benefit of a replenished warranty).

    Trade ins are always painful because as the owner, you inevitably feel like the car is worth more than you're going to get offered. If it weren't that way, heck, I'd just trade in my car every 2 months and get another one :D
     
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  6. A2Sirbill

    A2Sirbill Member

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    Thanks for your feedback. The problem is to buy a new model S with the same options would cost someone $152,000+ to buy new plus sales tax. So, call it $160,000+ out the door.

    So, selling a low mileage car that is only 7-8 months old and has about 7,000 miles at about $18,000 when all is said and done seems logical. Like I said in my original post, they offered $125,000 three months ago and say they would sell the car in the mid to upper $130s. I just think $10,000 in three months is huge. They are using a 25% depreciation rate which is insane. I just think with buying a new loaded $118,000 car they would make a decent offer.

    So, up on Ebay it goes.
     
  7. A2Sirbill

    A2Sirbill Member

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    Thanks, what upgrades/changes are you referring to?
     
  8. oktane

    oktane Active Member

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    Just because you overpaid for your Model S, doesn't mean Tesla should!

    I'm in the same boat as you, I doubt my P100DL would sell anywhere close to what I would consider a "fair" price. These are disposable luxury purchases and price will tank once M3 hits wide availability.
     
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  9. jaguar36

    jaguar36 Active Member

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    There are quite a number of Inventory P100Ds avaliable with $20k discounts on them with ~1000 miles on em. Those still have the $7500 Fed rebate too. If your car was at $155k new, that means it would be worth $127,500. Knock another $5k off for mileage, and you are at $122,500. That gives Tesla approximately a 5% markup to sell it at. Seems like they are giving you quite a good deal on the trade in actually.

    The real issue you're running into is a lack of demand for slightly used P100Ds.
     
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  10. A2Sirbill

    A2Sirbill Member

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    Thanks for your input. I am not saying Tesla shouldn't make money on a trade in. I am saying what they told me less then three months ago was they would list the car in the upper $130s and would offer $125, reasonable. But to drop an additional $10,000 in three months/3 thousand miles is a little crazy. If they would have come back and dropped another $4K-$5k, $120K would be reasonable. They car is nearly MINT condition and still has 90% of the warranty left. Like I said, I just think when you are trading in to buy a new car you tend to get a little higher price trade in wise. I didn't expect to make retail. I expected based on what Tesla is selling them for $mid/upper $130s they would have offered a decent trade.

    I will just have to work a bit harder and sell it outright.

    Thanks Again!!!
     
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  11. A2Sirbill

    A2Sirbill Member

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    Thanks for your info but I disagree with one thing you said, lack of demand. The used Tesla market on Ebay is hot. They are selling in the mid/upper $130s......So, that is where mine shall go if we decide to sell.
     
  12. number12

    number12 Active Member

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    What about tax savings on that large of a purchase?
     
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  13. MP3Mike

    MP3Mike Active Member

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    I always thought that Telsa used $1k/month + $1/mile as a starting point. So an additional 3 months and 3000 miles would decrease your trade in by $6,000. What else have they changed in the last three months that would make a "old" version car "worth" less? Things like the high-amp charger, $1,500?, and cold weather package, $1,000?, are now standard and you don't have them. Bringing the difference to $8,500. That is getting awfully close to the $10k drop Tesla quoted you.

    And in your initial reduction you have to take the $7,500 federal tax credit into account. (Just getting the car titled, with it not even having been driven, reduces its value by $7,500 to a future buyer before you even start calculating depreciation.)
     
  14. SamT

    SamT Member

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    I think the the latest Tesla quote is about right, the calculation Tesla used is $1 per mile and 1% per month, so dropping from 125500 minus 117000 = 8500. There are some P100Ds on Ebay in the past and non have been sold. There is one listed for $129K now and it has been there for about a month now. I've seem some P100Ds on Telsa's CPO listing that are selling for about $125K with a full 4-year warranty.
     
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  15. Uncle Paul

    Uncle Paul Member

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    First year depreciation of a new vehicle is pretty intense.
    You quickly loose any governmental, delivery, tax, preparation, additionally dealership markup (for popular cars or colors) or federal/state tax deductions. They pretty much go away in just a few days.
    The first year of depreciation is usually the biggest hit too.

    There is also a cost to get the latest mode, with all the new features or better performance. When an even newer model or feature set is released, your car takes another hit,

    Much less expensive to purchase a model a few years older. Original depreciation has already been takes, and the costs per year after that usually are far less.

    The most expensive models, with lots of options also tend to depreciate faster than the base models.

    On high end vehicles, like Mercedes, BMW, Lincoln, the depreciation will usualy be higher, both on a percentage and absolute dollar amount.

    Cost a lot to change out a fairly new car. Older used cars...not so much.
     
  16. Max*

    Max* Not Banned

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    You have some valid points, unfortunately none of them are in the quoted post above.

    Everyone pays sales tax, you can't compare your car+tax to a car for sale without tax. The $118k car will still have sales applied on top.

    Add to that, most people buying new would be eligible to get $7,500 off from the federal rebate off the new price car, while the used one doesn't get that.

    Now, I go to TeslaMotors.com and spec out your car (minus the free supercharging and cooled seats, as those arne't options) and I come out to $148k, I take out the federal credit of $7.5k = $140.5k car to a $118k car.

    So you come out to ~16% depreciation over 8 months, 7k miles, and Tesla making changes and updates, making your car no longer the latest and greatest (though the changes are somewhat minor for now). Seems fair to me.


    Also, I wouldn't look for what cars are selling for on Ebay or on the CPO site. I'd look for what they sold for. I can put my car for sale for $1M, doesn't mean it'll sell.
     
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  17. jelloslug

    jelloslug Active Member

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    Here is the same answer to this question anytime it's asked: sell it yourself. If you want top dollar for your car, you need to sell it yourself and take all the middle men out of the equation.
     
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  18. A2Sirbill

    A2Sirbill Member

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    Oh, one other thing.....The $7500 rebate is a hoax used by Tesla to make the price seem more reasonable. If you look online at what the average person gets back against the $7500 it is about $2500. Unless someone changes their tax withdrawal situation after buying the car and has enough time in the year left to make that size dent in their withdrawal. Stats show it falls well short of $7500.
     
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  19. jelloslug

    jelloslug Active Member

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    Do you have facts to back that up?
     
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  20. Max*

    Max* Not Banned

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    Say what? Do you have any links to prove this?

    I got the full $7,500 back on my S and I expect to get the full $7,500 back on my Model 3 purchase.
     
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