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

Tesla trade-in

Discussion in 'Model 3: Ordering, Production, Delivery' started by rtk86, Apr 9, 2018.

  1. rtk86

    rtk86 Member

    Joined:
    Mar 22, 2018
    Messages:
    28
    Location:
    FL
    I received a Tesla trade-in offer that was...well very low ($13K). They mentioned that they will match Carmax so I took my car in over the weekend and got an offer there which was $16K. However, in my prior experience, other auto buying groups are generally much higher than carmax (up to $1-2K more). Has anyone had any luck with having Tesla match other auto buyers?

    In FL, we don't have to pay sales tax on the trade-in value, so $16K is really $17K if I sold it outside of a trade-in. So it'd be ideal if I could get them to match one of the other auto buying groups. Just curious other people's experiences. Thanks!
     
  2. JohnSnowNW

    JohnSnowNW Active Member

    Joined:
    Feb 13, 2015
    Messages:
    2,459
    Location:
    Minnesota
    #2 JohnSnowNW, Apr 9, 2018
    Last edited: Apr 9, 2018
    For me, CarMax was actually the highest offer I received. They have some sort of arrangement with CarMax which is why Tesla matches their evaluation. I was never offered an evaluation from Tesla, they just told me to go to CarMax, and simply filed the paperwork I was given.

    I would be surprised if they match any other offer.
     
  3. gearchruncher

    gearchruncher Member

    Joined:
    Sep 20, 2016
    Messages:
    736
    Location:
    Seattle, WA
    When I bought my X, they offered $2K for a car I sold in 1 week for $8,500, and they offered $17K for a car I sold for $23K in a few weeks.

    Tesla has to auction off all non-Tesla trade ins as they don't sell other brands of used cars, and they aren't willing to take any loss on the trade in since you commit to buying the car before you see a trade in value, so you inevitably have to get a lower offer from them so they can make up for all the transactional friction.
     
  4. PeterHG

    PeterHG Member

    Joined:
    Feb 3, 2017
    Messages:
    128
    Location:
    Sudbury, MA
    I am depressed every time I trade in a car. No matter the dealer, I always feel screwed. The only thing worse was the one time I tried to sell a car myself:confused:
     
    • Like x 1
  5. scrapps

    scrapps Member

    Joined:
    Jan 10, 2016
    Messages:
    196
    Location:
    Norwalk, CT
    Tesla came in $2k less than the offer I got from Carvana on my 2011 WRX. I think I'll sell it privately, as it seems they are in quite high demand still.
     
  6. Qbenjamin

    Qbenjamin Frugal But Classy!

    Joined:
    Jan 7, 2017
    Messages:
    1,103
    Location:
    Braavos
    Vroom, Carvana and Wholesale Auto's, will all come in much higher than what Tesla offers.
     
    • Informative x 1
  7. rtk86

    rtk86 Member

    Joined:
    Mar 22, 2018
    Messages:
    28
    Location:
    FL
    Thanks everyone - I think I'll take a shot at selling it privately and if not, revert to one of the car wholesalers (worst case I break even on them after considering sales tax)
     
  8. drawfour

    drawfour Member

    Joined:
    Mar 10, 2018
    Messages:
    774
    Location:
    Seattle, WA
    Yes, in probably every state, if you take the trade-in, then the value of the trade-in is deducted from the price of the vehicle, so your purchase price is lower, and thus the tax is. But if you sell your car privately, you probably have to pay the sales tax of the selling value of the car, plus you're paying sales tax on the full price of the Tesla too. So basically, you're double taxed.

    If you can get $18k for your car privately, you're paying sales tax on $34k ($16k would be reduced from your sales tax on Tesla if you took the trade-in, otherwise you're paying that $16k PLUS the full value of your private party sale, which is $18k in this scenario). Florida state's car sales tax rate is 6%, with up to 1.5% based on local taxes. So ask yourself, what is 6% of $34k? It's $2040. Is it worth the hassle of doing a private party sale for $40 difference?
     
    • Like x 1
  9. jasonmason

    jasonmason Member

    Joined:
    Mar 30, 2018
    Messages:
    81
    Location:
    Bay Area
    unfortunately not in CA.
     
  10. rtk86

    rtk86 Member

    Joined:
    Mar 22, 2018
    Messages:
    28
    Location:
    FL
    You bring up a good point, I didn't realize I'd have to pay on the private party sale as well. That makes a ton of sense...now my potential 3K profit seems more like $1K and doesn't seem like much of the trouble.
     
  11. drawfour

    drawfour Member

    Joined:
    Mar 10, 2018
    Messages:
    774
    Location:
    Seattle, WA
    • Informative x 3
  12. rtk86

    rtk86 Member

    Joined:
    Mar 22, 2018
    Messages:
    28
    Location:
    FL
    Thanks - you saved me the hassle of trying to sell this privately to MAYBE make 1-2K or likely break even. I'll go with the trade-in route and make my life a lot easier.
     
    • Like x 1
  13. drawfour

    drawfour Member

    Joined:
    Mar 10, 2018
    Messages:
    774
    Location:
    Seattle, WA
    Yeah, 3k above CarMax would net you [email protected]%, or [email protected]%. But you have the risk of not being able to make the sale, and finally having to switch to get CarMax or some other slightly better offer.

    I know someone who bought a used car from a dealership, but decided to private party his car. He couldn't make the sale for what he wanted to, and finally got it sold like 6 months later for way under what he'd hoped. Probably still better than the dealer gave him, but in the meantime, he paid insurance for a car he was barely driving, and it kept a garage spot (so his new car was parked outside). It didn't help it was a convertible, and since he didn't sell it right away, the weather turned crappy, and no one was looking for a convertible when it's raining for 6 months straight. :)

    IMO, not worth the risk, unless you're very sure of a decent sale.
     
  14. KL670

    KL670 Member

    Joined:
    Feb 7, 2016
    Messages:
    166
    Location:
    San Francisco
    If you can afford the time to sell privately, do it. I got $20k more than what Tesla offered me.
     
  15. Knightowl

    Knightowl Whovian

    Joined:
    Oct 14, 2016
    Messages:
    524
    Location:
    Colorado Springs
    Also still folks like me out here looking for a higher milage S85 with rear facing seats, I know I would be paying more than tesla on a trade in, still searching for the right one at the right price range. Dissapointed that most would be traded and not even try for private sale.
     
  16. drawfour

    drawfour Member

    Joined:
    Mar 10, 2018
    Messages:
    774
    Location:
    Seattle, WA
    I agree if there is a huge discrepancy between Tesla's offer and what you think you can get. But if it's just a matter of a few thousand dollars, after taxes are figured it, it's probably not worth the hassle. For $20k - yeah, do it. :)
     
  17. crouch

    crouch Member

    Joined:
    Mar 31, 2016
    Messages:
    28
    Location:
    New Jersey
    The buyer pays the sales tax, not the seller. He won’t be double taxed.
     
    • Like x 1
  18. drawfour

    drawfour Member

    Joined:
    Mar 10, 2018
    Messages:
    774
    Location:
    Seattle, WA
    You're right. He'll still pay sales tax on the Tesla side of things, but you're right that he won't be taxed on the sale of the vehicle. I was thinking that the person reporting the sale needed to treat it as income in some way, but probably not, since at registration time, the buyer would have to show he paid the tax, or would end up paying it then.

    So yeah, if he didn't take the $16k off the price of the Tesla, he'd pay 6-7.5% on 16k, or 960-1200. If he can get $2k more at private party, then he'll make around $1k or less depending on local tax rate.
     
  19. rtk86

    rtk86 Member

    Joined:
    Mar 22, 2018
    Messages:
    28
    Location:
    FL
    My situation is that the Tesla offer is now $16K, which will save me ~$1K in sales tax. So it'd be the equivalent of selling my car to a private party for $17K. I think if I sold to a private party, I could get $19.5K. so basically I think I could get $3.5K more private party but it'd be more like getting $2.5K but I'll also have to pay for a temp tag, keep the car insured, and spend time selling it.

    So it sounds like I wouldn't have to pay the sales tax on the selling side of things and the buyer would? If that's the case, I just need to decide if $2.5K is worth the trouble.
     
  20. drawfour

    drawfour Member

    Joined:
    Mar 10, 2018
    Messages:
    774
    Location:
    Seattle, WA
    Yeah, I think @crouch was correct, you only pay the additional tax on the Tesla, not on selling your car to someone else. Would you need to have the car separately temp tagged? Wouldn't you just get a new plate for your Tesla, and keep the existing plate on your current car? Shouldn't need to get it temp tagged... But yes, it will need to remain insured. Perhaps you could call your insurance company and explain that you're only keeping it until you sell it, so it will only be driver for test-drive purposes. Not sure if they'd do anything to reduce that rate.
     

Share This Page

  • About Us

    Formed in 2006, Tesla Motors Club (TMC) was the first independent online Tesla community. Today it remains the largest and most dynamic community of Tesla enthusiasts. Learn more.
  • Do you value your experience at TMC? Consider becoming a Supporting Member of Tesla Motors Club. As a thank you for your contribution, you'll get nearly no ads in the Community and Groups sections. Additional perks are available depending on the level of contribution. Please visit the Account Upgrades page for more details.


    SUPPORT TMC