Tesla Upgrade - Trade-in VS Sell

[jeremyh]

For anyone who upgraded their Tesla, did you trade in your old one to Tesla or sell it yourself?

If you sold it yourself, did you get more than what Tesla offered for trade in?

 

[kort677]

one thing many forget to add into the equation is the lowering of sales taxes you enjoy by trading in the car to tesla. for me it is worth almost $4k in savings

 

[liuping]

I sold mine for about $5k more than the Tesla trading offer.

In CA there is no sales tax discount for trade in value.

Another thing to consider is that Tesla guarantees the trade in price for 30 days, but production takes close to 2 months, so unless you buy an inventory car, you may get an ugly surprise when you car is finally ready.

 

[Soolim]

Another thing to consider is that Tesla guarantees the trade in price for 30 days, but production takes close to 2 months, so unless you buy an inventory car, you may get an ugly surprise when you car is finally ready.

This is a very important consideration. Very good advice to anyone planning a trade-in. That was exactly the reason why I bought an inventory car with more option than I like. While I paid a little bit more for the included options, at least I've got it.

 

[mknox]

Another thing to consider is that Tesla guarantees the trade in price for 30 days, but production takes close to 2 months, so unless you buy an inventory car, you may get an ugly surprise when you car is finally ready.

That happened to me with the ICE I traded in. They gave me a lowball price, but on the day I picked up the car, they cut it by an extra $1,000 due to "the time that had passed" since the quote was given. I had planned on trying to sell privately, but my car came in (unannounced) way earlier than expected and I had to act quickly.

 

[lolachampcar]

By upgrading, you will be trading a Tesla MS in. If this is the case, Tesla has purposely depressed the wholesale value of MS to adjust it down to levels better suited to their need for CPO margins. It is there right to bid what they like but they use there statutory responsibility to collect state sales tax as a further lever to bid less for your car. They will flat out tell you that you can get XYZ savings on sales tax if you take their lower number. Most dealers I have worked with will do a courtesy trade if you bring a buyer for your car. They will charge a fee for this ($500-$1K for luxury cars in my experience) but not Tesla. Tesla does not want used MS in the hands of the secondary car market as they want to control the buying experience and prevent used car dealers from misrepresenting the product.

I do not appreciate the above behavior. Tesla offered me about $9K less on my P+ then a competing wholesale bidder and would not provide a courtesy trade. I have come to expect strong arm tactics from Tesla and a software company's my way or the highway attitude when dealing with customers and money. I still do business with them because the car is so compelling so I guess the strategy is working.

It does not mean I have to like it and I do think it is sleazy. Tesla spends a lot of time complaining about dealers then turn around and do something even the dealers do not do (no courtesy trade). The only reason Tesla can do it as because they are the only source. The dealer knows you'll go down the street to another dealer if they are not reasonable.

 

[Made in CA]

What is a "courtesy trade"?

 

[Stoneymonster]

Sold private party for almost $10k more than Tesla offered.

 

[Gizmotoy]

What is a "courtesy trade"?

Wondering that myself.

Also, note the possibility of sales tax savings varies by state. Not all permit it.

 

[liuping]

Also, note the possibility of sales tax savings varies by state. Not all permit it.

I looked it up out of curiosity, and it looks like California, Hawaii, Kentucky, Maryland, Montana, and Washington, D.C. don't reduce sales tax by the trade in amount.

 

[kort677]

Sold private party for almost $10k more than Tesla offered.

if I could get 10k more than what tesla offered me I'd take it!

 

[TexasEV]

Courtesy trade is a scam to cheat the state out of sales tax on the purchase of a car and should be illegal.

Actually the whole "deduct the trade in value before calculating sales tax" idea is another example of the political power of dealers. It makes it worthwhile for new car buyers to trade in their car for a much lower price than a dealer would buy it for (never mind the even higher price a private party would pay) thereby assuring a supply of used cars obtained by the dealers at below market prices.

 

[ChadFeldheimer]

Based on the context, a courtesy trade sounds like a win-win-win situation for a private used car seller looking to buy a new car, a private used car buyer, and a new car dealer.

The private seller finds a new car that he wants. He also finds a private buyer. Instead of selling directly to the private buyer, they approach a dealer who allows the private seller to trade-in the car. The dealer turns around and sells to the private buyer.

The seller gets a sales tax reduction. The dealer gets a $500-$1000 fee for their trouble and the sale of a new car. The used car buyer presumably gets part of the sales tax reduction back from the seller - explicitly or implicitly.

- - - Updated - - -

Actually the whole "deduct the trade in value before calculating sales tax" idea is another example of the political power of dealers.

Absolutely. It creates an uneven playing field on the used car marketplace.

 

[lolachampcar]

scam
cheat
I love the internet

A courtesy trade is when you, as the party trading in a vehicle, bring a buyer for that vehicle to the transaction. This allows you to achieve the most value from your trade. The dealer charges you for the paperwork involved in the transaction. When I've brought a wholesale buyer to the party, the new car dealer's liability is low as the trade in purchaser is a sophisticated buyer and no warranty is implied. When I have brought a retail buyer for my trade, the new car dealer's exposure increases thus the fees associated with the transaction are higher.

WRT Tesla, I was offered something like $9,500 more by a wholesaler in Texas for my P85+ then what Tesla offered. Tesla would not do a courtesy trade and was very quick to point out that the difference was not $9,500 but $9,500 minus the $79K * 6% Florida Sales Tax or $4760. Tesla used their role as tax collector for the State of Florida to improve their monetary position. Tesla added nothing to the deal yet were claiming the benefit of the sales tax credit to make their offer look better.

If it were any other car, I would simply have walked down the road and pitched the very same deal to another dealer. Tesla has a lock on the market so that is not an option. I still do business with Tesla but I am fully aware that they will take my money without adding any value and think absolutely nothing of it. They do it because they are in a position to do it. They pull this c**p while saying the big bad dealers are picking on them (which they are but you loose a little of my sympathy when pull stunts like this).

Now, back you your regularly scheduled comments about scams and cheating......

 

[shokunin]

I wonder what Tesla would do to a S40? Do they unlock the battery and sell it as a 60 and enable supercharging at no cost to them?

 

[brkaus]

Why would they not leverage the tax savings and make more for themselves? Every dealer I have been to does this - Dodge, Acura, BMW.

The law is in place to benefit the dealers. They donate lots of money to keep laws in their favor.

 

[ZBB]

I wonder what Tesla would do to a S40? Do they unlock the battery and sell it as a 60 and enable supercharging at no cost to them?

Yep...

 

[mhs]

Maryland does permit tax credit on trades. Tesla deducted the value of my trade when calculating sales tax on the new.

 

[2krazykats]

Is the trade in quote from tesla done in person or over the internet? I've seen the internet form to value a trade in but wasn't sure what would happen after that.

 

[Max*]

I looked it up out of curiosity, and it looks like California, Hawaii, Kentucky, Maryland, Montana, and Washington, D.C. don't reduce sales tax by the trade in amount.

Virginia is in that list too