The number of used Tesla 3/Y available is staggering

[w1n78]

i have a 2020 M3LR, white/white, 19" wheels, FSD with 31K miles. i originally was going to trade it for our MXLR order and tesla valued my car at $50,400. i also have a MYP on order which got my vin today and will trade my M3LR for instead. so i went to carmax this morning. their offer was $46K. not sure what if they are lowballing me since i know my car can go for at least $56K. the guy at carmax claims he noticed that the used market is stabilizing. but yet dealerships are still pounding that market adjustment cost on new cars.

also, they approved me for 4.49% for 6 years on my MYP lol. i'm probably gonna pay cash. that's horrendous rate and 6 years.

 

[voxel]

i have a 2020 M3LR, white/white, 19" wheels, FSD with 31K miles. i originally was going to trade it for our MXLR order and tesla valued my car at $50,400. i also have a MYP on order which got my vin today and will trade my M3LR for instead. so i went to carmax this morning. their offer was $46K. not sure what if they are lowballing me since i know my car can go for at least $56K. the guy at carmax claims he noticed that the used market is stabilizing. but yet dealerships are still pounding that market adjustment cost on new cars.

also, they approved me for 4.49% for 6 years on my MYP lol. i'm probably gonna pay cash. that's horrendous rate and 6 years.

Auction prices have declined almost 1% per week for 5-6 week now. Retail prices will soon follow. Dealerships are still asking for the moon on used cars but if they can’t sell they can no longer send to auction and cover their costs.

New cars are still suffering from a massive production shortage. Toyota, Nissan, Honda, Subaru are hurting the most.

 

[ZenRockGarden]

Within 100 miles I see 119 LR Y on CarGurus, but they’re all priced more than a new order. Those priced lower than new price are salvage titles or with prior accidents. Just sellers trying to flip while supply is still constrained and demand remains high for Teslas. I have an acquaintance that asked me for advice and help finding a 3. I told them to just buy new, especially with new tax rebate, and wait for delivery.

There are a lot of used Tesla inventory because they’re priced poorly and cost more than new. Only an uninformed or desperate person would pay more for a used car.

Yeah, lightly used Model Y prices have probably peaked, but are still really silly high. I sold my former 2022 MYLR with 8k miles on it for $67k to Vroom having paid mid-50k's for it (give or take taxes fees). I agree the market seems to be slowly softening at a rate of maybe a few hundred per week, but I don't think used Teslas are ever going to get "cheap" - just a bit less than new ones.

 

[ZenRockGarden]

Looked it up - price peak was just about 30 days ago, and we're down right at $1k since then (around 1.5% in 4 weeks time)

At that pace we'd need maybe 6 months to burn off the more-than-what-people-paid-for-it-originally

 

[johnnycnote]

Do you think Tesla Y’s will hold their value 3yrs from now with the many EVs coming to market?

IMHO, prob not. I love how my M3 looks. But 4 years from now, with dozens of new designs out, my sexy M3 might look outdated. Maybe not though, the 911 always looked good

 

[phonetele226]

Interesting note. I just took a look at Canadian Autotrader and there are 11 pages of listings in my area...which was unheard of some months ago.

There is a reason so many used Teslas are in Canada. People are flipping them. Only 2 provinces British Columbia and Quebec offer huge rebates. Many people are ordering and flipping them to auction when they come in. Dealers are then buying them since they can get Teslas easily. We have a local GM dealer that has over 20 Teslas with a handful of miles. He has more Teslas than GM cars. They are essentially new cars but can’t be sold as new because they have been titled. He is asking $10K over ordering from Tesla. Time is money and some people don’t want to wait. When Tesla production capacity meets demand this bubble will burst.

 

[240vPlug]

Many great points here...you know I would speculate that prices will come down and the rate at which they do so will probably accelerate in the coming months. It is a domino effect and reports are that repo rates (not specifically for Tesla) are rising at a dizzying pace. Long term I think Tesla holds its value very well mainly due to the OTA updates and the AP tech. I do think the days of used Tesla selling for more than a new one are numbered though. It will be interesting to see where we are in about three months.

 

[SpicyPaneer]

That’s because people are trying to unload at top dollar right now and get into a newer EV with government rebates.

 

[KzooMYP]

Are you searching with "extended delivery range" turned on? By default, Autotrader includes search results from car delivery brands like Carvana.

When I searched locally, I saw the same thing - tons of used Tesla's. But when I removed the car delivery brands, it went down to 19 vehicles for sale

 

[240vPlug]

Are you searching with "extended delivery range" turned on? By default, Autotrader includes search results from car delivery brands like Carvana.

When I searched locally, I saw the same thing - tons of used Tesla's. But when I removed the car delivery brands, it went down to 19 vehicles for sale

Cars.com is what I used to search. Some Carvana listings showed up but the majority of them were local franchise or used car dealers.

 

[phonetele226]

Cars.com is what I used to search. Some Carvana listings showed up but the majority of them were local franchise or used car dealers.

In my area almost every local dealer has current year Teslas for sale. But I also noticed they are not selling. For example in Canada a MYP ordered direct from Tesla can be had for $90K. The same car at a GM dealer is $108K. That $18K is a hard sell even if you don’t want to wait. Personally I hope these greedy dealers get stuck with these cars. That level of profit is obscene.

 

[BreatheEasier]

History will continue to repeat itself - there is no reason it shouldn't. Lots of "shoulds" here, but... By mid 2023, the supply chain and semiconductor issues should stabilize and new car inventory levels should return. The used car market should crater by end of 2023 for all cars. Teslas will hold value relatively higher than an ICE, but my assumption that will only be true as long as EV competitors continue to lag behind Tesla with their ability to offer models/inventory. Once EV competitors to Tesla can deliver, we won't be having this conversation any longer, and Tesla will be just like any other car company competing on a more level playing field.

Bottom line - patience is a virtue here. I've been in the housing market for many years, which when you look over decades, the same behavior applies.

 

[AlexP]

I just sold my M3 to Driveway for a few $k more than what I paid for it out the door. It is 2020 M3 SR+ with 14,700 miles. I advertised here for $48K and got a couple $k less than that.

 

[DanDi58]

Similar things happening in our local real estate market. Prices were so high that people were selling with no real thought of their plan. Once of my neighbors sold his house planning to move to SC, then put it on hold after he actually looked at saw the prices down there. He ended up in a local apartment and is bitching and moaning about the ridiculous rent he is paying! Now the peak appears to have passed, so on the one hand, he made a killing selling. OTOH, he's locked into a very high rental rate for the next year. Can't have it both ways.

 

[240vPlug]

Yeah I don’t know that the profits these dealers made over the past year will make up for the losses they will be taking on the used cars. I mean they need to turn those cars within like 60 day. If they can’t many times they wind up at auction. It’s a viscious cycle that results in them losing a lot and further downward pressure on wholesale prices.

Trying to time the market I learned a long time ago will drive you crazy. Sometimes taking profits just doesn’t make sense like when you don’t have another car available or another House.

 

[ZenRockGarden]

Yeah I don’t know that the profits these dealers made over the past year will make up for the losses they will be taking on the used cars. I mean they need to turn those cars within like 60 day. If they can’t many times they wind up at auction. It’s a viscious cycle that results in them losing a lot and further downward pressure on wholesale prices.

Trying to time the market I learned a long time ago will drive you crazy. Sometimes taking profits just doesn’t make sense like when you don’t have another car available or another House.

I hear ya, but when the music stops, a given dealer is only gonna have a few of them in inventory - even if they take a mild loss unloading those into a declining market they're still wait ahead for having gotten to flip dozens of them almost instantly for the last year or two.

 

[brainhouston]

its good that its dropping, time to level out the prices
also, depends on the area, here's my hood. only 3 shows price drops, others don't have much listings...

 

[240vPlug]

The good news is that folks who have been on the fence picking up a model 3 or Y should be able to get lower prices soon. Also I imagine a lot of buyer will wait until after 1/1/23 so they can get the new $4,000 credit on used EV. By that time I speculate we will also see significant decline in the prices as well.

 

[patmurphey]

I don't think you'll see any $25,000 or less Model 3s on dealer lots in the upcoming years. No $4,000 used Tesla credits coming anytime soon.

 

[brainhouston]

also, looking at Tesla website, i see 2 Model 3s listed at 44k n 45k...
seems local dealers just overpricing...
i predict that it might drop to high 30s/low 40s for Mod3, thats more reasonable, considering new is 47k rn n was much less back in 2018...