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Tips on used/CPO MS for M3 holdover?

Discussion in 'Model S: Ordering, Production, Delivery' started by TravelSD80, Apr 2, 2016.

  1. TravelSD80

    TravelSD80 Member

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    I'm thinking of getting a used Model S to hold me over until I can get a pimped out M3 (registered at 10:45am on 3/31 in person). I don't really care what trim/options the model S has. Lower cost is better, I assume. But I also want the highest resale value in 2 years. I'm a very low mileage driver and take great care of my cars. I first thought about getting a new MS, but the depreciation in the first 2 years is dreadful. So I figured get one used, and suffer a lot less depreciation. Is a $10K depreciation for 2 years of a used MS in the realm of reason?

    I know about the ev-cpo web site, but are there any tips on getting a 'good' Model S that will maintain as much resale value as possible? I'm thinking a more popular model would sell better than bare bones with lots of miles. Should I get a more expensive (80s) MS, so when it comes time to sell it doesn't overlap with the M3 pricing?

    Basically looking for the cheapest way to jump the M3 queue. Private sale or CPO?
     
  2. TravelSD80

    TravelSD80 Member

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    Bump. Any thoughts here? I have a concern about buying a pre-AP CPO, and the resale value in 2 years when the M3 comes out. All M3s will get AP and a good amount of MS will have AP hardware even if not enabled. With CA sales tax tax and even depreciation on a used car, I'm not sure getting an interim MS is worth it. Great car don't get me wrong, but would probably be more prudent to put the money towards upgrades on a M3.
     
  3. SmartElectric

    SmartElectric Active Member

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    We bought a CPO S85 last year and have saved ~ $1700 on gas in that short time. Over the 3 years between 2015 and 2018, that is $5000 saved. But the CPO was quite a bit more than our MB SUV that we traded in for it, but considering the Tesla is under warranty and fully covered till 2019, that gives us the option of selling a nicely optioned S85 on the used market when the Model 3 comes out, and being an early reservation holder (in the first 80000), there won't be a lot of 3's on the road at that time, so we might fetch a nice price for the S85 from someone who can't wait for the 3. Than again, why rationalize, just get a CPO and drive it, you won't regret it!
     
  4. BigAirHarper

    BigAirHarper Member

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    We are looking for a CPO model S to tide us over. Be patient. Big things are coming in a couple of weeks according to my CPO corespondent at Tesla....
     
  5. abasile

    abasile Independent Software Eng.

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    In general, the greater the price paid for a used car, the greater the risk of a subsequent, higher rate of depreciation. Over time, prices on used cars tend to become compressed, that is, the price difference between a vehicle with more options relative to the base model tends to grow smaller.

    In the used market, as long as the price premium for Autopilot-capable cars remains high, I am very skeptical that paying for Autopilot makes sense from the standpoint of long term depreciation. Further, over time, there will likely be improvements to the Autopilot hardware that will make today's Autopilot cars less desirable.

    Personally, my plan is to buy the least expensive used Model S that meets the needs of my family. Later, we may choose to buy a new Model 3 (I have a reservation) with more features, and keep both cars.
     
  6. TravelSD80

    TravelSD80 Member

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    I can wait a couple of weeks if there's going to be a floodgate of CPOs on the market. I'm kind of afraid to test drive an S, as it could make it harder to wait for the M3. Any hints on the 'big thing' coming to CPOs?
     
  7. matrix4123

    matrix4123 Member

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    I believe he's referring to "big things" happening to Model S in general... new hardware and refreshed style possibly, not "big things" happening to CPOs.
     
  8. BEEZR

    BEEZR Member

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    A few of us, including me, have heard from our CPO contacts at Tesla that they expect more CPO cars coming soon. That is significant because the CPO inventory has dwindled dramatically over the past few months -- very few CPO cars available (perhaps just 11). So unless you find the exact perfectly outfitted car now, I would wait until the inventory loosens up.
     
  9. PDFS

    PDFS PDF's tesla

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    Do not test drive a model S unless you are ready to buy. I am the kind of person that has never impulse purchased anything. I can sit through a timeshare presentation and not buy. I test drove a Model S a few years ago and did not buy. I test drove one with Auto pilot and was hooked ordered a model S and should take delivery very soon. I was going to put a reservation in for an M3 and went in to try and find out info about putting int he reservation. They said want to test drive one. And low and behold I was ordering one.
     
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  10. BEEZR

    BEEZR Member

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    You test drove a Model 3?
     
  11. SmartElectric

    SmartElectric Active Member

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    He test drove a Model S and bought one right after, just as he stated.
     
  12. TravelSD80

    TravelSD80 Member

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    I do plan on test driving a S sometime soon. I actually don't want a car as large as the S, as 99% of the time it's just me. I would rather get the M3 pimped out over a base MS. Plus I think the Spartan dashboard in the M3 hints at something more dramatic coming in the future in terms of autonomous driving that may not be available on today's MS.
     
  13. BEEZR

    BEEZR Member

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    Same here. For current non-owners, buying an S now is the shortest path to getting a 3 sooner rather than later -- at least that's the conventional wisdom at this point. Plus you get to drive it for a few years. But, yeah, don't need or really want a larger car.
     
  14. redy

    redy Member

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    Yeah I'm not keen on the larger car or the speed or luxury aspects either. I'm going to have a 350 mile commute 3-4 times a month. And for that I want Autopilot. Thats why I'm also looking for a CPO 2014 S85 with autopilot.
     
  15. Gizmotoy

    Gizmotoy Active Member

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    If you're looking to maximize resale value it's hard to know what to do. Traditional wisdom says you probably want as close to base as you can tolerate. Optional packages depreciate fast, so choosing a car with no options maximizes your return.

    But here we have a case where a new car is launching at about the price point at which you'd be looking to sell your Model S. The launch of the Model 3 may provide significant downward pressure on Model S prices, especially if it has new features not present in whichever Model S you choose. So in this case, it might be preferable to buy one as loaded as you can find and hope it has features that remain desirable after the Model 3 launch (Ludicrous?).

    I don't envy anyone looking to purchase Model S as a holdover until Model 3 deliveries. Who knows what the right call will be.
     
  16. TravelSD80

    TravelSD80 Member

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    So I test drove a MS, and it was great. I'm now seriously thinking of getting a new MS, as a path forward to my M3 in 2+ years. Per my advisor I'm just going with:

    * Base white paint
    * Black Leather next gen seats
    * Autopilot activated

    Not an option more! Personally I don't need a larger battery, nor do I want to spent the money on dual drive or more lux features. I do want those on the M3, but not willing to spend the $$ on a MS. Anything I've left out that would be a deal killer for the future buyer?

    Used MS don't seem to be discounted much if you take into account the 10K tax incentive. So I didn't see any compelling used MS that were worth the reduced cost. Most don't have AP, which I think would be a big resale value add in 2 years.
     
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  17. SmartElectric

    SmartElectric Active Member

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    Any Model S is a great car, as you know from driving one. Enjoy it! Don't worry about resale, you may never sell it...
     
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  18. BEEZR

    BEEZR Member

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    You might consider the Pano roof -- nearly every car has one and it could be a deal killer when you try to sell. (Of the 266 cars currently in inventory and a few CPO, just 10 do not have the Pano roof.) Also, the only way to put a roof rack on the car is if it has the Pano roof.
     
  19. TravelSD80

    TravelSD80 Member

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    Ya after talking to my Tesla owner advisor, I did add the pano roof. I frankly could not care less about a pano roof. But like you said, most CPOs and inventory cars have it. So seems to be popular with the majority of the crowd. $1.5K won't break the deal. Plus I got my order confirmed before the price increase of $1.5K, so the pano roof is basically 'free'.
     
  20. TravelSD80

    TravelSD80 Member

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    The only other option I would REMOTELY consider is AWD. I have AWD Acura TL. But in SoCal we don't have 'real' weather, and I felt the money I spent on AWD for the Acura wasn't worth it. The southwest seems to be a big Tesla market, so I'm thinking in terms of resale, having a RWD car won't be a big disadvantage when I go to sell. Thoughts on RWD vs AWD for resale?
     

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