Trade in offers now less than resale guarantee?

[cantdecide]

In preparing for our site model X were considering what to do with our model S... P85 almost fully loaded 43000 miles.
If my calculations are right for a $103600 excluding delivery etc August 2013 car the resale guarantee is $49441.
Tesla gave a trade in offer of $49200.

Are my calculations correct? If I hold on to the car for 9 more months will I actually get $200 more [provided I limit myself to 2000 miles]. I did get financing with Tesla and still owe $56k... So right now don't have enough liquidity to trade in the S and still buy the X in cash.

 

[green1]

50% of the price of a base 60 car plus 43% of the rest. your number seems about the right ballpark but I don't know what the base 60 price was at the time.

The guarantee was for a very specific condition, so yes, it is possible that you'll get more by waiting and exercising the guarantee. The fact that their offer was within $200 of the guarantee price seems to indicate that they were pretty much right on with their value estimates.

 

[Cebe]

I think you need all the details in order to compute the resale value, not just the final price. I'm not sure what the terms were when you did it, but when I did, the deal was 47% of the base price (so, S60), and 40% of all the options (upgrade from S60 to P85 being considered an upgrade and thus going at 40%.) What was your contract? They should have given you the percentage, or more likely two different percentages...

 

[cantdecide]

Googling around suggested 50% and 43% with 69900 as the 60 base price... But I am struggling to find documentation in the contract to confirm this.

 

[green1]

Googling around suggested 50% and 43% with 69900 as the 60 base price... But I am struggling to find documentation in the contract to confirm this.

Are you sure you got the guarantee? Not everyone has it, and it's a specific document that outlines the formula. Just because one you found on google has specific numbers doesn't mean those are the same numbers that were valid when your contract was written.

 

[cantdecide]

That is a good question. I was told I qualified for it, and did everything to qualify... And I thought it was in some contract, I just haven't located the contract as yet.

 

[ChadFeldheimer]

The resale value guarantee has a provision for "excessive wear and tear" - similar to a lease return. Does this apply to your vehicle? Scratches, dings, worn tires, etc.

 

[cantdecide]

They haven't actually taken in my car to look at! My local service center is backed up 45 days (I'm still waiting until Jan 7 for a warranty fix which was the earliest date to fix when I booked it in November) so perhaps they are so busy that they have stopped bothering to look at the cars, or would adjust pricing when they actually see it.

 

[ChadFeldheimer]

Wow!

I calculate the same resale value guarantee as you do: $49,441 (69,900 * 0.5 + 33,700 * 0.43).

$241 is not a large amount to give up in order to get out of the car now versus waiting 9 months. But I view the resale value guarantee as a "last resort", so I would be disappointed in the trade-in offer as well.

Hopefully the $49,200 is conservative as a result of not knowing the condition of the car.

 

[cantdecide]

Yes, perhaps it is conservative on that nature. I expect as a family we can extract some positive value out of an S for 9 months. Perhaps we should ditch the 2006 Prius and become a 4 plug-in family... X S i3rex and leaf (4 drivers).

 

[bonaire]

The guarantee was written and given as a sales benefit for the RWD cars. This was before the DWD models came out. The situation now is that generally, the RWD are less desired and certainly will need to benefit from the guarantee or face sub 50% trade in offers at the 3-year mark. For lessees - not a big deal, just turn it in but for owners who are bank financed or paid cash, the depreciation is looking like over 50% in 3 years for RWD. Nice deals will eventually be had for used S85 under $39K by next year. and P85 under $45k. I wonder what S60 will fetch for resale value...

 

[cantdecide]

Agreed. The P85 is particularly hard hit as 85D already provides the performance with higher range and AWD.

 

[fiksegts]

Interesting, I am in the same situation, I have a 2013 P85 (40k miles) with a $103,720 MSRP, I have the GRV of $49,400 which which will be "eligible" in 4 months. My Model X will arrive before then so we'll see that Tesla offers on my car.

Looks like the car is worth about $60k retail.

I will save about $3k in tax by trading the car.

 

[KJD]

Interesting, I am in the exact same situation, I have a 2013 P85 (40k miles) with a $103,720 MSRP, I have the GRV of $49,400 which which will be "eligible" in 4 months. My Model X will arrive before then so we'll see that Tesla offers on my car.
I will save about $3k in tax by trading the car.

Hey guys if you do not like the trade in value of your car, do not go there. Sell the car yourself to someone else.

List the car on ebay at 53,000 starting price with no reserve and see where it goes from there. If you get one bid you are better off than trading it in.

 

[fiksegts]

of course, that's really not the point here.... point is Tesla is offering less than the GRV months before they would have to pay that amount anyways....

Hey guys if you do not like the trade in value of your car, do not go there. Sell the car yourself to someone else.

List the car on ebay at 53,000 starting price with no reserve and see where it goes from there. If you get one bid you are better off than trading it in.