Trade in SR+ - 20% depreciation in 5 months

[Elsig]

When I bought my M3 SR+ n September my intention was to trade it in for a Y in a couple of years time.

Just out of curiosity I wanted to check if perhaps the M3 held its value so I could order it earlier (late 2021).

Just got the trade in estimate. £32000.
It's done 1400 miles (lockdown ).

That's a 20% drop in 5 months. They say you take a 10% hit just driving off the forecourt but this seems excessive.

Might hold off on the Y for 3 years instead of the depreciation is that bad.

 

[SR-Plus]

Try webuyanycar.com?

I think the refresh models is responsible for a few % of that loss.

 

[Adopado]

When I bought my M3 SR+ n September my intention was to trade it in for a Y in a couple of years time.

Just out of curiosity I wanted to check if perhaps the M3 held its value so I could order it earlier (late 2021).

Just got the trade in estimate. £32000.
It's done 1400 miles (lockdown ).

That's a 20% drop in 5 months. They say you take a 10% hit just driving off the forecourt but this seems excessive.

Might hold off on the Y for 3 years instead of the depreciation is that bad.

Is that based on your potential Tesla trade in? ... hmm ... thankfully other buyers are available.

 

[Elsig]

Try webuyanycar.com?

I think the refresh models is responsible for a few % of that loss.

Good thinking! Just went to WBAC and they quoted £35690 (they might knock a bit off for my scuffed alloys ). That is around what I was expecting.

The £32k quote was from Tesla Tradein. That's a shocking difference.

I know the refresh might knock a bit off, but not £4000.

 

[Dasher]

I can understand that the auto trade has had many years experience of fossil fuel cars and their life expectancy, servicing costs and so on, and have mature algorithms for claculating resale prices. I can also understand that their experience of early electric vehicles is limited.

However, I had hoped that they would have been alert enough to realise that Teslas are the real start of a change. They may last longer, their servicing costs are much less, they probably do not change hands as often*, and are limited in availability. Resale pricing algorithms need to change to reflect slower depreciation over more years.

* except possibly in the UK business car market

 

[Yev000]

Tesla trade in offers are generally very bad. They are only good if you are trading in something very old.

 

[Durzel]

I got an offer from Tesla of £52,400 for my March 2020 M3P with ~1000 miles, back in October last year. Haven't checked again (and I'm too scared to now)

 

[Kenners]

I sold my SR+ to WBAC for 36k in December, 15months old, 8.5k miles. That was 8% depreciation for me. They had offered me 34k five months prior to that. What they pay depends on auctions, so might be a bit depressed at the moment with lockdown.

 

[nxsynjs]

I got an offer from Tesla of £52,400 for my March 2020 M3P with ~1000 miles, back in October last year. Haven't checked again (and I'm too scared to now)

It'll be interesting to see if they take the price increase into account.

 

[Yev000]

What they pay depends on auctions,

Not sure if they use that as a price indicator only??? I was under the impression they resold their own cars.

 

[kelvin 660]

I've never seen used model 3's on Tesla website. I guess they don't want to compete with their new cars...

 

[Elsig]

I've never seen used model 3's on Tesla website. I guess they don't want to compete with their new cars...

This might have some logic too it. They are incentivised to sell new cars and might not have anywhere to store used ones? If you trade a non-tesla it goes to auction so no storage issues.

I suspect when model Y arrives there will be loads who want to trade in. By offering a good trade in price they would make money on the new and used car. What's not to like

 

[Alistairuk]

I've never seen used model 3's on Tesla website. I guess they don't want to compete with their new cars...

They pop up occasionally - usually not for long before someone snaps them up - most seem to be ex-demo cars that Tesla has been using.

A few months ago Tesla was selling used model 3's with few thousand miles for almost the same as a new car - seems people are prepared to pay to avoid having to wait months for delivery. You might find used car's popping up in Tesla's inventory in April at the start of Q2.

If you sell to WeBuyAnyCar - they go directly to auction - so they factor that in when making you an offer.

 

[aaron0k]

That's a 20% drop in 5 months. They say you take a 10% hit just driving off the forecourt but this seems excessive.

Why stress about it? Elon said your M3 is going to make you $30k per year as a Robotaxi. $300k over the lifespan of your car. You'll be able to buy several Y's.

Do you doubt Elon? (3:04 time mark)

 

[ringi]

suspect when model Y arrives there will be loads who want to trade in. By offering a good trade in price they would make money on the new and used car. What's not to like

Until Tesla stops expanding sales in the UK, the customer experience for new car buyers is limited by how fast Tesla can open new service centers and train new staff.

As most Tesla cars are sold to people who have never had a Tesla before, making the process of replacing an old Tesla with a new Tesla better does not effect sales numbers much.

Expanding the super charger network and providing a better maintenance service for older Tesla cars is likely to surport the resale price of ex lease cars more then Tesla selling them directly.

Many people don't like buying a car without a choose of independent garage who are skilled at fixing it, by not selling 2nd hand, Tesla is helping such garages get going.

 

[HenryT]

Many people don't like buying a car without a choose of independent garage who are skilled at fixing it, by not selling 2nd hand, Tesla is helping such garages get going.

I think Tesla is actually trying to prevent any third party market developing for servicing and repairs by its stranglehold on the sale of spares. It is such a shame, as in my experience, Tesla really isn’t interested in supporting the maintenance of older cars.

 

[Mperkins28]

By reading some of these comments it suggests that lease deals could represent a decent option, especially if you want to replace the car every 3/4 years.

 

[Dasher]

By reading some of these comments it suggests that lease deals could represent a decent option, especially if you want to replace the car every 3/4 years.

I am unclear why people want to replace an EV every 3/4 years. I had expected the trend towards reduced use of earth's limited resources, plus longer lifetime at lower costs, would encourage people to keep cars longer. Perhaps reduced depreciation means that the costs of keeping a 'new' car most of the time are more financially acceptable.

 

[GeorgeSymonds]

I am unclear why people want to replace an EV every 3/4 years. I had expected the trend towards reduced use of earth's limited resources, plus longer lifetime at lower costs, would encourage people to keep cars longer. Perhaps reduced depreciation means that the costs of keeping a 'new' car most of the time are more financially acceptable.

I don't think many who buy Teslas are genuinely into save the planet stuff or they have a very distorted view of it. The owners group is full of people who do many more miles than they used to in the car, they even brag about it, and while many put solar on the roof they kind of forget there's more to being environmentally friendly that that.

I think many lease or PCP so the car goes back rather than every really owning it. And there are probably plenty of people who pretty much only have a Tesla because its a fast car available with zero BIK on their company car scheme. And there's always something new to want to make you change... bit more range, bit more performance, even a heated steering wheel that encourages you to flip over to a new car. I also think Teslas general reliability gives people cause for concern on owning out of warranty although thats slightly better now the MCU is having a recall.

Clearly not every one in the same, there will be a whole spectrum of people, but I think few people really own cars for more than 4 years and many freely swap much more often simply because they can.