Trade in value and surprise accident damage?

[demundus]

I've read the horror stories here, but I admit, I didn't think it'd happen to me.

I've been contemplating a new Model S / X for a month or two now, and I wanted to see if Tesla would make the process smooth by giving me at least a fair amount on my trade in Model S.... boy was I wrong. I got my trade in evaluation about 48 hours later: $27,000. And apparently Tesla knows about some previous accident damage I don't. RIP my residual value. At that rate I'm well underwater on the car one year later.

Some information about the car for anyone else comparing or getting values. I have 86,000 miles. Its a 2013 Aug production date. Air suspension, supercharging, and twin charging. I am the second owner. Carfax was clean, and the first owner didn't indicate any accident damage (not to say he wasn't lying). Car is in pristine condition, the previous owner had it washed and waxed almost everyday and I continue that trend for the most part. Not a single sign of accident damage anywhere on this car.

I'm livid, so I'm venting more than anything, but c'mon... 27K on a 92K Invoice? And lesson learned, check with Tesla on any kind of preowned Tesla.

 

[Sir Guacamolaf]

Private sell it. You'll get way more than 27K.

 

[Rahul]

I got my trade in evaluation about 48 hours later: $27,000. And apparently Tesla knows about some previous accident damage I don't.

They won't tell you what the previous accident damage is?

 

[pshaffer]

Did they give you any indication of what happened to it? Was it a scratch repair or had they replaced the entire side of the car?

That brings up another interesting point, does Tesla not submit information to Carfax or whatever central database stores that kind of stuff?

 

[jelloslug]

Go to Carmax.

 

[Gizmotoy]

Did they give you any indication of what happened to it? Was it a scratch repair or had they replaced the entire side of the car?

Tesla won't tell the second (or later) owner anything they know about the vehicle. No service or repair history. Nothing. If you're lucky and on good terms with the SC maybe you'll get a verbal description, but they won't provide the written documentation.

That said, Tesla just uses 3rd-party shops to repair crash damage. They don't really do anything themselves. There's a delay in reporting to places like CarFax, as well. There's a good chance the original owner got in an accident and sold the car immediately after it was repaired, knowing it would be too soon for the damage to show up on the report. This is a common technique. Tesla may have just found out about it because it did eventually show up on the report.

 

[mspohr]

I've read the horror stories here, but I admit, I didn't think it'd happen to me.

I've been contemplating a new Model S / X for a month or two now, and I wanted to see if Tesla would make the process smooth by giving me at least a fair amount on my trade in Model S.... boy was I wrong. I got my trade in evaluation about 48 hours later: $27,000. And apparently Tesla knows about some previous accident damage I don't. RIP my residual value. At that rate I'm well underwater on the car one year later.

Some information about the car for anyone else comparing or getting values. I have 86,000 miles. Its a 2013 Aug production date. Air suspension, supercharging, and twin charging. I am the second owner. Carfax was clean, and the first owner didn't indicate any accident damage (not to say he wasn't lying). Car is in pristine condition, the previous owner had it washed and waxed almost everyday and I continue that trend for the most part. Not a single sign of accident damage anywhere on this car.

I'm livid, so I'm venting more than anything, but c'mon... 27K on a 92K Invoice? And lesson learned, check with Tesla on any kind of preowned Tesla.

Tesla doesn't make money on used cars. They're not in the business of manipulating trade in values and car prices like dealers.
You almost always get the best price selling to a private party. CarMax has to make a profit so they will give you less than "retail".

If you're concerned about prior damage, get your CarFax report. (Any potential buyer will want to see this.)

 

[stopcrazypp]

Tesla doesn't make money on used cars. They're not in the business of manipulating trade in values and car prices like dealers.
You almost always get the best price selling to a private party. CarMax has to make a profit so they will give you less than "retail".

If you're concerned about prior damage, get your CarFax report. (Any potential buyer will want to see this.)

I agree, I would get an updated carfax first too in this situation. It could be possible the first seller sold before the report was updated.

 

[theslimshadyist]

Nah, they lowball for sure. I have a 2014 550i M Sport fully loaded that I purchased new in the fall of 2013 and now has 17K miles on it. The car is MINT, I mean not a scratch, dent, ding, not even any swirl marks in the paint. The interior is flawless as well and Tesla offered me $38K for the car. I paid $80K so go figure. I know that I can sell this car right now private party for $50K+.

 

[AZ Desert Driver]

Bleagh! I like to think of myself as well informed and honest in my dealings; and most naive is that I want to believe others around me are also full of integrity. Then I see the technique of selling a repair car before the repair gets posted. Legal?ethical? me-first?. This technique never crossed my mind before, but it must be a fairly common gotcha in the car biz. How many other zings are out there that can burn honest folks? got any snake oil?

 

[davidc18]

If you get a trade in value from Tesla they will give you the specifics on how they arrived at the figure if you ask. It will include the base value, minus the CPO warranty costs and the expected depreciation cost while the car sits for sale. It will always be lower than carmax and private party sales.

 

[Az_Rael]

I would pull a new Carfax for it, see if the accident is showing. If it's not on the Carfax (and only in Teslas records), you could get a better appraisal elsewhere.

I concur with the recommendation to get an appraisal from Carmax. Tesla is supposedly matching Carmax offers now if other threads are to be believed.

 

[demundus]

Thanks for allowing me to vent guys and gals.

I happen to work in the automotive valuation industry, I know the car is worth more and will definitely go private party if I decide to end up selling it. I was just completely shocked at the value. I know they aren't in the used car business, but the used Tesla business? They've got the monopoly on that one

Also, @Gizmotoy , You are (maybe?) correct. I got the following response to the question "wtf accident are you talking about?"

David,

All I can tell you and see myself is that the car had work done to it near the front. This does not necessarily implicate an accident. I wish I could provide you more information, but I simply do not have it.

Which further pissed me off because he specifically said this in the first email

Per your request online we've attached a trade-in estimate for your Model S. Please keep in mind the car is listed with previous accident damage

Sigh...

 

[NikeWings]

Thanks for allowing me to vent guys and gals.

I happen to work in the automotive valuation industry, I know the car is worth more and will definitely go private party if I decide to end up selling it. I was just completely shocked at the value. I know they aren't in the used car business, but the used Tesla business? They've got the monopoly on that one

Sigh...

That's a bummer demundus, I feel for ya. I know nothing about the used car market but if in fact prior damage is discovered via an updated carfax, do you have any recourse to the original seller? Are car accidents reportable/disclosable events to buyers?

 

[Sir Guacamolaf]

.., but the used Tesla business? They've got the monopoly on that one

I know there are a lot of Tesla lovers here, and this may get voted down, but here goes ..

Car companies make money when they sell you the car, but also the entire chain, from when they sell you the car, to when you sell it.

In the case of Tesla,

1. First they make money selling you the car.
2. Then you are bound to a single vendor providing you expensive service, which they pretty much have monopoly on.
3. Same goes for repair parts, even though repairs are not done by Tesla, the parts are solely produced by Tesla.
4. And then they also do their best to control the used Tesla market.

Other car companies try to do this too, but no one has nearly as tight a grip on the entire chain, as Tesla does. And this gives Tesla an absolute price control, and owners very little control and a greater chance of getting screwed.

And in that sense, I feel it is good if governments prevent a Tesla monopoly on Tesla's market. So as much as I hate used car salesmen, I'd be thrilled to see third party buying selling locations, and especially repair facilities, even if that means dealerships. I hope Tesla pre-empts that by fostering a legit third party marketplace before dealerships are thrust down their throat .. because .. eventually it's gonna happen.

 

[rscott0]

Nah, they lowball for sure. I have a 2014 550i M Sport...

That's a different beast. Tesla doesn't sell non-Teslas. They have to sell them via auction, to a wholesaler, whatever. So they can't give you any more than they can expect to get at wholesale. Compare that to a Tesla, that they can resell at retail, and make a profit on.

 

[kort677]

placing any faith in a carfax report is a big mistake.

 

[Sir Guacamolaf]

placing any faith in a carfax report is a big mistake.

What is the alternative?

 

[kort677]

What is the alternative?

I don't have an answer, am I the one who knows all?
I do know that carfax is not always a reliable source.
you could have the car inspected prior to buying by a competent mechanic that knows how to spot repair work, there are always clues left behind, or just never buy a used car unless you know exactly where it was/how it was used, like from a neighbor or relative.

 

[Sir Guacamolaf]

@kort677 well I wish you were a know it all ..
Sidenote, how do you get a used Tesla Model S inspected before you buy it? Does Tesla provide such a service? How much do they charge?