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Trade-in value update - 4k drop
- Thread starter qiushengxy
- Start date
Akikiki
A'-Lo-HA ! y'all
Well, has this turned into a beat up on Tesla and let's find everything/anything wrong with Tesla thread?
Everyone should sell their car themselves vice taking the easy and lose more money way of trading in. Low trades was not invented by Tesla.
Everyone should sell their car themselves vice taking the easy and lose more money way of trading in. Low trades was not invented by Tesla.
Well, for people who live in state like WA with 10.4% sales tax, taking the advantage of trade-in to save taxes is a big deal (3k-4k less in sales taxes), and may be also one of the motivations to purchase the MY, as long as Tesla offers "fair" trade in value.
The main complaint here is that Tesla suddenly offers more than 10% less than other dealers like CarMax, and their customer service is not professional on addressing these complaints.
My Tesla advisor said they'll match CarMax as long the request is made before June 1 and it will remain valid for 30 days after.
I just called Tesla and what I told was that they only match CarMax offer that was done in-person with a hard copy of the offer letter. They don't match the CarMax online appraisals. My CarMax center currently don't do in-person appraisals, and they only offer the online one. Anyone know how to get an in-person appraisal from CarMax?
In March Carmax gave me an appraisal of $8,500 for my 2011 Subaru Outback. Tesla offered $5,800 and was hesitant to match Carmax pricing due to the big discrepancy. We agreed to revisit closer to delivery. So with delivery a few weeks away, Carmax re-appraised at the same $8,500 and Tesla at $4,750. In addition Tesla told me by chat they no longer accept any Carmax prices.
Looks like I'll sell the car on my own...
Looks like I'll sell the car on my own...
Akikiki
A'-Lo-HA ! y'all
That's the best deal for you. I understand it (as if anyone cares if I understand it). If I were you, I too would do the trade in, but its because its the more financially sound move. Makes good sense.
I was able to get a decent trade in offer from carmax (less than 5% lower than pre-covid) and Tesla did match since it was prior to June 1.
It was still 1600 lower than my highest trade in offer from a third party dealer but the sales tax credit makes it better by over 1k still.
I'm not super pleased with the timing, but my current car's value is likely to continue falling at a faster rate than the MY will, so i can justify it.
It was still 1600 lower than my highest trade in offer from a third party dealer but the sales tax credit makes it better by over 1k still.
I'm not super pleased with the timing, but my current car's value is likely to continue falling at a faster rate than the MY will, so i can justify it.
Akikiki
A'-Lo-HA ! y'all
If Tesla has a loss of $1000 on someone's trade in what becomes the margin of profit on the car? Look the number up. They can't do this.
Markets make prices. If there is no support price can fall quickly in thinly traded markets. Used cars are trading very thinly right now at a wholesale level, if at all. Tesla has to work on that. They cannot be Carmax. Tesla is in the business of selling new cars, not holding a trade in to sell to the guy down the street. Accepting a trade in is a service. I agree could be done in some of the above better circumstances, but I attribute that to local lack of service. Could one imagine the headline if Tesla took thousands of used cars at huge losses.
Markets make prices. If there is no support price can fall quickly in thinly traded markets. Used cars are trading very thinly right now at a wholesale level, if at all. Tesla has to work on that. They cannot be Carmax. Tesla is in the business of selling new cars, not holding a trade in to sell to the guy down the street. Accepting a trade in is a service. I agree could be done in some of the above better circumstances, but I attribute that to local lack of service. Could one imagine the headline if Tesla took thousands of used cars at huge losses.
I completely agree with you that "Markets make prices". No one here is expecting Tesla to take trade in above the market price. CarMax is willing to take my car at 35k and can still make profit from it, but Tesla's offer is more than 10% below the market trade in value.
Carmax the last time I checked wasn't making new cars for sale. Carmax is in the business of selling used. Tesla sells new cars. Tesla again doesn't want to hold on to your car. I know that is hard for many people to get. They have to sell it at what liquid prices are. Right now they don't know. Carmax is your market, not Tesla's.
Tesla takes your cars for the most part to auction. Not sell it on a lot for 3 months like Carmax. So Tesla has to put a price it where it doesn't lose. Right now they have to go lower just in case. Ask yourself if you had to buy your next door neighbors car. Then sell it in 30 days or less. What would your price be? Like right now today where prices in used car market are not firm.
I wish we had that tax advantage in CA, but we get no sales tax transfer here and have to pay full tax on a sale regardless of trade-in.
Exactly. Until wholesale rates stabilize and/or start to rebound, Tesla is taking the risk that the trade they just bought will fall even further before they can sell it at auction (and many auctions were or have been closed).
I've traded in my last two vehicles and I know I got less (even with the tax benefit) than selling it privately. However, I also eliminated most of the risk and hassle of selling a vehicle - listing it, letting someone other people drive it, dealing with their payment, and any post-sale issues. To me, that was worth it to take a lower value and trade in. Others may disagree and that's certainly their option.
They gave me the exact “Mileage Inconsistency” issue and accused me of fraud. I double checked with carfax and my auto history online, everything seems to fine.
I think they are trying to slow things down purposefully until June 1st so they don’t have to match the price and more important don’t want to deal with trade-ins
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