Trade in Values from Tesla (& other dealers)

[Ambergold]

For the record, bought a Model 3 LFP in March last year for €59K less 5k Gov subsidy it came in at €54k.

Roll on 14 months and I decide to trade for a model Y RWD. Tesla offer trade in of 27K.

55% depreciation, never before have I seen that level of depreciation on a car other than one that’s been crashed.

Motor dealers have picked up on the trend and are offering terrible prices to buy in.

 

[Sparkeur]

Hang onto it. In 50 years, it'll be worth a fortune.

 

[WllXM]

Well, it seems you have fallen victim of Tesla price cuts, given that a brand new Model 3 in your country is currently at less than €43k looking at the Tesla website (before subsidies if there are any left).
Assuming it is still the case for the 5000€, that would mean they now cost €38k brand new, so a 30% discount over the price you paid.

Kind of makes sense for a dealer to apply another 30% discount on a 1y used, hence the *sugar* trade-in price you get.
Basically you lost 16k€ overnight In price cuts, and 11k€ in depreciation over 1 year. The latter would be kind of normal, VAT and such, as for the former... join the crowd and complain to Elon...

But at least you have USS... that's ought to worth something...

 

[ACarneiro]

Well, my nearly 4 year old M3P- is now worth less than £20k
Definitely gonna keep it until it pops
(But at least it has free premium connectivity…. and stalks!)

 

[Ambergold]

It really is abysmal, it’s like buying a house in a bad neighbourhood. Once you have it you can’t get rid of it.

 

[kpanda17]

in the USA, big savings on sales tax, trade in amount is not taxed, and the overall experience with tradeins and Tesla is amazing
I have done 2x trade ins for Ts and one had check engine lights, unrepaired accident body work, etc Tesla still took it
Teslas focus is moving into new Teslas, in the USA the legacy dealers, want to make money on each step, trade in, sell the trade, you purchase new
not a bad gig if you can get it
but Tesla is only focused on getting you into Teslas
good luck

 

[MCMY]

For the record, bought a Model 3 LFP in March last year for €59K less 5k Gov subsidy it came in at €54k.

Roll on 14 months and I decide to trade for a model Y RWD. Tesla offer trade in of 27K.

55% depreciation, never before have I seen that level of depreciation on a car other than one that’s been crashed.

Motor dealers have picked up on the trend and are offering terrible prices to buy in.

Same here on a M3P 18 months in and lost over £30K it’s not just Teslas similar story on my business partners Volvo EV. Recently sold my 992 911 three years on and £15K down and the dealer sold it for £500 under what I bought it for new. Everyone talks about how much cheaper EV,s are to run but in reality overall costs are horrific.

 

[UrbanSplash]

Top tip. Don’t buy a new Tesla. It’s only going to get worse. Factories churning them out despite weak demand (in the uk at least).

 

[WannabeOwner]

I don't know what the actual figures are in O/P's case, but the percentage depreciation, compared to new price, in a market of falling prices, seems irrelevant to me, and my figure of concern would be the "make up" money between 2nd hand sale / trade in and buying a replacement.

With Tesla's I've had over the last 7 years I've regarded the depreciation as what percentage of the new / replacement car price I got for my trade-in. Various things have intervened - Tesla lowering price, inflation, and £Pound moving against $Dollar which have meant my new-buy price has fluctuated wildly, but I've been happy with the percentage make-up to the new car.

 

[GRiLLA]

Same here on a M3P 18 months in and lost over £30K it’s not just Teslas similar story on my business partners Volvo EV. Recently sold my 992 911 three years on and £15K down and the dealer sold it for £500 under what I bought it for new. Everyone talks about how much cheaper EV,s are to run but in reality overall costs are horrific.

Second hand prices are kept high by scarcity, which is the case with your 911 which new will have over a year of waiting list. Yes it's a shame that Tesla have moved from that category to being available from stock, but that's always been their aim and was obvious given the volumes being sold.

40%-60% depreciation over 3 years on a new car seems to be the going rate, so despite being disappointing as owners its not outrageous.

 

[yessuz]

as my colleague said - as common as muck.

Once my finance is paid, I hope I will have at least a bit of value to trade it in.. .

 

[debrooker]

Swings and roundabouts - I lost £0 on my first M3 LR, traded for a M3P. Whilst not happy with the current residuals as I would like to come out of the car, its not surprising.

 

[Leejmoff]

Based on the current quotes for my Dec21 car at around £25k, I'll be keeping mine until the wheels fall off. New cars don't have USS either. So might as well keep it and buy another EV going forward.

 

[WllXM]

Let's remind ourselves for a moment the crisis we were In one year ago, slow recovery, zero supply due to Covid lockdowns in China, semiconductor crisis, 6 months+ waiting times, etc.. demand sky high as no serious competitor was in sight for the likes of an M3/MY, and interest rates rises looming for those who wanted financing.. That even led to a second hand market above new.. crazy times...

Today, plenty of models to chose from, in stock or deliverable within a few weeks... the market has changed tremendously. It was expected. If you were not in desperate need for a car 12-18 months ago, you shouldn't have bought one, myself included.
As I said, it's normal to lose 20-30% on a brand new car after a year, all brands/model combined. But there was the extra factor of timely supply for which we paid another 20-30% premium on... That's how it is.
If you have financed, find some solace in thinking that your monthlies are about the same, as even with a 20% cut in RRP, interest rates have doubled in the meantime...

 

[Durzel]

911 isn't a good comparison, how many of those are Porsche actually making a year? Anyone buying a 911 probably has a reasonably long lead time.

Unlike Porsche, Tesla have shown their hand which is that they are going to chase volume at all costs, even if it means reducing their sizeable margin. This is the flip side of the coin really - people champion how great it is that Tesla have got 25%+ margin across the cars, compared to their competitors who make single digits or even a loss, without thinking about how this might affect them.

To echo @UrbanSplash's point - I would not buy a new Tesla and assume it is going to retain an elevated value "because it's an EV", or whatever, not when Tesla could lop off another 10% at least and still be profitable.

 

[Durzel]

Second hand prices are kept high by scarcity, which is the case with your 911 which new will have over a year of waiting list. Yes it's a shame that Tesla have moved from that category to being available from stock, but that's always been their aim and was obvious given the volumes being sold.

40%-60% depreciation over 3 years on a new car seems to be the going rate, so despite being disappointing as owners its not outrageous.

A point of pedantry, the OP is talking about 50% depreciation in one year - not 3. In that context it is pretty outrageous.

That being said, it is unfortunately a function more of the price cuts than anything. €16k has evaporated just from that (if @Sparkeur's numbers are right)

 

[WannabeOwner]

myself included

the OP is talking about 50% depreciation in one year - not 3. In that context it is pretty outrageous.

Not if the New Price has fallen, say, 25% - still only 25% make-up money to replace it

I have no idea what the O/Ps actual prices are, so that may not be the case ... but in a falling-price-market complaining about the fall in value of an asset, which you replace every few years at "market price", doesn't seem relevant to me - its the cost to replace that is relevant.

"Forced sale" through unfortunate circumstances, yeah that would be miserable.

 

[yessuz]

Not if the New Price has fallen, say, 25% - still only 25% make-up money to replace it

I have no idea what the O/Ps actual prices are, so that may not be the case ... but in a falling-price-market complaining about the fall in value of an asset, which you replace every few years at "market price", doesn't seem relevant to me - its the cost to replace that is relevant.

"Forced sale" through unfortunate circumstances, yeah that would be miserable.

buy new for 51k
trade in 1 year old for 27k

that is the OP message, no?

 

[GRiLLA]

A point of pedantry, the OP is talking about 50% depreciation in one year - not 3. In that context it is pretty outrageous.

That being said, it is unfortunately a function more of the price cuts than anything. €16k has evaporated just from that (if @Sparkeur's numbers are right)

Fair, but we also don't know the mileage after a year which may be abnormally high.

My Car is 11 months old with 7500 miles, WBAC (always low) is offering me £33K, which is 35% depreciation on what I paid for it. Generally the first year would be 25% - 35%, and I think for a PX or private sale I would be well within that range.

 

[WllXM]

buy new for 51k
trade in 1 year old for 27k

that is the OP message, no?

Yes but if you buy a new one it now costs 38k not 54. So if OP were to trade in for a like-for-like replacement he « only » lost 11k between the two, which is the depreciation for any car leaving the dealership forecourt.

If of course you are just a forced seller you have to swallow the full 27k loss difference. So it depends what you are trading-in for…