Trade in Values from Tesla (& other dealers)

[spdpsba]

good as new pretty much. 26k miles. - trade in value of £18,000.

I'll be honest, that is absolutely shocking....

Not sure whether anyone have their quotation saved in that period - bought on PCP and their ballon payment at the end of their PCP. I remember I did my quotation for PCP but sadly I can’t remember the figures.

I think buying a Tesla nowadays is more nuanced than buying another EV car. We all know that cars depreciate and we have a logical way of predicting how much they will go down in x number of years. However, I think to an extent Tesla - either play the market or the natural commodity trading prices (for Lithium batteries) fluctuate so much the cars value runs out of steam just like tech stock market.

Anyhow, what I understood from the way Tesla sells their cars - it is not a market where you can expect a stable return. You buy high, sell low but either take the available perks (low interest rate, cash option or some freebies) and have a new car with some new tech and few missing old tech which you love. Or don’t own it but either lease it or do a PCP and time the market well to make some gains. Or keep it still it dies.

 

[yessuz]

I am already 43k miles so my warranty approaches the end - it will not be 4 years - it will be 2.5 years or so.

I am sure that extended warranty would not sort any rattles, so for that - youtube and if that won't helps - expanding foam or matchstick and write off.

I am still planning to keep the car for another 3-4 years just because my Tesla Loan balance is significantly higher than the expected trade-in value. I am just out of options at the moment.

so fingers crossed it will not fail within next 3 years...

 

[Durzel]

There has to be a reasonable floor price I think. Even at £18k I'd be asking myself what else competes at that level. It's a lot of car for the money.

But who knows really.. with 0% BIK and Tesla lowering prices and seeking to increase volume quarter after quarter, it's quite likely supply will exceed demand by a considerable margin. Definitely a buyers market for these cars.

 

[WannabeOwner]

that's £841.09 a month depreciation

I reckon price has fallen about £5,000 in that time (I can't find a comprehensive source). Spread over 4 years that would be about £100 a month (exc. any allowance for interest)

But, even if you agree with me , not sure that £741.09 a month is any better than £841.09

Definitely a buyers market for these cars.

Yup.

 

[yessuz]

There has to be a reasonable floor price I think. Even at £18k I'd be asking myself what else competes at that level. It's a lot of car for the money.

But who knows really.. with 0% BIK and Tesla lowering prices and seeking to increase volume quarter after quarter, it's quite likely supply will exceed demand by a considerable margin. Definitely a buyers market for these cars.

well, my thought exactly. In the end of the day (that particular day when my last payment is made), 6 year old cannot have 0 value.

unless battery or motors are completely dead. but then I am not expecting to reach my end of battery/motor warranty at that moment (yet)...

even tesla, as a company, would go bust, there would be other networks to charge at, etc.

So I hope my break even point will be after 4 or 5 year ownership

 

[spdpsba]

6 year old cannot have 0 value.

Yes agree. But again it is relative. My RR depreciated more than the Tesla.

 

[KennethS]

There has to be a reasonable floor price I think. Even at £18k I'd be asking myself what else competes at that level. It's a lot of car for the money.

Exactly my thoughts. If insurance wasn’t so expensive for younger drivers we’d be looking to pick one up for our son. Safe and reasonably inexpensive to run. But insurance for a 22 year old makes it not worth pursuing.

 

[Leejmoff]

I had thought about doing that, until Tesla got rid of the extended warranty program here in the UK. I had intended to extend mine by 4 years, for peace of mind, even bearing in mind the exclusions. I haven't had anything major go wrong with my car in ~4 years, but I have had several niggly warranty issues.

I've gone from thinking about getting a Plaid M3P, to reconsidering whether I even feel comfortable keeping the car I've got!

That is exactly what I was thinking last night. How can I get rid of the car and save face. I'm not sure what is best at this point. Sell it privately right now and take a hit or wait until the end of its term and just give the car back and do it that way........

God knows, either way I doubt very much I'll be getting the Model Y I was interested in swapping my M3 for, a couple of days ago.

 

[spdpsba]

Sell it privately right now and take a hit or wait until the end of its term and just give the car back and do it that way........

Tesla will agree to take the car back 3-4 months in advance if you are swapping this for a new PCP deal. Just speak to the local Tesla dealer about the Y and they can get this sorted if you think that is the best course of action.

 

[Leejmoff]

Exactly my thoughts. If insurance wasn’t so expensive for younger drivers we’d be looking to pick one up for our son. Safe and reasonably inexpensive to run. But insurance for a 22 year old makes it not worth pursuing.

That is another thing, low insurance, cost to run was a massive reasaon in me buying a Tesla. But now my insurance has doubled and electric has got a lot higher since I got my M3, its another reason not to buy another. I've seriously been considering going back to a petrol SUV and I promised myself to stick with electric from now on.....this is how I'm thinking since getting that trade in value of £18k.

 

[Durzel]

Yeah insurance is a factor people sometimes overlook in the whole cost of ownership thought process.

My M3P insurance has gone up year on year, except for one year. It was just shy of £1k last year and I'm expecting it to be considerably more than that this year. All the while I've accumulated additional years of no claims, points or accidents. It's a real kick in the teeth.

For my part I didn't really think hard enough about what 0% BIK would mean in terms of used cars flooding the market. When you see Tesla posting record deliveries quarter after quarter you have to remind yourself that that volume of cars is what you'll be competing with when you try and sell yours.

Ordinarily I ought to be slightly better off having bought my car outright compared to financing, but the numbers don't back that up. If I had invested the capital into literally anything else then I would have made considerably more than I have lost, easily 10x or more depending on risk. Hindsight is 20/20 eh.

One thing is for certain - I cannot believe that any Tesla is going to maintain above average residuals, which is what everyone used to say back in the day. Volume chasing and 0% BIK guarantees residuals will be crushed indefinitely.

 

[qwickshot]

The grass really isn’t greener:
Kia EV 6 long range RWD - £27k at retail on a 22 plate, not even the cheapest on the market.

Auto Trader UK - New and Used Cars For Sale

Find your next car with Auto Trader UK, the official #1 site to buy and sell new and used cars. Over 400,000 cars online. Simple, easy, quick!

www.autotrader.co.uk

For £27k you only get a RWD model 3 that doesn’t have moon milage.

Auto Trader UK - New and Used Cars For Sale

Find your next car with Auto Trader UK, the official #1 site to buy and sell new and used cars. Over 400,000 cars online. Simple, easy, quick!

www.autotrader.co.uk

cheapest LR with a milage that keep it within warranty is £30,500

Auto Trader UK - New and Used Cars For Sale

Find your next car with Auto Trader UK, the official #1 site to buy and sell new and used cars. Over 400,000 cars online. Simple, easy, quick!

www.autotrader.co.uk

Cheapest model Y long range is £35k

Auto Trader UK - New and Used Cars For Sale

Find your next car with Auto Trader UK, the official #1 site to buy and sell new and used cars. Over 400,000 cars online. Simple, easy, quick!

www.autotrader.co.uk

The EV6 in the first link is exceptional value and an utter bargain. Whoever owned that took a massive hit, its base spec but they would have paid ~£50k for it given it’s from 2022 and peak car prices.

 

[Js1977]

The good news is ive still got at least 62k in the pot ... the bad news is that I won't ever see that money ever again... hopefully

 

[debrooker]

I came out of my 2021 M3 LR with 0 depreciation and straight into a M3P. I did a we buy any car a few weeks back and i was quoted 32k so a 28k drop in 14 months - you win some/ lose some.

It's a shame as i wouldn't mind dipping my toe in to a year old taycan as they seem good value at the mo

 

[Js1977]

I came out of my 2021 M3 LR with 0 depreciation and straight into a M3P. I did a we buy any car a few weeks back and i was quoted 32k so a 28k drop in 14 months - you win some/ lose some.

Not to bad considering imho. Biggest hit there is if you paid anymore to get into the M3P but even then, it was an upgrade I suppose which is always going to be extra money that you won't see back.


Would it be fair to say that you aren't any further away from the Taycan now than you were when you got any of the other two?

 

[kpanda17]

I had thought about doing that, until Tesla got rid of the extended warranty program here in the UK. I had intended to extend mine by 4 years, for peace of mind, even bearing in mind the exclusions. I haven't had anything major go wrong with my car in ~4 years, but I have had several niggly warranty issues.

I've gone from thinking about getting a Plaid M3P, to reconsidering whether I even feel comfortable keeping the car I've got!

Maybe now your time to lease
Let someone else own the depreciating asset
Never worry about warranty

 

[GeorgeSymonds]

Maybe now your time to lease
Let someone else own the depreciating asset
Never worry about warranty

You can only really let somebody own the extra depreciation risk. Lease companies essentially work out what they think the depreciation will be and charge you for it, plus a margin, plus cost of financed. All you gain is certainty.

The downside with leasing, especially at the moment, is if the cars don’t depreciate as badly as expected, the lease company gets the upside, not you.

 

[kpanda17]

You can only really let somebody own the extra depreciation risk. Lease companies essentially work out what they think the depreciation will be and charge you for it, plus a margin, plus cost of financed. All you gain is certainty.

The downside with leasing, especially at the moment, is if the cars don’t depreciate as badly as expected, the lease company gets the upside, not you.

But for right now we know Tesla is cutting prices in some markets and might cut more
By leasing and not owning, your isolated from the lower resale value if wanting to unload in a few years

 

[Js1977]

But for right now we know Tesla is cutting prices in some markets and might cut more
By leasing and not owning, your isolated from the lower resale value if wanting to unload in a few years

I dont think I would pass the affordability criteria for leasing unless I lied, since financing (over her at least) is mostly based on what you earn and not what you have saved as collateral besides your home. If I had a limited company, I would certainly consider it as there are less risks and more opportunities for sure.

I know company car/salary sacrifice are beneficial but that also means more leverage or pressure to keep a job that I otherwise might not want anymore.

Maybe my bad fortune as a gambler has left me scorched in the past as to know that the house always wins hence for me personally, Ill stick to what I know and mitigate what I dont.

I have the view that whatever I spent on a car is a total loss unless I live long enough to the point I live long enough as not to need or be able to drive anymore, then ill take out whatever there is left in that pot.

TL;DR: - If I was very wealthy I would for sure just lease and not have a care in the world... that is priceless for sure.

 

[KennethS]

But for right now we know Tesla is cutting prices in some markets and might cut more
By leasing and not owning, your isolated from the lower resale value if wanting to unload in a few years

The finance companies have the same market intel so I would venture to guess they are factoring this into their pricing models. That said, leasing does provide certainly for the lessee. It isn't my preference but I fully understand why it is for many people.