-
Want to remove ads? Register an account and login to see fewer ads, and become a Supporting Member to remove almost all ads.
Trade-In Values Plummet
- Thread starter dslem
- Start date
Used-car market in ‘strange moment'
"Retail used-vehicle sales and wholesale auction volumes have plunged. Vehicle values are down significantly in the span of just a few weeks. It's left dealers wrestling with how to handle trade-ins and at what volumes to stock their lots in the coming weeks."
Yep everything is always on Tesla. Maybe look around a bit before posting the "take advantage" part of your post. I can tell you this. Tesla is not going to take a bath on your used car. We are in a fast changing market. If you can hold on to it for a better value do it. Nothing is stopping you.
Tesla doesn't really ever want trade-ins, they want to sell new cars, period. I had a couple trade-in quotes in the last few years on my Model S when considering a new Tesla and they were kind of insulting to be honest. The first one wasn't too bad, I could have got more privately, but the second one not long after was atrocious.
What type of car are you trying to trade-in? It really has little to do with Tesla and more to do with the market.
Anyone will always get more selling privately. The convenience of having a dealer buy it from you while rolling the cost into the transaction and getting a tax savings for having a trade-in (in most states) is the reason why many people trade-in. You will always get lower than selling privately, but you also dont have to deal with the issue of selling the car yourself, which can be a pain.
Details on the vehicle in question? I'm curious if it fits my needs....if you're looking to sell.
BetterSlowDown
Member
It's a horrible time to sell, that's why. I just sold my Shelby and my Wrangler and neither of them sold until the 5th week. I kept dropping and dropping prices. Not a lot of buyers and those that are buying are expecting a bargain.
There is a thread which has relevant information in it here:
Trading in a Tesla for a Tesla?
Specifically, if interested in what is actually happening with used car values (not just tesla), look for the (long) post I made in there that is an open letter from an auto industry valuation insider to dealers.
This is NOT a tesla issue, regardless of if you want to make it that in your head or not. It is a "used car" issue, and ALL used cars are going to take a valuation dump for the near future (with "near future" being something like now to 12 months from now or even longer).
your best bet is NOT to sell your used car, and hold it for the next 6-18 months. Failing that, be prepared to get less money, because ALL used cars are worth less right now (see that letter in that thread for why).
And you are partially correct.. NO CAR MARQUEE wants to deal with trade ins right now.... NONE of them. They have no place to put them, no way to value them so they dont lose money, etc.
Aikidoka
To increase range put the bike in the car
I got a trade in value from Tesla that was about $15,000 less than Carmax's selling price for the same model and condition as my car. I took the car to get Carmax's value to buy it and it was only about $2,000 higher than Tesla's offer. It was strange going to the Carmax because their lot was FULL of cars for sale, they had a number of employees there and I was the only potential customer.
I ended up selling the car to a friend for $10,000 more than Tesla's offer. I can understand low values at this time and was delighted my friend wanted the car.
I ended up selling the car to a friend for $10,000 more than Tesla's offer. I can understand low values at this time and was delighted my friend wanted the car.
My guess is the resellers have enough inventory for the short term so why take more unless it’s a great deal/profit setup. But I’d also guess that similar to the housing market, both supply and demand are down... I’ll probably list mine on autotrader and see if I can get closer to the value from last month. .
Knightshade
Well-Known Member
Hey I get the used car market is dropping but this was pretty severe... The car I'm trading for those who asked is a 2019 Mercedes GLA 4matic / 9k miles. Grey with white interior... super nice/cute car just not a Tesla.
Yeah...This has nothing to do with Tesla- if you are trading in a non-tesla they offer pricing based on the auction- since your car is going straight to auction (Tesla does not resell non-tesla cars directly themselves)
All ICE car resale is in the toilet now because there's been no used car auctions due to lockdowns- but cars keep coming back from leases and other sources (rental car agencies selling off cars too and so on), so there's a huge stockpile of unsold used cars nobody wants right now.
lUtriaNt
Member
back in march carvana were going to accept my trade in for 18.5 -- nice equity in my fully loaded 2012 qx56 with 96K miles one owner (me). carmax and tesla both offered me 14.5.
the day before my sell to carvana, CA governor shut down the state that friday. saturday showed up and carvana could not come pick up my car, which meant no sale.
couple weeks later autonation gave me 16K for it and that was as close as i was going to get because everyone else low balled.
after that the market dropped like a rock, so it makes sense why those looking to trade/sell are getting low offers. i had just about the worst timing (at the dawn of all this) but in the end it all worked out well for me.
the day before my sell to carvana, CA governor shut down the state that friday. saturday showed up and carvana could not come pick up my car, which meant no sale.
couple weeks later autonation gave me 16K for it and that was as close as i was going to get because everyone else low balled.
after that the market dropped like a rock, so it makes sense why those looking to trade/sell are getting low offers. i had just about the worst timing (at the dawn of all this) but in the end it all worked out well for me.
Knightshade
Well-Known Member
errr... that's decline in "days it took to sell" not "amount the value dropped" which is the actual thread topic.
If you click on the link for the source of their data in the story it brings you here:
Cars with The Greatest Slowdown in Sales Due to Covid-19 - iSeeCars.com
Where you see it shows the Model 3 1 year old is selling at an average of $45,361...and 3 years old is selling at an average of $41,911.
Which is insanely good resale value.
It wasn’t that long ago that people were complaining about how unrealistic the used pricing of Model 3’s were. Some were trying to sell for more than the price of a new one. So maybe now is a good time to buy a used Model 3.
So right now, the trade in value I get for our 2018 Enclave Premium AWD, 25k miles - which was $55k new in 2018 is ... ready for this?
$17,000.
The deer collision in October made it undesirable; COVID-19 made it unsaleable.
I wanted to replace it with a Model X, but this makes that a completely unrealistic idea at that kind of price. Going to have to drive this thing till the wheels come off. Then put them back on, and keep going.
Unless the used market comes back strong, I'm stuck with it.
$17,000.
The deer collision in October made it undesirable; COVID-19 made it unsaleable.
I wanted to replace it with a Model X, but this makes that a completely unrealistic idea at that kind of price. Going to have to drive this thing till the wheels come off. Then put them back on, and keep going.
Unless the used market comes back strong, I'm stuck with it.
What does 3-year old Model 3 really mean here anyways, given Tesla only delivered about 1700 of them in 2017 and all but 200 were in Q4?
I.e. there really aren't 3-year old Model 3's, at best there would be 1 or 2 data points, literally - truly only a handful 3-year old ones that have actually re-sold.
Similar threads
