I was wondering how many people have actually taken advantage of the trade-in option when buying their Model S. The options offered by Tesla when buying my MS were to trade-in through:
- AutoNation
- an undisclosed second company.
Of course the option also exists not to trade in at all. There are a number of reasons to trade in if, as is my case, my MS is a replacement not an addition to our stable. These include convenience and timing, but the most important in Illinois (not sure if it is the same in other places) is that the trade-in price is subtracted from the total purchase price before calculating sales tax. In other words you only pay sales tax on the difference.
Unfortunately, I found the trade in value much less than I have ever experienced before. I drive (still waiting until next month for my MS) a 2002 Audi A4 3.0 that I bought new. Kelley Blue Book value is between $3,100 and $4,600 (trade-in and private sale prices). I get the difference in prices - the used car guys need to make their margins. If we take the low end, and my sales tax rate of 7.25%, then the financial advantage of trading in is just $225. Even so, I thought I would give it a try. The result? AutoNation offered me $750!! I was a little insulted. When I questioned the valuation I was told that the KBB is meaningless as they don't buy or sell cars - clearly the standard line but even more insulting. The other buyer offered double ($1,500) what AutoNation did. Better, but still 50% of what I believe a fair trade-in value should be. I have decided to sell through classifieds and craiglist and I am OK with that.
So back to my question. Have others had the same experience? Has anyone had a good experience with the trade-in program making it worthwhile?
I should add that so far I have been delighted by every other part of the process and I don't even have my car yet. Practicing my Tesla grin, but it feels kind of fake at the moment. ;-)
85 | Blue | Grey leather | Piano Black Décor | 19" | Tech Pkg | Subzero Weather Package ... Delivery - expected in December 2013
- AutoNation
- an undisclosed second company.
Of course the option also exists not to trade in at all. There are a number of reasons to trade in if, as is my case, my MS is a replacement not an addition to our stable. These include convenience and timing, but the most important in Illinois (not sure if it is the same in other places) is that the trade-in price is subtracted from the total purchase price before calculating sales tax. In other words you only pay sales tax on the difference.
Unfortunately, I found the trade in value much less than I have ever experienced before. I drive (still waiting until next month for my MS) a 2002 Audi A4 3.0 that I bought new. Kelley Blue Book value is between $3,100 and $4,600 (trade-in and private sale prices). I get the difference in prices - the used car guys need to make their margins. If we take the low end, and my sales tax rate of 7.25%, then the financial advantage of trading in is just $225. Even so, I thought I would give it a try. The result? AutoNation offered me $750!! I was a little insulted. When I questioned the valuation I was told that the KBB is meaningless as they don't buy or sell cars - clearly the standard line but even more insulting. The other buyer offered double ($1,500) what AutoNation did. Better, but still 50% of what I believe a fair trade-in value should be. I have decided to sell through classifieds and craiglist and I am OK with that.
So back to my question. Have others had the same experience? Has anyone had a good experience with the trade-in program making it worthwhile?
I should add that so far I have been delighted by every other part of the process and I don't even have my car yet. Practicing my Tesla grin, but it feels kind of fake at the moment. ;-)
85 | Blue | Grey leather | Piano Black Décor | 19" | Tech Pkg | Subzero Weather Package ... Delivery - expected in December 2013