Trading in higher value vehicle

[khurshidev]

Hello,

I currently have a model Y which I bought for ~$64,000 and I also have a order in my system which I placed long back which will be around ~$57,000.

I don't understand Tesla order priority as I got the newer order first.

Now my question is,
- Can I trade in my current model Y which is showing $68k trade in value for a $57k car as I'm not planning to have two cars?
-Would Tesla credit a difference in price?
- If not , Should I sell my Tesla to internet dealers and pay sales tax again for new car?

Looking for inputs from experts in this forum. TIA.

 

[HouTexan]

Hello,

I currently have a model Y which I bought for ~$64,000 and I also have a order in my system which I placed long back which will be around ~$57,000.

I don't understand Tesla order priority as I got the newer order first.

Now my question is,
- Can I trade in my current model Y which is showing $68k trade in value for a $57k car as I'm not planning to have two cars?
-Would Tesla credit a difference in price?
- If not , Should I sell my Tesla to internet dealers and pay sales tax again for new car?

Looking for inputs from experts in this forum. TIA.

I traded in a Model X for my Y. They gave me much more for the X then the Y costs. Our situation is different because I just had them apply the extra to my down payment on the financing but they would have cut me a check. Either way I pay zero sales tax. Also, Tesla beat all internet dealers by a few thousand so it was an easy decision especially with the tax savings.

 

[DayTrippin]

Do you have an actual trade value from Tesla? I guarantee they will lowball you. It will NOT reflect the current market value of the car. So if you are basis your 68k trade value on outside numbers, rather than Tesla, you are in for a rude awakening if it is a new car. They offered me 12k less for my Y than the best wholesale offer I got and 8k less than the worst wholesale offer.

 

[khurshidev]

Do you have an actual trade value from Tesla? I guarantee they will lowball you. It will NOT reflect the current market value of the car. So if you are basis your 68k trade value on outside numbers, rather than Tesla, you are in for a rude awakening if it is a new car. They offered me 12k less for my Y than the best wholesale offer I got and 8k less than the worst wholesale offer.

Yes. I'm using the value from third party.

Would Tesla make low ball offer for sub 1000 miles car? I thought they are in the market to make money. They are selling demos for 70k now.

 

[khurshidev]

I traded in a Model X for my Y. They gave me much more for the X then the Y costs. Our situation is different because I just had them apply the extra to my down payment on the financing but they would have cut me a check. Either way I pay zero sales tax. Also, Tesla beat all internet dealers by a few thousand so it was an easy decision especially with the tax savings.

That's good to know. Thank you for the info.

 

[khurshidev]

@DayTrippin I see what you mean. If they low ball,my decision will be easy. I have to pay sales tax again for new car but I'll offset that by selling my car to internet dealers.

 

[DayTrippin]

That is what I did. It was a no brainer even losing the sales tax benefit.

 

[HouTexan]

Do you have an actual trade value from Tesla? I guarantee they will lowball you. It will NOT reflect the current market value of the car. So if you are basis your 68k trade value on outside numbers, rather than Tesla, you are in for a rude awakening if it is a new car. They offered me 12k less for my Y than the best wholesale offer I got and 8k less than the worst wholesale offer.

Was not my experience at all. Tesla beat all internet dealers. Will also add they gave me 10k more then I paid for in late in 2019. Model X with 13k miles. I didn't expect such a good offer though.

 

[theocguy]

Was not my experience at all. Tesla beat all internet dealers. Will also add they gave me 10k more then I paid for in late in 2019. Model X with 13k miles. I didn't expect such a good offer though.

i think it is just a demand and supply at the time you did your trade.

 

[theocguy]

Yes. I'm using the value from third party.

Would Tesla make low ball offer for sub 1000 miles car? I thought they are in the market to make money. They are selling demos for 70k now.

Tesla is in the market to make money. If they can low ball to get a trade in, and sell it out in higher value, they will make more money. that is why they low ball to begin with.

 

[DayTrippin]

You might have better luck trading in to Tesla on a older car like an old S,X but the new hotness they don't do well. For the trade on my Acura for my Y, they did fairly well when factoring in the sales tax impact. On my Y, it wasn't even close. As soon as they asked for my original sales sheet, I knew it would be much lower than what the market value was.

 

[Silence88]

I'd be careful selling this Tesla you just bought last month. Tesla has "banned" some individuals for flipping their cars and refused to sell them a new one. Between whatever actual sales price you can obtain and taxes you may not come out very far ahead if at all. The safest option may be to cancel your pending order and suck up the increased price. Why did you accept the more expensive one? For $7K savings I would have, unhappily, waited for the first order.

 

[preilly44]

Was not my experience at all. Tesla beat all internet dealers. Will also add they gave me 10k more then I paid for in late in 2019. Model X with 13k miles. I didn't expect such a good offer though.

I've traded in 8 Tesla's over the years and they have never low balled me. They have always been higher than all the Internet/locals were willing to pay.

 

[TomServo]

When I factor in the 7.25% tax break, cost of renting a car for about 30 days and inconvenience of not trading it in the day of delivery I will base my decision on the average of several online offers. So far my break even point on my 2020 LR AWD Y is $56K. Anything over that is gravely. Fingers crossed Tesla come in at that value.

 

[DayTrippin]

I've traded in 8 Tesla's over the years and they have never low balled me. They have always been higher than all the Internet/locals were willing to pay.

Lucky you. How old where the last 2 you traded in. What models did you trade in the last ones and on what models? I suspect most any model that is not very old, Tesla is NOT the place you are going to get the best deal on trade.

Just for the heck of it, I asked what I'd get on trade for my new '22 S on our '22 model 3. Their offer was over 20k less than a new one was at the time. Checking the used sales of refreshed S's at the time showed the retail market to be easily about 5-7k above the current retail price due to the delay deliveries. I asked a wholesaler what they would give me and they'd give me current retail for my car.

 

[preilly44]

Lucky you. How old where the last 2 you traded in. What models did you trade in the last ones and on what models? I suspect most any model that is not very old, Tesla is NOT the place you are going to get the best deal on trade.

Just for the heck of it, I asked what I'd get on trade for my new '22 S on our '22 model 3. Their offer was over 20k less than a new one was at the time. Checking the used sales of refreshed S's at the time showed the retail market to be easily about 5-7k above the current retail price due to the delay deliveries. I asked a wholesaler what they would give me and they'd give me current retail for my car.

 

[preilly44]

The last car I traded in was in April '22 and it was a 2020 YP with 8k miles and FSD. They gave me $70k. The one before that was the same specs except with 20k miles and they offered me $67,500.

 

[MyMYLRnw]

Not all states allow you a tax benefit on trade in.

 

[khurshidev]

I'd be careful selling this Tesla you just bought last month. Tesla has "banned" some individuals for flipping their cars and refused to sell them a new one. Between whatever actual sales price you can obtain and taxes you may not come out very far ahead if at all. The safest option may be to cancel your pending order and suck up the increased price. Why did you accept the more expensive one? For $7K savings I would have, unhappily, waited for the first order.

I needed the car sooner as my fuel thirsty escape was giving me problems.

It seems like asking Tesla for trade-in is a bad idea. I'll buy the second car and then sell the first one to be safe.

 

[Silence88]

I needed the car sooner as my fuel thirsty escape was giving me problems.

It seems like asking Tesla for trade-in is a bad idea. I'll buy the second car and then sell the first one to be safe.

That's a tough spot to be in. Good luck, I hope the numbers and transactions work out well for you in the end.