Now that the M3 has been around for a while in the UK there are more and more used examples coming up for sale. Judging on asking prices on sites like Autotrader and eBay cars their used values are holding strong. Looking at 12 month old M3P’s with around 12k miles asking price is around £48k mark - these were around £54k new. I’m no expert but it’s always nice to see strong residuals and demand impact prices. I guess lack of discounting when new and a shift to electric also helps.
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Uk M3 residual values looking strong?
- Thread starter Hamstall
- Start date
And?... You can ask whatever you want on autotrader and the likes. Doesn't mean you will get it. Albeit, the prices you have found seem a bit more realistic than when I last checked.
There is no competition as far as performance goes in regards to Teslas, so that is that I suppose.
Have you bought and want reassurance or are you looking for reassurance to buy?
There is no competition as far as performance goes in regards to Teslas, so that is that I suppose.
Have you bought and want reassurance or are you looking for reassurance to buy?
The tax treatment of the Performance has changed, retail price has increased due to the removal of the grant, so that is a factor.
But popularity of EVs is only increasing, 3 is entry level Tesla and there are basically very few second hand ones around, just a function of them being so new (to the UK) or just supply
limited in case of S and X. So it’s a case of supply and demand. In the old days a Audi Q5 had similar residuals, still worth 70% after 3yrs as second hand demand was so good (maybe still is).
ULEZ a factor in London, driving EV demand and taxis catching on.
What is does highlight is how rinsed people are getting on a lease, as they are priced based on ICE residuals. Most people getting sucked in by tax treatment too, making it seem cheap. Golden age for EV leasing companies, they will be making a fortune.
But popularity of EVs is only increasing, 3 is entry level Tesla and there are basically very few second hand ones around, just a function of them being so new (to the UK) or just supply
limited in case of S and X. So it’s a case of supply and demand. In the old days a Audi Q5 had similar residuals, still worth 70% after 3yrs as second hand demand was so good (maybe still is).
ULEZ a factor in London, driving EV demand and taxis catching on.
What is does highlight is how rinsed people are getting on a lease, as they are priced based on ICE residuals. Most people getting sucked in by tax treatment too, making it seem cheap. Golden age for EV leasing companies, they will be making a fortune.
Neither. I was sharing my thoughts for further comment.And?... You can ask whatever you want on autotrader and the likes. Doesn't mean you will get it. Albeit, the prices you have found seem a bit more realistic than when I last checked.
There is no competition as far as performance goes in regards to Teslas, so that is that I suppose.
Have you bought and want reassurance or are you looking for reassurance to buy?
And?... You can ask whatever you want on autotrader and the likes. Doesn't mean you will get it. Albeit, the prices you have found seem a bit more realistic than when I last checked.
There is no competition as far as performance goes in regards to Teslas, so that is that I suppose.
Have you bought and want reassurance or are you looking for reassurance to buy?
Well webuyanycar will pay £36k for a 14 month old SR+ with average mileage that cost £39k. And they send them to auction, so there is their margin and the dealer margin to add before it gets to retail. I don’t see how that works. It is crazy given what a new one is. But reality.
Strong residuals on all Teslas forced my hand. I was keen to buy used, letting someone else pay the big chunk of initial depreciation.
it quickly became clear that used prices are so strong that I may as well bite the bullet and buy new for cash. I mean, the cheapest Tesla in the UK, when I was looking at used ones, was £32000 for a 60000 miles, 2015 Model S on Cat D.
when I ordered, in October this year used M3s were advertised for a couple of grand off new list. Yes, I understand that wasn’t all due to straightforward residuals but nonetheless buying new seems (and I believe American experience with M3 bears this out, 10% over 3 years was a figure I saw recently ) sensible especially when compared with ICE (by a huge amount in fact) particularly once you factor in overall cost of ownership. If (or more likely, when) Tesla do reduce the new M3 price it may cause a bit of hurt but I expect demand to exceed supply for a few years to come which will continue to keep residuals strong.
it quickly became clear that used prices are so strong that I may as well bite the bullet and buy new for cash. I mean, the cheapest Tesla in the UK, when I was looking at used ones, was £32000 for a 60000 miles, 2015 Model S on Cat D.
when I ordered, in October this year used M3s were advertised for a couple of grand off new list. Yes, I understand that wasn’t all due to straightforward residuals but nonetheless buying new seems (and I believe American experience with M3 bears this out, 10% over 3 years was a figure I saw recently ) sensible especially when compared with ICE (by a huge amount in fact) particularly once you factor in overall cost of ownership. If (or more likely, when) Tesla do reduce the new M3 price it may cause a bit of hurt but I expect demand to exceed supply for a few years to come which will continue to keep residuals strong.
I suspect improvements to the M3 will drive depreciation. e.g the new 21 refresh cars could probably be more desirable longer term than pre 21 years, and if the M3 gets the new tabless cells that again would make that car more desirable. I.e technology does not stand still.
All we can say at the moment, is that taking all the above into account the depreciation curve seems to be lower than those cars from say BMW, Mercedes and Audi
All we can say at the moment, is that taking all the above into account the depreciation curve seems to be lower than those cars from say BMW, Mercedes and Audi
ACarneiro
Active Member
ACarneiro
Active Member
I would seriously consider it as well, and I suspect many current M3 owners will too.
Hence my previous remark.
Some interesting comments. The motor industry (and financial services) still seem to view the EV in the same way as ICE cars for the purpose of PCP and leasing deals with cautious projections. As EV’s become more established and more data is available I think that this will change. I tend to view Tesla more as a tech company like Apple than a mainstream car maker. I think that it’s cars are very desirable and instantly recognisable - the brand identity is huge. Perhaps a little like the Apple MacBook, early examples will continue to be desirable and hold their values. In particular I find that it is the younger generation that recognise my car and point and shout more than any other group.
Worthwhile noting that people often buy second hand as economics of buying new don't work. So when we get the Y and the new cells as tech evolves it won't automatically impact residuals of the older models as there will be no equivalent in the used market, the best used in 3 years time will be a 2021 3. Demand for second hand EVs will rise as all the market moves this way while supply will remain naturally restricted, so residuals will not look anything like ICE car residuals have. I think EVs are the only disruptive technology where the early adopters will find the cost is much lower than they expected due to this. Of course this only applies if you can buy it outright!
I bought mine outright. I nearly leased, and had I got the quotes I was getting back in 2019 I probably would've. For some reason, back in 2019, the leasing quotes that were floating around made it seem like a no-brainer - it would basically cost ~£17k over the course of 3 years. I couldn't see a way that the car wouldn't have lost that amount in depreciation in that space of time.
When I came to actually looking to buy the car I got quotes from 10 different places, and they were all considerably higher than before. I was told that "the industry was concerned" about their exposure as they already had loads of cars on their books, and at the time Tesla was doing their Tesla thing of changing the prices constantly for no apparent reason. In the course of a couple of months where I was seriously looking the lease quotes often had to get redone because of these price variances.
As it turned out the quotes I was getting in early 2020 made leasing seem unpalatable compared to buying outright, which is what you'd expect when its normal really - i.e. you're getting credit and passing on your exposure to a third party.
In the end I managed to get a M3P just under the wire before it lost the PICG, and before it dropped by £500. It was literally a matter of hours I think, fortunately my car had been put through the OLEV portal in the gap between the mini Budget and changes taking effect. I bought FSD too, which went up by £1000 shortly afterwards.
So I "saved" about £5k on the car compared to buying it now, but that has probably been swallowed up in the hit from the 2021 changes, I would imagine.
My only concern with depreciation really is some sort of cataclysmic event like the overnight £40k price cut on P100D was (RIP to those people who got hit by that). I can't conceive of how that would happen, but at the same time the Performance version is somewhat more exposed if e.g. a Ludicrous 100kW M3P comes out at the current (or near) M3P pricing.
When I came to actually looking to buy the car I got quotes from 10 different places, and they were all considerably higher than before. I was told that "the industry was concerned" about their exposure as they already had loads of cars on their books, and at the time Tesla was doing their Tesla thing of changing the prices constantly for no apparent reason. In the course of a couple of months where I was seriously looking the lease quotes often had to get redone because of these price variances.
As it turned out the quotes I was getting in early 2020 made leasing seem unpalatable compared to buying outright, which is what you'd expect when its normal really - i.e. you're getting credit and passing on your exposure to a third party.
In the end I managed to get a M3P just under the wire before it lost the PICG, and before it dropped by £500. It was literally a matter of hours I think, fortunately my car had been put through the OLEV portal in the gap between the mini Budget and changes taking effect. I bought FSD too, which went up by £1000 shortly afterwards.
So I "saved" about £5k on the car compared to buying it now, but that has probably been swallowed up in the hit from the 2021 changes, I would imagine.
My only concern with depreciation really is some sort of cataclysmic event like the overnight £40k price cut on P100D was (RIP to those people who got hit by that). I can't conceive of how that would happen, but at the same time the Performance version is somewhat more exposed if e.g. a Ludicrous 100kW M3P comes out at the current (or near) M3P pricing.
I do not understand people's fascination with SUVs. Personally, I can't stand them, and consider them inferior to a saloon, estate or hatchback in nearly every way. To each their own, I guess...
I too don’t get the appeal of them, particularly “halfway house” cars like the Y. If you want SUV surely the X is what you need?
If the 3 was three door I could sortof get it, but I’m not seeing the huge benefit of the Y over the 3.
SpareHeadOne
Member
Hatchback.
If you need that, then you need it. I don't so I've gone for the M3, but we have two Retrievers so it's essential we have one car capable of carting them about - usually a few dozen times a year. Right now that role is performed by an Outlander PHEV, but she wants to go all electric as well, so with the MX out of the price range the M3 or a second-hand i-Pace is where she's been looking.
Now of course there are other options starting to come to market, so my M3 experience could gain or lose Tesla a sale.
Jason71
Well-Known Member
Depreciation on the car may well be good. Depreciation on the FSD will likely be terrible. so try to get your moneys worth out of it. You are unlikely to get much of it back come sale time.
