[UK] used value of their Tesla cars plummeting?

[Durzel]

The problem with Tesla’s way of doing things, as I see it, is that it has effects beyond the obvious.

Aside from the thousands of people directly affected (mostly late November purchasers, who didn’t get the December inventory discount or the supercharger miles, but had the high interest rates) there is an argument to be made about confidence.

If a brand has form for making deep discounts to their product line on a whim, to chase volume targets, then as a mere owner - or potential one - you’ll have people asking themselves whether they should wait to buy, anticipating more discounts down the line, or how much the car they’re about to buy is *actually* going to be worth by the time they want (or need) to sell.

Deep discounting might pay dividends for shareholders, but I’m not so sure its the brilliant strategy that some would suggest it is. It may weigh heavily on perceptions. Apple - the most profitable company in the world - doesn’t do it, for example.

 

[SR-Plus]

I’ve watched the RSymons video on the price reduction. He looked really dejected. So if you all thinking you’re having a bad day, he will have to write off £6k on his multiple stock of M3 and MY cars……this is why dealers are offering you £30k for your 2020 car with 10k miles on the clock.

 

[BelfastEV]

What do u think I will get privately for a white SR+ Nov 2019 57k miles

Have ordered a SR Y MSM 19”

 

[gangzoom]

If a brand has form for making deep discounts to their product line on a whim

Tesla pricing has reflected market demands since at least 2014 when I first started looking at ordering one.

I'm not sure why people don't understand the fundamentals of demand vs price.

Pay what you think something is worth, and it's fine. We cancelled a Model 3 order because the final analysis showed it was over priced. But Tesla are far from the only brand feeling the squeeze of lower consumer spending power. I just paid just over 50% of the list price for a Specialized eBike, 3 months ago no chance there was 0% discount.

If you have the means to buy, now is a great time, as most vendors of everything is keen to sell. The big ticket item though is still to come, houses.......there might be real 'opportunities' in the housing market later this year, so spending capital on a car regardless of current discounts probably still isn't the best thing to do right now if you have the means.

But no one can predict anything, employeement is still high, inflation will fall quickly now, and interest rates are stable. So the housing market drop might not actually materialise.

 

[MrT3]

He looked really dejected.

I’m sure he was pretty happy with all the price rises in the previous 14 months that increase the value of his used stock though. A M3 LR is still £3k more than than it was back in 2021.

 

[qwickshot]

I’ve watched the RSymons video on the price reduction. He looked really dejected. So if you all thinking you’re having a bad day, he will have to write off £6k on his multiple stock of M3 and MY cars……this is why dealers are offering you £30k for your 2020 car with 10k miles on the clock.

Yes, his take was very much a ‘this has impacted me personally quite a lot’ kind of take while failing to see the bigger picture (as most on here do). I’d also argue that the price drops had already been factored in by the trade and it’s not going to result in a massive drop in prices in the short term. The cars will continue to naturally depreciate as they age like you’d expect.

The biggest issue he has is a slowing economy and a more cautious consumer, not tesla dropping prices. The price is still higher than it was a year ago.

The prices for new and used cars are utterly outrageous at the moment. Lower prices are fantastic for customers and EV adoption in general. It puts huge amounts of pressure on other manufacturers to do the same. Why would anyone buy an ID.4 over a Model Y at this point?

I could never justify buying model 3 at the old prices despite already owning one from new that’s only just over a year old.

 

[gangzoom]

A M3 LR is still £3k more than than it was back in 2021.

That shows that there is still more price drops to come. Consumer spending power in 2023 is less than in 2021, so anyone who wants to sell anything has to factor that in.

But borrowing costs are higher, so the end cost to anyone using finance is likely to stay the same. Having cash right now seems to give you the most options on if you want to spend, save, invest etc.

Lots of uncertainty around for 2023, unemployment figure is key, and even no one really knows what's going to happen next 4-6 months, so dropping £40-50k on a unnecessary luxury item right now takes some financial courage and/or a very stable/certain income stream.

Current pricing on the 3/Y is still too rich for us to consider seriously.

 

[Doudeau]

Yeah both of those seem to be performing amazing well.

The stock market hasn’t been doing so badly imho.

 

[Sean.]

The stock market hasn’t been doing so badly imho.

View attachment 895658

*sugar* really. My pension pot has taken some big hits this year.

 

[btc1k]

The problem with Tesla’s way of doing things, as I see it, is that it has effects beyond the obvious.

Aside from the thousands of people directly affected (mostly late November purchasers, who didn’t get the December inventory discount or the supercharger miles, but had the high interest rates) there is an argument to be made about confidence.

If a brand has form for making deep discounts to their product line on a whim, to chase volume targets, then as a mere owner - or potential one - you’ll have people asking themselves whether they should wait to buy, anticipating more discounts down the line, or how much the car they’re about to buy is *actually* going to be worth by the time they want (or need) to sell.

Deep discounting might pay dividends for shareholders, but I’m not so sure its the brilliant strategy that some would suggest it is. It may weigh heavily on perceptions. Apple - the most profitable company in the world - doesn’t do it, for example.

"Most profitable company in the world" - Saudi Aramco

 

[gangzoom]

Well at least no one can moan Tesla isn't transparent with pricing changes....I've only ever used free features on Strava, but in the current climate clearly everyone is revaluating businesses models, though its not clear what some companies are actually doing

 

[73henny]

I’ve watched the RSymons video on the price reduction. He looked really dejected. So if you all thinking you’re having a bad day, he will have to write off £6k on his multiple stock of M3 and MY cars……this is why dealers are offering you £30k for your 2020 car with 10k miles on the clock.

I'd guess a chunk of the cars are on brokerage.

 

[candida]

I’ve looking to move on and had a serious bid from a dealer I know which amounted to 62% of the original price after 29 months. On reflection, that’s the old normal. Not too unhappy. (WBAC was 54%)

 

[73henny]

I’ve looking to move on and had a serious bid from a dealer I know which amounted to 62% of the original price after 29 months. On reflection, that’s the old normal. Not too unhappy. (WBAC was 54%)

Care to share what the bid was?

 

[candida]

Care to share what the bid was?

Paid 51 for M3P in 2020 (a month old Tesla car with 3 figure mileage, big standard white)
32.

And I’m sole trader self employed so for 100% written down in year 1, so I’m still within the chunk that I’d have had to pay to the taxman if I didn’t buy the car. (And on the downside there will be a small balancing payment).
Not a done deal yet. Let’s see.

 

[73henny]

Paid 51 for M3P in 2020 (a month old Tesla car with 3 figure mileage, big standard white)
32.

And I’m sole trader self employed so for 100% written down in year 1, so I’m still within the chunk that I’d have had to pay to the taxman if I didn’t buy the car. (And on the downside there will be a small balancing payment).
Not a done deal yet. Let’s see.

What mileage are you at now?

 

[candida]

What mileage are you at now?

23k

 

[Jason71]

Paid 51 for M3P in 2020 (a month old Tesla car with 3 figure mileage, big standard white)
32.

And I’m sole trader self employed so for 100% written down in year 1, so I’m still within the chunk that I’d have had to pay to the taxman if I didn’t buy the car. (And on the downside there will be a small balancing payment).
Not a done deal yet. Let’s see.

You say that you are 'still within the chunk' you'd have had to pay the taxman? I don't get it? You only save the tax on the depreciation long term. Whatever you sell the car for you will be taxable as profit.

 

[MashinBenzin]

Personally I dont begrudge not paying the 6.9 or even to 4.9% (or whatever it was back then)...paying interest is wasting money.

Saving paying 4.9% or 6.9% to avoid making 8% or 12% is wasting money. HTH.

 

[MashinBenzin]

You can never really predict anything we took out additional borrowing for a house build which still hasn't started. So right now we are 'earning' 4% interest on a loan via cash ISA/premium bonds that cost us 1.5% APR, so literally 'free' money. With all the price cuts coming its now very tempting to 'cash in' on things, but equally with interest rates still going up, we are earning more and more from the loan for doing absolutely nothing with zero risk.

One thing is for sure, if your main interest is to earn/make a return on money the last thing you want to do is waste it on any new car, lease, PCP, cash, however you pay for it you are burning money essentially.

Your money is deflating. Whilst you’re making 4%, the things it will buy have gone up 10%. You’re taking a risk.