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[UK] used value of their Tesla cars plummeting?

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Wrong!. The value of something is dictated by what the buyer is willing to pay for it, not what the seller wants. This is true for all material things on earth. The is why the phrase "scarcity brings value" is true
Wrong!

The cheapest Model 3 with sub 60k miles in the country right now is £26,380 as a private sale.

When has part ex ever been nearly £10k lower than private sale pricing on a 26k car. It just hasn’t. I don’t know why everyone is so obsessed with wearing Tesla hats and backing them up, £17k is ridiculous for this car.

These cars are selling for £26k every day, just track them on autotrader, save a few adverts and you’ll see. I saved about 11 from 6 days ago, all sold. Every single one.

I’m saying the Tesla offer of £17k is a joke, it’s a ridiculous low ball offer.
 
Wrong!

The cheapest Model 3 with sub 60k miles in the country right now is £26,380 as a private sale.

When has part ex ever been nearly £10k lower than private sale pricing on a 26k car. It just hasn’t. I don’t know why everyone is so obsessed with wearing Tesla hats and backing them up, £17k is ridiculous for this car.

These cars are selling for £26k every day, just track them on autotrader, save a few adverts and you’ll see. I saved about 11 from 6 days ago, all sold. Every single one.

I’m saying the Tesla offer of £17k is a joke, it’s a ridiculous low ball offer.
Welcome back to the real world. The market is flooded with M3's hence Tesla's trade in value. They are not obliged to give you the price you want. If you don't like the game then don't play my friend. Why do you think the average price of a millionaire's car is £30,000?
 
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Lol I want a new BMW M3 for £30k but that doesn’t mean it isn’t a joke.

17k for a model 3 is a joke… cheapest on auto trader is around 26k. Drop off the high horse and get a little more realistic. £17k for this level of car is insane. Can barely get a golf R for that
What high horse? Jeez, I just gave some info including alternatives. Tesla are not the only horse in town for trade prices for Teslas.

A Golf R is neither here nor there and the value of a Golf R is going to have zero influence on what Tesla wish to bid for a Model 3.
 
It may be a reflection on demand though? Tesla use trade in as a demand lever. If they are low balling that may suggest the price cut has done its job demand is up and they can afford to pass up the sale?
Agreed. It’s an indication that the demand is beneath the supply. If they take this car they want it cheap to protect their risk. Could be that they have a limit either in numbers or (more likely?) in pounds of how many of each car they will carry. Or their storage is becoming limited (incurring extra cost) or they know that the sales pipeline for the cars they are already carrying stretches to x weeks, increasing risk.

All hypothesis, it will be a combination of such factors and more. All we really know is that £17k is their valuation of the car. Doesn’t mean that a dealer in Bradford who knows he can shift one for £25k won’t bid £22k for the first Model 3 he sees pop up in an auction on Motorway.

Trading same brand with the seller is always the easiest, rarely the lowest cost to change.
 
Not sure by the way parts issue is resolved, maybe for Tesla but there's still makes not offering features they used to on models because they cannot get parts. Also their delivery timelines are dropping from 1 year+ to maybe 6+ months so it's coming down but still longer than used to be. Tesla I think are one of the first to hit a supply being higher than demand issue. Part of that is because they've got a new Gigafactory in Germany and also another in Texas they need to ramp up at a time when demand is dropping due to economic pressures.

They've no choice but to go after volume, I'm sure Elon tweeted a while ago that the new Gigafactory's were just money-burning furnaces. If they don't get production to certain levels they lose massive amounts of money. Hence lowering their margins, selling more cars and making sure they aren't burning money with factories not running a high enough production level is sound business sense if you ask me. They might think twice though about opening another Gigafactory for a bit though.

Long term, lower prices is where EV's need to go. They should in the future drop below the cost of making an ICE vehicle as they aren't nearly as complex, just need battery prices to continue to drop.
 
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I bought a used M3 from Tesla abut 18 months ago, I knew it was a good price but even so, 6 months later Tesla bought it back from me for nearly 4k more than they sold it to me when I bought a new MY. Happy days. The MY went up in value almost straight away, and I could have probably sold it for 4k more than I paid only a few months ago. I'd now be lucky to get 6k less than I paid for it.

The point of all this... timing. If I take a 6 month view the car has depreciated 10k (against what I could have sold it for) which is horrible, a 9 month view 6k which is good for a new car, an 18 month view and I'm only 2k down which is remarkable. The trend isn't pretty but I'm rational about it, and in practice, if it dropped another 10k by June, I'd have had 2 years motoring for 12k which I shouldn't be too upset by. I'm sure I would be upset, but I have to remind myself.

I posted this 3 weeks ago and I'm slightly worried June has become January based on some of the offers out there.

I'm glad i don't need to sell, and the decision over whether I want to sell is currently made for me with the prices. What's kind of odd is that when I swapped the M3 for the MY back in March the part ex seemed over the top against the market as if they were trying to buy the business, and at a time when they didn;t seem to need to (the MY was just out and they were selling privately over list). They're certainly not trying to do that at the moment.
 
WBAC so generous in offering £36k for a 9 month old YLR with 10k miles
Yep.
I sold them an MY with 9k miles in Aug last year (only 6 months ago) for £59k 😮

So that roughly equates to your car, on which they bid £36k, so a drop in WBAC’s valuation of £23k in 6months.

If only I had walked everywhere for 6 months before buying another Tesla, I would be both fit and rich 🤭
 
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I posted this 3 weeks ago and I'm slightly worried June has become January based on some of the offers out there.

I'm glad i don't need to sell, and the decision over whether I want to sell is currently made for me with the prices. What's kind of odd is that when I swapped the M3 for the MY back in March the part ex seemed over the top against the market as if they were trying to buy the business, and at a time when they didn;t seem to need to (the MY was just out and they were selling privately over list). They're certainly not trying to do that at the moment.

I think some of the earlier comments about valuations are right, neither Tesla nor WBAC want our cars.

So they’re offering very low prices. Most sellers will walk away. Someone desperate might accept the offer, but at those prices the buyers know they can make good money quickly.

I’m not too worried as a) I don’t need to sell and b) the fundamentals still apply. By that I mean when the market calms down Tesla will be selling MY LR for approx £53k. I understand that demand has gone up, there are buyers at that price. So if, as a buyer, my option is a new one from Tesla for £53k or a used 1 yr old one, how much less does the used one need to be to be competitive? My guess would be £45-47k. So a in a normal market a dealer should be happy to buy that off me for say, £42-44k. So that is what I think my MY is likely worth in a calm market. That is much more than WBAC will currently offer, but I bet their CFO is telling them to conserve cash while worrying about a recession (fewer sales) plus seeing increased costs for them to hold stock, so their system makes low ball bids.
 
Either way…. The market is currently crazy, and Tesla have completely lost the plot with their pricing.

My guess is they have a lot of data to support their pricing.

A few months ago my car went into Tesla Reading to fix a rattle. I sat in the showroom to wait as they didn’t have a loaner. They had one MY on display and one M3 as a demonstrator.

I went back last week. They had several used M3’s, mostly 2019 cars with silver door handles. They had two used MY and another MY in the showroom. They gave me an M3 Performance as a loaner.

They don’t want our used cars.
 
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I think some of the earlier comments about valuations are right, neither Tesla nor WBAC want our cars.

So they’re offering very low prices. Most sellers will walk away. Someone desperate might accept the offer, but at those prices the buyers know they can make good money quickly.

I’m not too worried as a) I don’t need to sell and b) the fundamentals still apply. By that I mean when the market calms down Tesla will be selling MY LR for approx £53k. I understand that demand has gone up, there are buyers at that price. So if, as a buyer, my option is a new one from Tesla for £53k or a used 1 yr old one, how much less does the used one need to be to be competitive? My guess would be £45-47k. So a in a normal market a dealer should be happy to buy that off me for say, £42-44k. So that is what I think my MY is likely worth in a calm market. That is much more than WBAC will currently offer, but I bet their CFO is telling them to conserve cash while worrying about a recession (fewer sales) plus seeing increased costs for them to hold stock, so their system makes low ball bids.
I agree with your post and during the period of great and crazy great valuations by WBAC since owning mine there have been reasonably big changes/corrections. I saw an increase of £6k over a few weeks at a point when I had already assumed that the 2nd hand values had started their inevitable drop.

When I searched Autotrader over the weekend I wasn’t seeing any MYs being advertised at prices reflecting the lowball offers from Tesla and others. It’ll be interesting to see how low they need to go to attract a buyer.

A household with a M3 & MY would suit us well (as long as they have working USS).
 
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