[UK] used value of their Tesla cars plummeting?

[pgkevet]

Tesla will cut back the supply rather than reduce the price a second time. The shortage of second hand cars ncaused by the shortage of new cars over the past 2 years will kick in and the ceonomy here is forecast to start to grow again next year. Sit tight for now.

That's one scenario. The other is that the big players start releasing a wider range of concept and early models with style and ergonomics at prices more acceptable for mass markets and fashion changes mean the 3 & Y become dinosaur versions of a ford escort only bought by the financially challenged at knock-down prices. While Tesla fail to introduce new models or deliver rt hand drive stuff

 

[UrbanSplash]

They can’t even offer the 2 posh new colours to the UK yet. Year 4 of Tesla ownership and it’s a real borefest.

 

[qwickshot]

This conversation is a little strange given we know a refreshed model 3 is probably only a matter of months away now and no doubt the model Y will follow shortly after given they are basically the same car.

Tesla isn’t looking to withhold supply, quite the opposite, in fact they seem to be intent on driving prices down which is a GOOD thing.

Yes they could do with mixing up the colour options and adding in some new ones.

 

[Avalyn]

I'm almost in the same position as plisken, I'm not in any rush to sell/trade my M3 LR. I've had it almost a year to the day, it's the updated model built in China with rear heated seats, steering wheel, heat pump etc.

I paid a fairly chunky deposit, and have around £38k outstanding on finance.

I (unfortunately) am a serial car changer, just get a bit bored and like to try different ones. I enquired about a 2018 911 last week, best offer was £34k. The dealer struggled to get anyone to take it, motorway offering £26k etc.

So to change, I'm £4k to get out of the Tesla, will have 'lost' my deposit and would need find another £10k or so to keep monthlies reasonable.

I get PCP. I do not ever think that if, by some miracle, I make it to end of a PCP deal there will be equity in any car. I don't bank on it anyway. I also know that trading a new car after 12 months is financially daft, and almost no matter what car I had bought I'd be in the hole. TBH £4k isn't too bad. I bet if I'd bought a new M3/4/5 that figure would be WAY bigger.

It also isn't helping interest rates at the moment are high, best I could get on a lease purchase for a used car was 10.9%. Even a straight loan not is up around 5%.

Thankfully I like the Tesla, and will definitely keep it for another 12 months. I never make good financial decisions when it comes to cars but I'm just not throwing £14-£15k savings away just to change it as I get bored.

Wait another 12 months and I think it will all look a little better, values will have flattened out and finance will be cheaper (maybe not at pre-covid levels but it's likely as bad as it gets just now).

I'll be looking at a Taycan, 911 or new M2 I think

Just hang in there, could be worse you could have bought Tesla shares 12 months ago

 

[UrbanSplash]

I'm almost in the same position as plisken, I'm not in any rush to sell/trade my M3 LR. I've had it almost a year to the day, it's the updated model built in China with rear heated seats, steering wheel, heat pump etc.

I paid a fairly chunky deposit, and have around £38k outstanding on finance.

I (unfortunately) am a serial car changer, just get a bit bored and like to try different ones. I enquired about a 2018 911 last week, best offer was £34k. The dealer struggled to get anyone to take it, motorway offering £26k etc.

So to change, I'm £4k to get out of the Tesla, will have 'lost' my deposit and would need find another £10k or so to keep monthlies reasonable.

I get PCP. I do not ever think that if, by some miracle, I make it to end of a PCP deal there will be equity in any car. I don't bank on it anyway. I also know that trading a new car after 12 months is financially daft, and almost no matter what car I had bought I'd be in the hole. TBH £4k isn't too bad. I bet if I'd bought a new M3/4/5 that figure would be WAY bigger.

It also isn't helping interest rates at the moment are high, best I could get on a lease purchase for a used car was 10.9%. Even a straight loan not is up around 5%.

Thankfully I like the Tesla, and will definitely keep it for another 12 months. I never make good financial decisions when it comes to cars but I'm just not throwing £14-£15k savings away just to change it as I get bored.

Wait another 12 months and I think it will all look a little better, values will have flattened out and finance will be cheaper (maybe not at pre-covid levels but it's likely as bad as it gets just now).

I'll be looking at a Taycan, 911 or new M2 I think

Just hang in there, could be worse you could have bought Tesla shares 12 months ago

I just can’t decide if I like the new M2 or not! Need to see more videos soon hopefully. I’m sure it will be quicker than the 4.1 0-60 advertised. I’m looking at an M3 touring but not paying over 10% apr! Hopefully that will come down to where the M3 non touring is now, which is reasonable.

 

[The_Cable_Guy]

LOVE THE NEW M3 TOURING!!!

Would love to get back into an M car, my old m3 was the best all round car i've owned (bit of man maths needed for ownership though)

 

[UrbanSplash]

LOVE THE NEW M3 TOURING!!!

Would love to get back into an M car, my old m3 was the best all round car i've owned (bit of man maths needed for ownership though)

When did M3’s go northwards of £80k! Yeh I think the M3 touring is a perfect car. It’s x drive only also. I’m thinking about justifying it to keep it long term. Looks like a modern classic.

 

[The_Cable_Guy]

yeah i know i've just spec'd one and it was touching 90k.

I think your right though and these could go like the cayman gt4 and start selling over list.

 

[plisken]

@Sean. a 4x4, Wrangler or Defender.

@Jason71 option 2 would be the thing to do if one intended on keeping the car (which I most certainly don't and never have), that's pretty normal with PCP finance.

@MashinBenzin defiantly! Interest rates are killing the reality of taking on any new finance, which does only add to my dilemma.

@Durzel Perhaps you don't understand the points I'm trying to make, no one ever suggested that we should make a profit or break even. I could have bought the car outright but chose not to for a number of reasons. However, if I had bought the car outright and was trading the car, I'd still be looking at the same losses of around £24k for a year of ownership, that is £2000 per month, regardless of which way you try and pass hat off, this is bad and not something I've personally seen in any of my previous car purchases.

@Avalyn You've pretty much nailed it. Difference for me is that the Tesla makes me physically sick ever time I even so much as look at it now.

@The_Cable_Guy I've got an E34 M5 which may yet end up being my daily driver again


In closure, I unfortunately don't think waiting 12 months or more would make a difference to the value of current Tesla's. I personally see the value continuing to drop month on month now and there is as someone mentioned the likelihood of a refreshed model 3 which would also hit current models hard, not to mention other manufacturers haven't just caught up on the old EV thing, they have surpassed Tesla in my opinion. I wont be getting another EV so just saying as this will also affect the value of them.

There is all sorts of ways to think about this, but for me it's probably going to be just an expensive lesson. My gut told me to walk away on collection day, I should have listened.

 

[Durzel]

I am sympathetic, but at the same time I'm a bit incredulous at those people (not saying this is you, talking generally) who thought that Teslas were some kind of depreciation proof investment. Tesla are cranking these things out as fast as they can make them, and with the recent price drops have indicated that they expect this volume to increase - not stay as it is.

I don't think you're particularly wrong in your assessment, particularly regarding a significantly refreshed model and/or one that adds something substantially better. That being said, depreciation is heavily front loaded anyway so I wouldn't expect the trend to be as dramatic in the following years. The car has a floor price from the battery, etc anyway, as well as an aspirational value.

For what it's worth I just did a quote and WBAC are offering me £29,660 for my nearly 3 year old M3P with 4800 miles. I don't really understand why you're getting quotes for less than that, but it's obviously market driven - there must be a lot more LRs around.

 

[Sean.]

I am sympathetic, but at the same time I'm a bit incredulous at those people (not saying this is you, talking generally) who thought that Teslas were some kind of depreciation proof investment. Tesla are cranking these things out as fast as they can make them, and with the recent price drops have indicated that they expect this volume to increase - not stay as it is.

I don't think you're particularly wrong in your assessment, particularly regarding a significantly refreshed model and/or one that adds something substantially better. That being said, depreciation is heavily front loaded anyway so I wouldn't expect the trend to be as dramatic in the following years. The car has a floor price from the battery, etc anyway, as well as an aspirational value.

For what it's worth I just did a quote and WBAC are offering me £29,660 for my nearly 3 year old M3P with 4800 miles.

1600 miles a year?!

 

[Durzel]

Was 800 a month pre-COVID, then ended up WFH full time. I ought to have sold it but didn't know how things were going to pan out, and then it sortof just became more of a play thing.

 

[Sean.]

I saw a similar hit to second hand values when they dropped their pants on the model X and S new prices a few years ago now. Values bounced right back (and then some). First year depreciation is always a killer. In anything.

Values in WBAC are just stupid now. I’ve seen it drop from £45K in November to £30k this month. This is a 5 year old car, but still that just shows the fickleness in the trade.

The trade is basically saying **** off we’ve got too many.

So sit tight.

Nothing is forever.

 

[CWT3LR]

It’s x drive only also.

Ahh, so a road safety issue, especially on ungritted roads. That should settle it.

 

[Zilla91]

The best thing about m x drive is that you can switch it off and go back to just RWD, which is how I'd want to drive it most of the time. Keeps you honest instead of just pointing and shooting with AWD

 

[CWT3LR]

That's one scenario. The other is that the big players start releasing a wider range of concept and early models with style and ergonomics at prices more acceptable for mass markets and fashion changes mean the 3 & Y become dinosaur versions of a ford escort only bought by the financially challenged at knock-down prices. While Tesla fail to introduce new models or deliver rt hand drive stuff

If a company can take the best bits of Tesla (motors, efficiency, low cost of manufacturing) but exclude the worst (OTA "updates", low rent feel, obsession with 'car knows best') they could seriously compete. Not quite there yet but some very promising cars from Fisker, BYD and the like that have the potential. The traditional car companies still haven't got either a USP or improved convincingly to challenge Tesla's best as well as eliminate the worst.

When they do - I agree that Tesla will be seen as the option for people not interested in cars and therefore seek lowest possible price, not the aspirational purchase it was until recently.

 

[Zilla91]

If a company can take the best bits of Tesla (motors, efficiency, low cost of manufacturing) but exclude the worst (OTA "updates", low rent feel, obsession with 'car knows best') they could seriously compete. Not quite there yet but some very promising cars from Fisker, BYD and the like that have the potential. The traditional car companies still haven't got either a USP or improved convincingly to challenge Tesla's best as well as eliminate the worst.

When they do - I agree that Tesla will be seen as the option for people not interested in cars and therefore seek lowest possible price, not the aspirational purchase it was until recently.

Give me something that drives like my M3P but has the tech, the assistance systems and the exterior and interior of the BMW i4 and I'd have the perfect car

 

[debrooker]

Give me something that drives like my M3P but has the tech, the assistance systems and the exterior and interior of the BMW i4 and I'd have the perfect car

Agreed, that would be spot on for me - although the price would be significantly more i suspect

 

[Erewegoagain]

Well I for one am very happy, buying my 2020 3LR from the lease company at a price I wouldn’t have believed 3 months ago….

Tell me, are there any insurance companies out there that don’t charge a premium for Tesla’s or has the insurance market gone generally crazy in the 2.5 years I’ve had a company car

 

[Sean.]

Tell me, are there any insurance companies out there that don’t charge a premium for Tesla’s or has the insurance market gone generally crazy in the 2.5 years I’ve had a company car

It's gone a bit batshit, post-pandemic and more recently premiums on EVs have increased and on Tesla's especially. I put this down to the increased numbers now on the roads compared to a few years ago and also the comparatively high(er) repair costs on EVs.