Used 2018 Model 3 LR RWD Depreciation

[thesteve]

Ouch, already saw a used 2018 Model 3 LR RWD for sale:

2018 Tesla Model 3 Long Range RWD - Mississauga

It's listed at $56,990 w/15.8k km's.

At the original base price of $72k I guess that's around 26% depreciation in a year. I was hoping to sell mine and upgrade to performance but I think I'll have to hold on to it for now lost too much depreciation on it (plus mine has FSD). This seems like a better deal than an SR+ even with the rebate ($55-5=$50k vs $57k LR).

 

[Bushcaddy]

My LR RWD was only $64k minus the $14k rebate, so about $50k. If anything his price seems high.

 

[Ludatik]

Ouch, already saw a used 2018 Model 3 LR RWD for sale:

2018 Tesla Model 3 Long Range RWD - Mississauga

It's listed at $56,990 w/15.8k km's.

At the original base price of $72k I guess that's around 26% depreciation in a year. I was hoping to sell mine and upgrade to performance but I think I'll have to hold on to it for now lost too much depreciation on it (plus mine has FSD). This seems like a better deal than an SR+ even with the rebate ($55-5=$50k vs $57k LR).

Base price for LR RWD was $64,100. No EAP or colour upgrades. Likely benefitted from $14k Ontario rebate too.

 

[Blu-Ion]

Remember you can only sell one year after delivery, or else you owe the incentive rebate back to the government

 

[thesteve]

Remember you can only sell one year after delivery, or else you owe the incentive rebate back to the government

It's not my car, but yeah may be an early reservation as some people got theirs in May so it may be a year. I received mine May 31st, so I wouldn't be able to sell until June, but at this stage I'd be losing too much to be worth it. $73.3k with EAP, plus another $2.6k FSD when on sale so $75.9k + tax = $85.7k - $14k rebate = $71.7k, based on this resale I wouldn't get nearly that much (possibly 60-65k as it's white+FSD+only 8k on it), anyway I'll keep it.

If anything these price shenanigans from earlier this year made me reluctant to deposit on a MY which is likely what I was going to upgrade to, I'll have to wait until they start rolling out and then purchase one/sell my M3.

 

[pcons]

Ouch, already saw a used 2018 Model 3 LR RWD for sale:

2018 Tesla Model 3 Long Range RWD - Mississauga

It's listed at $56,990 w/15.8k km's.

At the original base price of $72k I guess that's around 26% depreciation in a year. I was hoping to sell mine and upgrade to performance but I think I'll have to hold on to it for now lost too much depreciation on it (plus mine has FSD). This seems like a better deal than an SR+ even with the rebate ($55-5=$50k vs $57k LR).

Quoting depreciation without taking the 14k incentive into account is really misleading. This 'depreciation' issue with EVs has been around since the start, and I can't tell you the number of times I've heard people complain about how their car is worth 1/2 of a new one, and totally ignore the rebate they got. When you get a rebate on the car, it is immediately factored into the resale value. The Model 3 RWD did not list for 72k as a base price, so I'm not sure why that is being thrown out there...RWD was around 64k (as someone else mentioned).

Edit: just saw how you came up to 72k as your price....dude, you can't factor in the sales tax you paid on a car and call that part of depreciation....are you serious? You take the price you paid BEFORE tax, and take off the rebate AFTER tax...that's what you paid for the car and what the starting price is for a used car to compare to....the person buying the car still has to pay tax on it, so you cant double dip...sorry....

The listing doesn't say if it includes autopilot or FSD, so that doesn't factor in to the price. The seller says it has a ceramic coating and tints, which typically wont make much difference to the next purchaser. Either way, this certainly isn't a case of `26% depreciation'.

Any car will depreciate by about 20% after the first year, and 10% per year after that....add to this the gigantic 14k rebate, and I'll bet that this model 3 is crazy overpriced (so, Elon was right....Tesla's are now appreciating assets apparently! )

The incentive is applied after tax, so its an effective 14k/1.13 = 12,389 off of the MSRP. 64000 - 12389 = $51,611, so this is actually a case where the seller is trying to sell the car for more than what they paid, and after putting 16k km on it....I wish them luck

And if they didn't qualify for the incentive; welcome to the real world where thousands of model 3s did get incentives applied, so unfortunately this seller does have to factor that into the resale price.....

Now, if this car did include EAP and FSD I could see an argument for it being 'worth' 57k with 16,000 km on it, but I wouldn't touch this with a 10 foot pole at that price.

 

[Blu-Ion]

Edit: just saw how you came up to 72k as your price....dude, you can't factor in the sales tax you paid on a car and call that part of depreciation....are you serious? You take the price you paid BEFORE tax, and take off the rebate AFTER tax...that's what you paid for the car and what the starting price is for a used car to compare to....the person buying the car still has to pay tax on it, so you cant double dip...sorry....

Agreed, but "thesteve" keep in mind that you can work the sale of your old car through a dealer for a small fee (the same dealer who is selling you the new car).
So if you find a buyer for your old car, and yo are buying a new car, get the buyer to purchase from your dealer, you sell (or effectively trade-in) your car, and they flip it to the new owner, this way you get the trade in value HST rebated against your new car

For example

You sell your car for $50,000 to some dude
you buy a new car for $75k

You trade-in the car at the dealership so he flips it to "some dude", you may pay them $500 or so to do the transaction out of pocket

So you only pay HST on the balance of $75k - $50k = $25k ... plus the fee the dealer charges you of course.

That's the way to do this without losing your taxes

 

[pcons]

Agreed, but "thesteve" keep in mind that you can work the sale of your old car through a dealer for a small fee (the same dealer who is selling you the new car).
So if you find a buyer for your old car, and yo are buying a new car, get the buyer to purchase from your dealer, you sell (or effectively trade-in) your car, and they flip it to the new owner, this way you get the trade in value HST rebated against your new car

For example

You sell your car for $50,000 to some dude
you buy a new car for $75k

You trade-in the car at the dealership so he flips it to "some dude", you may pay them $500 or so to do the transaction out of pocket

So you only pay HST on the balance of $75k - $50k = $25k ... plus the fee the dealer charges you of course.

That's the way to do this without losing your taxes

I think Tesla stopped doing this....there were posts about it last year and I recall someone saying Tesla used to do it, but wont any more. Not sure if you can do it by trading it in to a 'different' dealer and then applying the purchase at Tesla.

 

[Darthbenji]

We should know soon enough what resale is really like with the year anniversary coming up for many deliveries. As always the broader market will determine what’s reasonable.

 

[Blu-Ion]

I think Tesla stopped doing this....there were posts about it last year and I recall someone saying Tesla used to do it, but wont any more. Not sure if you can do it by trading it in to a 'different' dealer and then applying the purchase at Tesla.

No the trade-in would need to be on the same transaction

 

[hingisfan]

No the trade-in would need to be on the same transaction

It works if your buying your car from a dealer. Doesn't work if you're buying from a private seller. The person buying your car pays tax whatever way you do it.

 

[thesteve]

That's interesting, so possibly when buying a Y, could sell the 3 and do a 3-way transaction with Tesla or based on above they no longer allow this?

 

[pcons]

That's interesting, so possibly when buying a Y, could sell the 3 and do a 3-way transaction with Tesla or based on above they no longer allow this?

You can always trade in to tesla but you'll take a bath in what they pay. If it's the trade in with another seller involved, I don't think they would do that.

 

[zwz002]

Wondering what the depreciation looks like for the 2018 LR RWDs. Hoping to sell mine soon and haven't been able to find many reference listings anywhere...

 

[ZooSean]

Wondering what the depreciation looks like for the 2018 LR RWDs. Hoping to sell mine soon and haven't been able to find many reference listings anywhere...

If you plan to sell and re purchase another Tesla, let’s forget about it. The EAP costs me 5000 if I remember correctly and add FSD 2600. And if I want to get same features today I need pay 9000. For a reason simple as that, I will keep my 2018 Model 3 LR RWD.

 

[5_+JqckQttqck]

If you plan to sell and re purchase another Tesla, let’s forget about it. The EAP costs me 5000 if I remember correctly and add FSD 2600. And if I want to get same features today I need pay 9000. For a reason simple as that, I will keep my 2018 Model 3 LR RWD.

Ditto, driving it until it falls apart. Take batteries out and make an PW!

 

[xG35]

First year depreciation is typically the steepest. That said. The silver lining is, Tesla appears to be like Porsche where the bottom has a more predictable floor.

 

[zwz002]

If you plan to sell and re purchase another Tesla, let’s forget about it. The EAP costs me 5000 if I remember correctly and add FSD 2600. And if I want to get same features today I need pay 9000. For a reason simple as that, I will keep my 2018 Model 3 LR RWD.

I know we all got a decent deal with the LR RWD, but I'm getting an X instead, so kinda wanna get some equity out of the car towards the purchase of the X.

 

[corlaandstan]

If you plan to sell and re purchase another Tesla, let’s forget about it. The EAP costs me 5000 if I remember correctly and add FSD 2600. And if I want to get same features today I need pay 9000. For a reason simple as that, I will keep my 2018 Model 3 LR RWD.

Your EAP cost you at least CDN $6600.00 + tax ( if bought at original sale time or CDN $ 9200.00 if after sale ) & your FSD was at the "best" price CDN $2700.00 + tax in March 2019. FSD was mostly CDN $3600.00 +tax.

 

[Vawlkus]

Ditto, driving it until it falls apart. Take batteries out and make an PW!

Just install an inverter in the Frunk and go from there.