Used market has really taken a hit [All discussion of Model 3 Resale value]

[Blacktes24]

I guess maybe due to fuel prices coming down and they are catching up with demand? Carvana and Vroom offers down considerably on my 2022 M3P. Trade in value is still decent but has dropped some and KBB private party has dropped some but still not bad. Thinking about going another route but disappointed how much carvana and vroom have lowered their prices.

 

[rpiotro]

I guess maybe due to fuel prices coming down and they are catching up with demand? Carvana and Vroom offers down considerably on my 2022 M3P. Trade in value is still decent but has dropped some and KBB private party has dropped some but still not bad. Thinking about going another route but disappointed how much carvana and vroom have lowered their prices.

A 2022? how long have you had it and why are you considering selling it already?

 

[ItsNotAboutTheMoney]

The used market has cooled off. Used car inventories are back to normal.

Tesla was extremely hot, so they're seeing some of the biggest declines.

The result is that those used car companies are going to stop paying silly money.

 

[1flossedm3]

Yea, I'm noticing a lot of these dealers with 21/22 cars that were over new (66-67k) all dropping in the 62-63k range.

All markets are cooling, housing.. luxuries etc. Lot of uncertainty with the government. Stock market is in the toilet too.

 

[Blacktes24]

A 2022? how long have you had it and why are you considering selling it already?

I got it in May. It's in the for sale forum. I love the car but I came from a Z06 Vette and miss rowing gears and hearing the engine roar so considering going back that route.

The ones I am looking at are worth less than my M3P(according to KBB trade in) so not sure how that works as I've never traded "down".

 

[Blacktes24]

Price keeps dropping by the week it seems. Checked it today to see and was surprised to see it had dropped a couple thousand more.

 

[canasion35]

Price keeps dropping by the week it seems. Checked it today to see and was surprised to see it had dropped a couple thousand more.

Out of curiosity what were your initial offers and where are they at now?

 

[RLEE]

I've been tracking it also... peaked in July, quickly dropping since. People are expecting the tax credit in January... they'll be in for a surprise.

 

[Predation]

I've been tracking it also... peaked in July, quickly dropping since. People are expecting the tax credit in January... they'll be in for a surprise.

Same. Was looking at new, but now looking at used after how market is performing.

 

[jjrandorin]

The expectation SHOULD be to lose money, selling a brand new car within the first year or two you buy it, unless you are buying something like a limited edition porsche or something.

No one should ever "expect" a gently used car to sell for more than a new one. There was no way this was going to continue.

 

[SpencerR]

Gas prices are coming down because we are effectively dumping our national reserve. Once that is tapped, watch gas prices sky rocket again.

 

[Black306]

Peak offer was $64k on my ‘20 M3P. It’s now $48k. But even at $64k, it would have cost me $5-10k to get a new M3P. Not worth it.

 

[jhstl]

The other aspect is used vehicles always will drop most in the fall as they essentially become another model year older as 2023's start to roll out. But most of the reason right now is as others have said, just market corrections.

 

[T4M3]

I also see my Carvana offer drop significantly but frankly speaking I am glad that there is some sanity coming back to the used car market, especially since I am looking for a used car for my son at the beginning of 2023. Unfortunately, looks like we will not recover before going through a recession.

 

[parrainx]

Just for $hits and giggles i looked at carvana for my 22M3LR and offer was at $41k. Same car in their inventory with 500 less miles listed for $62k.

Back in 2020 I sold carvana two of my cars. One 15mo old and other i had bought 3 years prior. Both cars sold for more than I paid.

So good indication that covid madness is over.

Gas prices have gone up $1.5 in last 10 days here in Norcal. They were down for a bit, but are higher now than they were around the time the war started.

 

[ThomasD]

Repos are up. Carvana Vroom and Drivetime rely more on subprime borrowers and they are defaulting at high rates. Prime borrower defaults are up also. Banks can only let the cars sit for so long before lot rot starts setting in. The Banks are sending the cars through auction sites multiple times and they are not selling for the higher prices they once were. The money ran out and people can't afford the notes on these cars.

 

[holeydonut]

Repos are up. Carvana Vroom and Drivetime rely more on subprime borrowers and they are defaulting at high rates. Prime borrower defaults are up also. Banks can only let the cars sit for so long before lot rot starts setting in. The Banks are sending the cars through auction sites multiple times and they are not selling for the higher prices they once were. The money ran out and people can't afford the notes on these cars.

Prime defaults are up too? And this is before a recession has hit driving up unemployment?

This upcoming recession is going to be bad if primes are already seeing issues.

 

[ItsNotAboutTheMoney]

Just for $hits and giggles i looked at carvana for my 22M3LR and offer was at $41k. Same car in their inventory with 500 less miles listed for $62k.

Back in 2020 I sold carvana two of my cars. One 15mo old and other i had bought 3 years prior. Both cars sold for more than I paid.

So good indication that covid madness is over.

Gas prices have gone up $1.5 in last 10 days here in Norcal. They were down for a bit, but are higher now than they were around the time the war started.

West coast refinery problems. Some "unplanned maintenance".

 

[Brou]

Same car in their inventory with 500 less miles listed for $62k.

That's because they gave someone $61,500 for it a month ago. Oops.

 

[NyanM3P]

Prices in the used market will remain high for sometime. Car dealerships gotta away with way too much markup for several years and are lazy. Still a Benz dealer in my area been sitting on used M3s for months thinking you can’t buy them new for the same price. The actually now have to work for their margin.