For valuation purposes and lenders interest, how come KBB or JD Powers or NADA doesn't have the option to select "Enhanced Autopilot" or Towhitch as an upgrade to the Model Y? Both costing $7K total if buying brand new but yet I don't think it's considered in the valuation of used Model Y. Anyone have any idea?
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Used Model Y Valuation
- Thread starter ReaperDriver
- Start date
Ostrichsak
Well-Known Member
Yes, it's because book values have historically been inaccurately low and awful for all Teslas, especially for those with options and features totaling in the tens of thousands of dollars which most books don't even take into consideration. Back when Tesla included less as standard features and offered many features as pricey packages it wasn't uncommon to see a Model S with over $40k in options. None of those accounted for in most common valuation methods.
If you want a conspiracy theory to go along with this above known fact; NADA stands for North American Dealers Association. Traditional dealerships are currently under heavy fire by the very existence of Tesla who's disruption of the industry and threatening to make them extinct. They've tried in numerous ways to put a negative spin on Tesla to cast doubt over the entire brand and concept. They've been successful due on large part to Tesla's insistence to not fight such lies with marketing.
Being able to make it seem like used Teslas tank in value serves to benefit those in possession of ICE cars, especially lots of them. As with most things, Follow the money for your answer. Regardless of the validity of that conspiracy theory the book values are all atrocious on used Teslas.
If you want a conspiracy theory to go along with this above known fact; NADA stands for North American Dealers Association. Traditional dealerships are currently under heavy fire by the very existence of Tesla who's disruption of the industry and threatening to make them extinct. They've tried in numerous ways to put a negative spin on Tesla to cast doubt over the entire brand and concept. They've been successful due on large part to Tesla's insistence to not fight such lies with marketing.
Being able to make it seem like used Teslas tank in value serves to benefit those in possession of ICE cars, especially lots of them. As with most things, Follow the money for your answer. Regardless of the validity of that conspiracy theory the book values are all atrocious on used Teslas.
Very interesting, thank you for your insight. I wonder if the lenders knows this bias against Tesla. I could see dealership and jobs to go along with it can suffer a major blow if Teslas concept of straight to consumer sales becomes the the norm. The process of buying a Tesla online has been very easy, maybe a bit of explanation when it comes to different type of fundings but otherwise it's been great to me. No salesman or financing guy to argue with, both will lose job if Teslas way of doing things becomes Main Street.
In any case, Tesla may need to educate valuation companies(not just NADA) of Tesla's upgrades costing thousands of dollar, I know its easier said than done.
The dealership and major manufacturers are not that successful...model Y made it into the top 10 best selling SUV in 2022, the only EV to do so. The ICE guys can keep trying but they won't stop the revolution. ICE vehicles are not going anywhere, they just have to make room for more competition.
But, the truth is EAP and FSD are accessories that don’t add value to the cars. There’s few, if any that are willing to pay more for a used Tesla with EAP or FSD compared to one without. The dealerships know this and wouldn’t pay more for those options since they wouldn’t be able to sell them for more.
Ostrichsak
Well-Known Member
This myth that cars with full self-driving sell for the same as the exact same car without is completely false. I've had my finger on the pulse of the used Model S market for half a dozen years now & have bought and/or sold 7 now. The cars with EAP and FSD absolutely command a higher price tag. Full stop.
In fact, I've been looking the last few years to try to find a hidden gem of a car that has FSD paid for for the same price as the current market of cars without. I can tell you that they don't come up. Ever. If one comes up that's even a couple of grand more, it disappears immediately because somebody snaps it up.
I keep reading on these forums of people saying that these options don't hold any additional value on the secondary market and it honestly smacks of wishful thinking from people trying to score a deal and convince everybody else to give them their car.
I'll wait patiently for the people that are going to come in and challenge everything I just said. I'd ask for links of examples of cars I can buy right now that have FSD paid for for the same price as all the cars that didn't opt for that option. Nobody can back up their claims with proof of cars I can buy right now because if they exist, I'd buy them.
Ok so maybe not exactly $0.
www.findmyelectric.com
How Much Is Full Self-Driving (FSD) Worth on a Used Tesla?
How much is Full Self-Driving (FSD) worth on a used Tesla Model S, 3, X, or Y? Find out how to price and value FSD on your used Tesla now!
www.findmyelectric.com
I'd like to be objective here and not for or against Tesla, but rather assess why something cost so much doesn't get valuated properly. I think it all depends on what you value, in general, cars with more technology cost more and have more resale value, the dealers will even tell you this. The issue I see with FSD and EAP is that there aren't many competitors out there compare to? If Tesla truly believes that these expensive add-ons are worth then why do they sell?
Kairide, if you have something more concrete to back up your claims then please share with us, a link to some website won't be enough.
Kairide, if you have something more concrete to back up your claims then please share with us, a link to some website won't be enough.
The added value isn’t $0 in resale, but it’s not close to $15k. I think the article is pretty spot on, people would be willing to pay a couple thousand more for a Tesla with FSD, but not $8k, $10k, or $15k for it.
The article seems concrete enough based on the data points they referenced.
Well thats just it, many people will still pay for it for upwards of $8K, kinda like buying a $30K Hermes bag. One article isn't going to change people's mind. Hell if I'm a millionaire I'd get a car with Twin Turbo V-10 and ripped around the neighborhood, but I don't have that kind of money so I'll have assess whatever I buy objectively. Thank you for providing feedback, it's good conversation.
Ostrichsak
Well-Known Member
That's one article from one site based on one dataset.
I've been watching all avenues going on over 6 years now and I consistently see $8-$10k in increased list price for similar cars in every other way.
This fallacy I read here & there about it being worth $0 is not based on reality and oftentimes from those interested in buying.
Again, if someone finds a legitimate listing of a Plaid w/FSD paid for the same price as all of the other Plaids w/o FSD, send me a link. Spoiler alert: my inbox won't be blowing up.
I liked the previous comment and yours. I think you are absolutely correct that there is some value added, period. Realistically FSD has to add something to the car's value. But, I bet it's a very small fraction, in most cases, of what the retail price is. It's like $12k now, right? I'd be surprise if, in reality, it add more than a quarter of that on even a very late model used car. There may be exceptions of those willing to pay more.
I think numbers will show the fact, not anyones opinion or article. In other words, are the cars with FSD or EAP sells for more because of it? I think to people who knows about it will sure pay for more, for people that don't know about will still buy the vehicle. Heck, I'm trying to purchase one right now with EAP and not for a moment I thought the value of EAP, until I realized how much it cost brand new. Again, numbers and trends are going to show it, not counting the dealership and blue book bias.
I think looking at the take rate of FSD is important. The take rate in 2022 was around 19%. So that’s the amount willing to pay full price for FSD. Now what additional percentage of people are willing to pay less for FSD on a used Tesla, but more than a Tesla without FSD is probably unknown.
It would be a lot smaller of a pool than those looking for a Tesla without it. So if you’re patient and willing to wait, you may get a buyer eventually. But you never know when Tesla will change prices, so you may end up losing more waiting for the right buyer if Tesla decreases prices.
Well there yah go, only Tesla have these datas we don't have. Where do you find the take rate for each model? But for Tesla to still sell these upgrades for big prices means they are selling it well. I know on Tesla website the models with FSD are priced higher than those without. We don't know what we don't know.
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