-
Want to remove ads? Register an account and login to see fewer ads, and become a Supporting Member to remove almost all ads.
Used Tesla Model 3s pricing error?
- Thread starter jboles
- Start date
UNLESS you were the person that originally bought the car new, then returned it, then bought it back when it was re-listed as a used car. Though whether that's in the spirit of the fed tax credit law, who knows.
Once a vehicle has been titled, it can no longer be sold as new. There may be some ways to get around this, but any time a new car is titled, it is considered used from that point forward.
Negative. Depends on titling. But all states are different. If someone returns car within 7 days and hasn’t been titled, it is eligible for credit.
In some states dealers are not required to title the vehicle for test drives/display and inventory repurchase, they can sell as new even with 5k miles and get the tax credit.
Tesla is so weird. Prices seem even worse than before the pricing error.
Uncle Paul
Well-Known Member
I haven’t been watching long enough to know if the recent series of slashed prices were a one-off anomaly. Does anyone know if that was the first time or have they been periodic?
With the Model 3 ; they were a one off one time thing about 2 weeks ago with too good to be true pricing ; then the following week they on 2 different days had good slashed prices which were held and also solid deals. Maybe those were the same cars released by buyers for the first batch, I am not sure. Since then no great deals, prior to the 1 Friday overnight sale there were never any good prices on the Model 3 used.
The one Friday night when prices were at their best ; those deals in most cases Telsa added between $2K-$5K to the sales price before selling them, The second and third sales that came up, they matched more in line with the Telsa re-negotiated sale ; still good prices but not jaw droppingly so.
That makes 3 occasions all recent, never before that.
None were ever announced and the whole thing is bizarre.
All of the good sales car seem to have been warehoused at Auction house locations and some sat without being driven for a long time so what Telsa had been doing previously with them is very strange.
Clearly the normal used price does not make sense to 99% of people at least those that qualify for any sort of rebate Federal or State.
I don't understand who is buying them, would have to guess people who still think the car is hard to get new and/or do not qualify or unaware of any rebates on new.
Additionally the lack of location on the listing is baffling, as it is now I would only buy Used if I could add $2K and still think the price was good, so yeah has to be a real bargain. Maybe I get lucky and have one be close enough to pick up, but chances of that are not great.
Personally I am ok waiting since my original plan was not to get one before the winter. If one great deal falls into my lap I would jump now but feel no rush. I could even wait to see what happens with Used 2018 models in Jan of 2020 if Telsa never puts them on sale again or buy new if there are any end of year sales that still get in time for the Federal rebate.
With so many Model 3's now on the road, I am not worried about finding a good deal on a used one. More time I wait the more I will have toward a deposit.
I also drive so many miles that I will hit the warranty limits of 50 and 120 a couple years early if I buy new so for my situation used will give me an identical warranty plus lower Excise taxes yearly in my state.
The one Friday night when prices were at their best ; those deals in most cases Telsa added between $2K-$5K to the sales price before selling them, The second and third sales that came up, they matched more in line with the Telsa re-negotiated sale ; still good prices but not jaw droppingly so.
That makes 3 occasions all recent, never before that.
None were ever announced and the whole thing is bizarre.
All of the good sales car seem to have been warehoused at Auction house locations and some sat without being driven for a long time so what Telsa had been doing previously with them is very strange.
Clearly the normal used price does not make sense to 99% of people at least those that qualify for any sort of rebate Federal or State.
I don't understand who is buying them, would have to guess people who still think the car is hard to get new and/or do not qualify or unaware of any rebates on new.
Additionally the lack of location on the listing is baffling, as it is now I would only buy Used if I could add $2K and still think the price was good, so yeah has to be a real bargain. Maybe I get lucky and have one be close enough to pick up, but chances of that are not great.
Personally I am ok waiting since my original plan was not to get one before the winter. If one great deal falls into my lap I would jump now but feel no rush. I could even wait to see what happens with Used 2018 models in Jan of 2020 if Telsa never puts them on sale again or buy new if there are any end of year sales that still get in time for the Federal rebate.
With so many Model 3's now on the road, I am not worried about finding a good deal on a used one. More time I wait the more I will have toward a deposit.
I also drive so many miles that I will hit the warranty limits of 50 and 120 a couple years early if I buy new so for my situation used will give me an identical warranty plus lower Excise taxes yearly in my state.
Fist of all Tesla actually honored a bunch of these prices which tells me they could at any time list more cars at this price point and thus have lowered the price point on what people consider a "deal" on a used Tesla. Second there will be an adjustment in prices January as I mentioned when the tax credits are phased out just like every other time they have decreased. New prices decreasing always affect the used market.
Lastly a lot of people have a price point they need the car to hit before willing to buy a Tesla. The model 3 is pulling in people who are stretching to even afford one at all upfront but can justify the purchase. I personally use my car for work and would pay significantly more for the safety, self driving tech, and gas savings. Traditional luxury buyers have a lot more flexibility where getting a deal is about saving more money vs being able to afford a car. I can wait for something used that fits a price or model I am more comfortable with.
A lot of Model three owners are just too hung up on the sticker price of their car pre tax rebates as a judgement for what current prospective buyers should consider a deal.
The interesting component of this return policy is that many of these Teslas will never have a credit even applied for since the first owner got their money back and cannot put it on their return, obviously.
HankLloydRight
No Roads
That's right, it's the "intent" to resell. Actually buying a car, then taking the tax credit, and then reselling the car is perfectly legal if you didn't buy the car with the intention to resell it (say, if you have a side business buying and selling cars).
It is a grey area though... if a buyer buys a Tesla, gets it titled and registered within 7 days, and then returns it (which is really just "reselling" it back to Tesla which would sell it as used), according to the law, I believe the buyer could claim the tax credit. How is that any different if the buyer "resells" it to someone else for the same price?** While it goes against the spirit and intention of the tax credit, and is on the edge of unethical, I believe it's still within the law since the IRS doesn't yet understand the 7-day return policy.
** I don't know how one would get the state sales tax back after returning a titled and registered car.
It is a grey area though... if a buyer buys a Tesla, gets it titled and registered within 7 days, and then returns it (which is really just "reselling" it back to Tesla which would sell it as used), according to the law, I believe the buyer could claim the tax credit. How is that any different if the buyer "resells" it to someone else for the same price?** While it goes against the spirit and intention of the tax credit, and is on the edge of unethical, I believe it's still within the law since the IRS doesn't yet understand the 7-day return policy.
** I don't know how one would get the state sales tax back after returning a titled and registered car.
Well said. My BMW lease expires in January 2020 so have now just started to dip my toes in the Tesla waters.. I’d be willing to pull the trigger now and swallow four payments + disposition fee but obviously it has to be a sweet deal (ala pricing on the 17th.) I do hope come December Used pricing will be somewhat normalized and I won’t have to refresh my browser every 10 minutes to see if they’ve changed ☹
I'd love to buy an M3/LR if at all possible but cannot justify, under any circumstances, paying for a year old car (Tesla or otherwise) that does not reflect an honest 15-20% depreciation. Yes, Tesla can price whatever they want to price their used cars at. All the power to them.. so I’m not knocking their model (whatever it may be.) It’s just as I’m getting ready to throw $40k+ at a used car so naturally trying to maximize every dollar that I can.
I'm in the same boat with a BMW lease ending beginning of November 2019. It seems these cars seem to go really really quickly so I'm trying to get a better handle on when new cars are posted and the best way to monitor their site.
Similar threads
