Used Tesla Model S Prices Show Signs of Weakness

[TMC Staff]

Is the market tired of the Model S? Is Tesla neglecting its signature model? As we reported, the Tesla Model 3 is retaining its resale value better than all other electric vehicles – and much better than conventional compact cars. Resale value for Tesla Model X SUV is also holding up. But there are signs...
[WPURI="https://teslamotorsclub.com/blog/2019/01/25/used-tesla-model-s-prices-decline/"]READ FULL ARTICLE[/WPURI]

 

[MelvinLee]

I've been trying to explain this in my post but no one would listen to me

 

[maximizese]

I may have contributed to this because I recently bought a used 2013 TMS 85 for under $40K. Seemed like a great deal for me as it would allow for solo-HOV access and would provide 3X the range as our 1st BEV. In my view, the 2013-2014 TMS are dropping in value because they are saturating the secondary market. Many of them are lease returns and/or trade-ins for the M3 with AP. Tesla probably did away with their CPO program and switched to selling them as "Used Inventory" to lower the price in order to compete with other 3rd party sellers. It seems like CPO cars were selling for a 12% premium compared to their current "used" pricing.

 

[MelvinLee]

I may have contributed to this because I recently bought a used 2013 TMS 85 for under $40K. Seemed like a great deal for me as it would allow for solo-HOV access and would provide 3X the range as our 1st BEV. In my view, the 2013-2014 TMS are dropping in value because they are saturating the secondary market. Many of them are lease returns and/or trade-ins for the M3 with AP. Tesla probably did away with their CPO program and switched to selling them as "Used Inventory" to lower the price in order to compete with other 3rd party sellers. It seems like CPO cars were selling for a 12% premium compared to their current "used" pricing.

You are right they use to sell for more about an average of 5-10% but that has changed now. They also are giving better warranties with their cpo's that they previously weren't before. Now you can usually get the 4-year 50K mile bumper to bumper warranty started all over when you buy them. Also they sold for more cause you can add to the bumper to bumper warranty to 100K miles but from 3rd party you cannot.

 

[aus]

I may have contributed to this because I recently bought a used 2013 TMS 85 for under $40K. Seemed like a great deal for me as it would allow for solo-HOV access and would provide 3X the range as our 1st BEV. In my view, the 2013-2014 TMS are dropping in value because they are saturating the secondary market. Many of them are lease returns and/or trade-ins for the M3 with AP. Tesla probably did away with their CPO program and switched to selling them as "Used Inventory" to lower the price in order to compete with other 3rd party sellers. It seems like CPO cars were selling for a 12% premium compared to their current "used" pricing.

How are you getting carpool sticks on a 2013 car? Unless it's from out of state or the previous owner never applied for the sticker??

I agree that the lease returns are saturating the market. It's when Tesla firs started to lease their cars. We just returned ours since the carpool stickers don't work anymore.
.

 

[Pinot.Noir]

Don't believe anything you read on the internet.

 

[jjgunn]

FYI....The signature model in Tesla is now the Model X

 

[wedge07]

Can vouch for this. Been trying to sell my 2014 Original 60 for $38k and haven’t gotten a single hit. They used to last less than a week (been watching the prices here on TMC for a while) at that price.

 

[MS 60]

I too, own a 2014 MS60. With over 132,000 miles on it, I can't even get an accurate estimate as to its worth.
KBB shows a range of $19-23K. The site allows me to choose all of the cars options, and general condition overall.
Yet, nowhere on it's site does it allow me to add that I have made serious factory upgrades to it.
Firstly, the battery pack was replaced by Tesla at 100000 miles. I also added the TMP Package. I have always maintained it (tires, wipers, wash, wax, etc).
I did a complete brake job recently, and the car looks and runs, as great as when new. I keep it garaged, and with a factory winter car cover on it.
I'm not actively trying to sell it, I just want to know what its worth. I know it is valuable to me.

 

[Jeff Hudson]

I too, own a 2014 MS60. With over 132,000 miles on it, I can't even get an accurate estimate as to its worth.
KBB shows a range of $19-23K. The site allows me to choose all of the cars options, and general condition overall.
Yet, nowhere on it's site does it allow me to add that I have made serious factory upgrades to it.
Firstly, the battery pack was replaced by Tesla at 100000 miles. I also added the TMP Package. I have always maintained it (tires, wipers, wash, wax, etc).
I did a complete brake job recently, and the car looks and runs, as great as when new. I keep it garaged, and with a factory winter car cover on it.
I'm not actively trying to sell it, I just want to know what its worth. I know it is valuable to me.

It appears to me that what you need to concentrate on is a private sale. You know the condition of your vehicle better than anybody else and when you back up your claims with receipts you can probably get a reasonable price for it. What it comes down to is time-to-sell and whether you have to sell it for some unrelated reason. The area you live in matters quite a bit as well. Also be prepared to (you will get better at it) explain all of the nuances of EV car ownership to prospective buyers.

 

[MS 60]

Ticobird,
Thank you for your reply. I truly understand the nuances of EV ownership more than most. Perhaps, I just did not relay it so well. As my MS60 is almost 5 years old, that fact alone should make me very qualified. In addition, I can tell you once I installed an appropriate outlet in my home on a 50Amp circuit, it was a life changer. Still, having transferable, free SC for life on all my vehicles is yet another bonus, as it can be passed on to a new owner. I do also own a MXP100D, which is another whole different amazing experience!

I cannot ever foresee a reason when I would have to sell, but I do agree that anything can happen. I live in NJ, and we have a great, decent sized NJ Tesla Owners group. All of the above gives me ample situational awareness to the Tesla ownership experience. Having a great relationship with the local service center staff, doesn't hurt either.

As I stated, I am not actively seeking to sell, I was just looking for an accurate estimate of its value.
My guess is that when I am ready, I will go the private sale route. At that point, we will negotiate a fair price.
Thanks again for your help.

 

[CarlK]

I may have contributed to this because I recently bought a used 2013 TMS 85 for under $40K. Seemed like a great deal for me as it would allow for solo-HOV access and would provide 3X the range as our 1st BEV. In my view, the 2013-2014 TMS are dropping in value because they are saturating the secondary market. Many of them are lease returns and/or trade-ins for the M3 with AP. Tesla probably did away with their CPO program and switched to selling them as "Used Inventory" to lower the price in order to compete with other 3rd party sellers. It seems like CPO cars were selling for a 12% premium compared to their current "used" pricing.

HOV sticker for 2013 MS would have expired unless the original owner did not apply for one. That (expring HOV sticker) could be one reason for the the price drop. People in CA would buy the Model 3 instead of a used Model S if driving on HOV lanes is a reason to buy the car.

 

[Toumal]

It is hilarious to read all the "Tesla is doomed because of leasing" comments on various forums. In most countries Tesla leases run via banks and other third party lenders. They already got their money. The only thing this could hurt is new MS sales to some degree, and only until a refresh comes out.

 

[keithpromark]

Just sold my 2016 Model S with 40k mi, pano, next gen seats, premium package and AP1 for $46,500. In SoCal.

 

[maximizese]

How are you getting carpool sticks on a 2013 car? Unless it's from out of state or the previous owner never applied for the sticker??

I agree that the lease returns are saturating the market. It's when Tesla firs started to lease their cars. We just returned ours since the carpool stickers don't work anymore.
.

Yep. I bought it from a neighboring state and confirmed with the DMV that the car was never registered for the previous decal program, and is eligible for the purple decal. Believe it or not, but that was the primary reason why we bought the car. That old white decal shaved 8 hours off my wife's monthly commute, but we're still keeping our Fiat 500e.

 

[biotour]

2014 model s 60 is probably worth 28k max. there are 85s selling for sub 30

 

[coinneach]

(First n00b comment, yay!)

I bought a 2012 S 85 yesterday for $37500 + TTR, so as noted above, I'm partially to blame. But hey, that's what the dealer offered and I'm not gonna turn up my nose at saving money.

 

[Icepucks]

I just purchased a 2015 S70 with13,850 miles from Tesla. While looking for a car on the site this car was priced at $44,800. I kept looking for another color and the price for this car went up overnight to $45,100. Still, I wasn't ready...next day the price went to $45,500. I bought the darn car. I settled on the color for very low miles, little if any wear and tear. Interior color and sunroof finalized the deal. I take delivery this Tuesday. I did have a deposit on an M3 but thought the back seat too small. In retrospect, only 0.2" less leg room than the S. I hope I made the right decision (I always seem to question my car decisions). Pricing about the same, however I get free Supercharging.

 

[Nick B]

People are saying that they get really good deals on used cars but it is totally realistic to expect 6 or 7 year cars to have a very low selling price. Yes theses cars aren't like gas cars and should last longer but I don't expect my car to be worth anything when it reaches 7 or 8 years of age.

EDIT: It should also be expected that the model 3 has more success... people have been waiting a long time for it and they are barely starting to complete their pre orders. The situation will most likely be different in 1 or 2 years.

 

[IslandHydro]

I just purchased a 2015 S70 with13,850 miles from Tesla. While looking for a car on the site this car was priced at $44,800. I kept looking for another color and the price for this car went up overnight to $45,100. Still, I wasn't ready...next day the price went to $45,500. I bought the darn car. I settled on the color for very low miles, little if any wear and tear. Interior color and sunroof finalized the deal. I take delivery this Tuesday. I did have a deposit on an M3 but thought the back seat too small. In retrospect, only 0.2" less leg room than the S. I hope I made the right decision (I always seem to question my car decisions). Pricing about the same, however I get free Supercharging.

If you follow Teslas used car prices, they tend to go up on the weekends, down during the week. Best time to buy is probably Wednesday or Thursday.