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What is added resale value of newer year

Discussion in 'Model S' started by tech_dad, Oct 18, 2020.

  1. tech_dad

    tech_dad Member

    Joined:
    Jul 24, 2016
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    Location:
    Fremont
    Hi All

    Assuming no additional features, how much value (roughly) does a newer model year add to the resale value?

    For example: For the config (Tesla Performance S) I’m interested in

    I see a 2020 inventory for $90,220 (150 miles)
    New custom 2021 would be $94,990(est Dec delivery)

    The 2020 was first spotted Oct 18, so I’m going to naively assume it has the H battery pack/increased range.
     
  2. Saghost

    Saghost Well-Known Member

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    Delaware
    Near the end of the first year, it might be worth several thousand dollars, decreasing progressively over time - a lot will depend on how well informed the buyers are, since Tesla is different from the rest of the industry in terms of model years.
     
  3. bossfan

    bossfan New Member

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    AZ
    It would depend on how long you keep the car. If you're going to trade it in after 3-4 years, I think you should buy the newer one because the trade-in value would most likely be more than $4k higher for the newer one. If you are going to trade it in or try to sell it yourself after 9 years, buy the older one because the price difference between a 9 and 10 year old car will (presumably) be less than $4k by that time. You can get better guesstimates by looking at valuations on ev-cpo.com, but my spideysense feels like around 5 years would be your breakeven point for the older car to make sense financially. I feel compelled to add that having a current year "brand new" car for 12-13 months would be worth the extra 5% to me, but YMMV.
     
    • Like x 1
  4. CapeOne

    CapeOne Member

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    Don't forget about the $1,200 destination and doc fee on both cars i.e., the 2020 would be $91,420 and the 2021 would be $96,190.

    As far as 2021 vs. 2020 resale value difference, as others have already mentioned, it will depend on how long you plan to keep the car. The longer you keep the car, the less the newer model year will benefit resale.

    A bigger resale factor, however, is going to be what Tesla does with pricing going forward. The Model S, LR+ especially, has seen notable price cuts in the last six months which impacts resale. I'm assuming the big price cuts are done for at least a little while but time will tell.
     
  5. bandido

    bandido Member

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    Phoenix, AZ
    Also, the 2021 has the new 387 mile range and I am assuming a better battery? That type of change seems to have the bigger effect on resale. I bought my 2019 as an inventory for ~$21k off msrp. That said, Tesla keeps cutting prices pretty randomly and I think the only real hit comes if a new car comes out in a few months...
     
  6. tech_dad

    tech_dad Member

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    Location:
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    Thanks for all the feedback. That gives me a good intuition.

    I have a perfectly good 2016 S. Have been on the lookout for an inventory performance with 15-20k discount for about a year, but no luck.

    Finally decided to pull the trigger when I saw the two recent price cuts. I later realized the second cut was only for the LR+

    My OA is going to help me find out if that 2020 inventory model gets the range boost to 387.

    If there are no hardware differences, I’ll probably save ~5k and go with the 2020. If the demo doesn’t have the range boost, I’ll stick with the 2021

    I’m watching this interesting thread about benefits of upgrading. What are the differences between Long Range and Performance (beyond the obvious)
     
  7. tech_dad

    tech_dad Member

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    Location:
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    Here is an interesting twist. Would love some additional opinions.

    I ended up placing an order for a 2021 performance S with premium color and interior, no FSD, ugly tempest 19” wheels

    In the meantime, I found a third party with 2020 performance S, same color and interior I ordered, <2000 miles. However this includes FSD and 21” wheels.

    Both options are about the same price (95-96k)

    I usually swap cars every 4-5 years.

    Anybody have a good sense about which one would have better resell in 4-5 years?

    The 2021 is 1 year newer and has increased range, single owner

    The 2020 has FSD and 21”

    I like the look of the 21, but have read how impractical they are. Was planning to keep the 20” tsportline I have on my existing S. Was thinking of putting the wheels from my new car on my trade in. Hopefully 21” would boost trade in value a bit.
     
  8. CapeOne

    CapeOne Member

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    Location:
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    Tesla has a new/demo deep blue 2020 MS Performance with 19” wheels for $87,540. That’s around $7k less than a 2021.
    2020 Model S | Tesla

    You could also add FSD and still keep the price around the same as your ordered car without FSD or the used 2020 you are now considering.
     
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