What Model S to buy with minimal depreciation while waiting?

[peakay]

Hey guys,

If one were to buy a Tesla now on the lower end of the market wiht the thought of selling it in 1-2 years when the M3 arrives, which would you buy to keep depreciation as low as possible? By lower end, I'm talking in the 40-50k end of the market.

In this range, it seems like you can pick up some older 85s with higher miles or lower mile CPO 60s. Again, the thought is keeping it for a year or two and reselling it with as low a loss as possible.

Thanks in advance for any help! I've not owned a tesla yet and was thinking about leasing a Bolt or something in the interim, but then thought maybe if one buys a model S wisely they can sell it for about what you would have spent on a different lease, but then you are already enjoying a Tesla (and on the owners list for m3 priority).

 

[jelloslug]

Get the cheapest 85 you can find.

 

[carter_seattle]

Get the cheapest 85 with Autopilot that you can find.

 

[JeffK]

which would you buy to keep depreciation as low as possible?

Depreciation will for sure be affected by the Model 3 part 3 reveal in spring, especially if they announce a new feature which will show up in Model S/X

 

[gregincal]

Get the cheapest 85 with Autopilot that you can find.

Actually, I disagree. Non-autopilot cars have pre-depreciated, so probably will see a lower additional depreciation in the next 2 1/2 years.

 

[Az_Rael]

I would go 85 battery over 60. I think the larger battery size will be worth more to future used buyers. The first question everyone asks me about my Tesla is how far can I drive on a charge.

 

[peakay]

I'm looking at a Late 2012 P85 with 45k miles and has 2.5 years of CPO warranty left

Anyone want to hazard an estimate on what this car might resell for in 1 year and 2 years assuming we put around 10k miles a year on it? I just saw an S40 (!) sell for $39k, so I was thinking a well kept P85 shoudl probably sell for $40k or so, right? In 1 year it would have over a year warranty, in two it would have a few months left.

Thanks!

 

[carter_seattle]

I honestly wouldn't even consider buying a Tesla out of warranty. Too many exotic and expensive parts that can break.

 

[peakay]

I honestly wouldn't even consider buying a Tesla out of warranty. Too many exotic and expensive parts that can break.

ya, me neither but it seems like others will The CPO one I'm looking at I would sell off in 1-2 years while it still had some warranty left for the next owner.

 

[patrick40363]

Take over a lease.

 

[carter_seattle]

What makes you think there's a strong market for out of warranty Teslas? Based on what I read here most people buy:

1. Buy new
2. Buy CPO
3. Buy private if the 1st owner bought the extended warranty.

 

[GSP]

Get the cheapest 85 you can find.

This is what I would do, but look for the best value you can find. Consider the options, condition, and mileage, not just low price.

Perhaps the P85's have already seen more depreciation than the regular 85s, and may cost less to own for 1-2 years.

Good Luck,

GSP

 

[Az_Rael]

What makes you think there's a strong market for out of warranty Teslas? Based on what I read here most people buy:

1. Buy new
2. Buy CPO
3. Buy private if the 1st owner bought the extended warranty.

Well, the car wouldnt be completely out of warranty since the battery drive unit warranty would still be in effect. We won't really know the out of warranty market until the 2012s start falling off.

But lots of interest was generated here for an out of basic warranty high mile car, so I think buyers exist if the price is right.
164K mile Tesla S85 @ $35k -- highest miles/lowest price for sale to date? • /r/teslamotors

 

[ChadS]

I've had out-of-warranty Teslas since 2011. Really not worried about it. Sure, something can go wrong...but you didn't pay for the warranty, which Tesla is supposedly not marking up. On balance you should come out the same. Or you might get good cars (as I have so far) and come out way ahead.

As some have said before, the cheapest, most-depreciated car is the one that will likely depreciate the least going forward, because it has already done most of its depreciating. So look for a used stripper with high miles or some cosmetic damage or something. Whatever is already cheap.

There have been surveys here before about how many people buy the extended warranty; it seems that most people that post and talk about it want one, but from the surveys it sounds like it's more in the half-and-half range. (Subject to survey self-selection bias, of course).

 

[skitch23]

I went with a higher mileage bare bones late 2013 CPO 60, but got it for a killer price. Finding a car that had already taken the big depreciation hit was my main goal. I can live without the fun stuff (pano roof, air suspension, etc) for a year and then go big when I get my 3.

 

[S4WRXTTCS]

If I was the OP I'd try to leverage buying used while the $7500 rebate is still available as this pushes the price down of the used car. Then I'd sell AFTER the $7500 rebate was no longer available.

I'd probably try to get an early AP2 car like a 90D or a 60/75D. So it had free supercharging for life which will add a little bit to the resale.

Even with all that it's going to be hard to retain resale with the battery prices dropping, and the computing power for AP getting so much better over time.

 

[DrivingTheFuture]

Hey guys,

If one were to buy a Tesla now on the lower end of the market wiht the thought of selling it in 1-2 years when the M3 arrives, which would you buy to keep depreciation as low as possible? By lower end, I'm talking in the 40-50k end of the market.

In this range, it seems like you can pick up some older 85s with higher miles or lower mile CPO 60s. Again, the thought is keeping it for a year or two and reselling it with as low a loss as possible.

Thanks in advance for any help! I've not owned a tesla yet and was thinking about leasing a Bolt or something in the interim, but then thought maybe if one buys a model S wisely they can sell it for about what you would have spent on a different lease, but then you are already enjoying a Tesla (and on the owners list for m3 priority).

Any of them...

 

[DrivingTheFuture]

If I was the OP I'd try to leverage buying used while the $7500 rebate is still available as this pushes the price down of the used car. Then I'd sell AFTER the $7500 rebate was no longer available.

I'd probably try to get an early AP2 car like a 90D or a 60/75D. So it had free supercharging for life which will add a little bit to the resale.

Even with all that it's going to be hard to retain resale with the battery prices dropping, and the computing power for AP getting so much better over time.

Except you don't get the 7500 dollar credit for buying a used electric car...

 

[Az_Rael]

Except you don't get the 7500 dollar credit for buying a used electric car...

I think his point is actually that the used market prices are being lowered by the amount of the tax credit a new car gets. Every new car instantly depreciates $7500 plus the normal off the lot depreciation.

Once the credit is gone, used prices should stabilize to more normal depreciation amounts. Although Teslas seem to be also highly affected by their agressive upgrade schedule unlike any other car out there. So who really knows.

 

[peakay]

OK, so I am talking wiht a guy who has a 2012 P85, Dec. 2012 build, 45k miles and seems in great shape, 2+ years left on the CPO warranty and I think I can get it for $50k. All options but jump seats and sub zero - has fast chargers, pano, tech, sound system, etc.

Does this seem like a good deal and one that is unlikely to depreciate below $40k in 2 years if we drive it 10k a year? I know we wil pay sales tax, etc.

Thanks!