So speaking w/ a friend and he felt that with a Model S you're better off flipping/swapping every three years vs keeping it for the long-term.
For 8 years:
1) Keep for entire 8 years
vs.
2) Swap every 3-4 years
So I've seen many references of people doing total cost of ownership of the Model S for a 8 year time span (guess that's to line up with the warranty). But curious if anyone thought about keeping one for the full 8 years vs swapping every three?
Since there is so much technology the depreciation curve can quickly accelerate with any new model (case in point the P85+ dropping with the intro of P85D).
Seems if the Model S had an accelerated depreciation then swapping would actually put you ahead plus you get the benefits of a new car every three years. However, if we assume it's a straight depreciation then in theory it should be the same expect the transaction costs for swapping would make things more expensive vs just keeping it for the long-term.
If you just assume a highly simplistic model of say $10K lost per year and you start at $100K then essentially if you can KEEP the car working past the 10 year mark you would be ahead, but that's betting a lot that it can last 10 years (with not much of a track record to go on).
Does it even make sense (economically) to keep the car for the long-term say 8 to 10 or even till it dies? Or the smart play to actually swap out every 3 to 4 years to maybe 5 years?
Thanks!
For 8 years:
1) Keep for entire 8 years
vs.
2) Swap every 3-4 years
So I've seen many references of people doing total cost of ownership of the Model S for a 8 year time span (guess that's to line up with the warranty). But curious if anyone thought about keeping one for the full 8 years vs swapping every three?
Since there is so much technology the depreciation curve can quickly accelerate with any new model (case in point the P85+ dropping with the intro of P85D).
Seems if the Model S had an accelerated depreciation then swapping would actually put you ahead plus you get the benefits of a new car every three years. However, if we assume it's a straight depreciation then in theory it should be the same expect the transaction costs for swapping would make things more expensive vs just keeping it for the long-term.
If you just assume a highly simplistic model of say $10K lost per year and you start at $100K then essentially if you can KEEP the car working past the 10 year mark you would be ahead, but that's betting a lot that it can last 10 years (with not much of a track record to go on).
Does it even make sense (economically) to keep the car for the long-term say 8 to 10 or even till it dies? Or the smart play to actually swap out every 3 to 4 years to maybe 5 years?
Thanks!