Will there be a correction the MS market?

[bob_p]

Just compared KBB to Tesla's used inventory list for 2017 S 100D - and the prices are similar.

KBB may have some quirks - and should only be used as rough guidance on how much a vehicle is worth. Though if you can get estimates from more than one source, that helps to make a better estimate on current value.

 

[CapeOne]

Just compared KBB to Tesla's used inventory list for 2017 S 100D - and the prices are similar.

KBB may have some quirks - and should only be used as rough guidance on how much a vehicle is worth. Though if you can get estimates from more than one source, that helps to make a better estimate on current value.

2017 Tesla Model S 100D Long Range with clean history, 37k miles, FSD, etc. at Tesla for $57,300.
2017 Model S | Tesla

KBB "Typical List Price" from a dealer for this car as equipped, miles, etc. is around $65,300 (may vary by location).


2017 Tesla Model S P100DL with clean history, 30k miles, FSD, etc. at Tesla for $68,300.
2017 Model S | Tesla

KBB "Typical List Price" from a dealer for this car as equipped, miles, etc. is around $76,500 (may vary by location).


Yes, some valuations are closer to Tesla than others but KBB should be used with caution especially when there are "quirks" like the 2016 example I gave. As you stated, it should only be used for rough guidance.

 

[Ostrichsak]

Just compared KBB to Tesla's used inventory list for 2017 S 100D - and the prices are similar.

KBB may have some quirks - and should only be used as rough guidance on how much a vehicle is worth. Though if you can get estimates from more than one source, that helps to make a better estimate on current value.

Tesla inventory is not the end-all be-all for used car values either. Especially given how nightmarish of an experience most have when buying used from Tesla over the years. Recent history consensus is that private party is considered the best bet now for numerous reasons. This is now magnified with all of the shenanigans Tesla is playing with stripping all of the features, removing actual photos and now the neutered warranty which has been the final straw for most. What was once the best place to find a used Tesla has become the worst of all of the options with 3rd party dealerships being a close 2nd but just edging them out for being able to see the car in person, drive it and ability to negotiate plus potential of possibly keeping FUSC & premium data if the car has/had it.

Summary: If you still think Tesla used is the gold standard for used cars or used car pricing you haven't been reading these forums of actual first-hand accounts over the last year or two and things have only gotten worse as of late.

Private party used Tesla prices have already plateaued and I'm sure the previous statements along with decreased inventory availability plays a major role in this phenomena. I've even seen a gradual increase in list prices lately based on what I've witnessed over the years. The "traditional" depreciation curves aren't there anymore and I even predicted this would happen years ago. Due in large part to people realizing how EVs higher mileage isn't as reflected of how much "life" the car has left in it unlike the ICE cars we're all familiar with. These other items I mentioned are only service to help this new trend.

 

[Reefdiver]

My own personal experience, had my 2017 S75 in for service a month ago before the new price reduction, I asked for fun what trade-in value was, they gave 43,500, before I did the MCU2 upgrade. Then I asked again this week after the price reduction, now the trade-in they offered is 39,000. This is after I paid $2500 for MCU2.

 

[ahhlun]

This is now magnified with all of the shenanigans Tesla is playing with stripping all of the features, removing actual photos and now the neutered warranty which has been the final straw for most.

At least they include FSD and acceleration boost for model 3.
The private used market is filled with people listing their car more than NEW.

 

[Ostrichsak]

My own personal experience, had my 2017 S75 in for service a month ago before the new price reduction, I asked for fun what trade-in value was, they gave 43,500, before I did the MCU2 upgrade. Then I asked again this week after the price reduction, now the trade-in they offered is 39,000. This is after I paid $2500 for MCU2.

The way Tesla has been slowly tanking their trade-on offers in a continued effort to get out of the used car business I'm not sure you can extrapolate as much from that in terms of actual used car value as you may think. Tesla is a notorious rip-off artist on trade values of their own used cars and people just keep rewarding the bad behavior by taking them up on their low-ball offers. They clearly don't want anything to do with the used car business but figure if someone is willing to take half of what their car is worth they'll find a way to deal with it.

At least they include FSD and acceleration boost for model 3.
The private used market is filled with people listing their car more than NEW.

This is a Model S subforum and conversation so all of the recent changes to the sale of used Model S by Tesla have been negative. As for people selling used cars for more than new... have you ever bought a used car from Tesla? You'd quickly understand why people are willing to pay a premium to NOT deal with Tesla. What a nightmare factory their used car division is.

 

[TechOps]

Wait: so, a zero-emission vehicle (eg, Tesla) "expires" on its "Clean Air" status, based on how long a sticker has been on the windshield...??

From what I understand, the federal government requires HOV lanes to be a specific, measured, percentage faster than driving in normal traffic lanes as a condition of federal funding. Because California's traffic is so bad and the HOV lane so clogged with vehicles as well, this was their solution to unclog the diamond lanes, and apparently the feds gave it the seal of approval. However, I am not an expert in this subject .. just answering the question of how the stickers work vis-a-vis out of state used vehicles.

Also, the stickers don't go on the windshield; they go on the bumper. It's mystifying to me why Texas puts inspection stickers on the windshield (blocking the field of view).. SMH on that one too.

 

[CapeOne]

It's mystifying to me why Texas puts inspection stickers on the windshield (blocking the field of view).. SMH on that one too.

Don't most states that require inspections put the stickers on the windshield, either in the lower right or lower left? Just how big are these stickers in Texas?

 

[JimBob 909]

Also, the stickers don't go on the windshield; they go on the bumper. It's mystifying to me why Texas puts inspection stickers on the windshield (blocking the field of view).. SMH on that one too.

In California the stickers go on the front and rear bumpers. They are ugly and hard to remove without damage to the paint. I have them ($22.00) and haven't put them on yet, since they are not a benefit to me yet. I would think Cali could have designed something that went in the inside window and were removable when expired.

 

[chronoreverse]

In California the stickers go on the front and rear bumpers. They are ugly and hard to remove without damage to the paint. I have them ($22.00) and haven't put them on yet, since they are not a benefit to me yet. I would think Cali could have designed something that went in the inside window and were removable when expired.

Wow, I thought our EV HOV stickers up here in BC, Canada were ugly but the Californian ones are something else.

 

[domodan]

The way Tesla has been slowly tanking their trade-on offers in a continued effort to get out of the used car business I'm not sure you can extrapolate as much from that in terms of actual used car value as you may think. Tesla is a notorious rip-off artist on trade values of their own used cars and people just keep rewarding the bad behavior by taking them up on their low-ball offers. They clearly don't want anything to do with the used car business but figure if someone is willing to take half of what their car is worth they'll find a way to deal with it.



This is a Model S subforum and conversation so all of the recent changes to the sale of used Model S by Tesla have been negative. As for people selling used cars for more than new... have you ever bought a used car from Tesla? You'd quickly understand why people are willing to pay a premium to NOT deal with Tesla. What a nightmare factory their used car division is.

I was noodling on getting a new Long Range and checked on trade value from both Tesla and Carvana. Carvana was $10,000 MORE than Tesla in their trade in offer. Carvana was about what I expected it to be. Tesla was an insane insult and when I asked why so low they wouldn’t reply.

 

[arghx7]

There are plenty of people out there who can afford to get a lowball trade in. They just don't care, a Model S is a 4th, or 5th car for them. Out with the old, in with the new, just call me when I can pick up the new one.

It's also not uncommon for trade in offers to be a complete insult when you go to a dealership and try to buy a new non Tesla. I can remember spending hours playing the negotiation game when I bought my 2015 Mustang, with the dealership totally lowballing me on trading in my Cadillac CTS-V.

 

[domodan]

There are plenty of people out there who can afford to get a lowball trade in. They just don't care, a Model S is a 4th, or 5th car for them. Out with the old, in with the new, just call me when I can pick up the new one.

It's also not uncommon for trade in offers to be a complete insult when you go to a dealership and try to buy a new non Tesla. I can remember spending hours playing the negotiation game when I bought my 2015 Mustang, with the dealership totally lowballing me on trading in my Cadillac CTS-V.

I can AFFORD to get a lowball trade in, but the vast majority of people that can afford to get a lowball trade in can afford a low ball trade in because they would never accept a low ball trade in.

The Uber wealthy of the world (my boss is a billionaire and fits that category) are the ones who don’t care (or care a lot less). That’s a pretty small group.

 

[arghx7]

The Uber wealthy of the world (my boss is a billionaire and fits that category) are the ones who don’t care (or care a lot less). That’s a pretty small group.

From a sheer profit perspective, I'm sure Tesla has a lot of data about price sensitivity of their market by now. They wouldn't handle the used car market the way they do without a reason most likely based on some algorithm or statistical analysis. They're not chasing volume on the used car business.

They are only taking trades from people who will accept a lowball price, and they are adding or subtracting software packages to either turn the volume knob or the margin knob. Also, selling cars with FSD may help inflate the residual value (as calculated by banks) to support lower price leasing.

Not putting their best and brightest on the used car experience is likely the result of putting industrial expansion and volume (of new cars) much higher as a priority. It's a side effect of a company that is focused on an environmental mission (as more than just lip service) first. It ain't a Rolls Royce.