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Unless the Model 3 offers something extraordinary that the Model S doesn't have, I don't see anyone paying significantly more than retail to buy one of the first ones off the line.
"But people paid a lot for the Model S/X!" Sure, but those cars didn't have anything in comparison. The Model S was the first long-range sedan EV. The Model X was the first SUV. The Model 3 will be the first mass-market/smaller-sized/etc. sedan. But if the markup is $20k, someone could easily go and buy a Model S instead.
"But people paid a lot for the Model S/X!" Sure, but those cars didn't have anything in comparison. The Model S was the first long-range sedan EV. The Model X was the first SUV. The Model 3 will be the first mass-market/smaller-sized/etc. sedan. But if the markup is $20k, someone could easily go and buy a Model S instead.
A family is not restricted to two reservations.
Right on folks! There's definitely some tax implications when you sell the car within two years (In CA, not sure about other States) because of the Tax credit.
@stopcrazypp - i'm not a tax preparer or anything but if I sell my M3 with a profit of lets say... $5k, I would have to claim that as income?
@stopcrazypp - I agree with rare cars. But I think that since there is a demand for the M3, people are waiting for at least a year, and some of these folks will be impatient and will try to purchase it from someone who is selling it. But once it's mass produced and out in the market, and the wait is only for a couple of months, then that's when the demand will die down.
@SageBrush -
I'm not a spectator and I'm sure most of the folks here aren't. I wanted to find out if people are willing to sell their long awaited M3 for a profit since there are tons of people who are in the waiting list. I've seen it when the P90D came out and some folks were overselling it. I think there was a little demand for that because of the price. But for the M3, it's more affordable and some might be willing to pay an extra premium to get their hands on it sooner than the rest of the world.
@Max* - M3 does offer something extraordinary than the MS and MX, and that is the PRICE of the car, on top of everything about TESLA. And that is the reason why there's a surge of reservations.
Honestly, if I'm at the back of the line and have some extra cash to burn, I would pay maybe an extra $3K - $5K, knowing that it's going to be out in the next year or two, but not over $5K.
@stopcrazypp - i'm not a tax preparer or anything but if I sell my M3 with a profit of lets say... $5k, I would have to claim that as income?
@stopcrazypp - I agree with rare cars. But I think that since there is a demand for the M3, people are waiting for at least a year, and some of these folks will be impatient and will try to purchase it from someone who is selling it. But once it's mass produced and out in the market, and the wait is only for a couple of months, then that's when the demand will die down.
@SageBrush -
I'm not a spectator and I'm sure most of the folks here aren't. I wanted to find out if people are willing to sell their long awaited M3 for a profit since there are tons of people who are in the waiting list. I've seen it when the P90D came out and some folks were overselling it. I think there was a little demand for that because of the price. But for the M3, it's more affordable and some might be willing to pay an extra premium to get their hands on it sooner than the rest of the world.@Max* - M3 does offer something extraordinary than the MS and MX, and that is the PRICE of the car, on top of everything about TESLA. And that is the reason why there's a surge of reservations.
Honestly, if I'm at the back of the line and have some extra cash to burn, I would pay maybe an extra $3K - $5K, knowing that it's going to be out in the next year or two, but not over $5K.
Exactly, the price of the car. So that's where I have an issue is that if the M3 offers the price, very few people would overpay for it (because then you no longer get the discounted price).
When I hear profit, I assumed more like $20k. But sure, I can see a handful of people trying to pay $5k more to skip the line.
Income Tax Implications of Selling a Used Car | DMV.org Articles
In a nutshell, the Internal Revenue Service (IRS) views all personal vehicles as capital assets.
If you sell it for less than the original purchase price, it’s considered a capital loss. This means you do not have to report it on your tax return.
However, if you sell it for a profit (higher than the original purchase price), or what is called a capital gain, you must report the windfall on your income tax return and pay taxes on it.
edit: When you file the transfer on the title, you have to put the value of how much you are selling it for to hand it to the DMV.
edit 2: Also, it is to be noted that if you buy M3 for profit, you are buying the car for investment, not ownership. So, the maximum tax credit you can get is $2500
https://www.irs.gov/pub/irs-pdf/f8936.pdf
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Who would pay more than a $5k premium for a used car when you could wait at most 6 months for a new one? If they pay much more than that they could just order a MS. I only see a couple people being able to sell for a large premium and they would be individuals that quit Tesla/SpaceX right after they get their car and sell it to another automaker.
Jason Bourne
Member
Even reselling a year-old Model ≡ for the same price as it was new is a big win for the first owner. First, hopefully the original owner got the Federal Tax credit and a state tax credit at purchase; second selling a used car for the same amount as the owner purchased it for is highly unusual and amounts to several thousand dollars in value regained.
Interesting, and a totally fair question:
Personally I'm not going into the purchase with a resale expectation, but would leave the door open to that possibility. If the immediate skip-the-line market was sufficiently hot, I might be tempted. Quantifying that temptation is more difficult: The better the car is, obviously the harder I would find the idea of giving it up, conversely a poor build might make that decision easier. So, with that being said: If I felt generally disappointed with the build/features/performance of the vehicle AND there was a 6% premium to be made from selling the car, I might be tempted. On the other hand, if the car was tight, the features satisfying, and Tesla was to correct a few of the current service policy issues (service manuals, allowing 3rd party routine maintenance, etc), and Tesla grows past their service-pricing penalty and parts availability issues to a degree where I could see myself owning a Tesla beyond it's extended warranty, then in that case I think it would take an insane markup to get me out of it, perhaps 35%+, and I just don't imagine the NEW/resale market getting that hot.
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You want to sell a 18 month old Model 3 with 5K-10K miles for the same price (or even more) that you paid it? Who will be so stupid to buy such car?
People that would like to skip the line will look for a brand new Model 3. Hence, you will compete with owners that will take delivery of their new Model 3 when you will try to sell yours. Therefore, there is now way you can manage to sell it for a profit 18 month down the road...
plug
Member
That is it. I just want it as my personal car thus moving my current Toyota to a backup and long range out of town car.
TaoJones
Beyond Driven
From Tesla's reservation agreement. Any reservation is transferrable with Tesla's written approval. Ain't hard to ask - if I decide I don't want my reservation and my brother decides he does, it's a simple email to my DS or just to ownership.
The verbiage cuts the resale of reservations via eBay to zero while at the same time providing an avenue for transfers. Win win. Let the exceptions mongering begin, but it doesn't change the fact that reservations are indeed transferrable, and have been since day 1.
I have a gentleman who want's to give me a little extra for my car. I need a car next year and can't wait until 2018 at best, then deal with service stations and high insurance - not worth it to me. I'll sell him the car and take the $3500 he is offering me.
EVie'sDad
Member
no, our Model 3 will my my wife's car, and she would never trade it, after having waited 2-3 years and like myself would never sell my Model S for profit as it is now a part of automotive and technological history, and she deserves many more miles under my ownership before we upgrade to the next latest and greatest from TM.
Dan Detweiler
Active Member
Only way I would do this is if I find some sort of deal breaker after taking delivery of the car. I'm short, so maybe I can't get the seat into a comfortable position without being inches from the steering wheel/spaceship control system. Maybe it has large blind spots that are difficult to deal with (ala Chevy Volt A-pillars). Who knows.
The nice thing is I expect to be able to sell the car for very little penalty if I do have to do the unthinkable.
The nice thing is I expect to be able to sell the car for very little penalty if I do have to do the unthinkable.
Before taking delivery of my Model S P85 Sig, I set the selling price at $500k USD. No monetary offers yet, but I did get an offer to trade it for a fire truck in Arizona.
For Model 3, I think my selling price is $200k. I have to mull it over some more though.
EVNow
Well-Known Member
For those who are new to EVs - here is a quick reminder. When Leaf came out, there were reports of 70k+ offers for the 35k car. I don't remember anyone selling.
Also of note - there were issues with IRS rejecting normal legit EV tax credits (esp. 2011/12). People had to fight to get that. Imagine your exemption gets rejected and you have to fight to get it ... but you sold it after 2 weeks.
Also of note - there were issues with IRS rejecting normal legit EV tax credits (esp. 2011/12). People had to fight to get that. Imagine your exemption gets rejected and you have to fight to get it ... but you sold it after 2 weeks.
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