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Worst value loss of any car I have owned

Worst value loss of any car I have owned

In January of 2017 I purchased a 2016.5 75D. I paid almost 90K for the car. I was considering trading it for a Lexus hybrid until I was given a 40K trade in value. I understand every car loses a lot money in the first two years, but a loss of 55 percent shocked me. Needless to say I am keeping the car. I actually love the car but hate the high monthly payment. With my wife and I both retiring I was trying to cut some of our monthly bills.

According to the dealer my car is selling for 43k at auction. Is this figure in line with the true value of a car like mine with 29,000 miles and in very good to excellent condition?

cfleming34 | February 23, 2019

Did you not get a $7500 tax credit as well? If so, you actually paid 82.5K (pretty much the same as me). Tesla is not much better than a traditional car dealer when it comes to trade in values; which is to say notoriously low. Offering you less than a bargain basement wholesale auction price is not very generous. That car would sell for about $53-55K retail, which is very typical depreciation for any luxury sedan.

A friend just picked up a few years old Mercedes S63 AMG sedan for 49K. The original sticker was $164K. That means the guy who traded it in got even less than $49K from his dealer. Ouch.

President145 | February 23, 2019

I feel it was a low offer as well. I also wonder if they looked at a 2016 versus a 2016.5. The dealer admitted he nothing about Tesla’s. Is there a bid trade in value difference between a 2016 versus a 2016.5? I have the enhanced autopilot as well the prepaid FSD option with AP2 and the newer front end design.

SO | February 23, 2019

Does anyone ever get a “good” trade in value?

Sell privately.

Onlyusedtesla.com

aviator172rr | February 23, 2019

Definitely sell privately. You will get at least 5-6K more than trade in value.

Aerodyne | February 23, 2019

OP presents a situation which is opposite of easily obtained real data, which is used Tesla cars lead the class and EV's in general in resale.

Passive FUD?

ST70 | February 23, 2019

Why would you want to sell it and get a Lexus? I call bullsh!t on this!

ST70 | February 23, 2019

Why would you want to sell it and get a Lexus? I call bullsh!t on this!

redacted | February 24, 2019

@ST70 you called it. Twice.

Anyway, if you'd read the OP, it's because payments on a 90k car are greater than payments on a 30k car. Not hard to figure.

Silver2K | February 24, 2019

Flagged!!

bp | February 24, 2019

For vehicles, I've used a rough 2% per month depreciation estimate. After several years, this has been fairly close to the final trade-in/re-sale price of our vehicles.

Like many Tesla owners, our 2012 S P85 was the most expensive vehicle we've purchased - from a $ standpoint, the car loses a lot more $ per month than less expensive vehicles.

Since we plan to keep our Tesla vehicles (we now have a 2017 S and 2018 X) for 6 to 8 years and around 100K miles, even though the $ amount of the depreciation is higher than other vehicles we could have purchased, the lifetime operating costs are much less, saving $ on fuel (electricity vs. gasoline) and maintenance vs. a less expensive ICE.

Tesla has helped in maintaining re-sale value by roughly maintaining the new sale price points of the S & X, and instead of dropping the prices as the technology matures, they've continued to add new features, helping to maintain re-sale value for used vehicles.

Mathew98 | February 24, 2019

The troll alert went up as soon as I read trade in an EV for a hybrid.

Tesla doesn't use half year model designation. What the h@ll is 2016.5 model year in 2017?

If a Lexus dealer is trying to rip you off and give you auction price, you don't get to complain to Tesla some other dealer was trying to rip you off. If this were a true story, the OP almost made a two boneheaded transactions. You don't drop $90K on a toy at retirement and you don't ever try to trade in the said expensive toy and downgrade to a lesser expensive toy.

lilbean | February 24, 2019

+100 @ST70

DRFLGD | February 24, 2019

Matthew: I'm assuming 2016.5 means built mid-year 2016. What got me was paying $90K for a (even 6 months) used 75D.

redacted | February 24, 2019

DRFL... he didn't say it was used.

DRFLGD | February 24, 2019

redacted: True. Could have been inventory.

President145 | February 24, 2019

The car was a demo with 550 miles on it. The deference between a 2016 and a 2016.5 is the the redesigned nose, and more importantly the AP2 software with the cameras that go with it. The car was essentially new, and was available immediately. The sell privately argument makes sense except you pay sales tax on the value of the new car minus the trade in amount. On a 50k car that means you would have to get at least $3500 on the private sale to break even

I love the people with their Troll alerts as soon as anything negative is mentioned about a Tesla. The Tesla’s is overall a wonderful car, but far from perfect.

Mathew98 | February 24, 2019

The OP probably has the same business acumen as his moniker. So sorry to insult the common moron.

SO | February 24, 2019

@President145 - Which car is perfect? I’d certainly love to know.

lilbean | February 24, 2019

You change cars more frequently than I change phones.

sentabo | February 24, 2019

I was going to trade in my refrigerator for a new one even though the one I have is perfectly fine. But damn, the trade-in value was ridiculous so I kept it. I'll never buy this brand again.

Silver2K | February 24, 2019

"I love the people with their Troll alerts as soon as anything negative is mentioned about a Tesla"

You started off with a hyperbolic title and then talked about trading in the best car (an EV ) for a hybrid on an EV enthusiast site.

More of a dumbass than a troll.

lilbean | February 24, 2019

@sentabo haha! :o)

reed_lewis | February 24, 2019

A couple of comments.
1. You are trading in a perfectly good car in an attempt to save some money. It is better in the long run to keep the car, and realize that you will be saving money due to the lower insurance rates compared to a new car, and gas savings.

2 . You bought the FSD option which does nothing useful as of now. That was $3K you spent which you are throwing away.

3. Do you like the Tesla? If so keep it, and enjoy the drive.

4. Even if you get $55k (or whatever) you owe money on the Tesla, so you will not realize that amount of money. as a downpayment for the Lexus.

5. Why would you buy a Lexus compared to a Tesla? Why oh Why??

redacted | February 24, 2019

Wow, the people here can be vicious and incapable, as it seems, of reasonably understanding what a person is saying. I'm not sure if it's a lack of empathy on their part or social brilliance on mine, but they're really bad at it.

It's neither hyperbolic nor uncommon for $50,000 to be the greatest depreciation that one has ever seen in the car. For example, if one has never had a $50,000 car, one won't have seen that. Is it really that difficult to understand what he said, @Sliver2k?

@reed_lewis, consider the math: the difference between a loan for $40K and $90K at 4% is ~$900. Will you make that up in insurance or (LOL) gas savings? Honestly? I mean, a good part of his money is gone, but then again, he said he was planning to keep the car.

Why buy a Lexus? Maybe compared to a M3 it's a reasonable question, but if you don't understand why one would pick a $40K car over a $90K car, I'm not really sure what to say. Perhaps you're Will Smith's kid or something?

President145 | February 24, 2019

The “hyperbolic” title would indeed be exaggerated if it were not true. I gather Silver2k’s wonderful use of insults to anyone who doesn’t sing the praises of the perfect car that even has a fart function comes from his extensive knowledge of everyone on this forum. I was impressed that he knew what the word hyperbolic meant given his wonderful use of the English language with words like dumb ass.

You are clueless as to all of my motives for considering replacing this car. I have a cousin on the west coast who must also be a dumbass because he got tired of waiting for a free supercharger when he traveled outside the range of his car and replaced his car with a hybrid.

President145 | February 24, 2019

In general people on this forum are polite and helpful. As with most sites there are always a few exceptions

I apologize for responding to one of those exceptions rather than ignoring him

Silver2K | February 24, 2019

Must have touched a nerve...

Yodrak. | February 24, 2019

"I have a cousin on the west coast who must also be a dumbass because he got tired of waiting for a free supercharger when he traveled outside the range of his car and replaced his car with a hybrid."

Does your cousin get free charging or free gas for his hybrid? Yet he got rid of his Tesla because of no free supercharging?

I do empathize with your situation of retiring while still making payments on a $90,000 car. I'm facing a similar situation with my own Model S, I'll be only halfway through my loan payments when I retire, but decided to buy the car anyway. If things don't look good when the time comes I may postpone retirement, because I'm not going to get rid of the Tesla.

Bighorn | February 24, 2019

@Yodrak
Free=available, I believe. I’ve not heard of a sale resulting from that, but there’s a first time for everything.

SO | February 24, 2019

Have fun with your hybrid. Your mind is made up. Bye.

Aerodyne | February 24, 2019

To the OP...perhaps we can help each other out. My daughter has a 2002 Pruis. Has regen and center display, a bit like a model 3.

Well broken in at 230k miles but HV batt is fine. Easy 450 mile range!

Daughter is very attached to car, but I want to get her into a M3. If you are looking for low depreciation and operating cost this could be perfect for you..

Silver2K | February 24, 2019

Redacted

This has been discussed many times before the OP purchased his/her car. Not knowing what to expect is no longer an excuse.

http://www.janeen.com/tmfans/#gsc.tab=0&gsc.q=Poor%20trade%20in%20value&...

President145 | February 24, 2019

As I stated one of the difficulties with trading in a 2016 /2016.5 is the huge difference between cars munufacrured prior to September 2016 and those manufactured after that date. An earlier car had AP1 and lacked the additional cameras, as well as the earlier front end. Neither KBB nor Edmunds offer a way to differentiate the difference between the two cars since they don’t have offer a choice between the AP1 and AP2 cars. At any rate, we will continue to enjoy or Model S for now and hope before we do get rid of the car there is something closer to Full self drive as we had hoped for.

Luckily I am on the EST coast and there has not been a problem finding an empty slot at a super charger when I need one. Silver2K consider lightening up in your replies to legitimate owners with concerns or questions. I have generally made very positive comments on here. In fact with the exception of several flat tires my car has been trouble free( I realize now I am asking for trouble)

ST70 | February 24, 2019

@President145- I've been here almost 4 years and this is one of the most bizarre posts I've seen....@Silver2K has been here longer than me and contributes a lot and call bullshit when needed...

@redacted- you are a dumb@ss as always....you're not an owner correct?

rxlawdude | February 25, 2019

I thought EST was a thing in the 1980s.

Is it redundant to say EST and east coast?

#morningdoseofpedanticmusing

ktslab | February 25, 2019

OP, have you tried to get a M3 instead? it might cut your monthly payment drastically while still maintaining an EV.

Not everyone like M3, I get that. Just saying. Try to find out what Tesla would offer you. or you already did?

Bighorn | February 25, 2019

@rx
EST was a west coast thing.

TeslaTap.com | February 25, 2019

I almost hate to jump in but the poorly worded title states "Worst value loss of any car....".

That's actually rather nice saying there was very little loss in value. Far better than having the Best value loss.

Ok, back to actual craziness.

rxlawdude | February 25, 2019

@Big, not according to the series, "The Americans." ;-)

Bighorn | February 25, 2019
lilbean | February 25, 2019

Is the like ESP?

rxlawdude | February 25, 2019

Sort of, but with more bullsh!t.

Mathew98 | February 25, 2019

The OP is level zer0 in the art of negotiation. He has the worst skills in basic car buying strategy.

Use cars usually end up in auction because of repossession, salvaged title, or damaged beyond OEM categorization of certified pre own. There's no reason for any 2 or 3 years old cars to be auctioned off.

They lied to him about the auction price for a 2 years old Tesla for $40K and he took their words like a chump. I can't even imagine how much he was swindled from buying cars over the years. Can I interest the OP in some snake oil as well?

RedJ | February 25, 2019

Ok, so the OP didn’t “take their words like a chump“. He came to the forum and asked if the trade in value they quoted was reasonable. He did start off with a bit of a rant, but still he’s hung in there through some pretty negative replies and I think it’s pretty clear he’s a legitimate owner.

As for the difficulty is differentiating online quotes for for an AP2 2016 vehicle I’ve been wondering that a bit myself as my car was built in Nov2016. I believe a more accurate quote for my car on KBB would be to use the 2017 estimate, but there is no good tool online that I’ve found.

Luckily for me I don’t plan on selling mine for a long time. :)

jnguyen1976 | February 25, 2019

Bottom line is the OP just got a low ball offer from the dealership. Typical of dealers, if he would have trade in at 40k. That dealer would have turned around and put it in their lot for 55k+.
My question is, Why are you surprised? Is this your first time buying and trading in at a dealer? Like the other users stated if Tesla lowballs in trade ins. If you want close to retail Sell Private Party. Since you have autopilot enabled with FSD the right buyer will eventually come by,

avesraggiana | February 25, 2019

I do like the rule of thumb 2% per month depreciation rate. Sounds about right when I check on the trade-in and private sale value of our March 2017 Model S75D.

Mathew98 | February 25, 2019

@RedJ - He did take their lie like a chump. Why else did he declare the "worst value loss" in the thread title? Nothing has been lost. Well, perhaps a few neurons and his pride.

Don't charge the windmill thinking it's the four headed dragon haunting your worse nightmare...

If you're going to drop $90K on a toy, at least take every opportunity to enjoy it. Every other MS owner before you most likely outspent your purchase amount and got huge grins out of it.

Mark K | February 25, 2019

Amazingly convergent cluster of flaming headlines in the same week -

-Worst resale value

-I’m done with Tesla

-Driver killed in fire

-Lost consumer reports recommendation

- SEC files new complaint

And Shazam, the stock moves by 5-10 billion.

After the PR wounds are inflicted, fueled by short-trade profit-sharing, the same lot will ride it back up when the market remembers who’s selling more cars, and how everyone else is scrambling.

Bmw 3 series and Lexus are already flummoxed - it’s already manifest. Wait’ll they hit volume of Model 3 at 35K. The Camry and Accord will take huge hits next. Over time, the market can’t ignore reality.

Traders stoke this yo-yo effect to make money, from nothing more than manufactured misery for the folks honestly saving our a**.

Who should really be hauled in court by the sec?

This is so messed up.

Stop acccepting it. Demand new laws restricting short trading.

It’s major social cancer, stoked by sociopaths, who think money = life.

See how far that money goes if your world self-destructs.

Traders need to be steered toward big profits from successes, not from failure.

Let them make money a positive way. Robbing banks was always faster money than building homes, but we were smart enough to make it illegal.

This has become a regular quarterly milking now. And they’re laughing at all of us who make money honestly.

Prison time is the only consequence that will convince sociopaths to stop.

jbdvm1988 | February 26, 2019

President- I feel your pain. I have a Dec 2016 S90D with 28000 miles. Has all options except air suspension. I checked the Carvana quote which came out at $40,500 less a $2800 deduction for geographic location (Michigan). I checked it out of curiosity. Maybe Carvana is a bad estimate of value but if their number is representative of trade in value then it seems Mr Musk’s expectation that Tesla vehicles would hold their value better than Mercedes.... is not holding true.

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