Had been considering an upgrade to a 100 Model S or X. Checked a couple of months ago and the trade-in offer for my 2015 P90D was $78,000+ from Tesla. As it was below the current payoff I chose to hold off.
Figured with the drastic price reduction recently for the Performance models, I'd explore it again, expecting a new offer to be maybe 2% less than the old one. Car is less than two years old, doesn't need tires (still have the original tires & wheels in brand new condition sitting in the garage) and not a scratch on the car. Had an original price of over $130,000. Car has 25,000 miles and they came back with a new trade-in offer of $63,200. $15,000 (19%) lost in two months, wow! Over 50% loss in less than 2 years, bigger ouch! That's less than Tesla's price guarantee of 50% after 3 years, but you can't take them up on that deal until close to the 3 year mark. Good news is, I can't lose anymore on the car. Their trade-in price offer is well below the residual value in my lease contract, so keeping it for the next year and a month, I'll actually gain significantly if I just turn it in after 3 years. This coincides with the price reduction for new cars so I guess it makes sense. Sucks for existing owners though to have the value of their cars plummet so quickly. So much for Tesla's holding their value better than most cars. I love my car and would have upgraded only as a luxury. Fortunately I have no problem keeping it for another year.
Assuming this will have an impact on the resale market as well. Had seen cars similar to mine priced recently in the $90,000 range, but now am assuming those prices will be hard to get. Either that, or Tesla just expects to make $25,000+ on trade-ins. With my 2013, I remember them saying it was something close to an 8% difference (Trade-in offer versus what they will sell it for) when I got rid of my first Tesla. Tesla has a history of getting people to upgrade from older Model S cars to newer ones. While the new pricing should assist in bringing new buyers into the Tesla family, likely will hurt existing owners that would have otherwise upgraded early. Good for Tesla, not so good for existing owners. I haven't looked lately, does Tesla even still offer the 3 year price guarantee? While I've never doubted leasing my car instead of buying it (my belief at the time being that with as fast as Tesla changes these cars and pricing, with no meaningful model years, that it was impossible to determine what the value would be in 2, 3 or 5 years), but now I'm even happier that I chose to lease it. Now it will be the banks problem rather than mine when the time comes. US Bank does have a history of offering to sell you the car at the end of a lease for significantly less than the Residual Value. Didn't know if that would hold true on the Tesla being that previously, resale values held up pretty well, but with the new pricing for new cars, that will likely be the case. Will consider purchasing the car if their offer is right. My last lease with them, they offered me a sale price at 45% below the residual value on that car. Don't expect it to be that low for the Tesla, but if they come back at $50,000 or so, for a 3 year old car with around 36,000 miles on it, would be hard to pass up. Based on their past history, that's not unreasonable to expect. Was going to get a Model 3, but looks like the one I want it won't be available until late 2018 and it will be well over $50,000, so keeping what I have for the same price would be pretty attractive. Add in the $10,000 rebates, $20,000+ price reduction from the residual value and my $130,000+ car ends up being $100,000 instead. Certainly better than if I had bought it brand new for $130,000 instead of leased it.