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Trade in Values ?

Trade in Values ?

I was shocked when Tesla offered me a trade-in value of more than $12,000 less than what all the wholesale experts suggest. I know others have talked about this. I wanted to start this thread to hear from anyone who has not gotten a new model S or X because of trade-in value. So how many of you have not gotten your usual new car because the trade-in value was so much less than what you had calculated?

tjhlaw | 12 agosto 2019

I was just dealing with this exact issue. I have a 2017 75D with 41k miles and was thinking of trading to a new Raven ( I still have range anxiety with work travel. Long story). I checked the NADA Guide and Kelley Blue Book. I also got a purchase price evaluation from CarMax. I asked Tesla to evaluate my car for trade. Tesla's value for my car was $45,700. Which was $3000 more than the CarMax offer but $3,300 less than the NADA average trade in value. So not as bad as your Telsa trade in evaluation, but still less than what I was expecting.

jfemd.va.us | 12 agosto 2019

Recently sold a 2014 P85D and purchased a new Raven. Tesla offered me $14,000 less than what I sold it for privately. Tesla does not want your old Model S.

Boonedocks | 12 agosto 2019

@ Anthony J. Parisio.

Head over to TMC. There is a “for sale” thread that I have used to sell my last two S’. Got a very fair price for both of them and both buyers flew in to pick them up and drive them home.

Everyone was satisfied!!!! You don’t have to take the Tesla trade offer so if you aren’t happy sell it yourself.

rglossin | 12 agosto 2019

I was ready to buy a Tesla S until Tesla offered $9K less than I finally sold the car for. By then I decided to wait for the Rivian R1T. If that doesn't work out I'll reconsider Tesla.

AlMc | 12 agosto 2019

Agree with OP. Was considering a P3, using my 2014 P85D S as a trade. Offered approximately 10K less by Tesla vs KBB 'use as trade'. Sales people (teslas) flabbergasted as the number comes from the home office and they have no wiggle room/imput.

They really don't want the Ss back. I can't blame them as they need to concentrate on sales/deliveries.

Not mad/upset. Just the way it is.

I'll keep driving the S.

Yodrak. | 12 agosto 2019

"They really don't want the Ss back."

I agree. Same with the X. Tesla's focus these days is selling new cars, and there are other ways for owners to unload their current Tesla if that's what they want to do.

Bighorn | 12 agosto 2019

Been this way since the beginning. If you want retail, sell it yourself. $10,000 less—wholesale it. $20,000 less—trade it in.

2015P90DI | 12 agosto 2019

Tesla just dropped the price of the Model S & X, so it's to be expected that used car values are going to decline right along with them. I feel bad for the buyers who paid close to $170,000 for a fully loaded Model S that you can now get for around $110,000. Imagine their shock on trade in value!

Looking at E-bay and other listings, seems like sellers are just now starting to catch on to the new pricing models. When I checked a few weeks ago, people were asking more than the cost of a new one for their used cars. Some still are, but several others have finally reduced their prices realizing that nobody's going to pay more for a used Tesla than what they can get a new one for. My guess is that KBB and NADA may not have caught up yet either. I would expect to see those figures drop.

If you can get a dealer of some sort, or Carmax to pay you close to current book value for your car, might want to consider taking it as I would expect those offers to come down as the data sources adjust to the new pricing models. That goes for anyone that was considering upgrading. A new long range Model S is $79,900 with the only options being paint, wheels and auto pilot. Everything else that used to jack up the price by tens of thousands of dollars is now included. My Dad bought a new S towards the end of last year and paid $16,000 more than I did for mine. And I have more range and better suspension. Oh, and his was a discounted inventory car at the time. Difference likely would have been over $20,000 if he had ordered it.

Yodrak. | 12 agosto 2019

Look on the bright side - how many cars come down in price year after year? Yes, your resale value is going down, but so is your replacement cost.

Unless features that you currently have are no longer available. In which case go ahead and buy a competitor's hot new EV that costs more for less range, slower acceleration, and fewer places to charge on long drives. But hey, way more buttons, knobs, switches, and a smaller, slower, less intuitive interactive screen.

Anthony J. Parisio | 13 agosto 2019

Thanks guys.

Bighorn,
I understand. I use to sell cars. I am only looking for fare wholesale not retail when I Trade.

See my thinking is I can sell the car myself but it is way easier to trade. To sell it I have to pay off the loan, get the title and then sell the car. The S is after all a luxury toy for most of us. Because of this I am not interested in working hard to get a new one. Especially considering it is such a great car. My car is now two years old and only has 8000 mile on it. It mostly goes to car shows on the weekend. So I don't really have any reason to trade up. I just like new tech. So I am happy to keep it rather then get a new one. This is not even a "first world problem". It is a blessing. I am grateful.

What I am asking is how many are just keeping their GREAT car rather than getting a new one because it is not as easy as it was to trade up?

Bighorn | 13 agosto 2019

I kept my P85+ when I was offered $20k. I can make that in free charging:). Haven’t you already traded several already, though? You seemed an outlier in that regard.

Pungoteague_Dave | 13 agosto 2019

I just accepted an offer of $29.6k trade-in offer from Tesla for my 2014 P85D Model S, about $5k less than KBB value for a good-condition trade-in with 85k miles. KBB shows a trade range of $32k to $38k as of today. KBB values recently dropped dramatically now that Tesla's MSRP has come down by a lot. The original check for the car when new just under five years ago was $136k. I could maybe have done $5-$6k better on my own or with Car Max, but two factors cause me to accept Tesla's deal. First, at least for cars registered in Maryland, the trade-in value offsets the new car purchase price for sales tax purposes. So my new MX retail price is $96k, but $66k for sales tax purposes, saving 6%, or $1,800 - a savings only available with a trade-in. Then there's the hassle of dealing with a buyer. meeting them somewhere, dealing with transfer, etc. And I wanted to keep my old tags and transfer them over, only possible with a trade. Having Tesla handle the transaction with no hassle was worth $4k to me, especially given the current deals for Ravens delivered this month.

johncrab | 13 agosto 2019

Same here. They offered me 11k$ less than a Lexus dealer did (I said no to both). As Tesla pushes down prices to win orders on price point rather than the car itself, they are pushing down the resale of all of our existing cars. This is the opposite of how the luxury goods business works. When was the last time Rolex reduced prices? (I'll wait.)

thranx | 13 agosto 2019

@PD: Pretty much the same reason I accepted a lower value for my 2013 S when I traded it in for a 2016. Drove the older car into the service center, gave them the keys, drove the new one home. Everyone puts a different price on no muss, no fuss. For me, the ease of the switchover was more than worth it.

johncrab | 13 agosto 2019

@thranx - To be sure, there is a significant value in an easy trade, but I think we are talking a question of degree here. Tesla's offer incentivized me to keep driving my S until it drops dead or becomes too expensive to repair and then look at available options (besides, I still love the car (when they leave it alone)). They actually pushed me away from a potential trade to a 2019.

Anthony J. Parisio | 13 agosto 2019

Bighorn,
Your right. This is number four for me. If I trade again the next one would be number five. However as others said, I will most likely keep it because of bad trade-in value.

bhanuk99 | 13 agosto 2019

I traded with Tesla my Dec 2017 S75 in Dec 2018 for a S100D. My trade-in value was 53K from Tesla but as PD noted in MD in addition to less in state taxes I paid I also got $3k State refund because the value of my car now was under 60K MD EV credit. And I got 7500 federal credit on both cars. Even tho I traded up in a year doing with Tesla on Dec 31st helped me. CarMax offered same or may have been even less than Tesla.

sschaem | 13 agosto 2019

Paid $172K in november 2018 for a P100DL Model X, Tesla offered me $96k for it with 2400 miles on it 5 month later and would also terminate my free supercharging in the trade. (This car still had the sticker on the pedals, sunroof in the bag, always park in a private garage and was immaculate)

And when I realized that Tesla would not honor blue book value (even so it was stated that my trade in value was based on my blue book value) I canceled my roadster reservation. 200+K for a car that is guarantied >$90K in depreciation in the first 6 month sitting in your garage... no thanks.

But anyways, I was able to confirm that even so Tesla state in writing in your quote that they use blue book for the trade in value, they are not and will actually use their own numbers that seem to be about 10-20% lower then the market offers.
They also get to terminate any free supercharging associated with the car, adding a few thousand to the value (on their end)

2015P90DI | 13 agosto 2019

E-bay is great for selling cars. I always use the auction format. Typically set a reserve price, so it won't sell for less than what I want, but the key thing is, it gives you an idea of what your car is really worth to people actually willing to put up money for it.

See what the bids are. Either accept or then go see what Tesla or Car max or whoever will give you for it and determine if the $5,000 or $10,000 is worth spending a couple of hours dealing with a private party sale. I make a good living, but $5,000 for a couple hours worth of work is still worth it to me. Time versus money in my game.

I can't think of the last time I traded in a car. Just sold a Model 3 for $7,500 more than I paid for it 10 months ago. I bought it used and of course lost the sales tax, so didn't "make" $7,500 on it, but drove the car for 10 months and really didn't cost me anything. Just a little time and effort is all it took.

Anthony J. Parisio | 14 agosto 2019

sschaem,
Most cars loose 30% in the first year and 10% in the next year. That is not what they offered you! So yes Tesla is ruining the trade-in value of S and X. I believe this is the number one reason for the drop off in S and X sales.

2015P90DI,
The issue isn't what we can get for our cars if we sell them ourselves. It is that Tesla is grossly damaging the resale value with it's current trade-in and pricing policy. The three is not really effected because not much has lowered for it.

jamesoshe | 14 agosto 2019

One consideration on the trade-in is sales tax. In Illinois, the sales tax is about 10 perfect. Since you don't pay the tax on a trade-in, the savings on both sides of a transaction could be a significant factor. Any thoughts?

mcmack15 | 14 agosto 2019

For years and years this has been the same situation with Corvettes. The # 1 and # 2 dealers in the country (place in NJ and the place in NH) really don't want to deal with trade-ins, so they offer real low ball prices at best for any trade-in.

And yet, they both remain the top two sellers in the country, and their prices for the new cars remain pretty consistent until the end of either a model year or model run.

kerryglittle | 14 agosto 2019

I think dealerships that take trade ins make a killing on reselling them. One of my friends just traded in his immaculate Hemi Challenger and took a beating on it. I know this guy well and all his vehicles are better than showroom condition and always garaged and never driven in rain or snow. Gets stored over the winter and just in unbelievably good shape. They gave him a price and he took it. Later that week the dealership was selling it for 20K more than they gave him. Thats highway robbery ( no pun intended) since he traded to them and bought a new expensive pickup truck from them. Double whammy.

Anthony J. Parisio | 14 agosto 2019

kerryglittle,
The difference with Tesla is the cars are great even as time passes. They don't rust. They don't ware. So I have no problem staying with what I have. I won't trade at these prices.

MJP.75D | 14 agosto 2019

I’m about to ink a deal (tomorrow) to trade in my excellent condition Model S to Tesla for a new Model 3. The ONLY reason I’m doing it is I have an RVG that is about to expire. The value I’m getting for it is far better than I could otherwise expect to receive. And, as @jamesoshe stated, I’m in Illinois with 9.5% sales tax and I only have to pay tax on the delta between the trade-in price and the new, so an added benefit. The day after my RVG expires, my trade-in allowance will likely drop in excess of $10k, which I wouldn’t accept, and which would then result in the additional loss of the tax savings. In all, likely a $15k swing or more. So, I say goodbye to my beloved S and start a new day with a Stealth 3. The S will in all likelihood be the last (and first) car I ever trade in as the RVG is no more....

Anthony J. Parisio | 14 agosto 2019

Sorry, what is RVG?

Bill_75D | 14 agosto 2019

Resale Value Guarantee ???

MJP.75D | 14 agosto 2019

Yes

MJP.75D | 14 agosto 2019

Essentially a guaranteed buy-back price valid between 36 and 39 months from time of original purchase.

s.grot | 15 agosto 2019

They may have a problem with RVG on sscheam’s $172k MS in 36 months. I thought they did away with RVG years ago

Anthony J. Parisio | 15 agosto 2019

Bill_75D,
Thank you.

MJP.75D | 15 agosto 2019

@s.grot — yes, RVG program (for new cars) ended on 30 June 2016 so the last cars to have it can come back as late as 30 Sept 2019. So within 6 weeks the RVG program will be null and void for all.

kerryglittle | 15 agosto 2019

Thats true Anthony. Its better to keep the car for a longer time. New Tesla's are basically the same with maybe a few more options but body style wise very little changes. In Canada our tax rate is 13% on everything. So that helps a bit on trade in difference. But already paid that tax when I bought my car. I think a car should just be taxed once. If a car is traded several times the tax will add up to as much as the car was once worth.

s.grot | 15 agosto 2019

It would be interesting to see if deliveries of MS’s will increase significantly in the next year or so. The have been sort of flat at around 50k/ yr the last few years. I personally don’t think the sales on MS will pick up that much with the lower price.

gregmiller1817 | 16 agosto 2019

Facing same problem. Have paid off 2014 P85+ (40k miles)(250 mi range) with free SCharge. But miss adaptive cruise, lane holding, and new safety features. Do I keep what I have, trade up to autopilot, or new FSD and 370 mi range. Decisions, decisions, decisions.

Anthony J. Parisio | 17 agosto 2019

gregmiller1817,
You can get free supercharging if you take an inventory car. I had a 2014 and traded up to new FSD in 2017. Yes it is worth it!

nukequazar | 17 agosto 2019

All new MS’s have FUSC now (could change in five minutes).