How do you value a used Model Y in current market conditions?

[EVaddict]

What's the best way to come up with a fair value for a used Model Y?

I see some low mileage, 2022s, 8k-15k miles. For our purposes, let's just consider base config. As a buyer, what would be a good price?

Carvana is offering $33,161 for a white, 2022 with 8K miles. This is in CA.

A brand new one after destination fee, less federal tax credit and referral bonus is $42,380. It seems crazy to pay more than $37K, or is even that too high? Around here, everyone seems to think their cars are worth way more. They would be asking $42-$46K for that config.

I would consider buying new, but we don't qualify for the federal incentives we file as married filing jointly. A back of the envelope calculation if we do married file separately, shows that it might be close, but I'm not sure if I'm doing those numbers correctly. I need to dive into it more. Everything I have read seems to say that in almost all cases, we are better off filing jointly except for a few exception cases and we don't fall into those scenarios.

If prices on inventory cars keep falling, I may consider buying new even if I don't get the tax credit. Saving $4-8K on a 1 year old car isn't worth it to me. But the lack of ultra sonic sensors is something to consider.

 

[ucmndd]

What's the best way to come up with a fair value for a used Model Y?

Look at eBay, carsandbids, etc. to see what the cars that actually SOLD went for.

That's your market value.

 

[father_of_6]

Maybe I've misunderstood, but the base Model Y is $44k. Minus federal credit of $7,500 and any state incentives... $2k in California?

That makes a brand new base Model Y $34,500.

I wouldn't pay over $30k for used.

 

[ATPMSD]

But the lack of ultra sonic sensors is something to consider.

Not really. I don’t have USS on my 2023 MY and it works just fine. Yes, USS is better but IMHO not a buy or no buy issue

 

[ucmndd]

$2k in California?

CA state rebate is out of money and unlikely to be replenished any time soon.

But yes, I agree with your general reasoning. Although OP says they don't qualify for the fed tax credit.

 

[father_of_6]

A brand new one after destination fee, less federal tax credit and referral bonus is $42,380.

I was just commenting on the above.

 

[Jimt29]

Here ya go

 

[EVaddict]

Maybe I've misunderstood, but the base Model Y is $44k. Minus federal credit of $7,500 and any state incentives... $2k in California?

That makes a brand new base Model Y $34,500.

I wouldn't pay over $30k for used.

Sorry, my message was embarrassingly unclear. What I meant by base config was an LR AWD, with no upgraded paint, AP/FSD, or any other additional cost items.

 

[EVaddict]

I suppose I could sort of qualify for the tax incentive by having my sister on the title with me and she takes the tax credit since her income level qualifies. Then she could gift me $7500 and that is below the gift tax limit.

 

[ATPMSD]

I suppose I could sort of qualify for the tax incentive by having my sister on the title with me and she takes the tax credit since her income level qualifies. Then she could gift me $7500 and that is below the gift tax limit.

Maybe, here is what I found:

To qualify for the tax credit as a co-signer on a brand-new EV purchase, the combined annual income of both individuals must be under $300,000, or less than $150,000 individually.

IRS expands eligibility for EV tax credits | Fingerlakes1.com

IRS expands eligibility for EV tax credits News

www.fingerlakes1.com

She must have a tax liability e.g. taxes due of at least $7,500 to get the full credit

Also note: “You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your modified AGI is below the threshold in 1 of the two years, you can claim the credit.”

Credits for new clean vehicles purchased in 2023 or after | Internal Revenue Service

You may qualify for a clean vehicle tax credit up to $7,500 if you buy a new, qualified plug-in electric vehicle or fuel cell electric vehicle.

www.irs.gov

Check with your tax accountant.

 

[ucmndd]

I suppose I could sort of qualify for the tax incentive by having my sister on the title with me and she takes the tax credit since her income level qualifies. Then she could gift me $7500 and that is below the gift tax limit.

Be aware if you go down this road Tesla will require you to title and register the car in both parties’ names and they require both people to be present at delivery.

 

[RSpanner]

Maybe I've misunderstood, but the base Model Y is $44k. Minus federal credit of $7,500 and any state incentives... $2k in California?

That makes a brand new base Model Y $34,500.

I wouldn't pay over $30k for used.

A LOT of people do not qualify for the tax rebate. That throws your comment off. Most cars sell higher than the Tesla quote.

 

[ucmndd]

A LOT of people do not qualify for the tax rebate.

Less than 5% of US households make over $300k. As of next year everyone under the income limit can claim the entire $7500 as a point of sale rebate, whether they have the full $7500 tax liability or not. Not sure that’s a “LOT” of people excluded.

Most cars sell higher than the Tesla quote.

Eh? I’m not sure what you mean by this.

 

[ATPMSD]

whether they have the full $7500 tax liability or not

As you noted, this applies to deliveries in 2024 and not 2023. For this year, the rebate is the lessor of your tax liability or $7,500 if the car fully qualifies.

 

[Kairide]

Less than 5% of US households make over $300k. As of next year everyone under the income limit can claim the entire $7500 as a point of sale rebate, whether they have the full $7500 tax liability or not. Not sure that’s a “LOT” of people excluded.

About 16 million people based on the US population.

 

[ucmndd]

About 16 million people based on the US population.

A large absolute number but a small ratio compared to the overall eligibility pool

 

[Kairide]

A large absolute number but a small ratio compared to the overall eligibility pool

5%

 

[spokey]

What's the best way to come up with a fair value for a used Model Y?

I see some low mileage, 2022s, 8k-15k miles. For our purposes, let's just consider base config. As a buyer, what would be a good price?

Carvana is offering $33,161 for a white, 2022 with 8K miles. This is in CA.

A brand new one after destination fee, less federal tax credit and referral bonus is $42,380. It seems crazy to pay more than $37K, or is even that too high? Around here, everyone seems to think their cars are worth way more. They would be asking $42-$46K for that config.

I would consider buying new, but we don't qualify for the federal incentives we file as married filing jointly. A back of the envelope calculation if we do married file separately, shows that it might be close, but I'm not sure if I'm doing those numbers correctly. I need to dive into it more. Everything I have read seems to say that in almost all cases, we are better off filing jointly except for a few exception cases and we don't fall into those scenarios.

If prices on inventory cars keep falling, I may consider buying new even if I don't get the tax credit. Saving $4-8K on a 1 year old car isn't worth it to me. But the lack of ultra sonic sensors is something to consider.

there are a lot of deductions and credits that you lose filing separately (I do volunteer tax prep and get certified every year by the IRS) but yes there are situations where it can be better. We had a couple where we did it both ways and separate was better. By a whopping $60 net (one went up the other down).

 

[ucmndd]

5%

Pancakes

 

[RSpanner]

Less than 5% of US households make over $300k. As of next year everyone under the income limit can claim the entire $7500 as a point of sale rebate, whether they have the full $7500 tax liability or not. Not sure that’s a “LOT” of people excluded.


Eh? I’m not sure what you mean by this.

Wow..so it will be a rebate..based on what...if not a tax liability?So just a straight rebate...ok...My two year old M3 is worth so much less ..this sorta balances that out if I got a Highland...I wish.