QQ: How would you price a used LR RWD Model 3 Given the Price Reductions

[Raggou]

I know someone asking me how I would price selling a ~1,000 mile LR RWD Model 3 given the recent price drops.

Figure I would ask on here what people think a fair solid "used" price this would be now.

Normal Wheels, Car is Black, dont know if it has AP need to ask

Thanks,

 

[gobble]

current price less the tax credit less $5k for being a used car.

 

[TexasTeslaRacing]

If it’s in mint condition with no options. Probably mid $30’s. A new 2019 model is about $39k after tax credit but before taxes.

 

[rickjames]

I know someone asking me how I would price selling a ~1,000 mile LR RWD Model 3 given the recent price drops.

Figure I would ask on here what people think a fair solid "used" price this would be now.

Normal Wheels, Car is Black, dont know if it has AP need to ask

Thanks,

Look at the market, do not listen to anyone here. The used market is large enough now to give you an accurate price.

 

[Raggou]

Look at the market, do not listen to anyone here. The used market is large enough now to give you an accurate price.

Not with the recent price drops prices the used market hasn't updated yet

 

[rickjames]

Not with the recent price drops prices the used market hasn't updated yet

Ok then, so how much were the recent price drops? That minus the current average market value is your answer.

 

[OCR1]

I can buy one new for $44.2K, less $3,750 federal, $2,500 CA. So new is $37,950.

10% depreciation for being used would put it at $34K. This is with no options.

 

[seattlite2004]

I can buy one new for $44.2K, less $3,750 federal, $2,500 CA. So new is $37,950.

10% depreciation for being used would put it at $34K. This is with no options.

This...or an SR....hmmmm.....

A used model 3 would prob have all the minor kinks straightened out at the SC...so maybe a used Mod 3 is better than new.

 

[SD_Engnr]

When was the car manufactured, and when was it purchased? Options?

If delivery occurred in 2018, then take the price as new, subtract the $7500 incentive, and depreciation for being used. If after that it's more than a new one less the current incentive, then adjust accordingly. Good luck.

 

[jjrandorin]

A "car is worth" whatever someone will pay for it... so OP, if "the used market has not adjusted yet" that means "the used market has not adjusted yet" and "your friend" can price accordingly.

 

[Chancellor32]

Need to be more specific, what are the options? EAP? Color, mileage? For example my LR3 with EAP, 19inch wheels, pear white and 6k miles is probably worth like 45k.

 

[OCR1]

Right now ask prices are out of line with reality. However, ask prices really don’t mean anything. We don’t know what used M3s are really selling for, if they are selling at all. There is no MLS for used cars, so the data out there is sketchy and hard to come by at best. I think the market is full of M3 owners who would like to sell and buy something else but don’t absolutely need to sell, so they have not come to terms with the new market realities yet, or they just don’t need to. Once this changes we will have a better idea of what the market will bear.

 

[ChrisH]

At 1000 miles I would say to compare it with the same car new in current prices and take $5,000 off that.

 

[Zorg]

A "car is worth" whatever someone will pay for it... so OP, if "the used market has not adjusted yet" that means "the used market has not adjusted yet" and "your friend" can price accordingly.

Sellers May not have adjusted but buyers have.

New price less current tax incentive less 10% is in the ballpark.

 

[jjrandorin]

Anyone that is planning on selling now was planning to take a bath on the price anyway. Model 3s are not more than 1 to 1.5 years old, and any car sold that soon in its ownership is guaranteed to lose money (well 99.99% of them).

So, OPs friend was planning on losing a bunch of money selling so soon anyway. not sure why OPs friend made him / her responsible for figuring out pricing.

 

[Troy]

I think it makes more sense to compare the prices after adding the FSD (Fully Self-Driving) option. You can buy the same car but with AP and FSD brand new after tax credits for $47,250.

New Model 3 LR with FSD:
$43,000 Model 3 LR
$3,000 Autopilot
$5,000 Fully Self-Driving
-$3,750 Current federal tax credit
Total= $47,250

Therefore the used car with AP and FSD should be 90% of $47,250= $42,525 but including AP and FSD. In other words, instead of paying $47,250 for a new Model 3 LR with FSD, somebody could buy the same car used with 1,000 miles on it for $42,525 because the 10% discount would be worth it to some people.

Assuming this car doesn't have Enhanced Autopilot, adding Basic Autopilot and Fully Self-Driving would cost 2+3=$5K. Therefore the price should be $42,525 -$5,000= $37,525 if it doesn't have EAP. If it has EAP, then adding FSD costs $2,000. In that case, the price should be $42,525 - $2,000= $40,525.

I think these are the maximum prices you could ask for because this method maximizes the value of the car by making use of the advantageous AP and FSD upgrade prices for used Teslas. That's how much the used car would be worth to somebody who wants FSD but not everybody wants FSD. Most people would be happy with the new basic Autopilot. Therefore we can calculate how much it would be worth if somebody wants EAP or AP but not FSD. In that case, the price of a new car would be like this:

New Model 3 LR with AP:
$43,000 Model 3 LR
$3,000 Autopilot
-$3,750 Current federal tax credit
Total= $42,250

Assuming the car doesn't have EAP, adding basic AP would cost $2,000 (you can't add Enhanced Autopilot anymore). Therefore the calculation would be 0.9*$42,250 - $2000= $36,025.

Assuming it has EAP, I think the difference between EPA and AP is worth a $1000 bonus. The old EAP is better than the new AP because it includes (1) Navigate on Autopilot on the Highway, (2) Autopark (3) Basic Summon. In that case, the car would be worth 0.9*$42,250 + 1000= $39,025 if it has EAP.

Car doesn't have EAP: Worth between $36,025-$37,525
Car has EAP: Worth between $39,025-$40,525

 

[Matt L]

The US is not a single car market. Greatly depends on where you are selling it.

Also, passing on previous tax credits to current buyers doesn’t make sense to me.

Bottom line...find out what is for sale locally and based on options and add-one...be slightly cheaper than them.

 

[jjrandorin]

I think it makes more sense to compare the prices after adding the FSD (Fully Self-Driving) option. You can buy the same car but with AP and FSD brand new after tax credits for $47,250.

New Model 3 LR with FSD:
$43,000 Model 3 LR
$3,000 Autopilot
$5,000 Fully Self-Driving
-$3,750 Current federal tax credit
Total= $47,250

Therefore the used car with AP and FSD should be 90% of $47,250= $42,525 but including AP and FSD. In other words, instead of paying $47,250 for a new Model 3 LR with FSD, somebody could buy the same car used with 1,000 miles on it for $42,525 because the 10% discount would be worth it to some people.

Assuming this car doesn't have Enhanced Autopilot, adding Basic Autopilot and Fully Self-Driving would cost 2+3=$5K. Therefore the price should be $42,525 -$5,000= $37,525 if it doesn't have EAP. If it has EAP, then adding FSD costs $2,000. In that case, the price should be $42,525 - $2,000= $40,525.

I think these are the maximum prices you could ask for because this method maximizes the value of the car by making use of the advantageous AP and FSD upgrade prices for used Teslas. That's how much the used car would be worth to somebody who wants FSD but not everybody wants FSD. Most people would be happy with the new basic Autopilot. Therefore we can calculate how much it would be worth if somebody wants EAP or AP but not FSD. In that case, the price of a new car would be like this:

New Model 3 LR with AP:
$43,000 Model 3 LR
$3,000 Autopilot
-$3,750 Current federal tax credit
Total= $42,250

Assuming the car doesn't have EAP, adding basic AP would cost $2,000 (you can't add Enhanced Autopilot anymore). Therefore the calculation would be 0.9*$42,250 - $2000= $36,025.

Assuming it has EAP, I think the difference between EPA and AP is worth a $1000 bonus. The old EAP is better than the new AP because it includes (1) Navigate on Autopilot on the Highway, (2) Autopark (3) Basic Summon. In that case, the car would be worth 0.9*$42,250 + 1000= $39,025 if it has EAP.

Car doesn't have EAP: Worth between $36,025-$37,525
Car has EAP: Worth between $39,025-$40,525

This is good analysis, however in most cars brands, options devalue quite a bit... many times, to zero (a 3 year old BMW with 15k in options is only worth, in general, about 500-1k more than one without those options, if one of those options is not the bigger engine).

To me, this would be doubly true for a tesla, because, unlike a BMW which you basically can not add options aftermarket to, both EAP/ AP and FSD are options that can added AFTER manufacturing. This means that there is zero reason for a person to "search for a car with EAP / AP on it" because they can add the same features whenever they want.. from the manufacturer. The only reason they would search for those options would be to pay less than it costs to add from tesla.

If I was looking at used tesla it would be more important that it had the ABILITY to install those options from the factory (which hardware does it have / when was it manufactured). Them being factory installed has almost zero worth to me, but I could be talked into 25% to 50% worth (so 1k for AP and up to 2.5k for AP/FSD worth) If I liked the car (good condition , etc).

So in your analysis above, I would only give that weight to AP / FSD since you can get it whenever you want yourself on your used car if you decide you want it.

@Matt L You are correct, the US is not one market so that matters. I disagree with you about the tax credit though. Since a buyer gets that if they buy new but not if they buy used, the new car price is reduced by the tax credit, and the price of a new version of a used car absolutely affects the used car value.

 

[TJtv]

Need to be more specific, what are the options? EAP? Color, mileage? For example my LR3 with EAP, 19inch wheels, pear white and 6k miles is probably worth like 45k.

I think that is an overly optimistic valuation. A brand new pearl white, 19inch LR3 with AP sells for $49.5k - $3750 tax credit = $45750. You could argue that your EAP has some extra value on top of AP, so maybe another $1000? But then you've got 6k miles on it. I think you'd be lucky to get $40k.

 

[Matt L]

This is good analysis, however in most cars brands, options devalue quite a bit... many times, to zero (a 3 year old BMW with 15k in options is only worth, in general, about 500-1k more than one without those options, if one of those options is not the bigger engine).

To me, this would be doubly true for a tesla, because, unlike a BMW which you basically can not add options aftermarket to, both EAP/ AP and FSD are options that can added AFTER manufacturing. This means that there is zero reason for a person to "search for a car with EAP / AP on it" because they can add the same features whenever they want.. from the manufacturer. The only reason they would search for those options would be to pay less than it costs to add from tesla.

If I was looking at used tesla it would be more important that it had the ABILITY to install those options from the factory (which hardware does it have / when was it manufactured). Them being factory installed has almost zero worth to me, but I could be talked into 25% to 50% worth (so 1k for AP and up to 2.5k for AP/FSD worth) If I liked the car (good condition , etc).

So in your analysis above, I would only give that weight to AP / FSD since you can get it whenever you want yourself on your used car if you decide you want it.

@Matt L You are correct, the US is not one market so that matters. I disagree with you about the tax credit though. Since a buyer gets that if they buy new but not if they buy used, the new car price is reduced by the tax credit, and the price of a new version of a used car absolutely affects the used car value.

I was specifically talking to the example above where they reduced the price by $7500. Just because I go that doesn’t mean you pass that on.

Reality is, Tesla got it.