Slap in the face by Tesla - Trade-in value £20k less than I paid Tesla just 18 months ago.

[intothesunset]

Three thoughts; 1) Cars are [typically] not an investment. Thinking so is just going to get you frustrated. B) Used car market has changed A LOT in 18 months. Single data point, I was offered $64k USD for my '20 about 18 months ago. Now, I'd be lucky to get $40k. C'est la vie. 3rd) Tesla is in the new car market, not used car market. There is no incentive for them to be competitive. Go to a 3rd party used car buyer if you want top dollar. Better yet, sell it privately.

Everything you purchase or expend resources towards is an 'investment'. I bought the car expecting to get an ROI in the form of transport from A to B, fuels savings, enjoyment, customer experience, access to new technology etc. but part of that calculation is depreciation because that defines the real cost. The 25% depreciation in 18 months of a used vehicle already makes it a poor ROI, the trade-in valuation is just a slap in the face on top.

This has been a great exercise in turning a potential new purchase into a sale and bad customer experience. Again, what is even the point of such a bad offer if not to offend the customer.

 

[BelfastEV]

Ordered a red Highland m3

What should I expect for my 80k miles Nov-19 white SR+ ? £20k?

 

[Kansalis]

This has been a great exercise in turning a potential new purchase into a sale and bad customer experience. Again, what is even the point of such a bad offer if not to offend the customer.

I very much doubt there was much human interaction in the calculation of the trade in price you were given. It's quite likely to have been fully automated based on some kind of profit and risk calculation. A downside of not having a dealer network to negotiate with. If you were doing a similar trade in with (almost) any other marque, you'd be in the negotiation phase and would likely see some movement in the financial gap between your old car and the cost of the new one. Tesla obviously doesn't work like that, as we know.

At the moment, Tesla are very much in the position that they don't need to actively "sell" cars. They can be pretty sure every car they produce will be bought, with no effort from them. They don't need to negotiate with potential customers on price & don't care if x number of potential customers go elsewhere, there are plenty more willing to just buy up the inventory.

 

[Wattsisname]

All in all, the OP's experience is a , perhaps extreme, example of the fact that it is better to sell privately ( in my experience) and in the case of the traditional dealer scenario, negotiate the best straight buy deal.
However, care should be taken to prepare the car for a private sale; this is less important when trading in.

 

[PITA]

I'd end up just keeping my Tesla and literally run it into the ground.

Extract every penny invested, and then hang it on the side of my house with the wheels removed for some home battery storage.

 

[Wattsisname]

If I may be forgiven a move off topic, how accurate ought our vehicles' valuations be for insurance purposes? I know that if the car is written off, the payout will be the insurer's decision on current market value.
However, as we know, the insurance stoats have been sharpening their claws ( and clauses), so I would not want to fall foul of any weasel words in this regard.

 

[M1tch]

The OP is trading in an S.

The comment I replied to was reference a M3 and his depreciation.

 

[kelvin 660]

If I understand correctly, the OP's car is nearly 8 years old and the battery warranty is about to expire. Not many people want to take a gamble on buying an expensive car and risk an expensive battery failure!
If Tesla wants to improve this situation, and make their cars valued, they need to offer, economic, extended battery warranties.
The same applies to other EV brands.

 

[pgkevet]

True.
Tesla's trade in value for a car that I bought 4 months ago for $35k is $24k.
Tesla is killing their own product.
There is only one explanation for this. That their cars is very cheap to make. A model 3 is probably cost $18k to built.

It likely costs even less than that until you factor in the build and running costs of gigafactories and showrooms and r&d.
Many are fans of the Tesla ethos but I'd be reluctant to own another, Indeed from the sustainability viewpoint I quite like the idea of cars from past eras before all the fancy electronics and sensors when it was possible for any half competent mechanic to fix the things cheaply. But I’d like it to have disc brakes and airbags and a/c and wheel/tyre combinations that keep it on the road. What you might lose in running emissions would be more than repaid by not building replacement cars.

 

[SR-Plus]

I don’t think a p90D 2016 is worth £30k privately, maybe £25k tops. All EVs have come down in value, even the Ioniq 5 with the 77kWh battery can be had for around 27-30k and they were 55k 18 months ago.

 

[Wattsisname]

I don’t think a p90D 2016 is worth £30k privately, maybe £25k tops. All EVs have come down in value, even the Ioniq 5 with the 77kWh battery can be had for around 27-30k and they were 55k 18 months ago.

It will be interesting to see if depreciation becomes a factor in the new EV purchasing decision.
In my own case, the desire to buy a new Y , before they were available here, owed nothing to cost, ROI, or common sense.
It was pure irrational desire. Such decisions sometimes bite us in the bum later. So seems to be the case with Tesla depreciation - if I sell her. But I wont.
So that's OK then

 

[mick4545]

A couple of months ago I considered trading in my MY for a Toyota. They wouldn’t even accept the MY at all. Gave me directions to WBA.

 

[Fursty Ferret]

December 2016 Model S P90 upgraded to HW3 and MCU2

Look at it from a statistical point of view - it's seven years old, high mileage (assumed because you didn't mention it), out of warranty, and out of battery warranty. They expect to lose ~£15,000 on this car in warranty work either after the initial sale or before actually selling it.

So it's actually quite interesting to anyone thinking of buying an older Model S as it implies that there might be £15,000 worth of rectification work in the near future.

 

[intothesunset]

Look at it from a statistical point of view - it's seven years old, high mileage (assumed because you didn't mention it), out of warranty, and out of battery warranty. They expect to lose ~£15,000 on this car in warranty work either after the initial sale or before actually selling it.

So it's actually quite interesting to anyone thinking of buying an older Model S as it implies that there might be £15,000 worth of rectification work in the near future.

It is in warranty until December 2024.

 

[Kansalis]

It is in warranty until December 2024.

I think this may be one of the large factors in your issue. Having just over a year left on a battery warranty is going to make selling the car difficult, which Tesla obviously know.

Have you tried WeBuyAnyCar, Cazoo, Motorway etc? They gave me a slightly higher offer than Tesla when I was exchanging, but in my case not enough to make the extra step worth it. You could get lucky with a higher quote if their pricing system works out in your favour.

 

[intothesunset]

I think this may be one of the large factors in your issue. Having just over a year left on a battery warranty is going to make selling the car difficult, which Tesla obviously know.

Have you tried WeBuyAnyCar, Cazoo, Motorway etc? They gave me a slightly higher offer than Tesla when I was exchanging, but in my case not enough to make the extra step worth it. You could get lucky with a higher quote if their pricing system works out in your favour.

I'll just sell it privately where the prices are more reasonable and where the Enhanced Autopilot, MCU2, HW3 and free Premium Connectivity will be taken into account. But I won't be buying another Tesla now, probably ever.

 

[Wattsisname]

I'll just sell it privately where the prices are more reasonable and where the Enhanced Autopilot, MCU2, HW3 and free Premium Connectivity will be taken into account. But I won't be buying another Tesla now, probably ever.

Or, buy one more and keep it for many years

 

[Durzel]

The price they offer you is simply reflective of their desire (or lack thereof) to buy your car. It's not a personal attack.

18 months ago prices for used cars were bonkers. I got offered - by Tesla - £55,700 for my 2020 M3P in April 2022. Last time I checked their offer was in the low 30s and I suspect it's even lower now. If I just looked at those numbers without context it would seem like my car has lost £25k+, not far off half its "value", in the space of a year.

The unfortunate reality is that you paid "over the odds" for your Model S when you got it 18 months ago, and the market has now corrected itself. Sometimes this happens and people end up on the wrong side of it, facing a disproportionate loss. It's just what it is I'm afraid. Tesla couldn't sell your car for £30k now, so any offer they make to you has to reflect that.

 

[GlynG]

When you first select your next car your head is totally in love with the idea of getting it - your "desire" drives you. The car you have - and want to part Ex, or sell you've fell out of love with - you want rid of it, businesses that buy cars know this and use that basic psychology to enhance their deal - so you get a low ball offer. They know selling privately is full of pitfalls, tyre kickers, scams and damn inconvenient - we all like getting a price and simply swapping the car on the forecourt and driving away with the new shiny toy - and that has a value we all have to pay for.

When we buy a car we all look for the newest, best condition, lowest miles, highest spec and lowest price and we juggle our wants with the price we are prepared to pay or fits within our monthly commitments.
The truth is - we want to get rid of what we have more than a dealer wants our old car.
In fairness a dealer has to prepare the car for sale, fix issues and has to provide a 6 month all encompassing warranty courtesy of the Consumer Act which states - any faults discovered within the first 6 months are deemed to have been present at the point of sale and therefore the retailer has to fix them or provide a full refund, so they do have a potentially significant liability that needs to be covered, plus, they want to sell it quickly - so it has to be competitive price wise.
A private seller has little to no obligation in law, It must be legal etc and the basics but you have to treat private sales as buying "as is" or "Caveat Emptor" - let the buyer beware. Private sellers therefore can command a higher price than they would be offered by a trade in and still be selling for less than a trader can do.

Every single car I have ever bought over the last 50 years I've lost money on, however that is my expectation, My cars have always been sold in better condition than i bought them - not only cosmetically but also mechanically as I've never scrimped on maintenance.
Cars are not only a form of transport for me but a hobby and hobbies cost money. I do love my cars.
I tend to think I've lost nothing until the day i decide to sell because used sale prices vary from day to day.

 

[AndyWarrington]

Or, buy one more and keep it for many years

Which is exactly what my plan is - IRO of 8 & hopefully no real issues in that time...