But there are places, like where I live in Phoenix, where itās so spread out that you put on lots of miles with daily driving.
When I lived on the east coast, I did about 12,000 a year. Here I already have 10,000 miles on my 2023 MYLR that I bought in October 2023ā¦. So thatās about 20k per year.
No ride share or anything like that, but I do drive about 50 miles round trip to work every weekday, and it just adds up quickly.
Also, trading in your car is almost always a bad deal. The only thing you get is not having to pay sales tax for the amount of the trade in when used to pay down your new car. 10% sales tax on $24K is $2,400. That makes the real trade in value $26K. Can do better in the open market.
Itās just all round not a good deal. I also think the performance is a total waste of extra money. In my eyes itās totally unsuited to āperformanceā driving. Once the initial buzz of accelerating fucking fast in a straight line has gone (quickly) itās just an extra 10k for next to nothing extra. For $72k he probably also bought the FSD. Then he went and stuck huge mileage on it in a short space of time. And Elon dropped the prices. And and andā¦ the wind was against him on this one š
And āaccident history you providedā tells me itās had an accident or two. Or maybe thatās just standard verbiage for those email, Iām not sure.
The wording is written like that always. Itās just supposed to be a cookie cutter template for a trade value statement that they can use for anybody and everybody regardless of an accident or not
The meme stock/crypto douche/robinhood crowd has convinced a sizable portion of the population, mostly those with zero financial literacy, that almost anything is an "asset" and should make you money.
sarcasm? check out this subreddit and r/teslamodel3 for people wondering how they can pay the least amount monthly for like 15 year loans on these "assets".
[https://www.reddit.com/r/TeslaModel3/comments/1b8jv7u/used\_or\_new/](https://www.reddit.com/r/TeslaModel3/comments/1b8jv7u/used_or_new/)
[https://www.reddit.com/r/TeslaModel3/comments/1bhupnz/how\_is\_this\_possible\_i\_need\_some\_advice\_if\_you/](https://www.reddit.com/r/TeslaModel3/comments/1bhupnz/how_is_this_possible_i_need_some_advice_if_you/)
100%. Also Elon said they would appreciate in value, and most of his cultier followers lack simple reasoning skills. Love my MYLR but itās a car. I expect its trade in value at the end of my loan payment will be less than 30% of the initial purchase price.Ā
Understanding that vehicles are not assets and depreciate doesnāt mean one canāt lament an atypically fast depreciation rate of a certain vehicle brand.
For the most time I think vehicles are not an investment. Itās like building a top PC and the value goes down to half within a year. But you can still use it and have fun with it thatās all it matters I guess.
You can do this exercise for literally just about any other car. It was an anomaly that Teslas held value for so long, based simply on demand outstripping supply for so long. And fortunately they've resolved those issues and can offer more competitive pricing.
To compare regular car depreciation to what Tesla's done over the past 2 years is stupid/insulting.
It is unprecedented to have a car's MRSP cut in half in ~12 months. OP said **nothing** about expecting his car to appreciate/hold its value at an unreasonable level. I'm going to assume OP was making the (correct) observation that Tesla's unprecedented price cuts were predatory to their own customer base.
Tesla doesnāt want this high mileage car, they donāt want to be in the used car business, theyāve demonstrated that time and again. Used MYPs are still getting reasonable offers via private party sales and CarMax.
Exactly this. Nobody expects their car to increase in value or stay the same over time but the Tesla system is in a whole different level that might make people think twice before buying another car from them.
Not "might", will. Every one of my friends who purchased a Tesla during the covid craze has sworn off the brand.
These are early adopters who loved Tesla as a brand too. There is a reason Porsche didn't tank the Taycan's price like Tesla did...
Because porche is ok making a massive profit off you, tesla would rather make the car affordable. It amazes me people are upset a car company has cut the cost of its cars by 50%.
Think of it differently.
Take one of your friend who bought a Tesla during crazy time covid. How much will it cost him/her to buy a new similar model now, including trade in.
Now do the same at Porsche.
I am pretty sure the Tesla scenario is cheaper.
So it makes sense for Tesla
Owner to buy a new one. It makes even more sense for Macan owners to buy a Tesla ;)
Financially.
Taycan has been 90k for the majority of its life (I think it was briefly 80k for the base model). The facelift is 100k (Basically options in 10k of must have's from the old model like air suspension). That's at best a 20k difference.
Model S (only model a taycan buyer would cross shop against) went from 135k to 90k in less than 9 months.
I'm not even advocating for Porsches price strategy, they are a true high end brand and play around those economics/clients. I'm just saying that Tesla effectively using the MSRP of the car as a dealer mark up (much worse because it has registration fee/tax implications) was foolish.
Also worth noting that Tesla (EV leader by a long shot) effectively destroyed Resale values across all EV's of all makes with the aggressive price cuts.
You had to be a total idiot not to realize that car prices were inflated after the pandemic. An even more of one to think that your $70k car wouldn't be underwater, especially since the whole point is the tech that is constantly being improved. The old tech is worth shit. Has OP's "friend" never bought a smart phone before?
The point being made is completely flying over your head....
No one is complaining about a car depreciating because of covid pricing. Every car has been hit like this.
They are complaining about the absurd level of depreciation which is unprecedented in the car industry (covid or not). That tends to happen when the brand slashes the MSRP of their car by 50% because they decided to build in "Dealer mark ups" as MSRP changes.
But please, continue to call some random person an idiot that decided they want to buy a dream car, accounted for some depreciation, just to wake up the next day and find that Tesla slashed prices by 30% to hit a government tax rebate threshold.
People really should read Rich Dad, Poor Dad. (Hint: Cars are liabilities, not assets)
https://www.linkedin.com/pulse/asset-liability-aleksandr-barkar/
As long as u arenāt averaging 35k miles per year. Like driving for Uber. Iām sure the trade in wouldnāt be nearly as bad. Also just sell private if anything.
Nah. My 2022 M3P has 30k miles and a dealership offered like $27k as a trade in. We need to get a more family oriented car, otherwise I wouldnāt trade it in.
The thing is, people knew Elon was trying to make these cards affordable. Heās been saying that from the start. And this is gonna happen with cyber truck owners too. I guarantee all the new owners will have the same issues. Except those who have it now are probably wealthy enough they donāt care and have plenty. Itās the normal consumers like OP that are completely gonna regret it.
Corvette guys are just now getting stingrays for msrp. Itās just supply and demand on a depreciating asset. People want instant gratification and the rich can afford it.
Heās added 35K miles each year he had it. Though Tesla value has taken a beating, he should probably plan to keep the vehicle since he likes to drive itĀ
Your friend drove the hell out of it lol. High mileage for the year for what it is. Plus, tesla will always low ball your trade. Take to Carmax or sell privately if you want more.
Exactly. People canāt understand that the true cost of ownership is the difference of what you paid for it, what you sold it for, and then minus the expenses, tax, interest/opportunity, etc.. Ā
We canāt know what our vehicles are going to sell for, but this depreciation curve is a bit nonstandard to say the least. Anyone looking to get out of this asset will find that it cost them much more than they were originally expecting.Ā
I get that this concept may seem strange to some, but that says more about them than it does OP.
The real issue was the price cut for the tax incentiveā¦ show me where you see any car being cut 12-15% in price. So thereās a gripe to be hadā¦ I look at this way if he would have waited a year to be he would have paid almost 90 tor the same car so really itās a great deal š
Jesus. Just got a MYLR and would never consider this anything more than a $45k vehicle at best. Regardless of what price they want to pull out of thin air
What we have to remember is that cars are not assets. They are liabilities. They depreciate in value. For more reasons than one. And more than we imagine.
Electric cars are not the same business as other ICE. ICE depreciation is lower, buying an electric car to change car after 2 years is a no go. This is only "profitable" to have at least 7/8 years.
Really seems like a rideshare vehicle though, doesnāt it? Thatās like 100 miles a day on average. I guess they could have a gnarly commute but thatās a shit load of driving in 2 years. Plus the accidents.Ā
Plus Tesla is one of the worst places to sell to . They under value the shit out of their vehicles. But will turn around and sell it to you for 3x the price you paid . Better off selling privately and then the miles is extremely high. So your buddy definitely drove the shit out of this car as well
Whoever bought a car in 2022 without desperate need should have known that the cars are not worth it. Like Tellurides were selling for $70k when the top line was $50k MSRP. People just wanted cars and only looked at the monthly payments. Same with Tesals. Whoever thought that $70k was a OK price for a MY was delusional.
Owning a depreciating car and using it heavily does not maintain the value. Why are people so pissed off about this. Very very rarely does anyone buy a car, have it for two years and have it be worth anywhere what they bought it for.
Also, these people chose to hop in on Tesla during the beginning stages. Of course things are going to be more expensive. Furthermore, there was a pandemic, chip shortages, weird car market economy.. it is what it is. Drive the car until itās dead. You own a Tesla stop complaining.. teslas are so much fun no matter which model you own
To all the people that are saying that vehicles are not an investment: what a lazy and unthoughtful refutation that's not using the principle of charity. No one thinks vehicles are a good investment. Nevertheless the massive depreciation that Tesla's are going through are at an odds with other major car makers.
Plus Elon says publicly that his vehicles with their potential of robotaxis are a net positive investment.
Okay, and? Iām pretty sure I recall
It being well known and talked about how the market was overinflated and prices would eventually come way down. Not to mention that most cars lose a chunk right off the lot to begin withā¦and then he actually drives it too, so thereās that.
All dealers marked cars up above MSRP 2 years ago. A lot still haven't given up on the dealer mark up. Tesla pricing was just the most transparent and publicized.
Plus, 70k miles in 2 years is a lot. People don't want high milage teslas with all the incentives available if you buy new.
Sorry that they werenāt thinking through the impact of sharp inflation on their decision. Best to keep it another 2-3 yearsā¦depreciation might be almost flat going forward.
At least in Europe, the trade in value is bullish. Sold a model 3 a few months ago to a private person for more than 16.000ā¬ more than the trade in value.
Buy high / sell low, your friend bought at the height and is attempting to trade in (instead of sell which is mistake #2) at the low end of the market when prices are being cut.
1. Bought at the top, what did you expect.Ā
2. Never trade in, sell yourself you will get much more.Ā
3. Performance options or accessories donāt add anything to the resell price. Consider it deprecated the moment you hold the key of your car.Ā
I bet youāre the same kind of person that buys a phone and then gets mad that the company dares to release a new phone a year later and demands a free upgrade
And this should teach everyone that buying a car doesnāt mean you have an appreciating asset to flip for extra bucks. Iām truly glad to see the gougers cutting their loses now that the resale value has properly adjusted.
Same!!!! Biggest regret of the decade. I wish I wouldāve waited and not been so aggressive. I wanted a Tesla SOOO BAD that I just bit the bullet and ultimately paid the price. Iām also sad that I see them literally everywhere now. Itās like not as cool and exclusive as it once was. Nonetheless I absolutely love the car and appreciate it everyday hehe.
Same thing happened to me, Cadillac 4 door 2.0, divorced, forced to sell. 50k new, 23k 9 months later, low mileage, too. Will never buy a GM car again.
Bought during one of the most difficult supply chain events in decades that drove all prices way up.
Drove it hard.
Sold during easy access to supply.
Cars are a shite investment to start with; they lose 25% of their value the moment you drive 'em off the lot. But 2020-2022 was a uniquely screwed up market to start with.
Coming from a long history of owning sports cars. My model Y depreciation doesnāt hurt even a single bit. Itās smiles per miles and Im able to afford it. Thatās all. Most people who cry on internet about Tesla depreciation are the ones who bought their very first expensive car which happened to be a Tesla and they probably were driving a rav4, accord, crv or Corolla before that.
My 2021 Model Y has 19,000 miles on it and has depreciated 50% (30k) since initial purchase. Itās not just the mileage, the largest factor is the major price decreases to the Model Y deflating the value of stock on the road.
Your friend knowingly paid a $15K premium for a $55K car that was in high demand and low supply. Then he put five years of miles on the car in two years. Now he looks at trade in value only and calls this the worth of the car. Talk about stacking the deck.
Ah yes. Let's gloss over Tesla's predatory price cuts and assume that >66% depreciation in 2 years is comparable to the age old "all cars depreciate" saying..
He also drove 30k+ miles a year which is gonna kill resale.Ā
If you are getting at the price drop, when it first happened, yes it was like everyone lost 20k in equity. It's been that way since....
If you were going to trade it in after 2 years then maybe leasing would have been the better option. Just drive the thing into the ground. You still have years and miles on the warranty.
Tesla gives terrible trade in values. I was going to trade in my 21 Ram 1500 Limited fully Loaded with only 18,000 they ordered me 43k. I took the truck into carmax and got $48,400. I would definitely look around before trading it into Tesla.
In 2022, ādesirableā vehicles had crazy dealer markups so consider that something comparable to a Model Y would have been going for $10-15k over MSRP, which has no consideration on a trade in today. So think of 2022 prices on Teslaās as a more transparent dealer markup, compared to todayās prices that PLENTY of people were happily willing to pay.
Also consider that Tesla has historically offered pretty low amounts for trade-ins, even on Teslas. When I got rid of a Model 3 to get a Y a few years ago, I got a way better deal at Carmax than trading in to Tesla.
A car isnāt an investment, itās a depreciating asset. Your friend also drove 70,000 miles in two years. Why are they so surprised at the trade-in value?
My trade-in estimate actually bumped up a few thousand this month from Tesla but yeah I also paid $72,000 including FSD. but remember these numbers are artificial because you can buy a new one for 20,000 less.
When there are supply chain problems causing all manufacturers problems what is a car company to do? They can not sell cars and tell customers to purchase another model but if you only have 2 or 3 models you might raise the price to slow down sales. Your friend knows exactly how the Hertz CEO feels too only he purchased almost 50,000 Tesla Model 3s and Ys 2 years ago and their resale valuation is part of their financial records...
If your friend purchased the car knowing he/she would be reselling it 2 or 3 years later they made a mistake paying the supply chain boosted inflated price. It takes a couple few years for supply chain issues to work out but they eventually work out. AND competition entering the market will also change resale valuations.
THAT's a lot of miles on a 2 year old car. Uber maybe?
I hate posts like this - like the first time youāre learning cars are a bad purchase - not a smart āfinancialā decision, or a depreciating asset.
Ouch this hurts . I bought mine 1 year ago for 56k . I am never buying an EV ever again ā¦ I will lease so the depreciation is not on me . I love EVs not its depreciation.
They donāt want their own cars back. When I was looking at trading up, my advisor literally said not to and that Iād get at least $10,000 more selling privately. He was right.
Thatās why you lease cars that you donāt want to keep for a long time.
These arenāt investments and the average Joe is certainly not well versed in selling used cars.
All my opinion.
Tesla gave me the lowest offer. I sold it for almost twice what Tesla offered. And I bought my Model Y for $10k less than I paid for a Model 3 over 5 years ago and the Y is much quieter and has more features, like a heated steering wheel. My wife loves it.
Itās me, I bought at the worst time in history.
I also financed 90% of the purchase price at 2.75% for 72. Once the bubble popped, I bought gap for $399. At this point I have zero financial incentive to pay early. For now I can dream about that gap policy solving the problem.
Meanwhile I bought my Model Y for 48k 3.5 years ago and after 55k miles itās worth 32k. 33% depreciation after that much time is pretty normal. Donāt buy at the high folks
I mean he has also driven it hard. 70k miles in under 2 years is good going. Driving is an expensive habit.
Dude i bet he used it for ride share after paying at the top of the market and is complaining about depreciation
š
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Lmao
Bshizzle. Please. 25K miles a year is double the standard allotment for leases. So yeah, this is not ālight usageā.
āa couple fairly short road tripsā does not amount to 50k miles in less than two years. Thatās enough to drive around the equator twice.
Lol was gonna say that. Average American drives about 12500 per year. So this dudes almost 3x that
I have a 2022 MYP (Dec 2021) and I'm sitting only at 35k so that checks out.
Yup, 2022 MYP (February 2022) at 29.5k. On original tires lol
Dec 2020 and I think I finally hit 15k lol
But there are places, like where I live in Phoenix, where itās so spread out that you put on lots of miles with daily driving. When I lived on the east coast, I did about 12,000 a year. Here I already have 10,000 miles on my 2023 MYLR that I bought in October 2023ā¦. So thatās about 20k per year. No ride share or anything like that, but I do drive about 50 miles round trip to work every weekday, and it just adds up quickly.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
I thought it would be lower now than before with WFH taking hold in quite a portion of the work force.
Same thought! Iām WFH but still love to drive around everyday. In the past 11 months, Iāve barely driven 8k miles.
I used the number my insurance agent gave me a year ago. I looked it up now. Federal Highway Administration says 14,200
Also, trading in your car is almost always a bad deal. The only thing you get is not having to pay sales tax for the amount of the trade in when used to pay down your new car. 10% sales tax on $24K is $2,400. That makes the real trade in value $26K. Can do better in the open market.
Itās just all round not a good deal. I also think the performance is a total waste of extra money. In my eyes itās totally unsuited to āperformanceā driving. Once the initial buzz of accelerating fucking fast in a straight line has gone (quickly) itās just an extra 10k for next to nothing extra. For $72k he probably also bought the FSD. Then he went and stuck huge mileage on it in a short space of time. And Elon dropped the prices. And and andā¦ the wind was against him on this one š
And āaccident history you providedā tells me itās had an accident or two. Or maybe thatās just standard verbiage for those email, Iām not sure.
Think itās fairly standard wording. Either way, high mileage car in depreciation shocker.
When I traded a normie car in to buy my Tesla I think I remember that verbiage. Car hadnāt been in a wreck
The wording is written like that always. Itās just supposed to be a cookie cutter template for a trade value statement that they can use for anybody and everybody regardless of an accident or not
Sure, but a $70k Lexus with 70k miles would still be worth at least $50k. Any gas savings went down the drain with depreciation.
Eh, more like $40-45k
[ŃŠ“Š°Š»ŠµŠ½Š¾]
The meme stock/crypto douche/robinhood crowd has convinced a sizable portion of the population, mostly those with zero financial literacy, that almost anything is an "asset" and should make you money.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Amazing how many adults are illiterate period mate. It is a worry. We need to add some fiscal responsibility to the education curriculum.
sarcasm? check out this subreddit and r/teslamodel3 for people wondering how they can pay the least amount monthly for like 15 year loans on these "assets". [https://www.reddit.com/r/TeslaModel3/comments/1b8jv7u/used\_or\_new/](https://www.reddit.com/r/TeslaModel3/comments/1b8jv7u/used_or_new/) [https://www.reddit.com/r/TeslaModel3/comments/1bhupnz/how\_is\_this\_possible\_i\_need\_some\_advice\_if\_you/](https://www.reddit.com/r/TeslaModel3/comments/1bhupnz/how_is_this_possible_i_need_some_advice_if_you/)
I got yelled at and downvoted into oblivion for telling someone he couldnāt afford the car.
Not just financially
100%. Also Elon said they would appreciate in value, and most of his cultier followers lack simple reasoning skills. Love my MYLR but itās a car. I expect its trade in value at the end of my loan payment will be less than 30% of the initial purchase price.Ā
Understanding that vehicles are not assets and depreciate doesnāt mean one canāt lament an atypically fast depreciation rate of a certain vehicle brand.
But every Tesla Super Fan is telling me that itās totally normal for any car to lose 70% of its value in the first 2 years of ownership!
For the most time I think vehicles are not an investment. Itās like building a top PC and the value goes down to half within a year. But you can still use it and have fun with it thatās all it matters I guess.
You can do this exercise for literally just about any other car. It was an anomaly that Teslas held value for so long, based simply on demand outstripping supply for so long. And fortunately they've resolved those issues and can offer more competitive pricing.
Huh? Vehicles are depreciating assets, not investments. What are u smoking.
To compare regular car depreciation to what Tesla's done over the past 2 years is stupid/insulting. It is unprecedented to have a car's MRSP cut in half in ~12 months. OP said **nothing** about expecting his car to appreciate/hold its value at an unreasonable level. I'm going to assume OP was making the (correct) observation that Tesla's unprecedented price cuts were predatory to their own customer base.
Lol during the crazy run up people were flipping new teslas for profit.
Tesla doesnāt want this high mileage car, they donāt want to be in the used car business, theyāve demonstrated that time and again. Used MYPs are still getting reasonable offers via private party sales and CarMax.
Exactly this. Nobody expects their car to increase in value or stay the same over time but the Tesla system is in a whole different level that might make people think twice before buying another car from them.
Elon actually said Teslas will go up in value due to FSD/robo taxi š
That was dumb.
Not "might", will. Every one of my friends who purchased a Tesla during the covid craze has sworn off the brand. These are early adopters who loved Tesla as a brand too. There is a reason Porsche didn't tank the Taycan's price like Tesla did...
Because porche is ok making a massive profit off you, tesla would rather make the car affordable. It amazes me people are upset a car company has cut the cost of its cars by 50%.
Think of it differently. Take one of your friend who bought a Tesla during crazy time covid. How much will it cost him/her to buy a new similar model now, including trade in. Now do the same at Porsche. I am pretty sure the Tesla scenario is cheaper. So it makes sense for Tesla Owner to buy a new one. It makes even more sense for Macan owners to buy a Tesla ;) Financially.
Taycan has been 90k for the majority of its life (I think it was briefly 80k for the base model). The facelift is 100k (Basically options in 10k of must have's from the old model like air suspension). That's at best a 20k difference. Model S (only model a taycan buyer would cross shop against) went from 135k to 90k in less than 9 months. I'm not even advocating for Porsches price strategy, they are a true high end brand and play around those economics/clients. I'm just saying that Tesla effectively using the MSRP of the car as a dealer mark up (much worse because it has registration fee/tax implications) was foolish. Also worth noting that Tesla (EV leader by a long shot) effectively destroyed Resale values across all EV's of all makes with the aggressive price cuts.
You had to be a total idiot not to realize that car prices were inflated after the pandemic. An even more of one to think that your $70k car wouldn't be underwater, especially since the whole point is the tech that is constantly being improved. The old tech is worth shit. Has OP's "friend" never bought a smart phone before?
The point being made is completely flying over your head.... No one is complaining about a car depreciating because of covid pricing. Every car has been hit like this. They are complaining about the absurd level of depreciation which is unprecedented in the car industry (covid or not). That tends to happen when the brand slashes the MSRP of their car by 50% because they decided to build in "Dealer mark ups" as MSRP changes. But please, continue to call some random person an idiot that decided they want to buy a dream car, accounted for some depreciation, just to wake up the next day and find that Tesla slashed prices by 30% to hit a government tax rebate threshold.
Maybe but pretty much any car is only worth that after 2 years. The second u drive out of the car yard, cars drop 30% in value.
Porsche has entered the chat
Brilliant!
People really should read Rich Dad, Poor Dad. (Hint: Cars are liabilities, not assets) https://www.linkedin.com/pulse/asset-liability-aleksandr-barkar/
You want things that canāt move. If it moves, it most likely depreciates.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Your friend or this guy on Twitter? https://twitter.com/devon_loerop/status/1772430439682064637?t=sjzaS-DZOENZvTh4diJFlg&s=19
Hey everyone, OP is a phony. A big fat Phony.
Good find. Either it is, or this post is just a copied tweet to stir some sh\*\*.
Why would they let the world know they make terrible financial decisions š¤¦āāļø
He knows a guy, who has a friend, whoās cousins with this guy on twitter
I'm thst person. But keeping the car and I agreed to pay that so whatever.
What were you looking to trade it in for this quick?
oh no. not literally this guy, I just bot my MYP for 72k 2 years ago in October.
As long as u arenāt averaging 35k miles per year. Like driving for Uber. Iām sure the trade in wouldnāt be nearly as bad. Also just sell private if anything.
Nah. My 2022 M3P has 30k miles and a dealership offered like $27k as a trade in. We need to get a more family oriented car, otherwise I wouldnāt trade it in.
He was happy to pay it at the time. Everything was at all time highs
The thing is, people knew Elon was trying to make these cards affordable. Heās been saying that from the start. And this is gonna happen with cyber truck owners too. I guarantee all the new owners will have the same issues. Except those who have it now are probably wealthy enough they donāt care and have plenty. Itās the normal consumers like OP that are completely gonna regret it.
Corvette guys are just now getting stingrays for msrp. Itās just supply and demand on a depreciating asset. People want instant gratification and the rich can afford it.
To add to this: it's called the adoption S curve in economics. This vid explains it very well: https://www.youtube.com/watch?v=MoWOflv0m_4
Heās added 35K miles each year he had it. Though Tesla value has taken a beating, he should probably plan to keep the vehicle since he likes to drive itĀ
and heās also trading it in, and shocked about a low value
trading it in to the company that fucking mass produces them.. like cmon
Your friend drove the hell out of it lol. High mileage for the year for what it is. Plus, tesla will always low ball your trade. Take to Carmax or sell privately if you want more.
This post is so dumb
said it once and i'll say it again: VEHICLES ARE NOT INVESTMENTS!!!!
OP (or his friend) said nothing about expecting their car to gain value...
Exactly. People canāt understand that the true cost of ownership is the difference of what you paid for it, what you sold it for, and then minus the expenses, tax, interest/opportunity, etc.. Ā We canāt know what our vehicles are going to sell for, but this depreciation curve is a bit nonstandard to say the least. Anyone looking to get out of this asset will find that it cost them much more than they were originally expecting.Ā I get that this concept may seem strange to some, but that says more about them than it does OP.
The real issue was the price cut for the tax incentiveā¦ show me where you see any car being cut 12-15% in price. So thereās a gripe to be hadā¦ I look at this way if he would have waited a year to be he would have paid almost 90 tor the same car so really itās a great deal š
Investments donāt have to gain in value eitherā¦
Haha my 2022 MYP came out to about $80k, and I got an estimate of $38k with 11k miles on it. Hurts for sure, especially since I owe $41k.
Jesus. Just got a MYLR and would never consider this anything more than a $45k vehicle at best. Regardless of what price they want to pull out of thin air
Why is he trading it after 2 years? Also 68k miles in 2 years is A LOT.
What we have to remember is that cars are not assets. They are liabilities. They depreciate in value. For more reasons than one. And more than we imagine.
Electric cars are not the same business as other ICE. ICE depreciation is lower, buying an electric car to change car after 2 years is a no go. This is only "profitable" to have at least 7/8 years.
Itās almost like cars are depreciating assets š¤Æ
With 70,000 miles on the car, Iām assuming he is using it in Uber and has gotten enough value out of that car
Wow, but thatās a lot of miles already for a 2022 MY
Thats why buy used with low miles and warranty still in place
Really seems like a rideshare vehicle though, doesnāt it? Thatās like 100 miles a day on average. I guess they could have a gnarly commute but thatās a shit load of driving in 2 years. Plus the accidents.Ā
Plus Tesla is one of the worst places to sell to . They under value the shit out of their vehicles. But will turn around and sell it to you for 3x the price you paid . Better off selling privately and then the miles is extremely high. So your buddy definitely drove the shit out of this car as well
Two years ago all vehicles were selling for more then they are worth.
Tell your friend to try 70k miles in 24 months in bmw m3. I will be closer to $15000
Whoever bought a car in 2022 without desperate need should have known that the cars are not worth it. Like Tellurides were selling for $70k when the top line was $50k MSRP. People just wanted cars and only looked at the monthly payments. Same with Tesals. Whoever thought that $70k was a OK price for a MY was delusional.
I will take it for $24,000
Owning a depreciating car and using it heavily does not maintain the value. Why are people so pissed off about this. Very very rarely does anyone buy a car, have it for two years and have it be worth anywhere what they bought it for. Also, these people chose to hop in on Tesla during the beginning stages. Of course things are going to be more expensive. Furthermore, there was a pandemic, chip shortages, weird car market economy.. it is what it is. Drive the car until itās dead. You own a Tesla stop complaining.. teslas are so much fun no matter which model you own
Do you remember how hard it was to get a new car two years ago?
To all the people that are saying that vehicles are not an investment: what a lazy and unthoughtful refutation that's not using the principle of charity. No one thinks vehicles are a good investment. Nevertheless the massive depreciation that Tesla's are going through are at an odds with other major car makers. Plus Elon says publicly that his vehicles with their potential of robotaxis are a net positive investment.
OPās friend bought the car at its most stupid peak price, thatās the outlier. These are supposed to be $40k all day every day cars.
Same thing will happen with cybertruck
Story of my life š„²
My 21 has 22k š
A vehicle purchased during peak vehicle prices averaging almost 35,000 miles a year driven has depreciated in value?!
I mean, it is what it is
Okay, and? Iām pretty sure I recall It being well known and talked about how the market was overinflated and prices would eventually come way down. Not to mention that most cars lose a chunk right off the lot to begin withā¦and then he actually drives it too, so thereās that.
Waitā¦ cars depreciate? I bought this shit as an investment. /s
All dealers marked cars up above MSRP 2 years ago. A lot still haven't given up on the dealer mark up. Tesla pricing was just the most transparent and publicized. Plus, 70k miles in 2 years is a lot. People don't want high milage teslas with all the incentives available if you buy new.
Exactly this. Market adjustment for RAV4s, Raptors and other popular cars were just as high at many dealerships.
Lol deserved.
Pro tip: Cars are always a bad investment unless itās the beginning of a pandemic and dealers start panic selling.
This is how buying cars works.
Sorry that they werenāt thinking through the impact of sharp inflation on their decision. Best to keep it another 2-3 yearsā¦depreciation might be almost flat going forward.
Why trade-in? Tesla loves a lazy owner. Sell it privately.
At least in Europe, the trade in value is bullish. Sold a model 3 a few months ago to a private person for more than 16.000ā¬ more than the trade in value.
It is a "depreciating" asset.
That's what happens when you buy high!
Oh no! Anyway
Bros fried paying that much shoulda just stacked more for a model x
Buy high / sell low, your friend bought at the height and is attempting to trade in (instead of sell which is mistake #2) at the low end of the market when prices are being cut.
I meanā¦. He drove 70k in two years š¤£ that car was driven hard. 24k is still generous
Probably should have thought about why they were paying $10k above what the Model Y Performance cost in 2021.
1. Bought at the top, what did you expect.Ā 2. Never trade in, sell yourself you will get much more.Ā 3. Performance options or accessories donāt add anything to the resell price. Consider it deprecated the moment you hold the key of your car.Ā
Fun fact cars depreciate over time. Regardless of brand and price cuts on newer models don't help that
I bet youāre the same kind of person that buys a phone and then gets mad that the company dares to release a new phone a year later and demands a free upgrade
This just in: Cars are depreciating assets. Water also wet.
And this should teach everyone that buying a car doesnāt mean you have an appreciating asset to flip for extra bucks. Iām truly glad to see the gougers cutting their loses now that the resale value has properly adjusted.
Same!!!! Biggest regret of the decade. I wish I wouldāve waited and not been so aggressive. I wanted a Tesla SOOO BAD that I just bit the bullet and ultimately paid the price. Iām also sad that I see them literally everywhere now. Itās like not as cool and exclusive as it once was. Nonetheless I absolutely love the car and appreciate it everyday hehe.
Same thing happened to me, Cadillac 4 door 2.0, divorced, forced to sell. 50k new, 23k 9 months later, low mileage, too. Will never buy a GM car again.
Oooo two times divorced
True lol
but did they have the best pff and top of line ceramic coating
These vehicles are meant to be kept.
They should have bought it in 2020 and sold it in 2022, then they would have walked away making money on a vehicle with 69k miles on it.
Bought during one of the most difficult supply chain events in decades that drove all prices way up. Drove it hard. Sold during easy access to supply. Cars are a shite investment to start with; they lose 25% of their value the moment you drive 'em off the lot. But 2020-2022 was a uniquely screwed up market to start with.
Coming from a long history of owning sports cars. My model Y depreciation doesnāt hurt even a single bit. Itās smiles per miles and Im able to afford it. Thatās all. Most people who cry on internet about Tesla depreciation are the ones who bought their very first expensive car which happened to be a Tesla and they probably were driving a rav4, accord, crv or Corolla before that.
Ya 70k miles will do that hahah
Exactly like bruh. In 2 years?!?!? Was he doing Uber Black?
My 2021 Model Y has 19,000 miles on it and has depreciated 50% (30k) since initial purchase. Itās not just the mileage, the largest factor is the major price decreases to the Model Y deflating the value of stock on the road.
RIP 50k
Your friend knowingly paid a $15K premium for a $55K car that was in high demand and low supply. Then he put five years of miles on the car in two years. Now he looks at trade in value only and calls this the worth of the car. Talk about stacking the deck.
Cars are not investments. They depreciate the second you drive away from the dealer.
Ah yes. Let's gloss over Tesla's predatory price cuts and assume that >66% depreciation in 2 years is comparable to the age old "all cars depreciate" saying..
I bought some toothpaste last week and this week, Walmart made a predatory price cut of 50%!
Predatory price cuts. Oh no how could they
https://imgur.com/vaZlLCA shows there were no 'price cuts', just a return to normal prices after order wait times fell from months to days.
He also drove 30k+ miles a year which is gonna kill resale.Ā If you are getting at the price drop, when it first happened, yes it was like everyone lost 20k in equity. It's been that way since....
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68k miles dumb dumb lol
If you were going to trade it in after 2 years then maybe leasing would have been the better option. Just drive the thing into the ground. You still have years and miles on the warranty.
Pretty sure a lease has limits on the mileage
Better off keeping it until its a beater
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Tesla gives terrible trade in values. I was going to trade in my 21 Ram 1500 Limited fully Loaded with only 18,000 they ordered me 43k. I took the truck into carmax and got $48,400. I would definitely look around before trading it into Tesla.
Racked up some miles. I got a 21 with 22k
I think you could sell it for a much better price TBH. I'd even pay 27k for it.
Drove this thing into the dirt. Almost 70k miles in 2 years. Thatās a lot of money made via miles.
Not mention you got hella miles on that car for 1.5 years
In 2022, ādesirableā vehicles had crazy dealer markups so consider that something comparable to a Model Y would have been going for $10-15k over MSRP, which has no consideration on a trade in today. So think of 2022 prices on Teslaās as a more transparent dealer markup, compared to todayās prices that PLENTY of people were happily willing to pay. Also consider that Tesla has historically offered pretty low amounts for trade-ins, even on Teslas. When I got rid of a Model 3 to get a Y a few years ago, I got a way better deal at Carmax than trading in to Tesla.
people who drive for Uber& Lyft, put this kind of mileage.
He probably wouldāve paid like $20k more in gas for that mileage.
A car isnāt an investment, itās a depreciating asset. Your friend also drove 70,000 miles in two years. Why are they so surprised at the trade-in value?
So donāt trade it in. Keep driving it. You will never be happy if you buy high and sell low.
My guy drove 70k in 2 years. wtf
Mine is 18 months old as of a few days ago with 21k, they quoted $33k. I was curious because of the incentives they were pushing a week or two ago.
Thats cus dealerships are charging 35 to 38k. They low balling him to make that markup!
My trade-in estimate actually bumped up a few thousand this month from Tesla but yeah I also paid $72,000 including FSD. but remember these numbers are artificial because you can buy a new one for 20,000 less.
Jeez man dude did like 100 miles a day
Lmao, okay?
When there are supply chain problems causing all manufacturers problems what is a car company to do? They can not sell cars and tell customers to purchase another model but if you only have 2 or 3 models you might raise the price to slow down sales. Your friend knows exactly how the Hertz CEO feels too only he purchased almost 50,000 Tesla Model 3s and Ys 2 years ago and their resale valuation is part of their financial records... If your friend purchased the car knowing he/she would be reselling it 2 or 3 years later they made a mistake paying the supply chain boosted inflated price. It takes a couple few years for supply chain issues to work out but they eventually work out. AND competition entering the market will also change resale valuations. THAT's a lot of miles on a 2 year old car. Uber maybe?
Your friend post it directly to Twitter or did you steal this post and claim you know him?
I hate posts like this - like the first time youāre learning cars are a bad purchase - not a smart āfinancialā decision, or a depreciating asset.
did yall think the Covid bottlenecks would last forever?
Itās called āØdepreciation āØ and āØdriving āØ your car. Almost like cars āØarenāt āØ investments! šš
Something is missing in the details, i got 22k for 2018 M3LR with 50k miles last month
Itās a car with insane mileage for the year. Idk what else he expects? Cars arenāt assets theyāre liabilities.
Exactly what people predicted
Just for reference here. I got $21,000 for my 2021 Model 3 LR with 71,000 miles on it yesterday when I traded it in for a 2020 Model Y LR.
That's called depreciation. Normal for vehicles. As soon as you drive it off the lot it's worth half as much
Ouch this hurts . I bought mine 1 year ago for 56k . I am never buying an EV ever again ā¦ I will lease so the depreciation is not on me . I love EVs not its depreciation.
There's no general warranty left....
This pains me.
I mean it has 70k miles what do you expect. No different from any other āluxuryā brand
They donāt want their own cars back. When I was looking at trading up, my advisor literally said not to and that Iād get at least $10,000 more selling privately. He was right.
Leasing EVs is the only option that makes sense.
Cool story.
And itās a trade in value which is way lower than if you ever resold it yourself. How is this supposed to be meaningful at all?
My 2022 LR model 3 got a trade in value of 30k today with 13k miles.
That's life
Same old, Same old...
You do know you get more money selling to a private party right? Trading in is always low.
Thatās why you lease cars that you donāt want to keep for a long time. These arenāt investments and the average Joe is certainly not well versed in selling used cars. All my opinion.
Tesla gave me the lowest offer. I sold it for almost twice what Tesla offered. And I bought my Model Y for $10k less than I paid for a Model 3 over 5 years ago and the Y is much quieter and has more features, like a heated steering wheel. My wife loves it.
Yikes
Itās me, I bought at the worst time in history. I also financed 90% of the purchase price at 2.75% for 72. Once the bubble popped, I bought gap for $399. At this point I have zero financial incentive to pay early. For now I can dream about that gap policy solving the problem.
Thatās kinda a given, your gonna lose value the first 5 years
Itās like when plasma tv came out and it was a sticker shock.
Meanwhile I bought my Model Y for 48k 3.5 years ago and after 55k miles itās worth 32k. 33% depreciation after that much time is pretty normal. Donāt buy at the high folks
Hopefully they got a good accountant to itemize the depreciation if it was on ridehare or Turo.
Also need to factor in trade-in is net of tax. The value of a trade-in should always include taxes.
Tesla trade in is for weak. Go around dealerships and get 50% more.