EV Arbitrage: Selling my Mach E

[BadgerGreg]

I'm surprise BMW isn't close to running out of the tax credit. They've seen selling EVs and PHEVs for many years.

I tried to get a quote from Carvana earlier this week but it wouldn't give an offer, says I gotta create an account and some other steps need to be taken.

The i3 has been selling really well (and has been around for the last 7-8?? years), although a lot of them have been sold outside the U.S. It's had pretty low sales volume in the U.S. (about 45,000 cars), so that leaves a healthy quantity of remaining sales before they start hitting their limits.

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[BadgerGreg]

Yes, it is essentially arbitrage. Although it wasn't a 'simultaneous' buying and selling, the fact that I had the car only a year (+ a month) makes it close enough to fit the spirit of the definition. And it's arbitrage despite the tax credit, as my sales price is higher than the X-Plan price I paid. That said, one could certainly count the tax credit, as it represents an exploitation of how the customer can finance the transaction.

 

[BadgerGreg]

Please come back with a full reviews of the i4 m50
I think it is a nice car if you don't carry people in the rear seat.

I'll do that. I did test drive the i4 M50 already, and I can say that it is a fantastic drive. The back seat is a bit smaller, but I'm not too worried about that since my car is a daily driver for work and business trips. Range appears to be similar to the MME, but it swallows the electrons really quickly (max 210 kW and it preheats the battery when you have a charging station programmed in your nav system). I think it will be a solid road-tripper.

 

[BadgerGreg]

I'm surprise BMW isn't close to running out of the tax credit. They've seen selling EVs and PHEVs for many years.

I tried to get a quote from Carvana earlier this week but it wouldn't give an offer, says I gotta create an account and some other steps need to be taken.

Same thing happened to me with Carvana. Because the MME is a high value car, you need to create an account and contact one of their appraisers. It goes through multiple appraisers before you get an official offer. It takes a couple of days to get the offer that way.

 

[ARK]

The i4 looks great, I’ve been looking around to take advantage of these preposterous used car prices. The problem is, nothing quite matches the Mach-E for me, particularly my specific build which is exactly what I wanted (since it was a special order and all).

 

[RickMachE]

Although I eventually decided to sell my Mach E, it wasn't just about the vehicle and its reliability (yes, I've been stranded twice with HVBJB issues, but I still love to drive this car). It is more about the market opportunities for EVs and my ability to take advantage of arbitrage (buying and selling assets in different markets to make money). I previously thought about upgrading to the GTPE, but the wait time and likely expiration of Ford's EV tax credit by early next year make that a little less appealing.

So, this leaves me with a unique opportunity for my MME. I'm 24,000 miles in, and the MME is in very good condition, other than a few rock chips on the leading edge. I have three offers (Carvana, Carmax, and Driveway) ranging from $50,000 to $56,500. Assuming I am able to close on the $56,500 offer in the next week, I will sell the MME for about $1,500 less than my out-the-door cost (including tax). Given that I got the $7,500 tax credit, I'm $6,000 ahead. Even after factoring in electricity (operating) costs, which work out to about $1,000 in home electricity and EA charges, I'm $5,000 ahead. In short, I was paid $0.21 a mile to drive this car during the last 13+ months. Not bad!

Next week, I'm taking delivery of an unclaimed BMW i4 M50 order. My local dealership only sells to local customers and is giving me MSRP; the sticker on that car is about $70,000. BMW hasn't come close to burning through their EV tax credit quantity, so I'll get another $7,500 tax credit. This is my alternative to the MME GTPE. It's a similarly-spec'd car for a similar price. What makes it ideal is that I can get the car now and get the tax credit.

I know this market won't last, but I'm loving the fact that I can get two new cars in two years, have zero cost in year one (in fact, make money), and get $15,000 in tax credits. Arbitrage, indeed.

I'm gonna hang out on this forum because my wife wants a Mach E; we'll probably order a 2023 later this year (still staying loyal to the brand, has her dad was a Ford engineer). However, I think we'll get her the Premium AWD (not the GT), because I want to beat her off the line

My 2021 with 9,300 miles generated offers ranging from 51,301 to 56,805 (Vroom, Carvana, CarGurus, then Driveway) so they're being consistent, although I should get more for substantially lower mileage. A Dallas auto broker offered me $58,000. Only be listed for a few days, I'm hoping to do a private sale for low $60s at least.

If your wife wants a Mach-E that has no issues @BadgerGreg , let's talk. Or, let me talk to your wife.

 

[Avelli]

BMW = Beat My Wife

oof ... now you won't be able to un-see that acronym every time you look at the badge on the car.

You're welcome.

Incorrect. BMW always stands for "Bring My Wallet"

 

[connoisseurr]

I have three offers (Carvana, Carmax, and Driveway) ranging from $50,000 to $56,500.

If you're selling to Driveway, start the process NOW. They're pretty quick to pay for your car, whether you own outright or have a payoff, but my experience with Driveway is they're going to delay the pickup for a week or two. Someone who referred me to the service speculated they use your driveway as a free parking spot until they can find an owner.

Also, give CarLotz consideration for buying outright and even consignment.

 

[RedStallion]

The i3 has been selling really well (and has been around for the last 7-8?? years), although a lot of them have been sold outside the U.S. It's had pretty low sales volume in the U.S. (about 45,000 cars), so that leaves a healthy quantity of remaining sales before they start hitting their limits.

Actually i3 had poor sales in Europe as well (https://eu-evs.com/CLASSIC/index.html) and BMW EV sales in general were pretty much behind everybody. The resale value of i3 was also dismal (56% in two years).
The reason why some manufacturers still haven't exhausted their allotments after may years is simply poor demand.

 

[HuntingPudel]

Incorrect. BMW always stands for "Bring My Wallet"

LOL! I always heard "Break My Wallet" and "Big Money Waster."

 

[RickMachE]

If you're selling to Driveway, start the process NOW. They're pretty quick to pay for your car, whether you own outright or have a payoff, but my experience with Driveway is they're going to delay the pickup for a week or two. Someone who referred me to the service speculated they use your driveway as a free parking spot until they can find an owner.

Also, give CarLotz consideration for buying outright and even consignment.

CarLotz has no locations in Michigan unfortunately.

As to Driveway parking on your driveway, if I sell to them, once I get payment I will tell them that if they aren't picking it up, I will put it on the street, and it's likely to get towed.

 

[nvabill]

Although I eventually decided to sell my Mach E, it wasn't just about the vehicle and its reliability (yes, I've been stranded twice with HVBJB issues, but I still love to drive this car). It is more about the market opportunities for EVs and my ability to take advantage of arbitrage (buying and selling assets in different markets to make money). I previously thought about upgrading to the GTPE, but the wait time and likely expiration of Ford's EV tax credit by early next year make that a little less appealing.

So, this leaves me with a unique opportunity for my MME. I'm 24,000 miles in, and the MME is in very good condition, other than a few rock chips on the leading edge. I have three offers (Carvana, Carmax, and Driveway) ranging from $50,000 to $56,500. Assuming I am able to close on the $56,500 offer in the next week, I will sell the MME for about $1,500 less than my out-the-door cost (including tax). Given that I got the $7,500 tax credit, I'm $6,000 ahead. Even after factoring in electricity (operating) costs, which work out to about $1,000 in home electricity and EA charges, I'm $5,000 ahead. In short, I was paid $0.21 a mile to drive this car during the last 13+ months. Not bad!

Next week, I'm taking delivery of an unclaimed BMW i4 M50 order. My local dealership only sells to local customers and is giving me MSRP; the sticker on that car is about $70,000. BMW hasn't come close to burning through their EV tax credit quantity, so I'll get another $7,500 tax credit. This is my alternative to the MME GTPE. It's a similarly-spec'd car for a similar price. What makes it ideal is that I can get the car now and get the tax credit.

I know this market won't last, but I'm loving the fact that I can get two new cars in two years, have zero cost in year one (in fact, make money), and get $15,000 in tax credits. Arbitrage, indeed.

I'm gonna hang out on this forum because my wife wants a Mach E; we'll probably order a 2023 later this year (still staying loyal to the brand, has her dad was a Ford engineer). However, I think we'll get her the Premium AWD (not the GT), because I want to beat her off the line

All I can say is if you go with Carvana you better get paid up front, they are in deep do do!

 

[connoisseurr]

CarLotz has no locations in Michigan unfortunately.

As to Driveway parking on your driveway, if I sell to them, once I get payment I will tell them that if they aren't picking it up, I will put it on the street, and it's likely to get towed.

Yup, exactly. They take their damn time.

 

[audiograce]

Although I eventually decided to sell my Mach E, it wasn't just about the vehicle and its reliability (yes, I've been stranded twice with HVBJB issues, but I still love to drive this car). It is more about the market opportunities for EVs and my ability to take advantage of arbitrage (buying and selling assets in different markets to make money). I previously thought about upgrading to the GTPE, but the wait time and likely expiration of Ford's EV tax credit by early next year make that a little less appealing.

So, this leaves me with a unique opportunity for my MME. I'm 24,000 miles in, and the MME is in very good condition, other than a few rock chips on the leading edge. I have three offers (Carvana, Carmax, and Driveway) ranging from $50,000 to $56,500. Assuming I am able to close on the $56,500 offer in the next week, I will sell the MME for about $1,500 less than my out-the-door cost (including tax). Given that I got the $7,500 tax credit, I'm $6,000 ahead. Even after factoring in electricity (operating) costs, which work out to about $1,000 in home electricity and EA charges, I'm $5,000 ahead. In short, I was paid $0.21 a mile to drive this car during the last 13+ months. Not bad!

Next week, I'm taking delivery of an unclaimed BMW i4 M50 order. My local dealership only sells to local customers and is giving me MSRP; the sticker on that car is about $70,000. BMW hasn't come close to burning through their EV tax credit quantity, so I'll get another $7,500 tax credit. This is my alternative to the MME GTPE. It's a similarly-spec'd car for a similar price. What makes it ideal is that I can get the car now and get the tax credit.

I know this market won't last, but I'm loving the fact that I can get two new cars in two years, have zero cost in year one (in fact, make money), and get $15,000 in tax credits. Arbitrage, indeed.

I'm gonna hang out on this forum because my wife wants a Mach E; we'll probably order a 2023 later this year (still staying loyal to the brand, has her dad was a Ford engineer). However, I think we'll get her the Premium AWD (not the GT), because I want to beat her off the line

Honestly. Good plan. Congrats on all of it. Especially finding an MSRP i4 ready to go.

 

[RickMachE]

Any of these services either hand you a check, or do an ACH that your receive the next day.

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