Trade in Value

[Old Guy]

So was it a threat?

Yes.

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[the golden eel]

Underwater depends on how you financed the asset. If you buy an asset and it devalues, you are not underwater. Underwater is when principal of the asset exceeds value. But it only matters if you plan on selling it. Otherwise, when you're about 3 years into a 4 year loan, your are no longer underwater.

With large depreciation in year 1, everyone is normally underwater for at least 2 years.

Exactly this. We tend to keep our cars a long time, and I have no reason to think I will sell my MME for at least 8 years. I bought it in October and was happy that I only paid MSRP - granted I looked long and hard to make sure I DIDN'T pay any ADM.

But even if I had to pay more than MSRP I wouldn't care what it's worth now as I have no intention of selling it for years.


Side note - I honestly think the same with houses. If I bought the house I want at a payment I can afford, what difference does it make to me if the market temporarily sags for a time and my house is worth less than I paid? If you don't move/sell it doesn't matter what the market is doing.

 

[mburtsvt]

Can you please send me links for 2 year model Y for $25k-$30k that doesn't have a salvage title and 200000 miles?

The cheapest MY in the US right now with a clean title/no accidents is 2020 offered at $40700!

. Hope this helps.....
https://www.truecar.com/used-cars-for-sale/listing/5YJ3E1EA6LF631282/2020TeslaModel 3/?store=23658&srcID=google&cmID= &crid=|651480351269&mobile=&device=c&aceid=&adpos=&random=934437198957227018&keyword=&matchtype=&content=&search=&network=u&target=&placement=&utm_medium=ppc&utm_source=google&utm_term=&utm_campaign= &devicemodel=&param1=&param2=&gclid=Cj0KCQjwla-hBhD7ARIsAM9tQKudiHyRokFg1ROW9Qr-h20tjUOXxAmOuAwuHcg7lQiFQbmhZij1yu4aAsfuEALw_wcB&gclsrc=aw.ds

 

[mburtsvt]

Can you please send me links for 2 year model Y for $25k-$30k that doesn't have a salvage title and 200000 miles?

The cheapest MY in the US right now with a clean title/no accidents is 2020 offered at $40700!

https://www.cars.com/shopping/resul...stock_type=used&year_max=&year_min=&zip=94503

 

[azerik]

Most of what I see in this thread is either "I made bank because other idiots bought my old car for more than I paid" or "I'm screwed because of reality". I'm in the latter camp. Do I wish I would have waited till now to buy? Sure. I could have a 22 GT for $10k less than I paid in January, but at the same time AZ prices havn't crashed like some other places.

 

[moparguy]

https://www.cars.com/shopping/results/?dealer_id=&keyword=&list_price_max=35000&list_price_min=&makes[]=tesla&maximum_distance=30&mileage_max=&page_size=20&sort=best_match_desc&stock_type=used&year_max=&year_min=&zip=94503

Funny you should say that. I live in the SF Bay Area, (home of Tesla) and a 2-4 year old Tesla Y is going for $25K to $30K. Model 3 are under $25K.

Thank you for proving my point, according to your link, not a single M3 is under $30k within 50 miles of the bay area, the majority are 2018/2019 near the $35k price tag so definitely the imaginary inventory of M3 under $25k do not exist.

The cheapest non-salvaged MY nationwide according to the same link is $41700 with 50k miles, a car with the price tag of $40k back when sold new.

 

[azerik]

^^ that ^^

But at the same time show me the $40k GT MME..

 

[mburtsvt]

Thank you for proving my point, according to your link, not a single M3 is under $30k within 50 miles of the bay area, the majority are 2018/2019 near the $35k price tag so definitely the imaginary inventory of M3 under $25k do not exist.

The cheapest non-salvaged MY nationwide according to the same link is $41700 with 50k miles, a car with the price tag of $40k back when sold new.

Bring your check book and start negotiation. You will find one.

 

[redranger04g]

EV prices would have to plummet to make this a reason to go with Ford Options. I think my balloon payment was somewhere around $20k, so the Mach E would need to drop to less than $20k which seems unlikely. If you're factoring in the ford options interest you're losing this would need to drop somewhere in the $17k range. Just seems incredibly unlikely your car will be worth less than that in 3 years no matter what trim you got.

 

[RedStallion]

Hold on to yours.
1. Wait for geo-politics to raise oil prices globally.
2. Wait for the inflation to go down, interest rates will fall
3. EV prices will go up again
In all other cases: accept depreciation like all other stuff

I'm not sure it's that simple as there are multiple factors at play.
There are forces that drive gas prices up, such as refineries limited output, low investment, higher costs of doing business, and also high oil prices. There are forces that drive prices down, like impending recession and increasing unemployment. Which forces will win is what the market tries to decide every day.
The inflation and interest rates are also a big uncertain. It's a balance of forces like recession on one hand, reduced production of goods and services, changes in salaries, unemployment rates, etc. The Fed will have to carefully navigate not to push the economy into a deep recession on one hand and not to contribute into inflation heating up on the other.
Then the demand for EVs and supply are also uncertain. Tesla, the largest EV manufacturer in US, wasn't able to sell all manufactured cars, missed the estimates and grew inventories despite the price cuts and subsidies. That happened in pretty good times, which portends bad trend, especially in recessionary times. The prices may have to go down, the EV companies may have to cut production, some may go out of business. How exactly this will play out is anybody's guess.

 

[Chicago-E]

. Hope this helps.....
https://www.truecar.com/used-cars-for-sale/listing/5YJ3E1EA6LF631282/2020TeslaModel 3/?store=23658&srcID=google&cmID= &crid=|651480351269&mobile=&device=c&aceid=&adpos=&random=934437198957227018&keyword=&matchtype=&content=&search=&network=u&target=&placement=&utm_medium=ppc&utm_source=google&utm_term=&utm_campaign= &devicemodel=&param1=&param2=&gclid=Cj0KCQjwla-hBhD7ARIsAM9tQKudiHyRokFg1ROW9Qr-h20tjUOXxAmOuAwuHcg7lQiFQbmhZij1yu4aAsfuEALw_wcB&gclsrc=aw.ds

that is not a model y...

 

[Chicago-E]

https://www.cars.com/shopping/results/?dealer_id=&keyword=&list_price_max=35000&list_price_min=&makes[]=tesla&maximum_distance=30&mileage_max=&page_size=20&sort=best_match_desc&stock_type=used&year_max=&year_min=&zip=94503

no model Ys here either. well done

 

[EVandSolar]

Seems pretty simple to me. "Trading in a car" has always been a really dumb way to buy a newer car. The pandemic bubble happened, and trading/selling cars to dealers was great. Now it's over. Trading in a car is stupid again, and probably always will be, just like it always has been.

I remember the last couple times I bought a car, I told the dealer no trade in and worked hard to negotiate the bottom line price they would take. Then, I offered a trade. They wanted to give me $300 because they could no longer hide any fake trade in value in the price of the car I was buying. So, I sold it private party for $2,500. Win/win. About a year ago I bought my first EV. I got it for MSRP with zero dealer markup or add ons. The most they would offer for a trade in was $10,500 on my car. Of course, since I'm not dumb, I didn't trade it in but instead got $14,500 selling it privately. Even with sales tax I came out several $k ahead. First new car I've bought since I was a dumb 20 year old, but with diesel at $6 gallon and used cars being stupid last year, new was the right choice. I haven't bought gas in over a year.

If you want to throw away tons of money trading in or selling your almost brand new car in order to waste a ton of money buying another expensive brand new car, its going to be expensive to do so, as it should be, now that the pandemic bubble is over.

Buying brand new cars is dumb(financially). I just bought one! They depreciate a lot, very fast. Soon, buying a used three year old car coming off a lease that someone rented for three years and ate all the depreciation for you, will be the smart way to buy a car again. I think it's going to take another 6-12 months for the market to finish settling down.

At this point, dealers still want to charge a fortune for the used cars they are selling, because they recently paid a fortune for them. But since they aren't selling, they can't pay stupid high prices anymore for trade ins. You will get normal, depreciated value. Therefore, if you want to get rid of your almost brand new car, sell it, and you are still going to take a big loss since new car prices have dropped(on some, especially Tesla), and more rebates are available now.

It is all as it should be. Hoping the used car market continues to settle down as my youngest daughter will be considering a newer, 3-5 year old car towards the end of the year, which she will pay cash for!

 

[Scooby24]

no model Ys here either. well done

lol

And I suspect as we get close to election season, we'll see gasoline prices go up again and more "I did that" stickers on gas pumps. Because...totally something our president controls...

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