Confusing trade-in valuation listed as “negative trade-in” despite positive equity

[Mad_Yeti_]

Hey everyone!

I’m hoping to get some advice or insights on a situation I’m dealing with during my Tesla purchase. I recently decided to trade in my current vehicle while buying the CT. Here's the breakdown:

Quick details:
- VIN issued
- Delivery scheduled for this Saturday 8/17
-$20K cash down payment

- Kelley Blue Book Value of Trade-In: ~$60,000
- Loan Balance on Trade-In: ~$43,000
- Approx. Positive Equity: ~$17,000

** I do understand that usually you lose when trading in at a dealership and that bluebook is not what most people get when trading in a used vehicle for a new vehicle. I’m just confused by the negative trade-in line item on the financing agreement for my CT.**

When I received the financing details from Tesla, I noticed something odd. The documentation lists a “Negative Trade-In” amount of $46,388.61. From my understanding, this suggests that Tesla is treating my trade-in as if I owe $46,388.61 more than what they’re giving me for the trade-in. This doesn’t make sense given that I should have positive equity.

I was under the impression that the positive equity from my trade-in would be applied toward the purchase of my new vehicle, reducing the amount I need to finance. But with this “Negative Trade-In” notation, it seems like the value they’re offering is much lower than expected, and I’m concerned about how this impacts the overall financing.

Additionally, when I check the Tesla app, it shows that my trade-in offer is “not completed yet.” Has anyone else experienced something similar? How did Tesla determine the trade-in value in your case? Any advice on how to address this with Tesla would be greatly appreciated.

The trade in is a 2023 Toyota Sequoia. No damage, low miles, no accidents.

Thanks in advance for your help!

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[Mini2nut]

Bottom line. Your going to have a hefty payment and experience rapid depreciation once the non-FS is available for purchase.

 

[mongo]

Hey everyone!

I’m hoping to get some advice or insights on a situation I’m dealing with during my Tesla purchase. I recently decided to trade in my current vehicle while buying the CT. Here's the breakdown:

Quick details:
- VIN issued
- Delivery scheduled for this Saturday 8/17
-$20K cash down payment

- Kelley Blue Book Value of Trade-In: ~$60,000
- Loan Balance on Trade-In: ~$43,000
- Approx. Positive Equity: ~$17,000

** I do understand that usually you lose when trading in at a dealership and that bluebook is not what most people get when trading in a used vehicle for a new vehicle. I’m just confused by the negative trade-in line item on the financing agreement for my CT.**

When I received the financing details from Tesla, I noticed something odd. The documentation lists a “Negative Trade-In” amount of $46,388.61. From my understanding, this suggests that Tesla is treating my trade-in as if I owe $46,388.61 more than what they’re giving me for the trade-in. This doesn’t make sense given that I should have positive equity.

I was under the impression that the positive equity from my trade-in would be applied toward the purchase of my new vehicle, reducing the amount I need to finance. But with this “Negative Trade-In” notation, it seems like the value they’re offering is much lower than expected, and I’m concerned about how this impacts the overall financing.

Additionally, when I check the Tesla app, it shows that my trade-in offer is “not completed yet.” Has anyone else experienced something similar? How did Tesla determine the trade-in value in your case? Any advice on how to address this with Tesla would be greatly appreciated.

The trade in is a 2023 Toyota Sequoia. No damage, low miles, no accidents.

Thanks in advance for your help!

Just a guess, but maybe they haven't valued your trade in yet so the existing loan balance is listed as negative equity.

 

[tmeyer3]

This sounds completely normal to me, but I have no idea how they decide trade-in value. When I traded in my Rubicon for a Silverado, the dealership did something similar. It was just a negative line item that appeared the same way as my down payment did. But I'm not an expert

 

[Cybertruck26]

Tesla trade-in for my Model Y was straight shite... I would look at DGDG. I also did an appraisal through Edmunds, and had multiple competitive offers come in. Some were $6K higher than Tesla.

 

[cyberos]

Recommend not trading in with Tesla and selling your Sequoia to either Carvana or Carmax. I sold my 2021 Jeep Wrangler 4xe to Carvana and got $6,000 more than what Tesla offered.

Also this removes the Tesla app "balance owing" anxiety. You'll be making your down payment in cash.

Wrt depreciation, I actually sat down and calculated it and FS versus non-FS is a net zero change in cost, if you were to buy all the features (like FSD) seperately. The reason is the depreciation of your current vehicle between now and when you take delivery of a non-FS in ??/??/2025 is the biggest factor.

 

[Mad_Yeti_]

Thanks everyone.

@cyberos - did you remove your trade in from the deal which fixed this or are you saying this is how it would be if I didn’t list a trade in when I applied?
Thanks again.

 

[Mad_Yeti_]

This sounds completely normal to me, but I have no idea how they decide trade-in value. When I traded in my Rubicon for a Silverado, the dealership did something similar. It was just a negative line item that appeared the same way as my down payment did. But I'm not an expert

what was the outcome when you completed the purchase paperwork? Did the negative trade in number change?

thanks!

 

[tmeyer3]

what was the outcome when you completed the purchase paperwork? Did the negative trade in number change?

thanks!

I don't remember well enough to say when/if it changed. Ultimately, it was just a line item that reduced the purchase price and that was that. I think I still have the receipt somewhere ?

 

[cyberos]

Thanks everyone.

@cyberos - did you remove your trade in from the deal which fixed this...

Correct. Just remove your trade in from the Tesla app entirely and sell it somewhere else for a better price

 

[FitNess]

I traded a vehicle in with Tesla and up until the morning of pickup the app showed that I would owe (even though my trade was worth more than what I was buying).

I went through with it anyway and received my positive equity check in the mail a month later.

 

[UberNoob]

No way Tesla offers anywhere near KBB. They will lowball you and auction it for whatever.

 

[Mad_Yeti_]

I traded a vehicle in with Tesla and up until the morning of pickup the app showed that I would owe (even though my trade was worth more than what I was buying).

I went through with it anyway and received my positive equity check in the mail a month later.

Gotcha. So up until the morning of delivery I assume it showed the balance of your trade-in vehicle which changed to $0 due the day of delivery and then you received a check for the equity you had from their trade in offer?

hen looking at my paperwork, the payment due shows the $20,000 I’m putting down plus almost the exact amount of what I owe on my trade-in (which is less than the value).

did you have Teslas trade-in/buyout price before the day of delivery? Mine still shows as pending.

 

[carsly]

You should be considering black book/auction values. Dealers don't pay blue book.

That noted, post a screen shot of what you're looking at and maybe we can be more helpful. I traded in a Model S on my Cybertruck so am familiar with the trade-in process.

 

[TyPope]

No way Tesla offers anywhere near KBB. They will lowball you and auction it for whatever.

Not true in my case. Tesla offered me about $5,000 more than KBB. I don't know why. 2023 Maverick Hybrid Lariat.

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