T3slaDad
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- Model 3, RWD Cybertruck
As a 2nd owner of a LR M3 with EAP pre-purchased, I have to chime in on this.
Yes, the first owner take a hit, that's given with any car you buy. Yes, the early adopter of new tech takes a HUGE hit, but without them, there wouldn't be nearly as much progress.
I got my M3 for a great deal, and it has held its value even after adding 20k miles. I periodically check out what M3's are selling for with and without similar/same specs and they are still the same as they were in my area from 2yrs ago. KBB is a great resource for many cars and areas, but in my experience car shopping for 3's (sorry S+X owners), KBB's estimation is waaaay off.
Just like everything, the law of supply and demand will overpower any 3rd party valuation. I could say your car is worth $500k, but if there are no buyers, it's worthless. Or I could say your car is worth $5k, but you have people falling over each other wanting to get it for XYZ reason. You then get the ability to sell it for even more than $5k to the highest bidder!
Did the first owner of my M3 take a huge hit? Yeah, but within reason. Is he happy for what he sold it for? Yeah!! He bought a performance Y with the proceeds.
Also take into consideration that as FSD prices increase, your depreciated Tesla with FSD actually gets to realize some appreciation as well! Ex. If FSD becomes $20k but you bought it for $7k, your FSD Tesla becomes worth about $5-7k more ($12-15k FSD total) as it's still cheaper than the new $20k FSD price tag.
tl;dr If you're worried about depreciation, then take the risk of becoming a 2nd owner. If FSD prices increase over time (which they are), your depreciation rate slows down a little if your Tesla already has it.
The hard part for the OP is that he bought not the bottom tier M3 or the top tier one, but a mid tier one. I totally understand why HIS Tesla has depreciated so much and why he's concerned, because the base and the top of the line M3's are better options used and don't vary in price much. It's unfortunate, but again, supply and demand dictate that everyone either wants all the options or no options when it comes to used, they don't just want what the mid-range M3 with no FSD/EAP has to offer. My area has base model M3's without AP selling in the 30s (that's new price territory), and LR FSD 3's going in mid 40s. As a buyer, you have the choice to "upgrade" to LR FSD for only about $10k more, who wouldn't want that??
And whatever you do, don't trust some used dealer who says that a used M3 they're selling has FSD. They have no idea what they're talking about (10 of 10 used car dealers I talked to in the southwest said oh yeah it does, then took photos of the AP screen and it doesn't even have EAP ?).
Yes, the first owner take a hit, that's given with any car you buy. Yes, the early adopter of new tech takes a HUGE hit, but without them, there wouldn't be nearly as much progress.
I got my M3 for a great deal, and it has held its value even after adding 20k miles. I periodically check out what M3's are selling for with and without similar/same specs and they are still the same as they were in my area from 2yrs ago. KBB is a great resource for many cars and areas, but in my experience car shopping for 3's (sorry S+X owners), KBB's estimation is waaaay off.
Just like everything, the law of supply and demand will overpower any 3rd party valuation. I could say your car is worth $500k, but if there are no buyers, it's worthless. Or I could say your car is worth $5k, but you have people falling over each other wanting to get it for XYZ reason. You then get the ability to sell it for even more than $5k to the highest bidder!
Did the first owner of my M3 take a huge hit? Yeah, but within reason. Is he happy for what he sold it for? Yeah!! He bought a performance Y with the proceeds.
Also take into consideration that as FSD prices increase, your depreciated Tesla with FSD actually gets to realize some appreciation as well! Ex. If FSD becomes $20k but you bought it for $7k, your FSD Tesla becomes worth about $5-7k more ($12-15k FSD total) as it's still cheaper than the new $20k FSD price tag.
tl;dr If you're worried about depreciation, then take the risk of becoming a 2nd owner. If FSD prices increase over time (which they are), your depreciation rate slows down a little if your Tesla already has it.
The hard part for the OP is that he bought not the bottom tier M3 or the top tier one, but a mid tier one. I totally understand why HIS Tesla has depreciated so much and why he's concerned, because the base and the top of the line M3's are better options used and don't vary in price much. It's unfortunate, but again, supply and demand dictate that everyone either wants all the options or no options when it comes to used, they don't just want what the mid-range M3 with no FSD/EAP has to offer. My area has base model M3's without AP selling in the 30s (that's new price territory), and LR FSD 3's going in mid 40s. As a buyer, you have the choice to "upgrade" to LR FSD for only about $10k more, who wouldn't want that??
And whatever you do, don't trust some used dealer who says that a used M3 they're selling has FSD. They have no idea what they're talking about (10 of 10 used car dealers I talked to in the southwest said oh yeah it does, then took photos of the AP screen and it doesn't even have EAP ?).
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