Trade-in vs. CarMax vs. Carvana

[Speedr]

You make a valid point. Thanks.

BTW, if this is your first EV, I would just go ahead and sell the Volvo. Trust me, once you drive an EV, you will NEVER drive the gas car again!

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[froggedup]

I'd thought about using Carmax or Carvana, but instead listed on Craigs and FB marketplace first. My Model 3 sold in about a week and got several thousand more. But I understand the convenience aspect of the trade-in.

 

[txtravwill]

Nice! I guess they’re making money somehow given the model they use. Or burning through investors’ cash, lol.

I believe Carvana provides their own in-house financing so that is where they make most of the $$$ for selling. They sell at decently high prices over what they pay you still, but they also make it very easy for buyers to finance with them.

 

[TyPope]

Keep in mind that trade-in reduces your sales tax on the new car and $3.5 higher offer from Carvana could end up less advantageous, depending on the sales tax rate. Plus the hassle of selling to third party, extra paperwork, etc. Also, if you read the purchase agreement with Carvana, they could lower the payment after receiving the car if they decide that the car is in worse condition.

In my opinion, $3.5 is not enough to be considered for selling to third party

... or if your state allows you to lower your sales tax with a trade in. Mine doesn't.

 

[Speedr]

I'd thought about using Carmax or Carvana, but instead listed on Craigs and FB marketplace first. My Model 3 sold in about a week and got several thousand more. But I understand the convenience aspect of the trade-in.

Private sale will always get you the most. But besides the convenience and time savings, there's also the liability part. There are plenty of crazy people out there. And if it blows up the day after they buy it, you'll probably here from them..or worse! Vs. when you sell it to a company, they take all of that blame/interact/liability. When I was younger, it was worth it. Definitely not anymore...

 

[NightOwl]

BTW, if this is your first EV, I would just go ahead and sell the Volvo. Trust me, once you drive an EV, you will NEVER drive the gas car again!

Lol, good advice I’m sure. My son, who’s had a Model 3 since 2018, loves his.
I’m just wondering about keeping it as a backup. And I hate to take such a hit on it since we’ve only had it a little less than 3 years. (It’s a 2021 XC90 with 60,000 miles on it; I think we drive more than an average amount for retirees.) It’s been a great car. Just not a CyberTruck, lol.
But the hard truth is if it just sits there barely driven from now on, it’ll just depreciate more. And we’ll continue to pay insurance over the years, etc. But it is a sunk cost (paid cash for it so no lien or lease) so there’s that factor as well.
Still deciding but leaning towards selling for these reasons. But to your point, will probably love driving the Tesla so much I’ll never want to drive the Volvo anyway.

 

[jf64k]

Private sale will always get you the most. But besides the convenience and time savings, there's also the liability part. There are plenty of crazy people out there. And if it blows up the day after they buy it, you'll probably here from them..or worse! Vs. when you sell it to a company, they take all of that blame/interact/liability. When I was younger, it was worth it. Definitely not anymore...

This.

I'm at a stage in my life where it's just better to pay for a lot of things vs doing them myself.

The $$ hit I take selling to Carvana vs Private Party is me 'paying' Carvana to handle it for me with zero hassle/exposure on my end. Easy-peasy.

 

[LexusCyber]

@NightOwl, unlike every other dealership/company on the planet, Tesla does NOT want your trade-in. They really want to just sell new cars. They literally take them directly to the Auction, which is why they only give you rough book (wholesale) for your trade. Other car dealerships make most of their money on the sale of used cars from (not New).

I've never traded in a car to Tesla (but bought 5), and I'm in Florida, with 6% sales tax, which means another source buying my trade-in needs to be 6% higher than Tesla...and it always is. KBB has worked well for me in the past as well, since they shoot your car to multiple dealerships that bid on it.

BTW, not saying Tesla is bad for this, just that they don't want to sell anything that isn't a Tesla (plus, it wouldn't look good selling gas cars).

does anyone know which Auction does Tesla take their trade-ins to? mannheim? others? I am curious where all these used cars go to... thank you

 

[NightOwl]

... or if your state allows you to lower your sales tax with a trade in. Mine doesn't.

Good point …

 

[NightOwl]

Private sale will always get you the most. But besides the convenience and time savings, there's also the liability part. There are plenty of crazy people out there. And if it blows up the day after they buy it, you'll probably here from them..or worse! Vs. when you sell it to a company, they take all of that blame/interact/liability. When I was younger, it was worth it. Definitely not anymore...

That’s kind of where we’re at as well. Just easier and less hassle; but definitely comes at a cost.

 

[tingmo13]

I sold my 2018 M3 to Carvana-it's smooth. I traded in my 2020MY with Tesla-Tesla will offer the 7 days auction price. I like the convenience of dropping my old Tesla & picking the new one on the same day/time. Moreover, I only have to pay tax on the difference.

 

[froggedup]

Private sale will always get you the most. But besides the convenience and time savings, there's also the liability part. There are plenty of crazy people out there. And if it blows up the day after they buy it, you'll probably here from them..or worse! Vs. when you sell it to a company, they take all of that blame/interact/liability. When I was younger, it was worth it. Definitely not anymore...

Yea I hear that, it's definitely a risk. You really have to screen the people you deal with when going private sale. My experience wasn't bad in this case. I had a few lowball offers. Then someone came along and took my offer with no negotiation, and they were super nice people. You never know what you're gonna get.

 

[Speedr]

Lol, good advice I’m sure. My son, who’s had a Model 3 since 2018, loves his.
I’m just wondering about keeping it as a backup. And I hate to take such a hit on it since we’ve only had it a little less than 3 years. (It’s a 2021 XC90 with 60,000 miles on it; I think we drive more than an average amount for retirees.) It’s been a great car. Just not a CyberTruck, lol.
But the hard truth is if it just sits there barely driven from now on, it’ll just depreciate more. And we’ll continue to pay insurance over the years, etc. But it is a sunk cost (paid cash for it so no lien or lease) so there’s that factor as well.
Still deciding but leaning towards selling for these reasons. But to your point, will probably love driving the Tesla so much I’ll never want to drive the Volvo anyway.

Funny story. When we were leasing our Nissan Leaf back in 2011, we still had 6 months on it, but the range was down to less than 60 miles (Florida with no liquid cooled battery...duh!). We bought a new SUV to replace it (growing family), and I thought, why turn in the lease early, what's the harm of just letting it sit there...I'll drive it occasionally. Well, my wife was late one morning and rushed to back out of the garage...right into the parked Leaf. Yep, had to repair TWO cars (one brand new). Needless to say, as soon as I got it back from being repaired, I turned it in lol.

In seriousness, after we got our first Tesla, we've never gone back. If we ever do drive a non-Telsa (i.e. renting a car...and then getting stuck with something else...thanks Hertz), the same thing always happens. We come out of a restaurant to find the car unlocked and running. I know, first world problems...

 

[NightOwl]

The

Funny story. When we were leasing our Nissan Leaf back in 2011, we still had 6 months on it, but the range was down to less than 60 miles (Florida with no liquid cooled battery...duh!). We bought a new SUV to replace it (growing family), and I thought, why turn in the lease early, what's the harm of just letting it sit there...I'll drive it occasionally. Well, my wife was late one morning and rushed to back out of the garage...right into the parked Leaf. Yep, had to repair TWO cars (one brand new). Needless to say, as soon as I got it back from being repaired, I turned it in lol.

In seriousness, after we got our first Tesla, we've never gone back. If we ever do drive a non-Telsa (i.e. renting a car...and then getting stuck with something else...thanks Hertz), the same thing always happens. We come out of a restaurant to find the car unlocked and running. I know, first world problems...

? A good point.

 

[huckone]

I requested quote on my lightning with carvana last week, their response was “we’re stumped”. I haven’t received an offer. Tesla has yet to make an offer as well.

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