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Model S and X hold their value better than competition

Model S and X hold their value better than competition


– Hello and welcome everyone
to Teslanomics Live. I’m your host Ben Sullins
and this is the show where we break down the latest Tesla news from the week that has past. We do it live because things move quickly in the world of Tesla and
Elon Musk, as you guys know. And thank you for joining
me cause today is officially the last live show that I’ll be doing. I still do plan on having these Q and As probably once a month, but
in a more controlled setting, where I ask online and you guys respond with a bunch of questions. I pick some and do a video
response, so it’s more time to research, more thorough
answers, that kind of thing. I really have enjoyed this
journey with you guys. We started doing this is April of 2017, so just a couple months after
the channel, kind of became just this geeky channel with
my own stuff into Teslanomics, and it’s been almost two full years, so I appreciate you guys for hanging with me throughout this journey. We’ve gotten a lot of fun
stuff to talk about today, and of course, don’t forget to
ask your questions down below and vote on any questions
while you’re there for the Q and A section towards the end. So, first story coming to us today, this is kind of a cool one. This story is about the new study that autolist.com did
showing that the Model X and the Model S are beating rivals. They’re crushing rivals when it comes to depreciation or resale value. They’ve done this study in the past, and the new data is consistent with it. So, in this, they review data
from 35,000 Model S listings, and over 4,000 Model X listings
between January 1, 2012 and November 5, 2018, as well as a total of 1.2 million listings from the luxury sedan segment
and 1.7 million listings from the large luxury SUV segment. The Model S and Model X
resale value was higher than the rivals at the 50,000 mile mark, and, in fact, they were better
throughout the entire study. So you can see, this chart here. Let me zoom in a little
bit, as I like to do. And you can see, essentially what the depreciation curve
looks like for the Model S and its competitors, or
its peers in that segment. Now, at the 50,000 mile mark, the Model S depreciated 27%, while
the Mercedes S Class declined 33%, just as one example. And similarly, at that 50,000 mile mark, the Model X depreciated 23%, while the Ford Lincoln Navigator
lost 34% of its value. So, since the Model X,
essentially the refresh that happened in 2016, I believe it was, or no, 2014, with autopilot, they’ve really held their value, and this leads me back to a story I did. I think it was just last
week where I talked about the used car market for
Tesla is just exploding. A lot of cars from 2015 are coming up because they had a three year lease and even 2016, they had a two year lease. So, a lot of vehicles are
coming up for sale here. Now one of the interesting
things about that, is that, of course, they
hired this other firm to do that, but, I mean, I’m just blown away every time I go here because when I bought my
car, I bought a 2103 Model S with very low miles for 50,000. Here we are just a couple years later, and we’re at $33,000 for this Model S 60. It’s a 2014, which is even a year newer, has some air filter, and probably a couple other things mine doesn’t have. You have an 85, which is great, because the range is pretty
tremendous, 265 miles. We’ll just take a look
back at this one here. Now, these things, these
cars are so incredibly cheap. and here’s my idea for you,
so, I have kind of a promo, and something that I think you
guys might be interested in. First off, you can get one of these cars for a lot cheaper than
you can get a Model 3. Granted, some of them have higher mileage, but I don’t think that’s a big deal with the powertrains rated, I’m sorry, the motor’s rated at one million miles, and all the data on the
batteries looking at well above 500,000 miles before you have any issues with them, with the exception of any abuse
that they may have taken. So, you can get one of these cheap. They’re going to hold their value because they’ve already
lost the majority of that. Then, you can go over to
Unplugged Performance. You can go to teslanomics.co/modelsrefresh and you can do what I did on my Model S, which was put a new front fascia on it. So, if you’re not in love with this kind of old black nose cone here, that I don’t know, some people like. And they even have some
cooler things you can do where it’s a, like you can change this to match the color of the car. It actually looks alright,
but if you don’t like that, and you want the never style look, Unplugged Performance up
in LA makes this front fascia system that you can
use to kind of redo it. Now I had them redo it on my car, and I am actually
absolutely in love with it. I still look at it compared
to my neighbors brand new one, and I think it’s quite a bit better. I think it’s actually, I like
the look a little bit better. Obviously I’m biased because it’s my car, but you can get now $500 off by using this code here: sullinsearlyaccess. They don’t even list this on the website. They just hit their 500th sale of this new front refresh,
and so their offering for Teslanomics subscribers
here, a $500 discount. So, my recommendation, if
you want to get into a Tesla, and you want a Model S over a
Model 3 for whatever reason, I happen to prefer them because they have more functionality. The amount of storage is just tremendous compared to the Model 3. Also, the seating, there’s
a bit more cabin room, so my son and his car seat in the back has quite a bit more room
in the S versus the 3. It’s not as fun to
drive, I would say, and, of course, one of these
used ones isn’t going to have the latest and
greatest Drive On Nav, and all these other kind of autopilot, or full self-driving features,
but I’ll tell you what, if you coming from a gas car,
and this is you first one, it’ll blow you mind, it really will. I was even looking here at the Model X, and you can see, I mean,
$70,000 with 28,000 miles. This is a steal, and
this one has autopilot. I believe all Model Xs have autopilot because they didn’t come out till 2016. So, I mean, 46,000
miles, this car is going to go so far, and yes,
77,000 still a lot for a car, but compared to what a new one would be, it’s actually a really good deal. So Autolist saying that these
cars hold their value well, which is great news for anyone
that’s an existing owner, or anyone that is looking
to buy in the near future, as well as, the prices on
the used ones coming down, and then the front fascia refresh from Unplugged Performance, I
think makes the perfect time to really get into a Tesla if you or someone you know is looking to.

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24 thoughts on “Model S and X hold their value better than competition

  1. The Marginal Theory of Value. The more rare a desired good is the higher its value. Hence dimonds which are lessed desired than water command a higher price, or when an artist dies their art becomes worth more. The more Teslas that go on sale the lower that price will go.

    Ie one person selling a Tesla with 10 buyers can command a high price, 10 people selling a Tesla to one customer better undercut their competition.

  2. A car that lasts 10 years longer and has a much lower ownership cost has a great resale value?! Who would have thought?! Wait until people are happily buying 5 year old TM3's and driving them for 5 years, just to resell them for almost what they paid for them 5 years before! Every Tesla sold is 3-4 ICE removed from the road.

  3. $78,000 is a good value for a used model x? That is falls in the middle of 75D and 100D before incentives. Can you get a tax break from buying those used ones?

  4. Hey +Teslanomics with Ben Sullins , just wanted to know if you could make a quick video like this one for which older model S years to avoid and which to steer towards (From 2012 and on), thanks. But if you already have a video like this please share that liken with me if at all possible thanks. Currently looking for a reliable older Model S, much appreciated.

  5. Is the Model S motor rated at 1 million miles? I thought it was just the Model 3 since it has a different kind of motor.

  6. Instead of longer range EVs, why not slot car like highway to never have to stop? (maybe just on the interstate)

    And where are the EV sports cars to get people exited for electric cars? That's what happened when they made the first mustang, cobra, charger..

    And why haven't they put refrigerators under these new super charger to prevent over heating?

  7. In Finland,
    cheapest Model S – 49 500€ (2013, 85kW, 86k km)
    cheapest Model X – 132 900€ (2017, P100D Ludicrous, 45k km) (found only one)

  8. Ben, just because someone is ASKING for that price, doesn't mean everyone is willing to PAY it. And EVERY new car, no matter its marque, loses 15-25% resale value as soon as you drive it off the lot. Then you have things like wear and tear of the vehicle AS A WHOLE, which are not figured into your equation at all.

    Right now, there's a lot of hype around Tesla. That's good as far as attracting the fence sitters within the existing demographic of well-heeled leftists wanting exclusivity in their virtue signaling. For the rest of the population, some things that affect price INCREDIBLY, that you don't touch…

    ELECTRONICS SUITES-since Tesla has made these cars completely dependent on the oversized iPhone interface, the minute hardware is unable to deal with newer software, the car is effectively orphaned. Tesla has said nothing about keeping their cars' HARDWARE continually compatible with newer software revisions. Are these cars still fully usable and supported? The OWNER wouldn't even be able to tell you.

    BATTERY PACK–Use Model 3 batteries in an S or X? Nope. Use hyper charging on older inverter/converter systems? Be my guest, but bring the hot dogs and marshmallows. Is Tesla still making the batteries for these older cars? Not with the Kilofactory switched over to Model 3 batteries it isn't. So, again, paying half new value on an orphan?

    Check how people actually go out and establish value on used cars, then compare Tesla with the SAME metric, including the two specific above issues. I think you'll find your assessment was more than just a bit off.

  9. As someone who bought two Model S CPO cars in the last few months I would highly recommend NOT going this route. It has been an absolute nightmare for my wife and I. We still can't register either car because the paperwork doesn't exist for cars we've owned for months now. We've had to get several temp tags for each car and the DMV has said they won't issue anymore. It's also nearly impossible to talk to ANYONE at Tesla. It's too bad too because I'm 100% onboard with the idea of Tesla otherwise. It's like they grew too fast to care about customer service and now, unless they do something rapidly, it will be their undoing.

  10. 500k miles on the battery before it degrades to the point of being unable to power the car, and 1 million miles on the motor through normal wear and tear. Long term degradation and normal wear and tear isn't why many Tesla owners have needed Tesla to replace their motors/battery packs. Those were just due to random failures… the things prematurely broke. It's one thing if you're buying new and have a full 8 year warranty. It's completely different if you're buying a 4+ year old vehicle for $35k+, and only have 4 or less years left on the drive train warranty. People are buying these cars, rather than buying new, because they actually have an income that requires a budget. If any drive train components fail after that point, it's going to be a very expensive out of pocket fix that the budget may not have accounted for. Not to mention, it sounds like getting anything fixed through Tesla is a complete PITA. Keep that in mind kiddies.

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