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Why I buy used cars... and never first model years!
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Posted by Snowmobile [Email] (#686) [Profile/Gallery] (more from Snowmobile) on Wed, 12 Jul 2017 09:03:51 Share Post by Email
In Reply to: OT: Irrational Exurbance?, MI-Roger [Profile/Gallery] , Wed, 12 Jul 2017 08:32:56
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First of all, I noticed the "new drive train" line and wondered why that should be an issue with <80k on the clock! Batteries maybe, drive train? hmmm...

Aside from that, depreciation is what it's all about... that person is paying a premium to own the latest and greatest first model year Teslas. They are the company's beta tester, in this case not only for the car itself, but also for the sales channels.

SAABs were little different in terms of depreciation. I was able to buy a 5 year old 9-5 that originally cost north of $40k, but I paid $6k for it. That is life. If one must buy a new car and plans to trade in, having a clear understanding of the residuals and probably focusing on brands that offer good residuals (eg Honda, JEEP, etc) is smart.

Being patient and waiting to see how fast the $30k teslas would sell before dropping price might have been a good idea. There aren't exactly a gazillion Teslas on the road that people are selling used. It's a supply and demand thing. There is a *huge* demand for new Teslas, and I imagine a similarly large demand for lower priced used ones...

Of course, if one has gobs of money to spend on depreciation of a first model year of an essentially new company... then why complain about residuals at all, right? It's one of those "If you have to ask the price, maybe you can't afford it?" situations I think.

I'm actually quite interested in the model S, but not in a first model year and not brand new. We will likely need to replace a car soon, but it will more likely be another late model SAAB (or perhaps volvo, audi, bmw) as I don't feel the Teslas or other electrics on the used market are quite to the point where I'd be happy buying them.
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