Have a model Y 2023 with 20K miles on it. I’m currently financing it (I know bad decision that I’ve regretted). I have about 8-9K negative equity on it (Carvana/carmax appraisal).
Any advice on how to minimize the loss? I’m looking to trade it in for another mid-size SUV electric or non-electric car.
I would appreciate any advice.
Thanks
How much Tesla is giving you for it?
They started offering “attractive lease” for CPO Tesla cars. For sure you can trade in your Tesla.
Good luck
Tesla offers used car leases with $0 down as it desperately tries move cars | Electrek Tesla offers used car leases with $0 down as it desperately tries move cars | Electrek
Give it 1-2 months. The new Tesla lease programs on used cars should skew some sales data in your favor. May still be best to ride it out, but your negative equity may decrease.
Model Y from 2-3 years ago have hit close to the bottom of their depreciation curve. Just hold on to it, now is the worst time to sell
Btw. Anything wrong with this car? Just curious what is the reason behind this idea.
I would stay away from another electric vehicle if you are scared of negative equity.
Not a problem when you lease one but I agree with what @jananth1 said.
Nothing wrong with the car actually. 20K miles on it.
The negative equity that I have is behind the idea.
Are you financed at 0% or some very low rate?
No, rate is high 5%
Keep it for another 3 years.
Would you consider trying to sell it yourself via private sale? I was just browsing AutoTrader right now and they show cars in your mileage range selling for about $32K. Can I ask what Carvana/Carmax offered you? I assume they wanted to get a 10-15% margin, so maybe they offered $27K?
If you could sell directly via AutoTrader for $32K would that help absorb some of the negative equity?
Also, keep in mind that when the $7,500 EV tax credit goes away after Sept 30th, that should theoretically raise the floor for used EV prices. So maybe the retail price will go up to $35K in October. Would that make you whole?
Selling for $32k on AT or $32k is what the asking price is now?
I took an average. There are some asking $35K and some asking $28K. I imagine things would settle in the low 30s.
I have been wondering about this same theory. Curious what others have to say…
IMO, for a short time. I am expecting pilining up new EVs stock ( even with reduced supply) and good deals starting Nov 2026 to move the metal.
I was thinking the piling up of stock would be from all used EV trade ins to get tax credit on new before the deadline. Resulting in a surplus of used EVs that sit and a must have price reduction to move.
I suspect new EV prices will drop significantly beginning in October which will crush used EV prices. Just look at what happened to used Tesla prices when Tesla dropped the price of their new cars.
Do you think they can drop new EV MSRP in the middle of the year? I think we need to wait for 2026 MY to see that change.
For EVs currently sitting on the lots they need to come up with add $7.5k manufacturer rebate/incentive to move the metal
The thing is, being whole is neither her nor there. It’s merely a reflection of decisions made long ago. How much to put down, what the APR was, etc etc.
Generally speaking people like OP should continue ownership well into the flat part of the depreciation curve. That’s a real savings as opposed to just jumping ship as soon as NE hits zero.