Effects of EV tax credit on the car market

[mattpew]

Need help from the bright minds of this forum to help me understand what the practical effects of the new federal tax credit on the EV market are.  I'm noticing something unusual in my research that I can't quite figure out:

A base Tesla Model 3 presently costs $38,030 + $1,390 dest fee + $250 order fee for a total of $39,670.  A $7,500 tax incentive reduces that price to $32,170.

Why, then, are lightly used Model 3's selling for no less than ~$38,000?  Even on Tesla's own website, the cheapest listing is a 2022 base Model 3 for ~$38k. 

Is the pool of people able to take advantage of the full tax credit so small that it doesn't have a 1:1 effect on the used market prices?  Do people generally not understand our tax code enough to realize what this credit is?

It seems like a no brainer to drop the money on one if I can turn around and sell it for several grand of instant profit.  There must be something I'm missing here.

[Paper Chaser]

https://forum.mrmoneymustache.com/ask-a-mustachian/why-are-used-teslas-still-more-expensive-than-new-ones/


Short answer is that the bubble has deflated and some sellers haven't adjusted to new pricing. If you bought a new Model 3 in 2022, and Tesla dropped the price by $7k the very next day, you just took a $7k hit in depreciation that's hard to swallow.

[seattlecyclone]

Do you have to get in line for a new one? The fact a used one is available right now could be worth a premium if so.

[GilesMM]

You can pick up a 100k mile Model 3 for under $25k.  If you believe in the battery tech, it's pretty affordable.


e.g. [size=78%]https://www.carfax.com/vehicle/5YJ3E1EA4JF157443[/size]

[rothwem]

Well obviously the old ones were made before Elon Musk went crazy, so they're definitely a better car. 

[bacchi]

Maybe the older cars from Fremont are built better?

Per the driver's side sticker, the load carrying capacity of a friend's new Model Y (Austin build) is ~826 pounds, which isn't much. The Fremont builds are ~1126 pounds.

Is the frame not as strong? Did Austin run out of stickers and use Model 3 stickers instead? Are they using a lighter suspension? Is it reality and the Model Y could only ever handle 826 pounds?

Either way, my friend paid for the towing package and he's pissed.

[Paper Chaser]

Maybe the older cars from Fremont are built better?

Per the driver's side sticker, the load carrying capacity of a friend's new Model Y (Austin build) is ~826 pounds, which isn't much. The Fremont builds are ~1126 pounds.

Is the frame not as strong? Did Austin run out of stickers and use Model 3 stickers instead? Are they using a lighter suspension? Is it reality and the Model Y could only ever handle 826 pounds?

Either way, my friend paid for the towing package and he's pissed.

That's interesting. Depending on vehicle configuration there could be differences in unibody castings and/or battery composition.

[mattpew]

Do you have to get in line for a new one? The fact a used one is available right now could be worth a premium if so.

Quite the opposite.  The new Model 3's that are marked down to $38k are sitting on a lot ready for instant pickup.