Electric vehicles are being purchased by people all around the world. The market is expanding quickly, whether it’s because people want to take advantage of the cost-saving benefits of owning a car that doesn’t require pricey gasoline or because they feel more environmentally conscious when they plug their car in. Only in the US have purchasing increased year over year by 75%.
The cost of these stunning vehicles is the only drawback. To reduce the overall cost of their purchase, many customers are using the Tesla trade-in program. The only remaining query is how this program operates and whether it is superior to other buy-back businesses like CarMax or Carvana.
The specifics of how Tesla trade-ins operate, their advantages and disadvantages, and how the entire procedure unfolds are covered below.
Tesla Requirement for Trade-Ins?
After you have entered some crucial details, Tesla does a pretty good job of estimating the value and condition of your vehicle. You must first register for a Tesla account and submit a trade-in offer request. Following that, you must offer:
- Any notes on the condition
- Registration number
- First registration date
- Sales Tax
In general, that is all the information they will need to run a check on the car’s history and vehicle maintenance condition. However, depending on the Tesla agent you work with, additional information may need to be provided.
What is the Trade-In Process?
The moment you submit the aforementioned information, the Tesla trade-in program is activated. A Tesla employee will then be assigned to your trade-in to determine the value of your Tesla trade-in. For this person to review, you must give your zip code and pictures of the car. You will then receive a trade-in offer from them. If you agree, you must deliver your vehicle to the nearby Tesla dealer for inspection.
The valuation Tesla will provide will determine whether or not they accept trade-ins. Most of the time, you can apply the money you receive for your car toward the cost of a new or used Tesla.
Which Vehicles are Eligible for Trade-In?
The good news is that a wide variety of combustion and electric vehicles are accepted by Tesla as trade-ins. Tesla will review and assign a value to any passenger cars, trucks, vans, or SUVs you submit, depending on their condition. Because of this, the old Honda you have in your driveway without a windshield might still be worth something when it comes time for you to make a purchase.
Motorcycles, recreational vehicles, and commercial cars are not permitted at Tesla. Therefore, all of you influencers who are currently driving around the US in a renovated school bus may need to look elsewhere for a trade-in.
Additionally, you can trade in your Tesla for a different Tesla. Here is an illustration of a three-year-old Tesla owner who has received an offer. The car’s value has only decreased by $4,450:
What Condition Does Tesla Accept for a Trade-In Vehicle?
The vehicle must be in “drivable condition,” according to the general guideline for the Tesla trade-in program. That implies that you must be able to start it and transport it to the Tesla location for return. Unfortunately, Tesla does not accept trade-ins for vehicles with lemon titles, NAM titles, salvage titles, designated flood-damaged vehicles, or salvage.
You may get an idea of what Tesla will offer for your car by using a third-party online Tesla valuation app.
How Long Does Tesla’s Trade-In Offer Last?
You will need to drop off your trade-in at a Tesla dealership after completing all the online forms. Based on the general condition of your vehicle and the going market rate, Tesla will make a final trade-in offer. These deals are valid for approximately 1,000 miles or 30 days, whichever comes first.
You can anticipate receiving your offer in three business days to a few weeks, depending on how busy the dealership is. Because it takes up space in their facility, Tesla wants to handle your trade-in as quickly as possible.
Is There a Tesla Trade-In Calculator that will Help to Estimate the Value of the Car?
No and yes. This link will take you to the official Tesla trade-in program’s online calculator, but depending on current inventory levels, it may not always function. Numerous accounts exist of people who sold their cars for amounts that were entirely determined by the initial quote they requested when creating an account. Some of their experiences are shown here.
Can You Negotiate with Tesla on Trade-In Value?
There is always opportunity for bargaining, just like in any other business transaction. It will largely rely on the kind of Tesla employee you are dealing with and how they view the potential of your car.
Some buyers claim that they have had success in negotiations by presenting verified estimates from different auto dealers, such as CarMax or Carvana. This gives you a little more negotiating power by demonstrating that you can take your business elsewhere and obtain a better offer. That is beneficial but not a guarantee.
What is the Feedback from People who have Traded in their Cars?
There is a fantastic Subreddit called Teslamotors that has numerous examples of car owners using the Tesla trade-in program that have been documented. Again, depending on who you are working with, the value and experience will change.
Here are a few comments from a different subreddit devoted to Tesla that were chosen at random:
Many people, such as this user who discusses how they were able to increase their estimated value after bringing in a CarMax estimate, as well as these Redditors who had positive experiences but cautioned others about the tax repercussions.
Is it Worth using Tesla’s Trade-In Program?
In general, dealing with Tesla shouldn’t be a problem for customers. The bigger problem was getting enough cash for their trade-in.
To reduce the overall cost of their new or used Tesla vehicle, everyone seems intent on maximizing value. Many people claim to have received offers for 20–50% less than they would have elsewhere, so you should bring a second offer to Tesla for your trade-in.
Advantages of Tesla Trade-in Program
- A reasonably easy process that, except the actual drop-off, can be completed primarily online. Tesla does a good job of explaining every step in detail and does not demand a ton of supporting documentation regarding the state of your car.
- Because you are buying an electronic vehicle, many states have started to offer some tax incentive. So that you can benefit from any available rebates, make sure to save your tax and purchase documentation.
- Any outstanding loans on your current vehicle are not factored into the purchase price by Tesla. They provide you with the full value of the car based on the state of the market.
- Contrary to other dealerships, Tesla provides a straightforward, hassle-free trade-in value for vehicles with combustion engines (non-electric cars).
- People appreciate the convenience of trading in their old car at the same dealership where they pick up their new one.
- It’s nice not to have to deal with the aggressive car salespeople you might encounter at a used car lot.
Disadvantages of Tesla Trade-in Program
- Depending on the staff member you receive from Tesla, you will be able to negotiate the total value of your trade-in.
- Tesla vehicles are in high demand. Having a second offer will give you more negotiating leverage because the company knows they can get a lot for their cars.
- Tesla favors automobiles that are as close as possible to the factory stock. Any alterations you have made might actually reduce the car’s value when you trade it in.
- Tesla’s vehicles could take longer to deliver than the allotted 30 days. That indicates that due to shipping concerns, you might have to buy your Tesla before your offer is actually accepted.
Many car buyers have the chance to reduce some of the costs associated with owning a new or used Tesla electric vehicle thanks to the Tesla trade-in program. These products are in high demand because so many consumers want to benefit from cars that operate without gasoline. With rising gas prices, maintenance costs, and environmental consequences, this demand is only likely to increase.
Do it if you are fortunate enough to be accepted into the Tesla trade-in program! To ensure you have some negotiating power, look for a second trade-in offer from a rival like CarMax, Vroom, or Carvana. In the end, though, the price of your new electric vehicle should be reduced.
Keep all of your receipts and look into any potential local, state, or federal benefits you may be eligible for as a result of your eco-friendly purchase. Good fortune!