Trading in your car can be a good option while buying a new car. Sometimes it can give you amazing results as we will discuss later with an example of Tesla Model 3 and Model Y. However, there are lots of factors to consider while trading in to make the most of it.
Here we have a six-month-old 2019 AWD Tesla Model 3, to trade in for the Model Y. If you want to upgrade your Tesla, you should trade your car with the company and not with any intermediate broker or distributer as direct trading with the company is the best option.
Sometimes people wonder if they don’t have an electric car to trade-in. For those, I would like to mention here that Tesla also does a trade-in for internal combustion engine cars.
Recently the YouTube channel DÆrik made a dedicated video on how they end up making a profit of around $300 by trading in their Tesla Model 3.
How to Make A Smart Tesla Model 3 Trading?
Before we begin, there are a lot of numbers here. However, it will be interesting for people who like statistics and data.
The cost of this Tesla Model 3 was $55,990 (ex-showroom), plus an extra $1200 for handling and delivery fees and an additional county and state taxes of $2,287 which makes a total of $59,477. State taxes and other charges can vary.
On the other hand, Tesla Model Y costs $69,090 with additional $1200 fees for delivery and handling, $698.70 sales tax, and $232 county tax, which makes a total sum of $71,221.
Let’s Do Some Calculations
The owner bought the electric car in Colorado; therefore, the estimate will be according to the price, incentives, and taxes applicable in the state.
The YouTuber received $47,000 as the evaluation value of his car. So the difference he has to pay for the new Model Y is $23,290.
As per the rules, you pay sales taxes only for the difference, which is $23,290. However, if we compare with the Model 3’s total value, then it is $12,477.60, so the owner is $12,477 in a loss for now.
Apart from this, the government also provides different types of incentives on EVs. Here, we have the following incentives:
After getting the incentives, there is still $3,722.60 required to reach a value of $59,477.60, which is the total cost of Model 3.
However, if we bring Model Y into the picture, then, there is a rebate of $4,000 as a state tax credit from the government. Combining this figure will result in a profit of $277.40. To be precise, it’s a saving of $277.40.
Well, it’s just a demonstration of how one can trade efficiently and smartly. As to reduce pollution levels all over the world, one of the best solutions is switching to electric cars.
Therefore, despite the high cost of electric vehicles, attractive incentives can really help you with your purchase. The governments of different countries have different policies, but more or less, all of them are providing subsidies to promote electric vehicle sales.
In my opinion, it’s just a little bit of calculation, a little bit of stats, and a little bit of patience required to make the right purchase.