Two dollars don’t get you much. My grandfather would give me two dollars for organizing his bookshelf. Sometimes. Then, I’d go out and spend my two whole U.S dollars on Hotwheels. Evidently, one man decided to take that idea a little further and buy a whole-ass Tesla Model 3 for a net loss of $2.00 even. Sure, Tesla models are popular, but they’re not that popular. If this isn’t the perfect analogy for the absurdity of the auto market right now, I really don’t know what is.
Usually, a Tesla Model 3 is a little more expensive
Let’s face it. A Tesla Model 3 isn’t really “cheap.” Well, everyone’s got a different definition of cheap, don’t we? Warren Buffet probably thinks a Koenigsegg Jesko is “cheap”, but I could never. Regardless, a brand new Tesla Model 3 costs right around $40,000. More specifically, Kyle Peavley told WCPO 9 Cincinnati that he bought his for $39,999. It’s a pretty chunk of change, but right around retail value for the market’s hottest EV manufacturer.
Granted, Peavley bought his Tesla two years ago, long before mask mandates and market madness. Current circumstances notwithstanding, and an average market depreciation of around 35% over the course of two years, that Tesla Model 3 should be worth about $26,000 right now. Clearly, the market had other plans for Mr. Peavley and his Tesla. Kyle Peavley of Maineville, Ohio sold his Tesla for $39,997.
It’s certainly a seller’s market right now
Yeah, you read that right. Two dollars. Moreover, the Model 3 is, rather obviously, an EV. And a new EV at that. So, no oil changes. Two years is also just about the lifespan of a set of brand new all-season tires. Maybe he spent a few bucks on wiper fluid? Regardless, it did in fact only cost Peavley $2.00 to own a Tesla. Surely that nice new Tesla warranty also helped out there. Clearly, this is a unique set of circumstances.
However, these unique circumstances are an excellent illustration of the auto market right now. Consumers can’t get what they want on dealership lots thanks to the chip shortage, so used values are insanely high right now. I mean, there was a Honda Civic Type R LE on eBay last week for $80,000, nearly a 40% markup. People are flipping Ford Broncos for six-figure sums right now. It’s insanity, to say the least.
Current circumstances won’t last forever
However, because all of this is due to a supply shortage, it won’t last forever. Eventually, supply chains will stabilize and balance will return to the Force. For now, buyers are best waiting and sellers are best off laughing all the way to the bank. Don’t buy, and do sell. Take advantage of this now, as Peavley did, and you’re sure to make well over what your car is worth in most situations.