Tesla has seemingly made its long-time suspected and officially announced trade-in program for the long-awaited Cybertruck. This all-electric, full-size electric pickup faced almost two years of delays before reaching the market. The announcement comes at a time when vehicle owners are starting to feel the penalties of depreciation. According to reports, their vehicles tend to depreciate precipitously right after someone buys one.
The 2024 all-wheel drive (AWD) version of the Cybertruck has a base price of $100,000. One owner drove the vehicle for close to 20,000 miles in just over three months. Tesla offered them a jaw-dropping trade-in quote of $63,100. This number is indicative of a shocking 37% devaluation, making one wonder how quickly the electric pickup will lose value in the long run.
Resale Clauses and Trade-In Options
At first, Tesla wrote very aggressive resale terms with high fines for any owner thinking about flipping their Cybertruck. The clause resulted in a $50,000 penalty for any resale not approved by the developer, deterring many other prospective buyers. This clause was an important part of the contract to maintain the exclusivity and therefore value of the vehicle. It received immediate resistance from owners who said it was too limiting.
In an unexpected reversal, Tesla dropped the resale stipulation, only to bring it back about a month later. This ping-ponging has created a lot of uncertainty for owners who don’t know what they can expect if they go to sell, or trade in their affected vehicles. Tesla’s recently announced trade-in program would allow them to return their Cybertruck directly to Tesla. This strategic shift allows them to recoup part of their investment without incurring the past sanctions.
Insights from Recent Reports
Recent finds from InsideEVs verified that Tesla has opened the trade-in software to Cybertruck house owners. This is a notable advance, particularly because it represents a deepening of Tesla’s long effort to control the vehicle’s resale market. The trade-in program allows current owners to recoup some of their investment. It shields them from the sharp hit they’ll take in depreciation if they sell privately.
Though Business Insider’s analysis of the Cybertruck’s depreciation rate has caught more PR flames over this issue. At first, all the buzz surrounding the vehicle’s release seemed electric. Many owners are now coming to terms with the cruel reality that their investment will not come close to holding its expected value. The trade-in option offers a new opportunity for these owners to avoid deeper losses.
Looking Ahead
Tesla continues to hone its strategy with the Cybertruck and its prevention of resale practices. Owners are understandably waiting with bated breath to see what all these changes will do to the market. Allowing consumers to trade their vehicle directly to Tesla might change what consumers do right there. It would create far more flexibility for owners to move up to newer models down the road.
