Can I Sell My Model 3 Reservation? Feat. Franklin Graves

57 comments on “Can I Sell My Model 3 Reservation? Feat. Franklin Graves

  1. Cool Video Ben! Could you maybe update your Video of a used Model S or new Model 3? That would be really cool. And, when i look for a used Model S, on what do i have to look?

  2. You realized you don't like it on the drive home. Did not buy it with the intention of selling it immediately. Decided on the day to sell it.

  3. Not sure how the US tax system works but wouldn't that be taxed as capital gain instead of income? Maybe its different over there.

  4. Thanks for the great videos and ideas. I have two reservations and they both may come due in 2018 as one was on day one and the other only a few months later. My question is I want to take advantage of all the tax savings but do not make enough to write off both cars in the first year and could miss some if pushing out rev 2 to later could I have my fiancee or brother get the car to take advantage of the taxes? I would maintain ownership under a legal agreement and make all the payment on a loan. crazy question I want to keep both to rent them out and place them in the Tesla fleet later once that is active.

  5. On reselling the car and the Federal EV rebate,.
    First IANAL IANATA (I am not a Tax Attorney) so this too is for entertainment only. First I would assume excise or sales tax would be due twice. Next under the IRS guidance Plug-In Electric Drive Vehicle Credit (IRC 30D)

    "The vehicles must be acquired for use or lease and not for resale. Additionally, the original use of the vehicle must commence with the taxpayer and the vehicle must be used predominantly in the United States. For purposes of the 30D credit, a vehicle is not considered acquired prior to the time when title to the vehicle passes to the taxpayer under state law."

    There is also a section voiding the tax credit for misrepresentation or fraud.

    Obviously having a contract to resell = especially ahead of time would constitute buying for the purpose of reselling. So in addition to double sales tax the seller would also lose the tax credit. Of course in the early months someone wealthy or a major car magazine might still make it 'worth your while' to resell without the credit..

  6. And no they will have pry the Tesla Model 3 from my cold dead hands. Ha! Would not consider a resale. By late Q4 (the earliest I might see mine if fortune favors) the rich or corporations with superdeals will already have found sellers or rentals.

  7. This idea would present two tax problems in the US and I assume elsewhere. Not only would the "second" owner forgo the federal US $7500 tax credit, but both original owner and second buyer would pay State & Local Sales Tax and or Personal Property Tax.

  8. Don’t you have to register your Tesla in your Tesla account? This means Tesla receives the information about reselling the car. Anything they can do with this to discourage reselling? Perhaps some Supercharging penalty?

  9. Ben you might want to find out if Tesla part owns the car, as they submit updates to it. This could stop you from officially selling it.

  10. I read before that someone transferred their model S reservation simply by giving the Tesla account to the one they transferred it to and that person simply updated the credit card, billing address and owner's name. Can these fields be edited in the model 3 reservation?

    Are there any reports of Tesla ever canceling someone's reservation (excluding when one person had more than 2 reservations)?

  11. If you have finance on the tesla your buying you need to settle the finance first cos the finance company own the car not you .

  12. Would this void the warranty of the vehicle? I can't imagine anyone wanting to buy a "new" car without a warranty on a car that only Tesla has parts for.

  13. An option to transfer the reservation not discussed, is adding another purchaser on the reservation, so that the original reservation holder stays on the agreement along with another, who then become co-purchasers of the vehicle. Then days, months, later, remove the original purchaser, and the new owner now has sole title. Tesla may allow that as the original reservation holder remains on the agreement in this scenario… Confirm that option with your legal/Tesla peeps as it does offer an option to keep their spot in line…

  14. What about selling the car a year or two later? I was planning to get what's currently offered, drive it for a while until supplies ramp up, then buy the exact "custom" model I wanted originally – dual motors etc.

    The goal is not to make profit – if I can break even I'm happy – but to just eventually have the car configured for my personal taste while also driving the car sooner until that's possible.

  15. C'mon guys! EVERYONE understands that Tesla can't do anything, legally, to prevent a Model 3 reserver from reselling (transferring of title) his/her vehicle, once that individual have taken delivery of his/her car. And, so, why get into explaining what is already understood? Just simply stick to whether or not Tesla would allowing for the transferral of Model 3 reservations (for profit or not), and that's it.

  16. Thanks for the info. I had a reservation at around 150 000, but that's when I thought it was a hatchback. The model 3 is everything I hoped it would be with exception of cargo space. I was looking into canceling my reservation or selling it. I might wait a while longer in case they announce a hatchback version.

  17. I'm sure that if you said to Tesla…

    "Hey, I want to transfer my Model 3 reservation to someone else BECAUSE I am going to buy a Model S instead".

    I think in that case they would absolutely at the very least give you permission to do so.

  18. Ben, you aren't allowed to take the tax credit if you're purchasing just to resell.
    Section 5:
    (3) The vehicle is acquired for use or lease by the taxpayer, and not for resale;

  19. Ben, Can you please talk more about the possibility of Tesla using software upgradable batteries in the upcoming Model 3? This may cut into profits at first but would allow them to continue to make money long after the sale as well as simplify production.

  20. I'm not waiting 2 years for a car to sell it as soon as I get it.Β I'm sure some will, but it's not worth the headache.

  21. Also the details of the Federal tax credit require 30 months of ownership which will be verified/audited over time.

  22. I love my model S.Β  I don't think I will use my Model 3 reservations.Β  If selling my reservation is an option, I would consider it.

  23. Can Tesla retaliate in other means, such as denying warranty coverage to transferred owner? Again, backlash may result and unlikely Tesla will do this, but from legal stand point, this may be possible?

  24. I do have a reservation for a model 3 but I heard that Tesla will be making a pick up truck; for me a far better choice.
    I wonder if I should let go my reservation or try to sell my new model 3 when I get it. Or maybe Tesla could keep my model 3 deposit for the pick up truck.

  25. I would like to pick up my model 3 c/w a tour vs it arrives here in ottawa Ontario Canada πŸ‡¨πŸ‡¦ question is there a tax problem with this and would Tesla be open to a tour to new owners?

  26. I am 180000 in line for a tesla 3 and until then I am driving my diselgate Jetta TDI until then. I will keep the car πŸš— indefinitely as it's my retirement car.

  27. This would probably trigger many issues with taxes such as the Federal/State Tax incentives. The incentives may have a clause requiring you to own the car for x amount of time. Also, this sounds like it would trigger another sales tax as Tesla sold you the car then you went off and made another sale to another person.

  28. I'm a day 1 reservation holder and a model S owner, I'm buying the car hopefully by December for pickup, collecting the 7500 and then selling to my mom for no profit. If I don't pick up by new years it will stay in my name till 2019.

  29. Ben, a question. I live in Louisiana and I happen to be looking at lease options on the Tesla website. I noticed at the bottom, LA was not listed as able to get a leased Tesla. This led me to find out that LA has strengthened it's laws regarding Tesla sales in my state.. the whole, no dealership thing. Can you explain what that means for me as far as when I am ready in a few years to get a Model 3 if the laws stay the same? Will they ship it to me? Do I have to go to another state to pick it up? And I'm guessing no lease option while the law is in effect? Thanks in advance.

  30. Hey Ben, Here's a California curve ball for you. I have registered a car in Ca., Jim or Sean meaning me or my son, since both names are on the title either can sign off on the title to sell or reregister the car. Why couldn't I register Jim or Ben and you secure insurance, get the tax credit and pay me $4K + $1K (deposit) and we go on our merry ways, with a side agreement that you provide proof that you have removed my name from said title. I don't know if other states allow this, but I'm certain Ca. does. What say you or your Youtube lawyer friend?

  31. Can I Sell My subscription to this channel ?
    Short answer is no.
    Long answer is 'sort of'.
    ** But please note – this comment is NOT legal or financial advice and I'm only doing this for "entertainment" purposes." **

  32. Well from my point of view… you place in line for model 3 doesn`t matter that much… it just -+3 months, if you know what battery/drive you want … you know when you gonna get it… we already know expected deliveries for Europe and rest of the world and we already know deliveries for right hand side steer, so buying a place to be first in the line doesn`t really mean a lot, it`s just YOU having first of car of THAT KIND in your REGION

  33. I have a reservation for a Model 3, and I'll be buying the fully optioned single motor version. I'll be testing it out for my mom (who's legally disabled) if it's something that looks like it will work for her, she'll get it. If it won't, I'll either hang onto it until the dual motors come out, or sell it and get a Model S. If I decide to sell, I'll probably aim for a little markup, since whoever's getting it will be able to skip the line.

    What I really hope is that the car will work for my mom.

  34. Contract law is an oxymoron, in that it creates more loopholes than it closes with it's 'inclusive' language and transfer options. Witness Texas this week ruling that crosses were "sectarian symbols of something (I forget)", not religious symbols, and can be displayed where ever. Make one stupid law, make another to get around it.

  35. There is no guarantee that Model 3 immediate re-sale value will be good for people who want to flip the car immediately after acquisition. People for 5 main reasons are already walking away (to the tune of 63,000) from reservations. That's not a good look.

  36. Hey Ben,
    Love the channel, info overload, which is my cup of tea. Was wondering if you had thoughts on the sodium glass batteries? Think they'll take as long to get going as lithium ion batteries?

  37. Hey Ben, We wanted to buy an early Model 3 at the sticker price + more from the US but hit a snag where you can't import a US spec'd Tesla to Canada. If you modify it (aftermarket) it is then considered a modified car and its also not allowed to be imported. We wanted to offer our customers the opportunity to experience a Tesla model 3 rental instead of waiting for the Canadian cars, but unfortunately we will have to wait. I heard though that we would get it fast once the Canadian shipments start rolling out, as by then the production numbers week will cover all of Canada in a few months and we are also previous Tesla Model S owners. – We used your estimator tool and its awesome – thanks!

  38. The only reason I would consider selling the Model 3 would be related to financial problems. Unfortunately it's not a cheap car event if it's "affordable"

  39. Hey Ben, Enjoy your videos! I have made 2 reservations, 1 for my brother and 1 for my cousin. They made the reservation under my account however they each paid with their Credit Cards for the deposit. I've reached out to Tesla to see if they would get me something in writing. i wounder if anyone has info on who to reach out for something like this. I emailed my Delivery Specialist to see where I'll be directed. I want the car payments and tax credits to go to them directly. I only want to help them get the car. I would assume Tesla knows that not all S/X owners will be able to afford 2 more cars on top of their current payments.

  40. I was very keen on buying the Model 3 but I'd foolishly hoped the $35k price they originally announced might include some of the features that have since been announced as options. As I am in the UK it's likely my deposit will be invested with Tesla for much longer than those in N.America who placed an order the same day. If the UK price ends up being crazy or the delivery is put back to 2019 I'd consider buying a different EV. At that point I'd obviously prefer to get something back for my investment. I not keen on people who buy cars/tickets/etc. simply to sell to people who have more money than patience. I'm not looking to do that, just would like to cover what I've lost not having that deposit money invested elsewhere. I guess I could ask Tesla to transfer it to a Solar Roof or Powerwall.


  42. The long answer is you cant sell it til you own it. That means you need to pay 35k plus in cash to own then you have to get the title. Or once the guy you sold it to gives you cash plus taxes plus whatever profit you can make, you Must get the title from bmv and then sell it. Gl getting someone to give you 60-70k in cash just to have it now. So techically yes in reality no. Most people cant rub two pennies together let alone let you have their 60k in cash to get it. Stupid

  43. Mazda should make a 150 mile range lightweight inexpensive Electric sports car. There are ZERO on the market. Or make a very small electric pick up truck.

  44. My friend gave me his reservation due to unforeseen financial issues. I put down $2,500 and designed the car through his profile. I paid with all my information and registered this car through the Tesla website to myself. When we take delivery, is this going to be an issue? The reservation is still under my friend. Please help. Thank you!

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