If you plan to sell your Tesla car, you better rethink your decision. Research conducted by iSeeCars has established that the prices of used Teslas have fallen more than those in the entire category of electric vehicles. While it depends on model and specification, new cars have declined in value in comparison to used cars in general, and used EVs and used Teslas in particular, have lost much more overall value.
The Overall Market Decline
According to iSeeCars, the depreciation rate for a Used car that is 1 to 5 years old has declined by a small 0.8% over the past year which means a drop of $239. However, the current scenario is quite different when it comes to EVs. On average, the depreciation in used EV prices has been 15.1%, which amounts to $5,709 for the EVs. This has been prevailing for the past six months and the used EV prices ranged between 15% and 20% markdowns.
Tesla Leads the Decline
Tesla’s depreciation was the highest of all the brands under consideration in this study. The average loss in the value of the used Teslas was $5,013 or a 13.6% decline which was higher than the average decline experienced in other brands like Maserati (10.6%), Chrysler (7.6%), Chevrolet (6.5%), and Genesis (4.8%).
The iSeeCars’ executive analyst Karl Brauer noted, “Several mainstream and premium brands had big used car price drops over the past year, in terms of percentage. But only Tesla and Maserati lost more than $5,000 in dollar value.”
Biggest Price Drops by Model
When it comes to individual EV models, sharp declines were observed in the Porsche Taycan with prices decreasing by 26.5%, to $73,976 on average. Tesla models were not far behind Similarly, Tesla models were not far behind the announced targets:
- Tesla Model S: Prices down 16.2% to $49,366
- Tesla Model Y: Prices down 15.9% to $31,247
- Tesla Model 3: Prices down 13.5% to $26,354
Because of these steep declines, used EV buyers are now able to settle for several cheap options that are available in the market. For example, Nissan’s least expensive model is the Leaf, which costs at least $17,000 on average. Other models that sit below the $25,000 are the Hyundai Kona $20,329 after a drop of 13.4% and the Kia Niro $21,758 after a drop of 12.3%.
Things to Consider When Buying a Used Tesla & Why it is Difficult to Find Good Used Tesla
Why Are Used EV Prices Falling?
Increased Supply: The used cars market was filled with first-generation EVs as people who tested the technology traded their EVs for new-generation vehicles with upgraded features and longer ranges. Decreasing New EV Prices: For Tesla and other manufacturers, while setting lower prices for new versions of the same EV models, the used counterpart of the cars’ value depreciates accordingly.
The other factor that supports new EVs overused ones is the incentives that the governments offer car buyers for purchasing new EVs. Range Anxiety: One of the issues that turn customers away from used EVs is the concern about the state of the battery and the high cost of swapping it.
Final Thoughts
Current trends indicate that there is a great shift in the used EV market especially in the market for used Tesla vehicles. Although this is music to the ears of the people who are planning to purchase such cars, it is not the same for those wishing to sell their current electric vehicles. Increasing numbers of models, upcoming new cars, and new price trends might help to improve used EV prices position in the several upcoming years.
For those who are planning to sell and those who are planning to purchase, it is pertinent to be informed of these trends to arrive at the most effective decision.
