Tesla Resale Values Drop: Is It Time to Buy Used Models?

AUSTIN, Texas — Tesla owners are facing significant depreciation as the resale values of their vehicles plummet. With the recent sale of a Tesla Model 3 Long Range by Edmunds at just $31,000—down from the original price of $60,630—prospective used car buyers may find an opportunity.

Edmunds, a well-known car-buying advice website, acknowledges that Tesla’s diminishing resale values make the Model 3 an enticing option in the used market. The company only paid $48,630 for the car due to a transferred $12,000 Full Self-Driving software subscription from a previous model, highlighting the challenges of depreciation.

Tesla’s rapid decline in resale value is not a surprise to many observers. It’s been noted that electric vehicles (EVs), in general, depreciate faster than traditional gasoline-powered cars, mainly due to the uncertainty surrounding battery evaluations. Additionally, Tesla has dealt with a tarnished image both in the U.S. and Europe, impacting its market performance.

Data from industry sources reveals that the average value of a 2022 Model 3 Standard Range is now around $24,519, while the Long Range version averages about $28,783. Buyers may even find older models priced below $30,000, especially those with extended ranges. Given the current economic conditions, where gasoline prices remain high, used Teslas appear to be a practical choice for those looking to invest in an electric vehicle.

Despite criticisms regarding Tesla’s minimalist interiors and noise levels, the Model 3 still ranks well according to various automotive reviews. The vehicle is praised for its performance, range, and access to an efficient charging network—a considerable advantage for EV owners.

As the market adapts to the growing presence of electric vehicles, potential buyers can benefit from the current dip in prices. However, some buyers may still grapple with moral considerations regarding the company’s leadership under Elon Musk. Yet, the possibility of significant savings on a used Tesla could outweigh personal reservations for many consumers.