Are Used Tesla Prices Finally Getting Lower?
Tesla is one of the most popular automakers in the world. For years, the brand has taken the electric vehicle market by storm and earned its name as synonymous with luxurious EVs. However, even used models that are getting older and older are still expensive. For the first time, prices are beginning to drop for used Tesla prices. Will the electric vehicle brand finally become accessible to the average household with its pre-owned pricing? Are used Tesla prices finally getting lower?
Used Tesla prices are getting lower
According to Electrek, the average used Tesla price went down 17% since the peak of pre-owned pricing in July. In November 2022, the average model cost $55,754, which is down tremendously from the July high of $67,297. Overall, the used car market saw about a 4% decrease during the same period. Since all car prices have been inflated for a few years, it’s easy to assume Tesla was no different. However, the brand’s used vehicles have held their value surprisingly well over the years.
In addition to lower November prices, the EVs sat in dealer inventory for an average of 50 days. Used cars of any brand averaged 38 days in dealer inventory during the same month. Clearly, buyers have lost some interest in purchasing used models, which could impact dealers’ abilities to charge high prices. Moreover, Electrek says the market is also seeing the effects of people buying and flipping Tesla vehicles.
The drop in used Tesla prices is finally killing the market for Tesla flipping. After price increases in 2022 and a massive backlog for the automaker, people began buying new vehicles to flip and sell used for more than the original MSRP. When buyers inevitably didn’t want to wait six months or more to get their hands on a new car, they bought from a Tesla flipper, who made money on the sale. In August 2022, nearly a third of the used market for the electric vehicle-maker was already comprised of 2022 model years.
How much is a new Tesla?
Charging more than MSRP on a new model for a used one is absurd for any automaker. Unfortunately, the popularity of Tesla and EVs, in general, allowed sellers to do it successfully. But how much does a Tesla cost new from the factory? First, the 2023 Model 3 with rear-wheel drive is the cheapest new model available, starting at $48,990. Next, the Model S is the only other sedan, which starts at $99,740. Then there’s the crossover and SUV, the Model X and Model Y. The former starts at $126,490 and the latter at $66,990.
As you can see, used Tesla prices being higher than the original new car price makes them unaffordable. The entire lineup is already expensive, so overcharging for used models puts them into outrageous territory. Luckily, it seems that with the calming of the used car market as a whole, the used Telsa prices are finally getting lower too. Even five or more-year-old Teslas were close to (or over) the original MSRP for a long time.
For example, CarMax has a 2018 Model 3 listed for $45,998. With over 25,000 miles on the odometer and five years on the road, we’d think it might be more than $3,000 cheaper than a brand-new 2023 Model 3.
Are you interested in a used Tesla since prices are finally getting lower?