How To Make Money on Your Tesla
Electric vehicles (EVs) can be expensive, especially when you want a luxury car like a Tesla or a Lucid. However, if you have a Tesla, the market might be on your side if you want to make money on your EV. Here’s how you can make money on your Tesla.
How much is a used Tesla worth?
Teslas depreciate slower than most of the other EVs on the market right now. Specifically, they tend to depreciate less altogether, which creates a unique opportunity for car “flippers” to make money. Flippers buy cars for less and sell for higher, making a profit. The process isn’t specific to cars either; many real estate investors flip homes regularly.
However, it should be said that most non-Tesla electric cars tend to depreciate more quickly than their gas-powered counterparts. Until EVs gain more popularity, the trend of higher depreciation rates will continue. Further, iSeeCars conducted a study that reflected a national average depreciation rate of 52% for EVs within the first 36 months of ownership. That number is scary, but some cars, like Teslas, depreciate less than the EV average.
Can you resell your Tesla?
Like any EV or gas-powered vehicle on the market, you can resell your Tesla. However, some models promise to fetch larger profits when resold. The sales potential stems from higher popularity and lower entry costs, meaning EV shoppers can aspire to own Teslas like the Model 3.
How can you make money flipping Teslas?
Car flippers will typically buy vehicles like Teslas and sell them for a profit within the first year. Specifically, they are placing orders for sought-after new cars, which the current market and supply chain are having difficulty producing. As a result, gently-used or like-new models fetch a bloated profit from buyers who want the vehicles but couldn’t order one for whatever reason. Enter the flippers.
The LA Times interviewed a car-flipping pro, Dennis Wang, who has been dabbling in Teslas. Although his first attempt was less-than-successful, one of his latest Tesla flips netted him a tidy $7,000 profit. That’s after having driven the car himself. While it’s a somewhat risky undertaking, it is legal and, in many cases, profitable.
Which Teslas will make money in resale?
The Model 3 depreciates much less than its siblings in the Tesla lineup; only 10.2% in three years, according to iSeeCars. While that is excellent news for current owners, it can create difficulty for used car shoppers looking to get their hands on a Model 3. However, taking advantage of that depreciation value and heightened popularity could mean a profit.
Will anything keep you from making money by reselling a Tesla?
In France and Germany, lawmakers have instituted time limits on reselling an electric vehicle for personal profit. That move aims to cut down on the instances of car flippers buying and reselling cars for big pay-days. However, the United States has yet to adopt a similar law. For the time being, EV flipping is a lucrative way to potentially drive a Tesla for a bit and then cash in.
Scroll down to the following article to read more about Teslas, like the Model 3!