If You Want a Tesla Model 3 Don’t Buy One Used

Just now there are starting to be a lot of Tesla Model 3s appearing on the secondary market. A used Tesla would seem like a great way to get into the Tesla EV parade. And based on how cars depreciate the minute you drive them off of a dealer lot should mean Model 3 prices will be fairly inexpensive.

But you don’t drive Teslas off of dealer lots. It has no dealers. So that should be the first indication things with Teslas are not like other vehicles. 

Tesla Model 3s keep their value longer than your typical ICE car

A Tesla Model 3 sits on display in a dealership
A Model 3 vehicle on the floor of a dealership | Getty

Now iSeeCars has search engine data to show that Teslas keep their value longer than your typical ICE car. The data shows that used Model 3s are selling for prices close to what new ones sell for. That means budget-conscious buyers should consider just buying a new Model 3. 

RELATED: Electra-Curious? Buy One Of These Used EVs Cheap For Under $10,000

Some used Tesla Model 3 sedans sold for under $1,000 less than a new one. No mention was made as to how many miles or added features these Model 3s had. But even very low mileage used Teslas selling for less than $1,000 means they are not good cars to consider buying used. 

Used EVs have increased the overall percentage of used cars to 6.5%

Over the past few months used EVs have increased the overall percentage of used cars to 6.5%. Expectations are that in the not-too-distant future the Tesla Model 3 could make up 40-50% of the entire EV market. That’s how many Tesla has spit out over the last several years. 

“The Model 3 invasion of the used EV market has begun,” Recurrent CEO Scott Case told Teslarati. “It could be 40-50% of all used EV sales in the US within a few years, matching its market share in 2018 of new EV sales.” One thing that Recurrent found is that EV inventories have been shrinking. Especially new EVs from Tesla, GM, and Fiat, are not plentiful at dealerships.

A red Tesla Model 3 EV and other models at the Tesla Service Center in Hamburg, Germany, on October 21, 2020
Tesla Model 3 | Getty

EV inventories are snapped up faster than they can be replenished

This shows that EV inventories are getting snapped up faster than they can be replenished. US dealerships have also indicated there are greatly reduced used EV inventories, too. So EVs of all stripes are finding buyers at a faster clip. 

In the past, Tesla has said it fears the ability to meet demand, not how much demand there will be. It looks like it might be hitting that tilt in the balance. Though it has shipped record amounts of all Tesla models, it looks like it isn’t enough to satisfy demand. It is the biggest indication yet that the electrification of America is ramping up. It won’t be long before EVs become mainstream.