The Tesla Model Y was once the quintessential electric SUV. Today, there are several more affordable alternatives to the Model Y that are becoming just as popular. The Model Y has a longer production history than most of its rivals. Used Model Ys often sell for as much as new models, if not for even higher prices. Why are used Tesla Model Y electric SUVs so expensive?
Why are used Tesla Model Ys so expensive?
Used Tesla Model Ys are so expensive because of the demand for the electric SUV. Some nameplates have more value than used vehicles because of their availability. Limited supply and increased demand leads to skyrocketing resale value.
A perfect example of demand driving up the price of a used vehicle is the Toyota Tacoma. There was strong demand for the Taco during the height of the global pandemic. As a result, drivers began to pay more money for used models because new models weren’t readily available.
Tesla has struggled with its fair share of supply and pricing issues in the past. To the company’s credit, no drivers would buy the used electric SUV if it didn’t provide great value. The Tesla Model Y may not be affordable compared to some of its rivals, but it provides incredible value in terms of driving range, comfort, and tech. So naturally, some consumers are willing to pay more to get their hands on the electric SUV sooner.
Will Tesla car prices go down?
Accoring to FuelEconomy.Gov, Tesla Motors lost its federal electric vehicle tax credit eligibility at the end of 2019 because it hit every sales threshold in the incentive program. This means that Tesla electric vehicles are no longer eligible for federal tax credits.
Still, there are plenty of local incentives in different states that knock a chunk of change off of the starting prices of Tesla EVs. Tesla prices aren’t likely to go down anytime soon. In fact, they have increased in 2022. The Model Y costs $65,990 for the Long Range trim. The Performance model is nearly $70K.
The Tesla Model 3 Base starts at $46,990. Consumers may not get an affordable Tesla Model until the hatchback is introduced, and who knows when that will be.
Is the Model Y worth it?
The Model Y has been the electric SUV to beat for years. The EV space is much more crowded than when the Model Y debuted, but the electric SUV is still very relevant. Though plenty of other automakers are throwing their hats into the ring, the Model Y is still a standout Model because of the cutting-edge technology that the EV uses.
Its range is also more than enough for most average drivers. The Model Y Long Range gets an incredible 330 miles of driving range. The Model Y is worth its price, but the automaker may have to offer more competitive pricing as new rivals emerge.