Used Teslas Are Expensive, Right? Wrong!
With a fully optioned Model S coming in at well over six figures, you might consider Tesla a luxury brand. But used EV prices are plummeting right now. If you are buying an electric vehicle, the price of certain used Teslas might represent one of the best values on the current market.
Aren’t used EVs expensive?
Brand new EVS cost 38% more than comparable traditional vehicles. But according to the iSeeCars website, used EVs are currently losing value 10 times faster than the average car. Used EVs were once expensive, but as of summer 2023, they are getting cheap in a hurry.
Currently, the average price of a new EV is holding above $60k. Your options range from a $28,040 Nissan LEAF to a $108,490 Model S Plaid. But the average EV–from a budget car to a supercar–costs one third-again what a similar internal combustion car does. Why? Automakers are still paying down research and development that went into EVs, and the lithium-ion batteries they use are expensive to build.
But with 1 in five early EV adopters returning to gas vehicles, many EVs are hitting the used vehicle market. With such a high supply and dwindling demand, used Tesla and other EV prices are dropping. While the average used car is currently losing about 3% of its value a month, the average EV is losing nearly 30%.
How much is a used Tesla’s price now?
With long waiting lists for brand-new Teslas, the price of a used Tesla has been high for a long time. But in 2023, Tesla cut prices for its new vehicles. In addition, 20% of EV buyers go back to gas vehicles for their next purchase. The result is that the price of certain used Teslas is down 30% from last year.
The average used Tesla Model S has a resale price of $64,938. That’s 19% (or $15,212) less than this time last year. A used Tesla Model X is going for an average of $70,158. So the crossover’s value is down 21.3% ($18,980). Finally, the Tesla Model 3 is reselling for $37,023 on average, which is 30.5% ($16,258) less than last year.
Teslas aren’t the only used EVs with prices plummeting. The Nissan LEAF is down 19.2%. Hybrids such as the BMW 5 Series PHEV (-15.5%), Jaguar E-PACE (-16.2%), and the Hyundai Ioniq Hybrid (-16.2%).
Some used Teslas even come with free charging–for life
Used vehicle buyers tend to pay more for recent model years. For this reason, an early used Tesla’s price may represent one of the best deals on the used EV market.
Tesla rarely changes the styling of its models. So an older Tesla looks at home on today’s roads. But in addition, Tesla offered early model years of most models with free supercharging–for life. This perk is even transferrable when you buy one of these vehicles used.
With the price of electricity on the rise, a Tesla with free supercharging could be an excellent investment. This might hold true even if you have to replace its lithium-ion battery. You could take the opportunity to upgrade the range on certain vehicles.
Read more about free supercharging and what makes a used Tesla a great investment, or learn the cost of an aftermarket Tesla battery in the video below:
