This may be the best time to buy a used Tesla.
Tesla has approved Elon Musk’s $29 billion salary package
Tesla’s board gave CEO Elon Musk a new $29 billion compensation package, giving 96 million shares worth more than $300 each.
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- Used cars are (almost) rising prices.
- With used Tesla prices falling, EVS will be trading attractive second-hand cars for stakeholders.
Prices for used cars are generally rising due to tariffs, but for the past few months, used car prices for one brand have fallen at their own pace.
While prices for used Tesla cars have fallen, the broader market is feeling the impact of tariffs. Prices have fallen for several reasons, all benefiting consumers looking for a used Tesla electric vehicle.
So, how much has Tesla’s prices been reduced? And how will second-hand car buyers take advantage of this price drop and get an affordable EV with plenty of miles remaining in the future? Here’s what you need to know.
Research shows that used Tesla prices are falling
Automotive Research Site ISEeCars.com conducted a survey to determine the condition of the used car market. Overall, the survey found that used car prices have risen 3.7% over the past five months compared to a consistent 2.5-year decline before prices fell.
This is surprising as price changes are finally flowing from manufacturers and brands to consumers after the automotive industry has withstanded months of trade tariffs. What’s even more concern for customers is that tariffs could only be the start of a 3.7% increase, as the prices of used cars could skyrocket over the long term.
The exception is the price of used Teslas, with prices being 5.3% in July, with S, Y and X models each losing the most value. As Tesla’s reputation has gained several hits this year, a decline in demand could be a factor in why prices are falling. Furthermore, EVs tend to depreciate much faster than internal combustion engines.
How Used Car Buyers Can Take advantage of Tesla’s Depreciation
Getting a new Tesla can be too expensive for drivers looking for an entry point to electric vehicle ownership. On the other hand, used Teslas can be found at an incredibly affordable price. Thanks to significant depreciation, even the most expensive models have become achievable for drivers.
Tesla has stock of used cars, featuring vehicles such as the high-performance 2018 Tesla models, featuring vehicles as low as $25,600. The original MSRP for the 2018 Model S is $74,500. Therefore, the Model Y is sold directly from Tesla at a heavily discounted rate.
Electric Vehicles and Clean Energy Companies sell the 2018 Model X Midsize electric SUV as low as $29,800. The original MSRP for Tesla’s 2018 Model X is $84,000.
Depreciation makes the most spent Teslas more affordable than the average new vehicle price (over $47,000 according to Cox Automotive). One model stands out in terms of value due to its status as a bestselling SUV and EV.
The used Tesla Model Y is currently a great deal
https://www.youtube.com/watch?v=pz8npeyfpcy
The Model Y was declared as the “world’s bestseller car” at some point in 2023 by Green Cars.com, balancing affordability, utility and performance, creating a virtually unparalleled experience at price.
The small electric SUV segment has become more competitive over the years, but there are more older Model Ys in the used car market than other name plates. These older models are significantly depreciated compared to the newer electric SUV nameplates.
One of the most popular online used car platforms, Carvana lists the 2022 Tesla Model YS at as low as $29,990. Carmax, another popular online used car platform, lists the 2020 Model Y as low as $24,879. To put these numbers in context, the latest model Y runs $44,990 before taxes and additional charges. Until September 30th, you can claim an EV tax credit of $7,500 for the new Model YS, bringing the price of an electric SUV closer to $37,490. Drivers can claim a $4,000 used EV tax credit for a two-year-old (or older) model to under $25,000.
According to the Kelley Blue Book, the 2020 Tesla Model Y has “fast acceleration” and “excellent driver assist technology.” The used Model YS can provide great value for money if you are looking for the excellent technology and driving range of an affordable bestselling electric vehicle.
