Why are used Teslas still more expensive than new ones?

[waltworks]

I mean, I get that back a year or two ago when there were waiting lists, there was some value in being able to drive away the same day in a used Tesla vs waiting 6 months for a new one.

But as far as I can tell, I can have a Y or a 3 brand new right away so long as I'm not insanely picky. And that new Y or 3 is, it appears from scanning ads online in my area, still *cheaper* than an equivalent used one.

What gives? Are sellers just holding out in the hopes that their used car is going to appreciate? Or am I missing something?

-W

[GilesMM]

Used prices have dropped drastically in the last 12 months. They will continue falling until they find equilibrium with new prices.  Doesn’t help to have a lunatic shifting new prices constantly.

[waltworks]

Yeah, I don't desperately need a Tesla. So I figured I'd wait until prices made more sense. I'm still surprised the prices have stayed so elevated for so long, though.

-W

[gaja]

Don't know about the 3s and Ys, but a few of the oldest S-models have free supercharging for life. We got hold of one of those, and save a decent amount on longer journeys.

[waltworks]

We have a family of 5, so the S isn't an option, but that's pretty cool. If you drove a "normal" 12k miles a year, and did half your charging at superchargers, that would save you something like $500-600 a year based on my quick mental arithmetic.

-W

[Runrooster]

Yeah, I have an older Tesla (my Dad bought it, my usual caveat, though he's 89 and barely drives). I have a Tesla supercharger walking distance to work, so I charge there 2-3 times a week.  It's rare to charge at home.  I figure I save $10/charge (compared to the electricity cost at home), so that's $1000 a year. 

Keep in mind that the "normal" 12K miles is like 24k "Tesla-miles".  That is, my 17 mile commute usually puts 30-40 miles on the Tesla depending on how cold it is outside.  The Tesla even loses mileage just sitting outside on a cold day.

[waltworks]

Yeah, I have an older Leaf and it loses a decent amount (though not as much as it sounds like you do) when it's really cold. I live at 10,000 feet so "really cold" here is like -10 or -20. I imagine bad things would happen if I left the car outside all night.

As it is the range probably drops from 90 miles to ~65 in the depths of winter. But that's still fine. We just charge it on the 110V circuit in the garage, that's plenty to get back to a full charge overnight unless you really run it down all the way.

The range is a bit limiting though, especially given the unreliability of the Chargepoint/EVgo/etc charging networks, which is why I'm considering a Tesla.

-W

[Viking Thor]

Pretty sure this is not true and you are comparing apples and oranges.

Ie- a used Tesla with FSD vs the same new car without FSD. If someone wants FSD on a new car, that adds $15k to the price. I believe Tesla includes FSD on all used cars that they sell.

There are also different variables like 4 wheel drive versus rear wheel drive, short range vs long rang, etc.

Compare true apples to apples and the used cars are cheaper. At least vast majority of the time, someone could try overpricing a used car but unlikely to sell it if new ones are cheaper.

[waltworks]

I'm being pretty careful to compare apples to apples (just using local CL type listings) but you might be right. I did not know that Tesla included FSD on all their used inventory. Are you sure that's true? A quick google search seems to indicate that you have to pay for FSD for a used Tesla just like for a new one.

-W

[EchoStache]

I'm being pretty careful to compare apples to apples (just using local CL type listings) but you might be right. I did not know that Tesla included FSD on all their used inventory. Are you sure that's true? A quick google search seems to indicate that you have to pay for FSD for a used Tesla just like for a new one.

-W

FSD is definitely 100% NOT included on all used inventory.  But it is a feature to be checked as some have it, some don't, when comparing prices.

The problem is that Tesla lowered prices A LOT this year.  So people that bought 1-2 years ago who are selling their cars, think they can sell them based on the price *they* bought them at, rather than based on the price a brand new one sells for.

So I have seen what you mean...even on the Tesla website itself. 

For example....on the TESLA website:
2020 Tesla M3 standard range RWD 25,000 miles, 250 miles range, base: $35,100
2023 Tesla M3 standard range RWD 0 miles, 272 miles range, base model: $31,720 after rebate.

Another example from the Tesla website for a Tesla MY LR AWD base model i.e. 19" wheels, standard paint, 5 seat, AP:
2021 10,000 miles $50,300
2023 new 0 miles $44,330 after rebate.

[Viking Thor]

Logic, the law of supply and demand, and the examples I can observe point to this not being true.

There are two used Tesla on their website I can see in inventory for my area.
1. 2021 MY AWd LR, 39k miles, white paint, black interior, 20 inch wheels, 45,900 price. Same car new - 54,130 (including destination fee). Also sales tax will be higher on the more expensive new one.

Tax rebate is not part of the price and not everyone qualifies for a rebate. However it’s worth noting used EVs can still qualify for 4k federal rebate (up to 7500 new).

2. 2021 MY AWD, deep blue paint, black/white interior, 19 inch wheels, 25k miles, enhanced autopilot, 52,100.

Same car new - 60,130.

So those are $8k+ more new, plus the added sales tax. You might save more on federal taxes with a new one, but the used ones are definitely cheaper. And part of the incremental federal rebate would be offset by higher state  sales tax.

Again you need to compare the exact same car and specs, including colors, options, destination fee, etc. If so I guarantee the vast majority of time used is cheaper than new.

It would be impossible to support a market of cheaper new ones/ more expensive used when there is no wait list and people would prefer new to older/used.

Having said that, the used ones are not much of a bargain considering how modest the discount is.

[Paper Chaser]

There are still some sellers that refuse to drop prices but that number is getting smaller every day.

The bubble began to inflate in Spring 2021, peaked in late summer of 2022 and now used Tesla prices have dropped ~30% YTD per Car Gurus:

https://www.cargurus.com/Cars/price-trends/Tesla-m112

(If you extend the timeline of the chart in the link back to Jan 2019 you can clearly see the bubble, and it appears that we may be getting close to returning to the more normal trend line of depreciation)

[curious_george]

Imo, Tesla was in a bubble.

Their stock, their car prices, everything Tesla was a bubble as demand far outstripped supply.

Now there is more supply coming online, they are dropping new prices to reflect the bubble bursting, and it is taking a while for the used market to catch up.

If you want a Tesla now, I would just buy a new one, assuming you can take full advantage of the 7500 tax credit. Imo.

Personally I will just keep driving my 16 year old Toyota.

But if I were in the market for a new car, the model 3 is starting to get extremely tempting, imo.

[Catbert]

My DH bought a new Y in May 2021 for 52K (which I think included government rebates but didn't include tax and license).  He waited a few months but nothing outrageous.  18 months later he had to give up driving and sold the Y for 66K to Carmax which presumably sold it for more.  14K profit.  Timing is everything.  That wouldn't work today.

[ChpBstrd]

What if the simplest explanation was "people are stupid"?