Tesla Used Cars Are Actually Getting Cheaper
People who have been shut out of the used electric vehicle (EV) market due to outlandish prices may be in luck. The price of used electric cars has begun to tumble, and EV manufacturer Tesla's models are seeing their prices drop much faster than others.
Numerous factors caused the steep hike in used Tesla prices, along with an increase across the whole used car market. A semiconductor shortage and other manufacturing bottlenecks resulted in a huge drop in output for vehicle manufacturers. Alongside the shortage, the war in Ukraine (and related factors) led to a sharp increase in fuel prices — which spurred more demand for electric vehicles.
Tesla is currently the world's most popular electric vehicle manufacturer, so it could have been seen as a natural choice for many people looking to buy an electric car. Buying new simply wasn't an option for many people, with waiting lists stretching back months. This led to a situation where a used Tesla was actually significantly more expensive than a new model from a dealership.
The price of a used Tesla has dropped by 17%
This is good news for people wanting to get a hold of an electric car at a discount — and perhaps bad news for Tesla flippers. According to Edmunds (via Reuters), the price of a used Tesla has dropped 17% from its peak in July, and is continuing to fall faster than used vehicles from other manufacturers. The average used Tesla now costs just over $55,750 — almost $12,000 less than it did over the summer.
Used cars in general have gotten cheaper, dropping by 4% since July (per Reuters), but Tesla's dip is far more prominent. Used Teslas are also spending more time on the lot compared to used cars in general, averaging 50 days as of November, while your standard used vehicle only sits there for 38 days.
The price spike was mainly caused by a drop in Tesla's output, which is now easing off. A drop in gas prices and an increase in the number of options when it comes to EVs has caused demand for Teslas to drop off somewhat. People with lots of cash and not much patience were tempting new Tesla owners into flipping their vehicles for a profit. The buyer avoids spending months on a waiting list, and the seller makes a quick and easy profit.
Flipping accounted for around a third of used Teslas on the market back in April (per Reuters), but that figure is set to sharply decline if trends continue — especially since Tesla is now offering a $7,500 discount and free supercharging on selected models in a bid to boost sales of new vehicles.