Tesla is the brand with the highest depreciation of its used cars, almost 30% in one year.
Tesla is the brand with the highest depreciation of its used cars, almost 30% in one year.
Owners can see how changing cars can result in a greater or lesser financial loss by knowing the value of cars on the used market, which is crucial information. According to a recent study, Tesla is by far the brand that has lost the most value in the used market.
The outcome is remarkable as Tesla leads the list of its models with the highest value losses at 28.9%, far ahead of its closest competitors, Maseratti at 13.3% and Alfa Romeo at 9%.
In just one year, the average used car price for Tesla models fell from an average of $51,323 to $36,515.
The price war that started last year, in which companies like Tesla started to cut the prices of their models, is one of the causes of this dramatic decline. A strategy to try to grow market share and volume, both of which have a significant effect on the vehicles’ residual values.
Strangely, other manufacturers have also experienced a sharp decline in the value of their electric vehicles, not just Tesla. A dynamic that experts believe is heavily influenced by the ongoing evolution of technology, which includes ongoing changes in areas like autonomy.
For example, the Chevrolet Bolt has seen its sales value drop by 30.4% in one year. The Nissan LEAF was 29.1%, and the KIA e-Niro was 27.1%.
We must descend to number 5 and find the first Tesla, which is a Model as for the Model Y, it doesn’t appear to be in the top 10 and seems to hold its value better.
In September of last year, the Model 3 experienced a generation change that might have the 2nd-half of the year. However, as we all recall, deliveries in the US started considerably later than in Europe—they weren’t even underway when the renewal happened until 2024.
The report also discusses the high depreciation of used electric vehicles, with an average annual decrease in residual value of 31.8%, for electric cars compared to an average decrease of 3.6% for petrol models.
Additionally, private buyers in the used market are under pressure to significantly reduce the sales price of their models because of the demand from a market for brand-new units that, in addition to offering ever-lower prices, frequently have access to aid from the public that enables them to be even more frugal.
Lastly, the new units’ delivery schedules are a crucial detail. Regarding Tesla, the European configurator suggests that a Model 3 or Model Y will be delivered in a time frame of two to five weeks. a remarkably brief time frame that promotes new unit sales in the face of a tense used market.
We can observe that a Tesla Model 3 Long Range with less than 80,000 kilometers can cost approximately 30,000 euros on the used market in Spain. A brand-new flat with all the upgrades of the new generation begins at 39,990 euros, and that’s before any government assistance, which could bring the price down to about 32,000 euros.
Used prices will keep declining this year to adjust to the new market. A market that is constantly expanding in terms of volume and number of brands, indicating increased competition and future price reductions.
Source- iSeeCars
Related Post
