Tesla fanatics can finally breathe a sigh of relief. For the first time in years, the cost to purchase a Tesla used car is starting to decrease. According to Reuters, the average price for a used Tesla model went down 17% since its third quarter peak over the summer. After unparalleled pricing throughout 2022, buyers who have been eyeing to drive a Tesla model are finally given the chance to find something a tad more affordable. Here’s what you should know:
- Prices of used Tesla models are falling faster than other competitors.
- Tesla “flippers” will soon be out of commission due to the federal tax credit for new EVs.
- The average used price for a Tesla model was $55,754, its lowest in years.
- Tesla cars sit longer in used car lots, mainly due to pricing.
- The used car market has a majority of newer Tesla model years.
High EV market prices show modest decrease
The news this week signals a much-needed change concerning the affordability of electric vehicles, specifically Tesla models. While the pandemic and resulting supply chain disruption pushed the cost of new and used vehicles on an upward spiral, the upcoming new federal tax credit plans to disrupt this cycle. It will hopefully continue to drive down the price of new (and used) electric vehicles currently on the market.
Not to mention, the used car market is already experiencing a 4% decline in pricing, according to Edmunds. That means, after a tumultuous year of car market price spikes across the nation, some positive changes lie ahead. Though we don’t expect new car pricing to plummet quickly, the used car market is making headway. Those who have been interested in driving a Tesla but can’t afford the cost could find themselves in a better position in 2023. Now might just be the best time to find something affordable and in your price range.
The used Tesla market is practically new
In fact, you may find a used Tesla car that’s only a year old. Thanks to the uprise of Tesla flipping in recent times, the used car market is fairly submerged by 2022 model-year vehicles. Data from the report showed that a third of all used Tesla vehicles available on the market were 2022 model year. Therefore, signifying that a used Tesla model is likely your best deal available.
Should you buy a used Tesla car?
With the new tax credit set to take effect in January, some buyers might be more inclined to buy new rather than used. However, we recently dug deeper into the restrictions of the EV tax break and it appears 2024 is really the best time to start making use of this credit. Because new EVs are still in limited supply and the type of electric model you can buy must be constructed on U.S. soil, the federal tax credit won’t offer as great of advantage to shoppers within the first year of eligibility.
All things considered, we suggest holding off on buying new. Instead, utilize this great opportunity to find a used Tesla car that is in good condition and within budget. What do you think of the price drop? Share your thoughts about the changing used car market below.