Feature image: Performance Drive
A new study by car search engine iSeeCars.com reveals which 3-year-old used electric vehicles depreciate the most, to suggest the best deals for consumers. The average electric car depreciates 52.0% after a typical 3-year car rental period, but Tesla Model 3, X, and S maintain high value.
iSeeCars.com examined the depreciation of electric vehicles and found that the average for the segment is 52.0%, which is nearly 1.4 times greater than the average for all vehicles.
“Categorically, electric vehicles depreciate more than the average vehicle because resale values take into account the $ 7,500 federal tax credit and other state and local credits that were applied to these vehicles when they were bought new,” said Ly. "Because the technology of EVs changes at a rapid pace, obsolescence also plays a role in their dramatic depreciation as well as consumer range anxiety and lack of public charging infrastructure." However, Tesla vehicles defy this trend and depreciate far less than the segment average.
The three available Tesla vehicles currently in production with used car versions available all have below-average depreciation for the segment. One reason Teslas defy the high depreciation of the EV segment is because over-the-air software updates help keep even the older versions current. As such, consumers are likely willing to pay higher prices for the Model S and Model X than what they are willing to pay for other used luxury vehicles.
A lightly used Tesla Model 3 is the vehicle with the least depreciation overall, depreciating over 5 times less than the average for the segment. “The Tesla Model 3 is still very much in high demand since it started production in 2017. Even though it doesn’t present a bargain compared to its new-car price, it offers consumers a more affordable option for owning a Tesla."
© 2020, Eva Fox. All rights reserved.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.