Featured Image Credit: Tesla
A recent study found that the Tesla Model S, Model 3, and Model X depreciated much slower within a 3-year lease period compared to other EVs and traditional ICE vehicles. The Model S, 3, and X’s slow depreciation can be attributed to Tesla OTA software updates and the company’s constant innovation.
According to online automotive search engine, iSeeCars.com, the average depreciation of vehicles after three years of use was 39.1%. In comparison,Tesla’s Model S, Model 3, and Model X depreciated at 36.3%, 10.2%, and 33.9%, respectively.
Phong Ly, iSeeCars’ CEO, stated that electric vehicles usually depreciated faster than the average vehicle because their resale values usually took federal, state, and local tax credits into account. Ly also said, “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.”
Tesla has managed to slow the depreciation of its vehicles through OTA software updates and by constantly innovating. Tesla’s software updates allow its older vehicles to keep-up-to-date with the latest technology, which helps reduce common problems with EVs, like range anxiety. And the company’s constant work to expand its Supercharger infrastructure helps as well.
The online automotive search engine iSeeCars.com conducted a study that analyzed over 5.7 million new cars from model year 2017 sold between January and June of the same year and 1.2 million used 2017 models sold between January to June of this year. The site adjusted for inflation based on data from the US Bureau of Labor Statistics, allowing it to calculate the average depreciation of 39.1% after a 3-year lease.
“Three years is a popular age for used car buyers because the cars have taken a major depreciation hit, but likely have many of the latest modern safety and technology features. Some of these bargains provide good opportunities for car shoppers as reliable vehicles that are discounted because they simply aren’t as popular in their vehicle segments,” explained iSeeCars’ CEO Phong Ly.Follow @PurplePanda88