Second hand prices are collapsing, we explain why

Used Tesla inventory has been growing strongly over the past few months, with many customers deciding to trade in their cars. As a result, prices literally drop. And that’s not necessarily a good sign for the brand. But this is good news for potential buyers.

If Tesla was in great shape at the beginning of the year, the situation for the American brand is a little more complicated. Indeed, sales have slowed in recent months, with the Chinese-made Model 3 and Model Y struggling to sell off their inventory, while the Shanghai factory is running at full capacity. If the manufacturer surpasses the million cars it has delivered by the end of the year, its situation worries some experts.

A great resource

Despite significant price cuts and the return of the referral program in China, the brand is really struggling to attract customers. The same in the US, Tesla also decided to sell their new cars. In this case, the lack of customer love is largely due to them wanting to wait until next year to order, with the brand’s cars arriving later. Eligible for a $7,500 tax credit.

In Europe, the situation is a little different, although Tesla also made a small gesture by offering a 10,000 kilometer Supercharger credit and then offered several models with really deep discounts. Indeed, according to the latest sales figures, Tesla is doing quite well, with the Model Y being the best-selling electric car in the area since the beginning of the year. The success of the electric SUV seems to have been confirmed, with many owners trading in their Model 3 to buy one.

Taking a look at the used section of Tesla’s site, we see that there are indeed a lot of Model 3s for sale. On the other hand, there is no Model Y to be found. Be careful, because this difference can also be explained by the fact that the SUV has been on the market for much less time than the sedan. But whatever, and as our editor noted Bob Joey on TwitterThe stock of the Model 3 is still particularly large.

And the prices are quite lowyou should really count between 38,890 and 54,000 euros For a used Model 3 sold on the Tesla website. Amounts requested on resale sites between individuals are also decreasing. And it’s not just an impression, as the firm points out Edmunds It is transmitted by an American agency Reuters. in July, Asking $67,297 (approx. €63,238) for a used Tesla, all models combined in November for a total of $55,754 (about €52,392). That’s a 17% drop, while the entire US market is down just 4%.

A simple reason

But then how to explain this decrease in prices? First and as detailed in the tableEdmunds, Tesla models stay in used car inventory longer than other brands. This is especially so at the end of the yearthey were held for an average of less than 30 days in June, compared to more than 50 in November. So what explains this situation?

Perhaps the Model Y’s success has something to do with it. In effect, many Tesla owners decided to resell the Model 3 Takes advantage of Tesla’s favorable return terms to purchase an electric SUV. However, many also canceled their orders at the last minute, when the amount offered by the brand was lower than what they expected. Which partly explains why they are too A large stock of new Model Y’s for sale.

Plus and as explained Reuters, lower fuel prices and higher interest rates it also affects used car prices as well as competition. Indeed, while many new models are coming to market to compete with Tesla, the brand is finding it more difficult to sell used cars at high prices. Therefore, they are forced to lower their prices. This also affects new cars, as Tesla sold the Model Y Propulsion in France a few days ago.

The firm really needs to compete with newer, more affordable Chinese manufacturers like MG, BYD or even Nio and Xpeng. Plus, and as Edmunds spokesman Ivan Drury pointed out, Tesla models were expensive on the used market because they were “ It has long been the only viable product when it comes to electric vehicles“. Which is not really the case today the offer is now much wider and the competition is tougher.

If you’re in the market for a used Tesla, now might be a good time to act. Prices on the Model 3 could drop a bit more in a few months, when the hypothetical facelifted version rolls off the production lines.

Used Tesla Model 3: our ultimate guide to making the right choice

Tesla is known for discreetly updating the configuration of its cars over time, making it impossible to know exactly what you’re getting at a glance.
Read more

Logo

We invite you to download our Android and iOS apps to follow us. You can read our articles, files and watch our latest YouTube videos.

Leave a Reply

Your email address will not be published. Required fields are marked *