The 2020 Tesla Model Y has depreciated by about 60% over five years, according to data from iSeeCars and CarEdge. This steep decline outpaces the average for SUVs and all vehicles. Factors like market shifts and competition may contribute, though the exact causes remain debated.
In 2020, Tesla sold over 440,000 units of the Model Y and Model 3 combined globally, accounting for more than 88% of the company's deliveries that year. Despite this popularity, the Model Y's resale value has fallen sharply. iSeeCars reports a 60.8% depreciation rate over five years, translating to a $36,499 loss from the original price and a resale value of $23,491. Most of this drop—56.1% or $33,653—occurs in the first three years. Projections show further declines to 72.3% at seven years and 80.1% at ten years.
CarEdge's analysis aligns closely, with a 61.1% five-year rate for a good-condition vehicle driven 13,500 miles annually. It estimates 58.1% loss after three years, 76.2% after seven, and 80.4% after ten. iSeeCars bases its figures on marketplace listings compared to original MSRPs, without specifying condition.
Compared to rivals, the 2020 Tesla Model 3 depreciates at 57.0% over five years, retaining slightly more value. The Jaguar I-Pace fares worse at 71.9%, while the Hyundai Kona Electric matches the Model 3 at 57.8%. The Nissan Leaf loses 64.5%, and the Kia Niro EV sees 64% depreciation in just three years, per Kelley Blue Book.
This data highlights challenges in the used EV market, where rapid advancements and price fluctuations affect long-term value. Buyers eyeing five-year-old models may find the 2020 Model Y at a potential bargain, but ongoing depreciation trends warrant caution.