A new report reveals that used Tesla Model 3 and Model Y vehicles have depreciated only about 10% over the past three years, far below rates for comparable luxury models from Mercedes, Lexus, and Porsche. This holds true despite multiple price cuts on new Teslas earlier in the year. The findings come from Recurrent Auto's Q2 2023 Used EV Report, which tracks trends in the used electric vehicle market.
Tesla owners have expressed concerns online that recent price reductions on new vehicles would accelerate depreciation of their used models. However, Recurrent Auto's quarterly report indicates otherwise. Used Model 3s and Model Ys have retained value better than expected, with an average depreciation of roughly 10% over three years. In contrast, luxury counterparts from brands like Mercedes, Lexus, and Porsche have seen steeper declines.
The report highlights broader shifts in the used EV market. The average price for a used electric vehicle has dropped to $38,000 in the second quarter of 2023, matching levels from August 2021. This cooling trend reflects ongoing adjustments following Tesla's five price cuts in the first quarter.
Tesla ownership patterns are evolving as well. Owners are keeping their vehicles longer, leading to fewer used Teslas available for sale. Recurrent notes that the number of used Tesla vehicles on the market has halved compared to one year ago. This scarcity underscores strong demand, with used Teslas remaining a top choice for buyers.
Beyond Tesla, the report offers positive news for prospective EV owners. The volume of affordable used EVs priced under $30,000 has doubled in the past six months, even as overall used Tesla supply decreases. These trends suggest a maturing market where value retention and accessibility are improving, potentially altering the long-term ownership experience for Tesla and other EV drivers.