Thursday, February 2, 2023

Second-hand Teslas depreciate faster than other manufacturers’ electric cars

From the time a customer reserved their new Tesla until they finally got their hands on it, it took almost a year. This is the reason why many users chose the second option. In some cases, they chose premium electric cars from another manufacturer, and in others, he bought a second hand tesla,

However, this second option will soon go down in history. prices of Second Hand Teslas Are Falling Faster Than Other Manufacturers Automobiles ceased to be a profitable option for owners. Furthermore, according to industry data provided, most new electric vehicles are spending more time in dealerships reuters,

The average price of a used Tesla in November was $55,754, down 17% from July, when it hit $67,297. Moreover, the data also shows that cars from the Elon Musk-owned brand were longer in the dealerships than rest of the manufacturers, Average 50 days in NovemberWhereas for the rest of the second hand cars it is 38 days.

During this year, the increase in gasoline prices prompted many users to choose electric cars. Of all of them, Tesla is the one with the greatest autonomy. This increase in demand forced the American company to raise prices, increasing its profit margin.

And some new Tesla buyers took advantage of the boom in the market and sold their relatively new cars at a profit and ordered others, driving demand New Tesla cars.

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However, now the situation has reversed. Fuel prices are falling, Tesla is increasing production, and EV competition is on the rise, causing used car prices to fall faster than the market and creating a cascading effect on new Tesla prices.

That’s why the second hand business is dying out. According to analyst data, A third of Tesla sold in August were 2022 models that were for resale, an indication that the original buyers wanted to resell them. Research firm Edmunds said about 5% of the used market is in contrast to other brands.

One of those who took advantage of this situation was software engineer Greg Profitt, who bought a new Model Y last year for $49,000 and Sold it 3 months later for $12,000 more,

“You can’t sell your current Tesla for more money than you paid for it,” says Carl Brauer, executive analyst at auto sales website, which has been true for the past 2 years. “That would reduce demand for new Teslas.”

For his part, Musk has said that “the radical change in interest rates” has increased the prices of all cars, new and used, and that Tesla could potentially reduce prices To maintain volume growth, which would translate into lower profits.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
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