Sunday, January 29, 2023

Used Teslas depreciate faster than other electric cars

  • During 2022, Tesla’s owners take the opportunity to sell it for more money than they bought it for.
  • Many buyers took advantage of these resale due to the stock shortage by the brand.
  • However, it seems to be coming to an end. Tesla CEO Elon Musk himself said that he would reduce the price of new cars.
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From the time a customer reserved their new Tesla until they finally got their hands on it, it took almost a year. That’s why users chose the second option. Some chose a premium electric car from another manufacturer, while others bought a secondhand Tesla.

However, this second option will soon go down in history. Pre-owned Tesla prices are falling faster than other automakers, making them no longer 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 the cars from the brand owned by Elon Musk were longer in the dealerships as compared to the rest of the manufacturers. The average was 50 days in November, while it was 38 days for the rest of the second hand cars.

During 2022, the increase in the price of gasoline forced many users to opt for 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 Tesla owners took advantage of the boom in the market to sell their relatively new cars at a profit and order factory cars, fueling 0-mile demand.

used tesla business ended

The situation is now reversed. Fuel prices are falling, Tesla is increasing production and electric vehicle competition is on the rise. This causes used car prices to fall faster than the market and creates a cascading effect on new Tesla prices.

That’s why the second hand business is dying out. A third of Tesla’s 2022 models sold in August were for resale, according to analyst data, a sign that original buyers were looking 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 three months later for $12,000.

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

For his part, Musk claimed that “radical interest rate swings” drove up the prices of all cars, new and used, and that Tesla could potentially lower prices to keep up with volume growth. resulting in less profit.

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Nation World News Desk
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