FYI: Tesla Model Y Dominates Used EV Market Despite New Sales Dip
Despite a recent downturn in new Tesla sales, the Model Y and its counterparts continue to be among the highest performers in the used electric vehicle (EV) market. Data from iSeeCars in April 2024 highlights the enduring appeal of these vehicles.
### Used Teslas: An Attractive Proposition
As of the study’s release, the average price for a used Tesla Model Y hovered around $35,000. Presently, buyers can find Model Y Long Range listings on Edmunds for approximately $25,000—a significant markdown from the new Model Y’s price range of $45,000 to $52,000 as of July 2024.
Most available pre-owned Model Ys are from model years 2020, 2021, and 2022. These vehicles, despite their age, offer contemporary features and technology, providing excellent value for money.
#### Fast Selling and High Demand
The rapid turnover of used Teslas is notable. The high depreciation rates make these cars incredibly affordable and accessible. iSeeCars data emphasizes that used Teslas frequently spend less than a month on the market before being sold, outperforming competitors.
### A Proven Track Record
The Model Y made history in 2023 by becoming the world’s best-selling car across all categories, surpassing traditional combustion engine vehicles for the first time. Since its release, the Model Y has maintained a relatively unchanged design, with minor software and quality updates bolstering its appeal.
According to Tesla’s 2023 Impact Report, the Long Range versions of the Model Y and Model 3 retain about 85% of their battery capacity after 200,000 miles. This durability is reflected in current listings, which show that most available Model Ys have excellent battery ratings and significantly fewer miles on them.
### Financial Incentives and Accessibility
One of the standout benefits of purchasing a used Model Y is the federal tax credit for new and used EVs. Buyers can receive up to $4,000 at the point of sale for used EVs. This incentive, however, is subject to income eligibility and personal tax circumstances, potentially reducing the effective price even further.
While many $25,000 listings are found in California, there are also options in New York, New Jersey, Pennsylvania, Maryland, Nebraska, Wisconsin, and Texas, offering a wide geographic spread for potential buyers.
### The Tesla Advantage
Part of the Model Y’s continued allure is Tesla’s expansive Supercharger network, known for being the most reliable and extensive in the United States. Despite organizational challenges, Tesla announced during its Q2 earnings call that it remains on track to deploy more new Supercharging stations this year than all other companies in the industry combined.
### Conclusion
Owning a technologically advanced electric vehicle with a 300-mile range for as little as $25,000 is an attractive proposition, especially if you can overlook the controversies surrounding the CEO. The Model Y’s strong performance, excellent battery health, and significant depreciation make it a compelling choice in the used car market.
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William Kouch, Editor of Automotive.fyi
