Used Teslas now cost less than the average used car

New data shows that used Tesla EVs now cost less than the average used car as prices drop even further.

Although still considered a premium brand, the resale value of Teslas has plummeted in recent months.

Now, figures show that the price of a used Tesla has dipped below the average cost of a second-hand car. 

Although resale value is low across the board for Teslas, some models are faring better than others.

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New data shows used Tesla EVs are cheaper than the average used car

Alongside electronics and tech, cars are one of the top consumer products to depreciate in value. 

And when it comes to EVs, it’s even worse, just ask this Tesla owner who was offered around half of what he originally paid by WeBuyAnyCar, or the Porsche Taycan driver who says he’s been left with a ‘worthless’ vehicle. 

Now, new data compiled by Electrek shows that the price of used Tesla EVs has dropped lower than the average used vehicle. 

Tesla’s used car prices began to fall last year, alongside the rest of the used car market. 

In March of this year, the market began to recover, but the price of a used Tesla continued to fall. 

Used Tesla car prices are down 4.59 percent year-over-year, with an average price of $27,814. 

While the used car market average is actually up 1.22 percent year-on-year, and the average sale price of a used car, according to the CarGurus Index, is $28,039. 

The prices of all used Tesla models have dropped year-over-year, but some have been hit much worse than others. 

The Tesla Cybertruck is down 30.44 percent, year-over-year, with an average sales price of $83,963, but has shown some signs of recovery in recent weeks; meanwhile, the Model S has dropped 22.61 percent year-over-year, with a typical sales price of $26,534.

On the other end of the scale, the Model 3 has dropped 8.04 percent year-over-year, to sell for an average of $23,318.

What’s behind Tesla’s falling used car prices?

With a few exceptions for one-offs and ultra models, most cars will drop in value over time, but not always at the same rate. 

Generally speaking, trucks and SUVs hold their value for longer than EVs and luxury sedans, but even amongst other EVs, the value of used Teslas is often lower. 

An industry expert, from The Car Expert, explained that this was partly due to the carmaker becoming a victim of their own success. 

“Given that most owners tend to have their cars three or four years, it means that if you’re looking for a two, three, four-year-old electric car, there are far more Teslas on the market because there were far more of them to begin with,” he said. 

He also pointed towards more competition in the market, and the fact that the marque had been lowering the prices of its vehicles recently, too.

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