Tesla’s website shows that many used Teslas are priced higher than new ones due to the tax credit. For example, a used Model 3 SR is priced at $37k, just $2k less than a new one without a tax credit.
Is this because dealers are targeting buyers who don’t qualify for the tax credit, or are they trying to recoup what they paid for these trade-ins? It seems like the used EV market is a bit unusual right now. If you’re set on getting a specific EV, the high prices make sense, but it’s puzzling why used Tesla prices are so high with the tax credit and inventory increase.
Limited Supply: The overall supply of used electric vehicles, especially Tesla models, might still be lower than demand.
Tax Credit Awareness: Many buyers might be unaware of the tax credit eligibility requirements or opt for used models to avoid waiting for new car production.
2. Tesla’s Pricing Strategy:
Maintaining Resale Value: Tesla might be strategically pricing used models to support the overall brand value and new car sales.
Supply and Demand Manipulation: By keeping used car prices high, Tesla could influence the perception of their vehicles as premium products.
3. Additional Factors:
Battery Health: Used Tesla models generally have lower battery degradation compared to other electric vehicles, making them more desirable.
Self-Driving Features: Tesla’s advanced driver assistance systems (ADAS) might add value to used cars.
Inventory is up, sending prices down Cars Commerce.Data and Insights, in an email. Used 2021 Model Ys start at about $30,000 on Tesla’s website as of May 2024. Those with lower mileage typically fall into the $32,000 to $36,000 price range