Tesla’s New Price Cuts See Used Car Values Plummet £1,400 Overnight
As Tesla announced price cuts for its new cars, the value of used Tesla vehicles also dropped significantly. Auto Trader, the online advertising giant, reported that prices for a one-year-old Model 3 Standard Range fell by £1,400 overnight as a result of the manufacturer’s new pricing changes.
On January 16th, Tesla reduced the price of its new Model 3 entry spec cars by £5,500 and the Model Y Performance by £7,000. These price cuts had an immediate effect on used Tesla values, with Auto Trader noting the drop immediately. This latest decrease follows a quarter of depressing price falls for Tesla electric cars, which have lost £5,000 in value over the past three months.
According to Auto Trader, the average price of a Model 3 Standard Range fell from £44,995 to £39,999 between September and December. The Performance version also dropped in value, falling from £50,049 to £45,750 during the same period.
The decrease in used Tesla values coincides with a 208% increase in the number of used Teslas hitting the market in the last quarter. Auto Trader reported that the news of Tesla’s new car price drop also led to a 76% spike in consumer engagement on its platform, with Model 3 page views increasing by 113%.
In conclusion, Tesla’s new car price cuts have had a significant impact on the value of used Tesla vehicles. Auto Trader’s data shows that prices for a one-year-old Model 3 Standard Range fell by £1,400 overnight, and the trend is expected to continue. The used electric vehicle market is becoming more and more saturated as the number of used Teslas on the market increases.