Buying a used EV can save you a ton of money, but that's not the case with the Tesla Model 3.
If you're in the market for an electric car, and a new model is out of your price range, be sure to check out the used market. You may be pleasantly surprised at how cheap many used electric cars can be.
When people tell us they can't afford an EV, we point to the super-cheap used options available. We're talking about cars that cost $30,000 to $50,000 or much more new. They're selling on the used market for prices as low as $10,000 to $15,000. However, sadly, used Tesla Model 3 sedans aren't on our list.
If you want a cheap used Tesla, your best bet is the Model S. It has been on the market much longer than the Model 3, and according to the CAREDGE, its resale value hasn't been all too impressive. In fact, you can get a used Model S for much less than a new Model 3, and it's Tesla's flagship car. The publication writes:
"Resale values for the Tesla Model S have not been stellar. After 3 years of use, a Model S is worth on average 58% of its original purchase price, and after 5 years, just 41%. Given that the S was a $95,000 car, that's giving up a lot of dough-and the fuel savings only put a dent in that value loss."
The Model 3 just came to market in 2017, though sales didn't ramp up until 2018. At this point, we're barely at the three-year mark for many of the earliest Model 3 adopters. Many have yet to put their car on the used market.
Unlike the Model S, the Model 3 is an "affordable" EV. The word is in quotes because most people can't afford a $40,000+ car, or at least they think that can't afford one. Interestingly, Kelley Blue Book says the average new car transaction price in the U.S. continues to rise. In September 2020, it was at a whopping $38,723.
CAREDGE's study suggests that the Model 3 retains its value more than any car it has ever ranked. However, it also says it usually waits at least five years to publish such numbers. Based on the publication's early sneak peek, "an average 3-year old Model 3 has retained 77% of its value since being purchased new in 2017." It explains:
"If these numbers hold up, that would give the Model 3 the highest residual values of any passenger car that we follow (over 300 models), and rate right up there with pick-up trucks, who are known for having great resale values. In contrast, the average popular (non-luxury) vehicle retains 62% of its value after 3 years, giving the Model 3 a sizeable advantage over just about everything."
Follow the source link below for more details. Then, chime in below with your take on used EVs, and more specifically, the Tesla Model 3. Have you bought a used Tesla?