Tesla Model 3 Poised To Dominate US Used EV Market

The Model 3 has proven itself as the best-selling EV across the globe. Now, we get to watch it tackle the used car market.

By: Steven Loveday

Apr 7, 2021 at 10:34am ET

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It was over three years ago when the Tesla Model 3 first made its official debut. However, it took many months for Tesla to ramp up production and begin selling Model 3 vehicles in large volume. Moreover, Tesla didn't offer the Model 3 for lease until a few years after it came to market. For these reasons, used Model 3 sedans have been few and far between on the used car market, and those that are available are expensive.

Today, with the newly refreshed 2021 Model 3 available, as well as the Model Y, more people are beginning to part with their "older" Model 3s. This is really good news for folks looking for a used EV, and it could work to boost used EV sales in the US in a big way.

According to Teslarati, the Model 3 made up just 3.5 percent of used car inventory in the US last fall. Over the past six months, that number has almost doubled, to 6.5 percent. We can only guess that it will continue to grow going forward. However, if the Model 3 turns out to be as popular on the used market as it is new, inventory may disappear quickly.

Many EVs are cheap on the used market. In fact, it's not uncommon to grab a car for about $10,000, that was some $40,000 new. However, that's not been the case with the Model 3. In fact, the midsize Tesla sedan has a high resale value, and there have been few available on the used market until recently.

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Vehicle sales data firm Recurrent put out a report entitled: "The State of EV: 2021 Used Electric Car Buying Report." Follow the link for all the juicy details. Recurrent CEO Scott Case points out that he wouldn't be surprised if the Model 3 dominates the used EV market with a 40 to 50 percent market share in years to come. He says:

“The Model 3 invasion of the used EV market has begun. It could be 40-50% of all used EV sales in the US within a few years, matching its market share in 2018 of new EV sales."

What's your used Tesla Model 3 forecast? Check out the full report, then leave us a comment.