Key Takeaways
- The 2024 Tesla Model 3 Long Range has seen a nearly 50% drop in resale value, selling for $31,000 after originally costing $60,630.
- Tesla vehicles depreciate faster than any other brand, influenced by market trends and CEO Elon Musk’s controversies.
- Buying a used Tesla Model 3 remains an attractive option for those looking to go electric affordably despite the brand’s recent image issues.
Depreciation and Value of Tesla Model 3
Car-buying website Edmunds recently reported a significant depreciation in the resale value of its 2024 Tesla Model 3 Long Range, selling it for $31,000—more than 50% lower than its initial price of $60,630. This sharp drop highlights the broader trend of rapid depreciation among Teslas.
The “Sell Your Tesla” movement appears to have successfully influenced the market, creating opportunities for buyers willing to overlook the company’s controversial CEO, Elon Musk. Even Edmunds acknowledged that the Model 3’s declining resale values make it an appealing option in the used car market. The company was able to procure the car at a reduced price of $48,630, thanks to a transferred $12,000 Full Self-Driving software subscription from a previous vehicle, but the massive depreciation still stings.
This depreciation of Tesla vehicles is not surprising given the ongoing trend. Reports show that Teslas lose value three times faster than other car brands, with the Cybertruck particularly affected among recent models. Electric vehicles (EVs) generally depreciate more rapidly than gas-powered cars, partly due to a lack of standardized assessments for battery life. Additionally, Musk’s political affiliations and his controversial actions regarding government funding have contributed to negative perceptions of the brand in both the U.S. and Europe.
Despite the brand’s image issues, the performance of Tesla vehicles, particularly the Model 3, remains largely favorable. The average market value for a used 2022 Model 3 Standard Range is approximately $24,519, with the Long Range version around $28,783. Older models can be purchased for as little as the low $20,000s. The recent 2023 Highland update of the Model 3 has slightly increased prices but has enhanced features such as interior quality.
Given the rising prices of used cars and gas, buying a used Tesla Model 3 could present a cost-effective way to switch to electric. Known for its compact design, enjoyable driving experience, impressive range, and access to an extensive charging network, the Model 3 continues to be a strong contender in the electric sedan market.
Potential buyers should consider the Model 3’s minimalist interior, noise levels, and ride quality, which have reportedly improved with the latest updates. Ultimately, the decision to purchase should align with individual values and circumstances, keeping in mind that there are options to express personal views, such as bumper stickers.
For more insights, contact the author at patrick.george@insideevs.com.
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