New Study: Tesla's Model 3 Resale Value is Five Times Better than the EV Industry Average

New Study: Tesla's Model 3 Resale Value is Five Times Better than the EV Industry Average
by Stef Z on July 16, 2020

There’s no doubt that Tesla vehicles deserve all the quality and performance credits, but one of their best traits is the resale value.

To be more precise, Tesla’s Model 3 has over five times better value than the rest of the EV on the market. Far from speculation, this comes from a detailed study conducted by iSeeCars.com. 

The car search engine analyzed over 6,9 million car sales in three years and identified that Model 3 has the lowest depreciation value among the other EV competitors, and even other Tesla models.

During the three years, the average depreciation of cars is 39,1%, according to the CEO of iSeeCasrs.com, Phong Ly. That’s a period when used car buyers are overwhelming the resale car markets. The resale value of EV is also dropping because of the average lease term of three years.

Ly noted: “Three years is a popular age for used car buyers because the cars have taken a major depreciation hit, but likely have many of the latest modern safety and technology features.”

Electric vehicles have a higher depreciation rate compared to their internal combustion versions. According to a study, EVs’ value can decrease by 52,9% during the three-year lease, which is 1,4 times higher depreciation than the other cars.

The reason for this is the $7,500 tax credit that people use when buying a new EV. The other reason that leads to value depreciation is the rapid change in EV technology and performance.

Perfect examples of this are the EV giants, BMW i3 and the Nissan LEAF. Thanks to the recent study, we can spot that the BMW i3 depreciates 60.4% while the Nissan LEAF depreciates 60.2% over a three-year course.

The depreciating trend of EV values doesn’t fit the extraordinary technology and performance of Tesla vehicles.

It seems like the number one EV company in the world has superpowers that keep the resale value of its vehicles almost intact. Other EV manufacturers can never reach these levels, as Tesla is not giving any chance to the competition.

For example, the Model S depreciates 36,3% while the Model X depreciates 33,9%, which is a lot better than the resale value of other companies.

What shocks people the most is the depreciation of 10,2% of Tesla’s Model 3, over a three-year period. Five times less than the average depreciation value of the EV industry, and three times less than the general car market values.

The leading factor that retains Tesla’s car values is the constant software update and improved performance, even in cars like Model 3 that first showed up in 2017.

Although Model 3 is not the most affordable EV on the market, it is still an irreplaceable car that offers costumers owning a Tesla with the lowest depreciation value ever.

The remarkable software upgrades allow even older Tesla models to perform at the level of their newly produced versions.

Finally, if you were already considering becoming a Tesla owner, Model 3 is probably the best value for your money, even if you sell it in three years from now.

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