A recent study showed some impressive resale figures for the Tesla Model 3, saying the sedan holds its value more than five times better than other EVs.
Car search engine iSeeCars.com analyzed more than 6.9 million car sales to identify models with the greatest loss in value after three years.
“The Tesla Model 3 is still very much in high demand since it started production in 2017,” the report said. “Even though it doesn’t present a bargain compared to its new car price, it offers consumers a more affordable option for owning a Tesla.”
The three available Tesla vehicles currently in production with used car versions available all have below-average depreciation for the segment.
The report said one reason Teslas defy the high depreciation of the EV segment is because over-the-air software updates help keep even the older versions current. As such, consumers are likely willing to pay higher prices for the Model S and Model X than what they are willing to pay for other used luxury vehicles, the report found.
“Categorically, electric vehicles depreciate more than the average vehicle because resale values take into account the $7,500 federal tax credit and other state and local credits that were applied to these vehicles when they were bought new,” iSeeCars CEO Phong Ly said in a release. “Because the technology of EVs changes at a rapid pace, obsolescence also plays a role in their dramatic depreciation as well as consumer range anxiety and lack of public charging infrastructure.”