Blog Study Shows Impressive Resale Value for Model 3

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.”

 

[SageBrush]

I think this is the table
I add $7,500 to the Tesla depreciation to compare to the other EV manufacturers that still have the full tax credit

 

[ATT89]

Don't forget.

Resale value for my car included FSD and whatever else was purchased at CURRENT value.

They almost totaled my car from an accident and it was NOT totaled because of my FSD ( at current value - not what I paid for it) and FUSC that they valued at $7k.

Features can quickly move the value of the car northward if/once they appreciate.

 

[SageBrush]

If Tesla still had a $7,500 tax credit the results for the Model 3 would be more along

Still a very impressive result

 

[jeremymc7]

When mine was totaled and the the factory was closed and no stock was available for two months the comps the insurance company came up with were actually more then the cost to order (and wait) for a replacement. Since the comps came in so high (at the time) the insurance company paid me more than I paid. PLUS I got to apply for the rebates again so I made out even better.

Even with deductibles I made money. Plus self refereed and doubled by free supercharging which also added more time to expiration and the replacement car was better fit / finish / optioned.

 

[Shark2222]

Great, but you have to point out the other cars shown are rather dissimilar to the M3. What would be more significant would be a comparison to ICE cars that buyers are likely to be cross-shopping with the M3.

 

[Tysckewicz]

If Tesla still had a $7,500 tax credit the results for the Model 3 would be more along

View attachment 566089

Still a very impressive result

Maybe I'm not reading the numbers properly but I just asked Tesla for a trade in estimate for my 2019 Model 3 SR plus with 14,200 miles and FSD as I would like to buy a Model Y. They came back with a $34,000 number which is no where near the high resale values suggested here and crazy if you subtract the $7,500 I paid for FSD. Perhaps someone out there can clarify. Thanks!

 

[Shark2222]

Also, as new M3's become easier and quicker to procure that's not going to help the used values.

 

[JimmyAZ]

I have to say, my 3 was ~ 60k all said and done and I just sold it last week. It barely booked out at 45k. I have to disagree with this study. It's great to see insurance stepping up and paying higher than replacement cost! Seems like totaled 3s are doing much better than 3s for sale. I'm still happy with what I got, but I'm curious if this study was done in one location that favors EVs more than other areas?

 

[cselin]

Maybe I'm not reading the numbers properly but I just asked Tesla for a trade in estimate for my 2019 Model 3 SR plus with 14,200 miles and FSD as I would like to buy a Model Y. They came back with a $34,000 number which is no where near the high resale values suggested here and crazy if you subtract the $7,500 I paid for FSD. Perhaps someone out there can clarify. Thanks!

I'm wondering if they even take FSD into consideration for trade-ins since I got a similar quote as well. I've heard that FSD stays with the car, but maybe that's only through private sale? In that case, they have a chance upset the next customer on FSD all over again.

 

[SageBrush]

I'm not reading the numbers properly but I just asked Tesla for a trade in estimate for my 2019 Model 3 SR

You have to sell the car yourself on the private market if you want top dollar. I think returning the car to Tesla is going to be the lowest quote.

 

[btpdx]

I wanted to do the same thing to get a Y and asked for a trade in quote for our 2019 model 3 dual motor with FSD with only ~3K miles and Tesla came back with 39k trade in value which was a no go.

 

[Tysckewicz]

Can we all agree that if we sell a car with FSD we are not getting close to $7-8K back in resale value? This is a total rip off since a) it's taken WAY longer to get FSD out, so we are financing this little experiment 2) we should at very least be able to port our FSD over to a new car and 3) our resale value is not reflecting the price we paid for FSD. Love the car but getting hosed 3 different ways does piss me off.

 

[C141medic]

Can we all agree that if we sell a car with FSD we are not getting close to $7-8K back in resale value? This is a total rip off since a) it's taken WAY longer to get FSD out, so we are financing this little experiment 2) we should at very least be able to port our FSD over to a new car and 3) our resale value is not reflecting the price we paid for FSD. Love the car but getting hosed 3 different ways does piss me off.

You’d be lucky to get close to 1K in resale value for FSD, especially if you’re trading it in. If you value the car on KBB or others, the option for FSD isn’t even listed. Only autopilot. Best option is to sell it privately.

 

[tigerrr]

I priced a new Model 3 configured exactly like my 2018.
--> Purchase Price in 2020 $57,490
--> I paid $63,500 in October 2018

--> On the Tesla site there is a used 2018 Model 3 identical to mine, including mileage that is close, for $53,800.
So, using those numbers and doing the math, mine lost around 15% in 2 years

KBB says trade in $44,312 and private party sale $47,848. (Edmunds appraised at $46,536)
So, using KBB numbers and doing the math, mine lost around 25% in 2 years

But why would you purchase a 2 year old car when there is a new one for only $3,700 more?

 

[kirkhilles]

I think the answer is "it all depends". You gotta remember that there is a while ton of people wanting to buy at that magic $35k mark (and below) while the demand plummets as you get higher. At $60k+ you are going to lose significant value and FSD is worth very little at this point - it'll be worth more if people can make money from it.
So, a base + AP Model 3 should hold it's value pretty well.

In terms of other EVs, it's kinda a mess. I bought a 2012 Leaf a few years ago for $5400 and sold 2 years later for $3000 as it's battery life was down to 12kWh usable.

 

[Shark2222]

I priced a new Model 3 configured exactly like my 2018.
--> Purchase Price in 2020 $57,490
--> I paid $63,500 in October 2018

--> On the Tesla site there is a used 2018 Model 3 identical to mine, including mileage that is close, for $53,800.
So, using those numbers and doing the math, mine lost around 15% in 2 years

KBB says trade in $44,312 and private party sale $47,848. (Edmunds appraised at $46,536)
So, using KBB numbers and doing the math, mine lost around 25% in 2 years

But why would you purchase a 2 year old car when there is a new one for only $3,700 more?

The $53,800 means nothing as Tesla (nor anyone else, but a fool) will pay you anywhere near that.

The other problem is everytime Elon reduces the new price it's going to hurt used value of our cars.

 

[SageBrush]

The other problem is everytime Elon reduces the new price it's going to hurt used value of our cars.

Yep; and every introduction of new tech that cannot be solved with an OTA update will do the same. Such is the price of progress, although OTA does a lot to flatten the depreciation curve.

So far though, the price reductions ~ match the drop in federal tax credit. That is pretty amazing

 

[Rand West]

I have to say, my 3 was ~ 60k all said and done and I just sold it last week. It barely booked out at 45k. I have to disagree with this study.

I'd have to disagree that comparing the new price of a lower priced model that has had several price reductions, to used price of a variety of models and options that once had a large subsidy, is anything like a 'study'

I made my own 'study' of Kijiji in Canada, lots of Model 3 AWD Longrange with FSD offered for sale at $60,000 CAD, ours with EAP was over $80,000 CAD before sales tax. So I'd say it's 20 to 25% 'off the lot' depreciation, maybe less for each year after that.

There's a sort of 'early adopter tax' that everyone buying the first ones will pay, because of the learning curve of production. We're still in that 'zone' for EVs and batteries, where holding off will let you buy a better car for less money.

 

[Rand West]

I think this is the table
I add $7,500 to the Tesla depreciation to compare to the other EV manufacturers that still have the full tax credit

View attachment 566044

I did a quick study of my own, in Canada:
2020 BMW I3 $70,000
2018 BMW I3 $60,000

2020 Model 3 $78,000
2018 Model 3 $62,000

1. I don't see how the 3 year depreciation 'study' could produce meaningful results for a Model 3 car that wasn't available in quantity until one year before the 'study' was done.

2. If I can get a running I3 for $21,000 USD, I will certainly have one.