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May 19, 2017
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Don’t let previous studies mislead you.iSeeCars released a new vehicle depreciation study to help car shoppers find the best deals on the used market. All cars depreciate significantly as soon as you drive them off the dealer lot, but some fare better than others. In general, expensive luxury vehicles lose their value more rapidly and...
[WPURI="https://teslamotorsclub.com/blog/2019/06/20/tesla-depreciation-vs-average-gas-car/"]READ FULL ARTICLE[/WPURI]
 

ChrisH

Active Member
Jun 4, 2013
2,277
1,040
Milton, wa
What period of time are those depreciation rates supposed to be and how come people have got great deals on 3-5 year old model S’ If the depreciation rate is so low?
 

aerodyne

Nose cone car - "Going to LR"
Nov 19, 2018
3,105
4,032
Los Angeles
Yup, just checked Edmunds. Never heard of these guys.

Non P MS Dual motors seem to have gone down 50% in 4 years.

Not terrible, but not best IMO.
 
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MaddyZu

New Member
Jun 20, 2019
1
1
Boston, MA
This writer's a bit behind the power curve, hasn't heard the $7500 rebate is halved, and that will be halved in less than two weeks.

The study looks at new cars bought in 2016 (and resold in 2019), which would have qualified for the full tax credit. It could have been made more clear, but it's saying that the full credit contributed to the depreciation of these cars.
 
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whitex

Well-Known Member
Sep 30, 2015
6,728
8,564
Seattle area, WA
I got a year old Model S with 15K miles on it, the article graph says ~10% depreciation - will ask Tesla about trade-in value when I go there tomorrow, how many people are willing to bet it won't even come close?
 
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iqless

Member
Mar 20, 2017
619
804
Atlantic US
3 year old Tesla depreciation being 17% is HUGELY bullshit.

Looking at EV-CPO for May 2016 (about 3 years ago), here's what inventory Tesla prices were:

P90DL: ~135,000
90D: $95,000 - $105,000
75D: $90,000 - $95,000

---

Right now P90DL's go for $60-70,000 on Tesla's website (which means if you sell it you'll probably get about 50-55k), representing a 50% drop.

90D's also go for $50k-$60k, again representing a 50% drop.
75D's go for $45k-$55k, this also represents a 50% (or more) drop.

So I don't know what they were smoking when they said Teslas drop 17% in 3 years lol. That would mean a 3 year old non-performance 90D would be going for $80k
 
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EinSV

Active Member
Feb 6, 2016
4,332
21,741
NorCal
In other studies, Model S also consistently comes out best in class (large premium cars) in depreciation. The depreciation in previous studies was higher than this one but the bottom line conclusion on depreciation compared to other cars was similar.

Model S and X "Continue to Hold Values Better than Rivals" -- Autolist

Tesla Model S retains its value better than gas-powered cars in its segment, losing only 28% after 50k miles - Electrek

Anecdotal reports of depreciation are not reliable, and in any case there are plenty of anecdotal reports of high used Tesla prices/low depreciation.

Used Model S Pricing Right now

High CPO prices?
 

Ludalicious

Active Member
Feb 22, 2018
1,105
1,433
Vancouver
My P100D has lost over 50% in the last 2 years..... LOL Guess they missed the P100D models. Back in the day Original 2.0 Owners all paid 200-250 CDN for them Plus Luxury tax of 15%-25% on-top of that. So misleading this write up
 

iqless

Member
Mar 20, 2017
619
804
Atlantic US
Anecdotal reports of depreciation are not reliable, and in any case there are plenty of anecdotal reports of high used Tesla prices/low depreciation.

Used Model S Pricing Right now

High CPO prices?

It's not an anecdote. You can always go to EV-CPO and look at the entire history of Tesla's inventory and used pricing. While they raise/lower the prices of used cars like they're playing with a new toy, it's never so dramatic as to lower 3-year depreciation to 17%. It's just completely absurd. It's possible that Teslas hold their value better than other luxury brands, but the difference is not so dramatic where BMWs lose 55 percent and Teslas lose 17. Maybe it's more like 55 to 45, or 50, or whatever, but not 17.

I will immediately and completely dismiss any 'study' that quotes 3-year Tesla depreciation at 17%, because clearly not only their methodology is wrong, but they even lack the common sense to gut check their results - the gut check should tell them there's something wrong and they need to do a serious review of their study by picking a bunch of individual cases and seeing if it's even remotely in line with their conclusions.
 

EinSV

Active Member
Feb 6, 2016
4,332
21,741
NorCal
It's not an anecdote. You can always go to EV-CPO and look at the entire history of Tesla's inventory and used pricing. While they raise/lower the prices of used cars like they're playing with a new toy, it's never so dramatic as to lower 3-year depreciation to 17%. It's just completely absurd. It's possible that Teslas hold their value better than other luxury brands, but the difference is not so dramatic where BMWs lose 55 percent and Teslas lose 17. Maybe it's more like 55 to 45, or 50, or whatever, but not 17.

I will immediately and completely dismiss any 'study' that quotes 3-year Tesla depreciation at 17%, because clearly not only their methodology is wrong, but they even lack the common sense to gut check their results - the gut check should tell them there's something wrong and they need to do a serious review of their study by picking a bunch of individual cases and seeing if it's even remotely in line with their conclusions.

I think those are fair criticisms. iseecars doesn't say much about their methodology but they do state: "* Tesla Model S new car prices estimated from Tesla's 2016 quarterly shareholder updates."

The only sales price information Tesla provides in its quarterly updates is Average Sales Prices (ASP). If they compared ASPs in 2016 to used car sales in 2019 the results could be skewed by, for example, more frequent sales of higher end used Model Ss, which could easily be the case.

Even though their numbers may be off, the overall conclusion that the Model S depreciates less than other cars in its class is consistent with other studies, although the differences depreciation previously reported is closer to what you are suggesting, with Model S having roughly a 10% lower rate of depreciation than average car in its class over 3 years.

I do think that as more and more people get comfortable with Teslas and the customer base moves beyond early adopters, demand and prices for used S/3/X will stay strong relative to comparable ICE cars. Everyone thinks that new Teslas with better performance, range and features will cause used Teslas to depreciate but the increasing popularity of Teslas should have an even bigger effect on the prices of used ICE.
 
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