The number of used Tesla 3/Y available is staggering

[240vPlug]

I was casually browsing used vehicles and found a staggering number of used Tesla vehicles for sale within 50 miles of my location. Over 300 used Model 3 and 160 Model Y. In quickly looking at the vehicle history reports many of them appear to have been sitting for 45-60 days. Especially when you compare to other EV available within the same radius.

I don't see how prices can stay high with this much inventory out there. Is a price crash coming for used Teslas? What do you all think?

 

[AndrewZ]

They're not, prices are already being secretly cut in the lower-volume models.

People with Model X LR orders right now are being called up directly and offered Plaid upgrades for discounts, someone in the Model X forum just posted that he was offered a 6-seater X Plaid for $119,990 and that's even below the price from the start of this year when you take out the $6500 upcharge for six seats.

 

[ZenRockGarden]

Yeah - I think we've likely passed "peak used Tesla price frenzy" but it will take a while for values to drift down:

 

[240vPlug]

Yeah it looks like folks have decided they aren’t going to overpay for the vehicles anymore. Now they are mostly sitting.

Kind of makes you wonder how many of these dealers that overpaid for vehicles on trade or at wholesale are going to be taking significant losses.

The other thing is that now we should start to see an acceleration of model3 lease returns for leases taken out in 2019 when Tesla first started offering leases on them. I’m thinking this will put more downward pressure on used M3.

 

[jerome8283]

Do you think Tesla Y’s will hold their value 3yrs from now with the many EVs coming to market?

 

[perplex1]

It’s an interesting question. But the only difference with teslas are the used cars are selling for more than their msrp. As long as that holds, Teslas are in high demand.

 

[jerome8283]

I guess worst cause they will not sell for more but at a good price that will maintain their value. I do wonder why so many are for sale though.

 

[fiehlsport]

Kind of makes you wonder how many of these dealers that overpaid for vehicles on trade or at wholesale are going to be taking significant losses.

The sleazy dealers charging high ADM on new vehicles should have a nice buffer to soften the blow of this.

 

[nate704]

Simple, People took the advantage of high used car price, especially Tesla cars and now they are all in the used market.

 

[NovaTech]

Assuming people that have 2021s or early 22s are trying to sell and make some $$ over what they paid. The MYP I ordered in Oct '21 now costs 10K more through Tesla. For about two days I thought about flipping it, but quickly changed my mind. I think a bunch of dealers bought them or took trade-ins hoping to do the same.

 

[tashtibet]

the biggest upside for Tesla is OTA software updates-making the used Tesla appreciate or maintain values.

 

[ilovecoffee]

Interesting note. I just took a look at Canadian Autotrader and there are 11 pages of listings in my area...which was unheard of some months ago.

 

[patmurphey]

With over a million 3 and Y owners out there, don't you think that there might be a significant number of used ones for sale. With used prices as high as they are, it could be a good time to get a new one - order it and if prices for used stay up when the new one arrives sell the old.

 

[Eric9610]

I hope the trend continues with excess of used Y's so Tesla will let people who leased buy the carat the end of lease.

 

[Unclepaul]

Several months back, most all used cars were in high demand due to lack of new car availability. People needing cars were willing to pay very high prices just to get a car instantly. Mostly caused by supply chain issues and shortage of chips. People saw this and were incentivized to put their used cars or on order cars on the market to make a quick buck.

Like most of these blips, the market has a tendency to sort itself out, and now that supplies of new cars are available the used ones, listed at high prices, will stack up.

There are not lots of value priced Tesla sitting on the market. They are quickly snapped up.

 

[Daekwan]

Yeah it looks like folks have decided they aren’t going to overpay for the vehicles anymore. Now they are mostly sitting.

Kind of makes you wonder how many of these dealers that overpaid for vehicles on trade or at wholesale are going to be taking significant losses.

The other thing is that now we should start to see an acceleration of model3 lease returns for leases taken out in 2019 when Tesla first started offering leases on them. I’m thinking this will put more downward pressure on used M3.

I wouldn't worry about the car dealers. They will be fine, this is literally what they do for a living. Remember a traditional car dealer can make money from selling a vehicle in about 3-5 different ways:

• Selling a customer a vehicle for more than they paid for it
• Buying a customers trade-in vehicle for less than true market value
• Financing the vehicle and juicing the loan (higher than market %APR)
• Selling unnecessary optional warranties & protection plans
• Including unnecessary forced add-ons (dealer fees, paint protection, 3M interior protection, VIN window etching, tint, etc)

The people who ordered a Tesla and expected to flip it for a huge profit are the ones in for a bigger surprise. Taking delivery of a vehicle generally means paying sales tax, title, registration, at least one month of interest on the car loan & required insurance, and other costs that go into getting the vehicle home.. and safely maintaining it until you find another buyer. For a $60K vehicle.. where I live that's about $4200. Meaning I would have to sell it for $65K within 30 days or so to generate even a modest profit of a few hundred dollars.

While the getting was good, I'm sure you had some people clear a few thousand when everything was said and done. But it's certainly not the easy money many made it out to be. And you will never hear from the people who sold for no profit.. especially those who took a loss.

Buying a new car solely to sell for profit is always a gamble. Especially so with a really expensive Tesla as in just a few months we've seen: 1) interest rates practically double, 2) gas prices drop for 90 days straight and 3) the shocking surprise return of the $7,500 tax credit to all *applicable* EV's. Those 3 factors have all had a significant effect on the actual market for new & used Teslas. And that's before mentioning the 4th variable that Tesla has two new factories online, cranking out cars as fast as possible, and will have to continue having record-shattering deliveries every quarter for the next couple of years!

 

[Epradox]

They're not, prices are already being secretly cut in the lower-volume models.

People with Model X LR orders right now are being called up directly and offered Plaid upgrades for discounts, someone in the Model X forum just posted that he was offered a 6-seater X Plaid for $119,990 and that's even below the price from the start of this year when you take out the $6500 upcharge for six seats.

Well yeah they probably ordered when the model x lr was $89,990 and the plaid x was $119,990. If you were able to snag an LR order before the price hikes then you lucked out.

 

[jabloomf1230]

I recently looked at inventory of used Teslas and most are high mileage M3 SR RWD models. When I limited my search to a blue M3 LR AWD with under 30k miles, there were none. Deleting color from the filters only showed a few available. I must live in a Tesla desert.

 

[Two-rocks]

Valid offer for 59K (vroom) for '22 Model 3 LRAWD 5K miles.
Paid 50K (plus the usual tesla fees, taxes, and such) - $2.5K state rebate.
The other usual places offered around 50-52k.
I only want an color other than white....

 

[FatherTo1]

Within 100 miles I see 119 LR Y on CarGurus, but they’re all priced more than a new order. Those priced lower than new price are salvage titles or with prior accidents. Just sellers trying to flip while supply is still constrained and demand remains high for Teslas. I have an acquaintance that asked me for advice and help finding a 3. I told them to just buy new, especially with new tax rebate, and wait for delivery.

There are a lot of used Tesla inventory because they’re priced poorly and cost more than new. Only an uninformed or desperate person would pay more for a used car.