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[UK] used value of their Tesla cars plummeting?

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Oof, YBAC offering £49k for a 6 month old model Y with 8k mikes. Bubble burst indeed.
I foresee demand for new MY softening a bit - the novelty factor has worn off, the competition has stepped up, even people with a bit of insulation from cost of living increases might decide to look at cheaper lease deals.

Now, with that in mind, higher interest rates and lower residuals mean lease rates will increase, further softening demand. The response from Tesla might be to sacrifice some of their extravagant margin and lower new car prices, which in turn will impact on residuals yet further.
 
Oof, YBAC offering £49k for a 6 month old model Y with 8k mikes. Bubble burst indeed.
7 month old here and half the mileage at 4100 miles. they also offer £49k (exactly). I think about 6 weeks ago it was just over £59k. Not that I'm looking for anything else and needless to say as to spec my car today it would cost very much closer to £65k without FSD or EAP.
 
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The response from Tesla might be to sacrifice some of their extravagant margin and lower new car prices,
I understand what you are saying but do bear in mind the AFAIK and remember teslas margin is about 30% and others more like 5% but this is mostly down to they business model... I think if they lowered 25% off their prices, most manufacturers would go bust lol....and this is not their intent (or so they say)
 
Waiting times have come down dramatically, it’s pretty much Jan-March for all models now.

Still doesn’t stop 3rd party sellers from taking advantage of impatient buyers though. WBAC might be offering a lower price but rest assured it will appear somewhere with a £57k+ price tag.
 
Cars depreciate. That's what they do. The rate of depreciation isn't all that significant in the grand scheme of things. Personally, I don't even think about depreciation, as it's not a factor for me at the time of purchase. I expect to lose a bunch of value as any car ages and the miles pile on.
 
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I understand what you are saying but What said before still applies regardless.
I was desperate to get rid the Volvo (hated it and all it stood for) but like you I would have balked at paying new for used. In fact I chose to get the smaller battery (75kWh) in order to get a quicker delivery (although it was a little cheaper as well)
 
When I bought my M3 in 2019 I factored £20K depreciation into my calculations over 3 years 60K miles. In the end it was £4K over 25K miles (covid)
Now I have an MY and would love to see £4K over 3 years but it will probably be closer to £20K and without the same savings on Fuel.
Ah the good old days.
 
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Not overly concerned to be honest. Tesla increased the price the 2022 Model Y by £3k before mine was delivered, so that handled any immediate depreciation as I instantly had a car that I could have sold for a profit if I was so minded. I wasn’t, I wanted the car. And still do, it’s super practical as well as being a good driving experience. The 2019 Model 3 I sold before it depreciated by £3.5k over 3 years I had it, a mere 7.5%, not bad at all compared to previous cars that typically depreciated around 30%.

Tesla still has the charging network as a huge benefit over other EVs, as they open it up more that will diminish but I’ve not seen any evidence of it having a negative impact yet. Although 90% of my charging is at home so I’m less impacted than others. I also think that the pricing of competitive EVs is reinforcing the fact that Tesla Model Y is actually pretty good value in comparison. I saw the new Volvo XC90 EV advertised yesterday, starting at £96k :eek: The BMW, Mercedes and Audi SUVs are very pricey. So are Polestar. Are they worth the difference in terms of premium quality? Perhaps to some. I’ll take the Model Y package at the price personally.

Longer term I think the things that will more likely have an impact on depreciation are (1) Electricity vs petrol pricing might reduce demand for EVs, which seems counter intuitive as electric should get cheaper not more expensive but recent evidence is the opposite, (2) New tech such as hydrogen fuel becoming mainstream and (3) A society backlash to Elon Musk based on his other business interests or opinions. The power of social media can impact things massively, even if he now owns a chunk of it!
 
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Not overly concerned to be honest. Tesla increased the price the 2022 Model Y by £3k before mine was delivered, so that handled any immediate depreciation as I instantly had a car that I could have sold for a profit if I was so minded. I wasn’t, I wanted the car. And still do, it’s super practical as well as being a good driving experience. The 2019 Model 3 I sold before it depreciated by £3.5k over 3 years I had it, a mere 7.5%, not bad at all compared to previous cars that typically depreciated around 30%.

Tesla still has the charging network as a huge benefit over other EVs, as they open it up more that will diminish but I’ve not seen any evidence of it having a negative impact yet. Although 90% of my charging is at home so I’m less impacted than others. I also think that the pricing of competitive EVs is reinforcing the fact that Tesla Model Y is actually pretty good value in comparison. I saw the new Volvo XC90 EV advertised yesterday, starting at £96k :eek: The BMW, Mercedes and Audi SUVs are very pricey. So are Polestar. Are they worth the difference in terms of premium quality? Perhaps to some. I’ll take the Model Y package at the price personally.

Longer term I think the things that will more likely have an impact on depreciation are (1) Electricity vs petrol pricing might reduce demand for EVs, which seems counter intuitive as electric should get cheaper not more expensive but recent evidence is the opposite, (2) New tech such as hydrogen fuel becoming mainstream and (3) A society backlash to Elon Musk based on his other business interests or opinions. The power of social media can impact things massively, even if he now owns a chunk of it!
1) if there is a short term drop in demand it may lead to increased used prices down the line since in 3-4 years when hopefully the energy market has stabilised and demand has returned there will be even more of a lack of used supply than I already predict there will be.
2) Shell just closed all (3) of their UK hydrogen filling sites. I don't think hydrogen for passenger vehicles in the UK is going to be a thing any time soon. You have to feel though for the existing owners who just lost most of their re-filling places, they must both be really mad.

Over the last 3 year the new price of the M3 LR I had went up by over £10K. That was probably the biggest factor in the low depreciation. If we finally see prices going the other way as we have been "promised" ( price parity with ICE by 2025 was it) then higher depreciation is inevitable even with the above factors
 
The whole used car market has gone soft and Electric Cars only make sense if you have off road parking and an EV tariff like Intelligent Go .
its also useful to do more than 12k miles a year . Then it makes sense . Otherwise buy a petrol car new where PCP is subsidised by manufacturer. PCP rate for used cars are over 10% APR now which reflects the price you can sell for or trade in .
 
I was only looking as I was thinking of swapping my YLR for YP. If it was a couple of months ago it might have worked, but not now. Shame as I have a YP locked into the lower price. I do think Tesla might reduce the price of the Y. But as someone mentioned above, the price of electric cars is outrageous! Can’t believe how much Volvo are asking. Seen some last run BMW i3’s going for newly £40k!
 
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