Study Finds Teslas Lose Value Much Quicker Than Maseratis or Alfa Romeos

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Study Finds Teslas Lose Value Much Quicker Than Maseratis or Alfa Romeos

Today marks a shift in the automotive world, as Maserati enthusiasts learn their beloved brand has been dethroned in the realm of depreciation. Tesla now wears the crown for the brand with the highest annual depreciation rate, surpassing both Maserati and Alfa Romeo, which are traditionally associated with significant value drops.

A comprehensive study by ISeeCars, analyzing 1.8 million used cars (ranging from 1 to 5 years old) sold from February 2023 to February 2024, sheds light on this change. The research evaluated the cars’ selling prices, market dynamics, and various other factors to understand the decline in used car values over a year. Tesla owners who purchased their vehicles when prices were high might find this news particularly disheartening.

Tesla, leading the charge in mass-market electric vehicles, has experienced a significant dip in the used car market. Over a span of one year, the average resale value of Teslas plummeted from $51,323 to $36,515 across its range. This 28.9% decline, equivalent to a $14,808 drop, starkly outpaces the depreciation rates of luxury brands like Maserati and Alfa Romeo, being more than triple and double their rates, respectively. Quite a stark shift for the electric vehicle pioneer.

So what’s causing this significant decrease in used Tesla values? Karl Brauer, Executive Analyst at iSeeCars, shares insights:

Used Teslas lost more value than any other brand, and with a 28.9 percent decline they lost more than twice as much value as second-place Alfa Romeo. Elon’s desire to maintain new Tesla sales through price cuts had a very destructive impact on the brand’s residual values.

Tesla’s bold pricing strategies are well-known, and the electric vehicle (EV) market has transformed dramatically in just a year. Now, many people who previously couldn’t take full advantage of the $7,500 EV tax credit directly on their taxes can apply it at the point of sale. This significant change has undoubtedly impacted the value of used EVs, driving prices down.

It’s crucial to understand that the depreciation isn’t unique to Tesla; it’s a common trend among used electric vehicles (EVs), largely due to the rapidly evolving nature of the EV market. With technological advancements and product improvements occurring annually, the depreciation rates for used EVs are notably higher.

The study highlights a stark contrast in depreciation rates: while the average car lost just 3.6% of its value year-over-year (YOY), used EVs saw a dramatic average drop of 31.8%. At the forefront of this depreciation are the Chevy Bolt and Nissan Leaf, with Tesla’s Model X, Model 3, and Model S following closely, experiencing depreciation rates of 24.6%, 24.1%, and 20.5%, respectively. It’s important to note that these figures do not account for any tax credits, which can further impact the perceived value of used EVs given the $7,500 discount many new car buyers receive at purchase.

For Tesla owners, this trend is palpable. A year ago, the Model 3 Performance was priced at $53,240, but a recent check showed a listing for $48,700. This is a significant drop from its January 2023 price of $62,990 and even more so from its launch price of $78,000 in May 2018. Model X owners face an even steeper decline, with the lowest price for a 2023 Model X Plaid currently at $83,161, compared to its new price of $119,990 last year—a reduction from the original $138,990 in January.

It’s crucial to understand that the depreciation isn’t unique to Tesla; it’s a common trend among used electric vehicles (EVs), largely due to the rapidly evolving nature of the EV market. With technological advancements and product improvements occurring annually, the depreciation rates for used EVs are notably higher.

The study highlights a stark contrast in depreciation rates: while the average car lost just 3.6% of its value year-over-year (YOY), used EVs saw a dramatic average drop of 31.8%. At the forefront of this depreciation are the Chevy Bolt and Nissan Leaf, with Tesla’s Model X, Model 3, and Model S following closely, experiencing depreciation rates of 24.6%, 24.1%, and 20.5%, respectively. It’s important to note that these figures do not account for any tax credits, which can further impact the perceived value of used EVs given the $7,500 discount many new car buyers receive at purchase.

For Tesla owners, this trend is palpable. A year ago, the Model 3 Performance was priced at $53,240, but a recent check showed a listing for $48,700. This is a significant drop from its January 2023 price of $62,990 and even more so from its launch price of $78,000 in May 2018. Model X owners face an even steeper decline, with the lowest price for a 2023 Model X Plaid currently at $83,161, compared to its new price of $119,990 last year—a reduction from the original $138,990 in January.

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