The cost of a Tesla used car is finally beginning to go down. It’s good for Tesla’s affordability, but it will make it harder for the company to buy new cars.
Tesla used car prices have also been rapidly rising in tandem with Tesla’s new car prices over the past few years.
In the beginning of this year, the cost of a used Model Y exceeded that of a new one and began to rise. We are finally beginning to see prices for used Tesla cars drop, as Tesla is beginning to offer discounts on its new vehicles this month in anticipation of the new federal tax credit starting next month.
The data also demonstrate that the practice of flipping Tesla vehicles is being eradicated as a result of the price drop.
People who didn’t want to wait up to six months for a new car were flipping new Teslas for higher prices on the used car market in 2022 due to price increases and a long backlog.
According to the data, by August, a third of all used Tesla cars on the market were from the 2022 model year.
Tesla has a strong hold on the used car business because it doesn’t use the franchise dealer model and owns all of its stores.
We reported in September that Tesla’s director of sales and delivery operations, Jimmy Douglas, stated that the automaker’s used car business is “as big as some publicly traded used car retailers.”
This trend will help make used Tesla cars more affordable, but it will also hurt the automaker’s expanding used car business.