Used Tesla Model 3 and X prices are starting to creep back up as their values appear to have bottomed out.
Speaking to the latest Car Dealer Podcast, Cap HPI director of valuations Derren Martin said a snap look at early Tesla values in June has seen them rise four per cent.
Tesla Model 3 prices have dropped 24.8 per cent in the last six months – losing £8,775 of their value. Model X have lost 30 per cent or £20,086.
However, Martin said both cars’ values are now following a ‘hockey stick’ line as they plot upwards once again.
He said the Model 3 is ‘aspirational’ and currently looking ‘very good value’ in the used car market when compared to other electric cars that have not dropped to quite the same level.
Tesla’s cars dropped significantly in January when the car maker slashed the prices of its new vehicles. At the start of the year it cut 16 per cent from the 3 and 15 per cent off the Y.
Following that move, a combination of a loss of consumer confidence, soaring household energy bills and a glut of negative press reports about EV public charging, saw the values of electric cars tumble.
It has been a trend that has continued with Martin reporting that in May EV values fell 4.1 per cent compared to a 1.1 per cent fall in the same month for petrol and diesel cars. See our latest video interview on the topic at the top of this page.
However, the damage appears to now be lessening for Teslas. In May, Cap HPI put prices back up after falls earlier in the month which saw the models finish the period level.
On this week’s Podcast, Martin said a snap look at values has seen that strengthening of used prices continue.
He said: ‘From June 2 we have been moving values for a few days from the last monthly cut off and Tesla Model 3 is moving up.
‘For 2020 models – we look at ages of models too – the Model 3 has gone up by about four per cent on a 2020 plate onwards.
‘For 2020, the Model 3 was slightly improved on previous cars, it got better updates, heated seats and steering wheel, slightly improved tech and interior, and we’re seeing a slightly improved strength in that model.
‘More so than on older cars, but the older Tesla Model 3s are starting to look good value too.’
Martin told our hosts that buyers favour a Tesla in the used market as other electric car rivals have not yet dropped as fast or as far as they have.
He added: ‘You’re starting to get to the stage where if you’re going for a used EV, do you go for an older Model 3 or even a newer one and pay a little bit more on your monthly than you would for something that’s not quite as aspirational?
‘We’ve also seen Model X going up. There’s not many of those on the market and you have the recent press about not being able to order one – although that has been the case since last year – so there is some really interesting stuff going on in the EV world.
‘Some models are going back up and some values are still dropping.
‘You cannot really talk about EVs in general terms. They’re moving in different directions – the market has moved and now needs to realign to how things compare to each other.’
Also discussed during this week’s Podcast were the latest headlines from our special briefing with Jaguar Land Rover.
The changes at the manufacturer are dissected in the episode with thoughts on what they actually mean to dealers and the brands. You can listen to the latest Car Dealer Podcast on all good podcast platforms.
Martin gives a monthly update on used car values to Car Dealer Magazine’s YouTube channel and you can watch his last interview at the top of this page. Subscribe to the channel for notifications of the latest interviews.