11:37 am, January 16, 2023
Values of used Teslas are likely to plummet even further due to the latest price cuts on new models, used car pricing experts have revealed.
The American carmaker sparked fury amongst Tesla owners last week when it revealed prices of its Model 3 and Model Y cars would be slashed by thousands of pounds.
The best-selling Model 3 entry spec now has a starting price £5,500 lower after prices were cut on Thursday (Jan 12) night, while the Model Y Performance is now a whopping £7,000 cheaper.
This is likely to lead to used prices falling even further, said Cap HPI. It is set to make a full assessment on the impact shortly, but has issued Car Dealer an update.
The used car pricing experts’ briefing revealed that after just 16 days, the Tesla Model 3 has already dropped six per cent (£2,200) in January while the Model Y is down 5.5 per cent (£2,700).
The data is from Cap HPI’s Live product and is based on up-to-date sold evidence in the trade market on one-year-old cars.
Last week, Car Dealer reported three Tesla models were in the top five biggest depreciating used electric cars last year (table below).
Cap HPI said it has fielded numerous enquiries about pricing data for Teslas since the cuts and said they will likely cause a ‘further impact’ on used values.
Cap HPI’s director of valuations Derren Martin said: ‘The news regarding new car price drops for Tesla Model 3 and Model Y has led to a number of enquiries regarding used values and forecasts.
‘It is likely that the price drops will encourage buyers into a new Tesla, potentially making used ones less attractive at current prices, particularly as new car lead times for these two models are relatively short.
‘With the volumes currently being remarketed, there could well be a further impact on used values, which are already under considerable pressure having moved down around 15 per cent over the final three months of 2022.’
Top 10 biggest depreciating used EVs 2022
Prices for used models 12 months old with 10k miles from Cap HPI
- Tesla Model 3 -23%
- Tesla Model S -22%
- Audi e-Tron -15%
- Jaguar I-Pace -14%
- Tesla Model X -13%
- Mercedes EQC -13%
- Smart ForFour Electric -10%
- Audi e-Tron Sportback -9%
- BMW i3 -8%
- Renault Zoe -8%
Martin added: ‘On the forecast side, the Model 3, will be reviewed this month as part of the Upper Medium sector review anyway.
‘With values some way below new car list prices, incremental forecast adjustments are unlikely as a direct result of the pricing announcement, although forecasts are already likely to reduce further due to the continuing reductions in used values.
‘Model Y is a different situation – the price changes put used values for Performance close to list, Long Range above list and RWD even further over list.
‘It had already been flagged for urgent forecast review, and will be adjusted in the coming days.’
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