11:34 am, January 23, 2023
Used Tesla prices dropped £1,400 overnight as a result of the manufacturer’s new car price changes, says Auto Trader.
The online advertising giant said values of a one-year-old Model 3 Standard Range dropped instantly as the American car maker slashed prices of its new cars.
Tesla cut the price of new Model 3 entry spec cars by £5,500 and the Model Y Performance by £7,000 in a drastic move on January 16.
The price chops saw used Tesla values instantly fall, with Auto Trader noticing it immediately.
That £1,400 overnight drop followed a quarter of depressing price falls for Tesla with the electric cars losing £5,000 in three months.
Auto Trader’s figures are for retail prices – what dealers are advertising the cars to consumers for – but the drops follow those noted in the trade by used car valuations experts Cap HPI.
Auto Trader said on average Model 3 prices fell from £44,995 to £39,999 for a Standard Range while the Performance version dropped from £50,049 to £45,750 between September and December.
This comes off the back of a huge number of used Teslas hitting the market – up 208 per cent year on year in the last quarter.
Auto Trader said: ‘The immediacy of our data reveals what impact Tesla’s new car price cut has had on used values, with the price of a one-year-old Standard Range model falling circa £1,400 overnight on its marketplace.
‘The news of Tesla’s new car price drop fuelled a huge spike in consumer engagement on Auto Trader, with the volume of Tesla advert views spiking 76 per cent on its platform, whilst Model 3 page views rocketed 113 per cent.’
Top 10 biggest depreciating used EVs 2022
Prices for used models 12 months old with 10k miles from Cap HPI
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- 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%
Auto Trader’s latest data reports EV retail prices in general are also falling.
In January, EV prices fell 0.9 per cent on December – the fifth consecutive month of used EV prices declining.
However, Auto Trader was at pains to point out that some EVs are still gaining value with the Peugeot e-2008 up 11 per cent and the Citroen e-C4 op 7.7 per cent comparing January to December.
Auto Trader’s Richard Walker said: ‘We have the broadest single view of EVs, and as our data highlights, the market is incredibly nuanced, and so a broad-brush rarely reflects the true picture.
‘Retailers need to resist thinking all EV’s are in decline, as the data simply doesn’t support that.
‘Those models that are seeing levels of supply grow at a faster rate than demand are experiencing a price adjustment, but there’s plenty of models where demand is as strong, if not stronger than supply, and as a result are selling quickly and offering great profit potential.
‘With the EV market still maturing, it’s critical to follow the live retail data – to ensure you’re buying the right car for your market at the right price, selling them at the right price, and securing the best possible margin in the process.’
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