Some people say Tesla vehicles have an excellent resale value and greatly hold their residual value. Others site the need for the change of the battery and hold the opposite view. I wanted to see what Tesla buyers say about Tesla vehicles' resale value compared to other regular cars. I searched in Quora and found some interesting answers reporting in this presentation.
David Enson, Multiple Tesla Owner, MBA Finance and Securities Investor.
With Tesla's OTA updates, you can make some software improvements, but you can’t change the aging hardware in the car. As such, the value of used EV cars is not as high as the fanboys would have you believe. However, this is great news for the buyer. A 3-year-old Tesla is a great car to own.
There is one caveat. When the car is out of warranty, the service costs you’ll pay out of pocket are extremely high and autobody parts are insanely priced and hard to get. I waited 3 months for a rear quarter panel on a 2018 Model S. Also, the upcoming flood of competition will also add downward pressure on used Tesla prices.
Chris Smith, M.S. Engineering, University of Florida (2000).
According to Carfax, the average new car loses 10% of its value in a MONTH. 20% in the first year. Tesla loses about 5% in its first year. Nearly 4 times less than your average vehicle (and when compared to luxury/premium vehicles that’s usually a bigger loss).
Kelly Blue Book does a resale value study every year. They collect years of data on millions of car sales to predict the resale values of new cars. The Model X wins the electric lineup (44% of the value after 5 years) with the model 3 and Model S taking 2nd and 3rd place. They put the Model X in the “electric cars” category only. But it beats out the best luxury 3-row mid-size SUV (Lexus GX at 37.9%). And it barely misses out to the non-luxury best regular 3-row mid-size SUV (Highlander at 45%).
The Tesla Model S beats the Lexus GS (best luxury car).
So how does it compare? According to KBB VERY favorably. According to my own shopping, well about 4 times better.
The Tesla Model 3 has been named the “worst car to buy used”.. not because of any problems, but because there is so little of a price difference between new and used.
Ullrich Fischer, B.Sc. Physics & Computer Science, University of Saskatchewan (1969).
Tesla's resale value is better because they are not just cars. They are updated for free over the internet to improve software features. They are more durable, require much less maintenance, and provide far superior performance and safety as measured by pretty much every third party car testing agency. The Teslas are so far ahead of gas guzzler technology that going back to even a brand new Toyota Camry hybrid from a Tesla Model 3 feels like going from a Model T back to a horse and buggy.
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This is Armen Hareyan from Torque News. Please, visit us at for daily car sector news and follow us on Twitter at for daily automotive sector tweets. And if you would like to support our channel, I would really appreciate buying us animated applause once a month by clicking on the applaud button, which is next to the Like button, if you are watching this video on a desktop. You can go to for our daily Tesla news coverage.
Reference
Quora
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