At last, the prices of Tesla used cars are dropping. It is beneficial for the affordability of Tesla automobiles, but the pressure for new car demand will increase on the company.
Tesla has increased the prices of its new cars, over the past few years, which ultimately lead to a sharp rise in the prices of Tesla used cars.
At the beginning of this year, there was a drastic increase in the prices of used model Y, they started selling at more prices than the new vehicles of model Y. Before the new Federal tax credit came into effect the following month, Tesla is now giving discounts on its Brand new vehicles, so finally a fall will be seen in the prices of used Tesla cars.
Reuters reveals that the data shows the prices of average used Tesla cars came down 17% until its peak in July:
“The average price for a used Tesla in November was $55,754, down 17% from a July Peak of $67,297. The overall used car market Posted a 4% drop during that period, according To Edmunds data. The used Teslas were in Dealer inventory for 50 days on average in November, compared with 38 days for all used Cars.”
According to the data, this will probably interrupt the routine of people replacing Tesla Cars.
With a long backlog and the prices set to rise in 2022, the new Tesla vehicles were flipped on the used car market for higher costs by many people for those who were not willing to wait 6 months sometimes for a new car.
A third of all used Tesla cars were 2022 model-year vehicles on the market by August, as reported by the data.
Since Tesla owns all of its stores and does not use the franchise dealer model, it had large control over its used car trade.
In September, the director of sales and delivery operations at Tesla, Jimmy Douglas revealed that the automaker’s used car business is “as big as some publicly traded used car retailers.”
The affordability of Tesla used cars will be positively affected by this all, but the pressure on the company’s new car demand will definitely rise.