Price of used Tesla EVs slumps more than 10 pct as listings stagnate

The rapid increase in the uptake of new electric vehicles, and the shorter waiting times, appears to be having an impact on the second hand used EV market in Australia, with prices falling significantly.

Australia’s uptake of EVs has jumped sharply in 2023, with a three month average of 6.6 per cent of new car sales so far in 2023. Over half of those sales were a Tesla, with wait times shrinking rapidly.

Added to the recent significant price cuts to Tesla Model 3 range, new data from the start of the second quarter of 2023 shows stagnation in listings while the average used price of Tesla’s most popular model continues to drop.

The latest data from carloop shows that used Tesla Model 3 listings have started to stagnate with fewer people ready to sell their EVs on the used market. The numbers offered are 14.7% lower than the peak that was seen in January this year.

Even though the total used listings of Australia’s best-selling EVs across Australia are coming down, the used prices are not going up. This is due to the impact of price cuts Tesla has put in place over the last couple of months.

These cuts have put downward pressure on used prices as well given Tesla has an inventory of new Model 3 vehicles that in many cases work out cheaper than buying a used Tesla.

Used EV prices drop 10.9% in first three months

Carloop’s used price data shows that at the start of the second quarter of 2023, the average price of a used Tesla now sits at $61,274. 

That’s a drop of 10.9% in the last three months when in January, the average used Tesla Model 3 price was $68,740.

These vehicles have travelled 18,389 km on average which is more than what an average Australian vehicle drives every year.

2021 Model Year was the most dominant in used listings indicating that existing Tesla owners are either upgrading to a Tesla Model Y or are trying to sell their vehicle before the used prices drop right off.

On top of that, the brand has sold 7,238 new Model 3 so far with the majority of them being the single-motor RWD variant which is eligible for state and territory subsidies. 

This makes buying a used Tesla unattractive to many used EV buyers while myths around battery life still exist for first-time buyers. 

One more factor worth noting is that many of the used listing prices do not include the on-road costs which have to be paid to the department of transport in respective states and territories.

The true impact of recent price cuts on the used EV market is yet to be seen but it’s likely that the prices will continue to fall. 

These are good signs to make EVs more accessible to drivers of ICE vehicles today and would ensure it kickstarts the development of a healthy used EV market in Australia, that’s desperately needed.