It’s hard to argue that the Tesla Model S didn’t mark the start of a major turning point in the auto industry, which is finally beginning to accelerate more quickly in the United States. This large, family-friendly electric sedan first appeared on the market in 2012, and while it doesn’t sell nearly as well as its newer and smaller siblings nowadays (given its price, for sure), it still commands a premium in the used market.
There has been a lot of talk over the past few years about the resale value of a Tesla. More specifically, the brand’s Model 3 and Model Y have been known to sell on the used market for more than you would pay for a new model. This is mainly due to the huge demand for Tesla cars, along with the fact that you probably can’t get a new Tesla for very long if you place an order today.
Another related topic that has been coming up for years is related to the “cheapest Tesla car”. The brand sold the promised Model 3 for $35,000 for a hot minute. It also sold a cheaper version of the Model Y in the United States for a shorter period. At some point, Tesla hopes to put a $25,000 compact car on the market.
However, today, the new Model 3 will cost you at least $45,000 in the US, and the Model Y is much more expensive, starting at around $60,000. Additionally, Tesla continues to increase prices on its models. However, people are still madly asking for these cars, as well as paying a premium for used versions.
Before we continue, it’s important to note that a newly updated Model S will set you back at least $95,000 today. If you want a Plaid model that tops the range, you’re looking at $130,000. Meanwhile, you can get a Performance Model 3 for less than $60,000.
However, a used Model S has been the cheapest way to get into Tesla for quite some time now. Even when the $35,000 Model 3 was available, you could pick up a nicely used Model S’ for even less. Now, if you want to find a decent used Model S that’s cheaper than the new Model 3, you’ll have to search hard to find an older, first-generation model with relatively high mileage.
For example, some 2012 to 2015 Model S sell for about 150,000 miles on the used market for about $30,000. However, if you want one that’s a bit newer and has less miles — maybe 2016 with 75,000 miles — it’s likely to reverse the price of the new Model 3.
According to the information provided to InsideEVs via Capital One’s automated learning center, the Model S now has a significant lead over competitors when it comes to resale value. Share Capital One:
“The Tesla Model S revolutionized the auto industry 10 years ago, and now it caters to another trend: resale value.
Capital One’s Machine Learning Center experts found the 2012 Model S’s resale value to be significantly higher compared to competitors such as Audi, BMW and Lexus — still 38% of the original $57,400 price compared to values just under 22%.”
The Auto-Learning Center also cited the three main reasons why the Model S is so premium in the used market.
- The S form is the status code.
- It is the future but it is unrecognizable.
- She has fans for life.
For more details from the Capital One study, visit the source link below. In the meantime, enjoy the next related video.