Tesla Model 3 will retain 71% of its value after 50k miles, 'best-in-class' depreciation says surv

Discussion in 'Model 3' started by gene, Aug 22, 2017.

  1. gene

    gene Moderator

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    #1 gene, Aug 22, 2017
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    A new in-depth analysis that draws on responses from over 14,000 vehicle owners projects that Tesla’s Model 3 will have a low rate of depreciation and retain 71% of its value after 50k miles, beating the competition for ‘best-in-class’ title.

    According to survey data from Autolist, 57% of vehicle owners would purchase an electric vehicle that has range capabilities of over 300 miles. 34% of respondents cited battery range concerns as the primary reason why they would not buy an EV, while only 24% of vehicle owners said cost was a limiting factor. Compiling this data and one could easily see why Tesla’s Model 3 with a range capacity of 310 miles would be reason for it to top the charts as lowest depreciating vehicle in its class.

    [​IMG]What matters to Tesla Model 3 buyers on survey data from Autolist

    Among other notable factors that may limit a buyer from choosing an electric vehicle is the availability of charging stations. With plans to double its existing Supercharger network by the end of 2017 and vastly expand its urban charger network, Tesla has tackled these concerns head on and continues to reduce friction for would-be buyers of their electric cars.

    Using survey data obtained for the Model S, which found Tesla’s flagship sedan to have the highest retained value, leading to quickest selling used car - Autolist found the Model S to sell 5% faster than competitors like the Audi A7, Porsche Panamera, BMW 6 Series, Mercedes CLS, and Lexus 460 - the organization was able to come up with a Model 3 depreciation forecast that tells a similar story.

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    Autolist projects a best-in-class depreciation curve for the Model 3, revealing that the mass market electric sedan will retain 71% of its value after 50k miles and 50% after 100k miles.

    By comparison, and assuming the average household drives between 12k - 15k miles annually, other vehicles in its price range will retain roughly 50% of its original purchase price by the fourth year of ownership, according to a general depreciation curve by Edmunds.

    As Tesla continues to ramp up production of the Model 3 and conquer its growing pains associated with “production hell“, it wouldn’t be too far fetched to expect an automotive market dominated by the Silicon Valley-based electric car maker and energy company.

    After all, why would you not buy a Model 3? Leave us your comments.

    Article: Tesla Model 3 will retain 71% of its value after 50k miles, 'best-in-class' depreciation says survey data
     
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  2. KBM

    KBM New Member

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    I have to call BS or at least for the Model S it is no where close to 71%. I have a S P85 with 38k miles.....Tesla just offered me less than 50% of what it was new. Tesla S not holding value at all. I also find an issue with the inability to purchase an extended warranty if you are not the original owner as another big negative. If you want to sell you car to an individual they would like to buy one and Tesla wont sell them one. Most people at this level of vehicle want a warranty. This results in you having to take a huge hit to trade back to Tesla if you want a new one. Also, I realize this article is about the 3. I am simply saying the S is no where close to this and I would not expect a less expensive car to be either.
     
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  3. vincent wolf

    vincent wolf Member

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    The depreciation on the 2014 to 2017 Leaf is astronomical. You can buy a 2017 Leaf today after rebates in many states for under $10,000. Yet the price remain up there around $35,000. What a joke. Thus if you were a stupid sort and paid nearly full price for one in 2012-2014 you'll find that they have depreciated over 15% a year on average. That's obscene.
     
  4. ScottR

    ScottR New Member

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    What Tesla offers you is not necessarily what the market will bear. What Tesla resells it for is a better gauge of market value.
     
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  5. ScottR

    ScottR New Member

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    I'd say you can't really directly compare Model S depreciation with that of the Model 3. It is likely that at least initially, the Model 3 will hold more of it's value, because the demand for lightly used ones will be very high while new ones are still very hard to get.
     
  6. maxjak

    maxjak New Member

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    I was offered $59K by Tesla for my 2016 refreshed Model S 75D with 15000 miles. I paid $94,500 exactly one year ago, so that is over 35% in depreciation.
     
  7. r3dp4ndy

    r3dp4ndy New Member

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    Totally agree. I have a '13 S 60 and Tesla's offer was just under half the orig price. No dings or dents and only 27k on it.
     
  8. Linedoggy

    Linedoggy New Member

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    I agree,BS?......how can you say the Model 3 will retain its value,there are so many unknowns of the Model 3 reliability and quality
     
  9. Teslaliving

    Teslaliving Moderator

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    These charts don't match reality.

    Here are some trade in values Tesla quoted me on my original price of $100K:

    56K miles: $49,200
    72K miles: $41,400

    That's 59% depreciation at 72K miles. The chart indicates I should at about 36%.

    Perhaps some difference is trade in vs private party sale, but:
    1) This is what Tesla is pricing the used car values at
    2) Selling private party in some states (Massachusetts) is a real pain
    3) Selling specialty cars like the Tesla is also a pain

    So I'd argue that these values are more real and depreciation is a LOT worse than those charts and this post implies.
     
  10. KBM

    KBM New Member

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    Scott, with respect that makes absolutely no sense. If you read the article it actually states the model S has the highest retained value. You can see from the posts......BS. I love my Tesla but when I hear this it is....well....just BS
     
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  11. DB Florida

    DB Florida New Member

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    #11 DB Florida, Aug 24, 2017
    Last edited by a moderator: Aug 24, 2017
    @maxjak

    Why would you want to sell a one year old car with 15k miles?
     
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  12. Brian Kent

    Brian Kent New Member

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    Except that the primary reason for the depreciation of the new to the used Leaf has to do with the $7500 incentive available on the new one which can't be claimed by someone buying a used one. It's disingenuous to say "a new Leaf is $30K+" when NO ONE ever pays that much for one.
     
  13. maxjak

    maxjak New Member

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    I was considering trading my 75D for a inventory 2017 90D. I would have done it if my trade was worth $70K but not @ $59K.
     
  14. wowlfer

    wowlfer New Member

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    That's not private party sell. That's trade in or auction value when you sell it back to the dealer.
     

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