Tesla Model 3 Has One of the Lowest Depreciation Rates

Tesla Model 3 Has One of the Lowest Depreciation Rates

The Tesla Model 3 loses only about 10 percent of its value when it comes off a 3-year lease. It is really a low rate compared to other vehicles.

The average vehicle loses 39.1 percent of its value in its first 3 years, according to a July study on three-year-old cars made for the U.S. market by iSeeCars.

A new SUV depreciates 39.7 percent, a pickup – 34.3 percent, an electric car – 52 percent on the average.

As we can see, electric vehicles have the high overall rate of depreciation. The reasons include a fast development of new battery technologies and a $7500 federal tax credit available for some new-EV purchases.

Unlike many other battery electric cars, The Model 3 has a low 10.2 percent of depreciation. The Model X (33.9 percent) and S (36.3 percent) are kept above average as well. Why?

Tesla is perceived as a brand that brings advantages in terms of battery technology and range, and this is the reason for its vehicles to keep resale prices high.

The company has sold enough cars, and the full tax credits no longer apply to its new offerings. Besides, Tesla provides over-the-air software updates which give new features to used cars.

iSeeCars spokesperson told about the Model 3 to Car and Driver:

Even though it doesn’t present a bargain compared to its new-car price, it offers consumers a more affordable option for owning a Tesla.

The downside of the steadily strong demand for the Tesla Model 3 is that it is a challenge to find a good deal on a used car. There are few Model 3s available on the U.S. used car market.

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