Tesla Resale Value
To get the highest resale value out of your Tesla, you should aim to sell it within two to five years of ownership.
Written by Mary Cahill
Reviewed by Jessa Claeys
If you want to get the best resale value on your used Tesla, you should think about selling your electric vehicle within three to five years after purchasing it.
If your goal is to get the most residual value when you decide to sell your old model Tesla, there’s a bit of strategy to consider. While it’s widely understood that your new car undergoes depreciation the minute you drive it off the dealership lot (and every day thereafter), parts shortages for new Tesla Model 3 vehicles have caused the price of this particular used car to increase in value.
Long story short: car buyers are willing to pay a higher purchase price for a used model so that they don’t have to endure the delay that comes with buying a brand new Tesla Model 3.
To help you get a better grasp on the resale value of a used car and what to anticipate when you sell your electric car, the experts at
Jerry
—the top-rated car insurance
app for savings—have put together a handy little guide on Tesla resale values. And if you want to lower your
Tesla insurance cost
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What is the resale value of a Tesla?
These days, car prices for used Tesla vehicles vary based on the model. But generally speaking, the resale value of these electric vehicles (EVs) depends on the following:
- Depreciation - It’s not uncommon for certain vehicles (like a Tesla orBMW) to depreciate as much as 65% in just three years.
- Mileage - On the used-car market, higher mileage usually means the vehicle has sustained more wear and tear. Teslas and other vehicles are harder to resell if they have an excess of 100,000 miles on the odometer.
- Accident history - It doesn’t matter who caused it, if a potential buyer learns that your car has been through an accident, they may opt to just buy a new vehicle.
- Model popularity - Certain models—like the Tesla Model 3—have popularity status. Trade-in or resale value can increase if the vehicle or model year is highly sought after.
- Interior and exterior condition - Buyers will spend more money on a used vehicle that looks nice and has been well taken care of. Most buyers would rather spring for a new model than an older car that looks like it's been through rough times.
Tesla Model 3 resale value
As we mentioned before, the Tesla Model 3’s resale value is actually higher than the MSRP of a brand new version due to delays and parts shortages.
Let’s say you own a 2019 Tesla Model 3, which had an MSRP of $35,000 new. As of 2022, if you buy a used Model 3 directly from Tesla, it’ll cost you $47,800.
In other words, your 2019 Tesla Model 3’s resale value is 136% of its original purchase price.
Tesla Model X resale value
If you decide to sell your
Tesla Model X
after five years of ownership, however, the predicted resale value is only 47.3% according to Kelley Blue Book. Keep in mind that a brand new Tesla Model X has an MSRP of $80,000. That’s pretty steep—especially considering most
EV federal tax credits have expired
, as have free charging incentives from Tesla when you buy a model X new. So, there’s more than enough reason for buyers to prefer a gently used model, particularly if it’s still under warranty. Tesla Model Y resale value
Perhaps you have an even newer Tesla, like a one-year-old
Model Y
. Edmunds predicts that the resale value of last year’s 2021 Tesla Model Y will fall between $60,194 and $75,257. After five years, the Model Y will depreciate by about 39%. MORE: Holiday gifts for the Tesla owner in your life
Tesla Model S resale value
Have you driven your
Tesla Model S
for five years and now you’re looking to sell it? You’ll be looking at a depreciation of 35% and a potential resale value of $64,451. Again, the overall condition and mileage will also factor into the final figure. MORE:
Car loans for Tesla 2022
Is it better to buy a new Tesla or a used model?
It could be better to buy a used Tesla for now. Production delays are a very real obstacle for buyers who want brand new models. However, you could find a viable used option on the used-car market that is still under warranty and in great condition.
On the other hand, it’s not every day that you see new cars priced lower than the used version—much less one that's the brainchild of Elon Musk. If you’re willing to wait, you could reap the benefits of this atypical situation.
How to find cheap insurance for your Tesla
On top of scouting out the best price for the Tesla of your choice, you’ll also need to think about
car insurance
. If you’re worried that finding an affordable policy is going to be a challenge, download Jerry
. The reason Jerry is the No. 1-rated insurance app in existence is that it makes shopping for car insurance fast, easy, and cheap. It takes under a minute for Jerry to scan quotes from a pool of 55+ insurance companies and send the best deals straight to your smartphone. Once you see the quote you like best, tap it and Jerry will assist you with getting enrolled.
The savings are the real deal! On average, Jerry users save over $800 a year on car insurance.
“Jerrysaved me $80 a month! I have a Tesla Model Y and really wanted to lower my rates. And they did! I recommend you give this a shot!” —Nick M.
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FAQs
How much do Teslas depreciate per year?
In three to five years, Teslas depreciate between 10.2 and 45% depending on the model and the vehicle’s condition.
Why is the resale value of a Tesla so high?
A combination of high demand and production delays for new models has caused a great increase in Tesla’s resale value.
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