How Fast Does the Tesla Model 3 Depreciate?
The Tesla Model 3 depreciates slower than any other electric car, holding nearly 90% of its value after three years.
Written by Samuel Todd
Edited by Pat Roache
The Tesla Model 3 ($39,990 2023 MSRP) has an exceptionally slow depreciation rate—only 10% loss in value after the first three years.
- Car depreciation affects the Tesla Model 3 at roughly one-fifth to one-sixth the rate of other electric vehicles—and one-third the rate of other Tesla cars.
- Tesla owners can expect their Model 3 to maintain 64.4% of its value after five years, but this will depend on factors like mileage, maintenance records, and car accident history.
- The Tesla Model 3 depreciates at such a slow rate thanks to its durable batteries, light maintenance requirements, and the supply and demand of Tesla vehicles.
- Car depreciation affects the Tesla Model 3 at roughly one-fifth to one-sixth the rate of other electric vehicles—and one-third the rate of other Tesla cars.
- Tesla owners can expect their Model 3 to maintain 64.4% of its value after five years, but this will depend on factors like mileage, maintenance records, and car accident history.
- The Tesla Model 3 depreciates at such a slow rate thanks to its durable batteries, light maintenance requirements, and the supply and demand of Tesla vehicles.
The Tesla Model 3 depreciates slower than other EVs
According to a new study, a brand new Tesla Model 3 only loses 10% of its value after three years. That’s way less than the average electric vehicle and other sedans:
- iSeeCars.com estimates that the average sedan depreciates 39% in three years.
- The typical electric car on the used car market loses value at a rate of 52% over the course of three years.
Here’s how this three-year depreciation rate stacks up against some of the
Tesla Model 3’s EV competitors
:Even among Tesla vehicles, the Model 3 is king—although
Tesla’s three-year depreciation rates
still tend to be far more impressive than many electric competitors:How to estimate your Tesla Model 3 depreciation
Depreciation rates depends on a variety of factors that are unique to your specific new vehicle. Here are some ballpark estimates for the
Tesla Model 3’s resale value
by age:Years passed | Value retained | Average resale value |
|---|---|---|
0 | 100% | $48,440 |
1 | 94.3% | $45,678 |
3 | 90.2% | $43,693 |
5 | 64.4% | $31,001 |
7 | 45.2% | $21,895 |
10 | 30.2% | $14,629 |
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Factors that affect your Tesla Model 3’s depreciation
- Age: This is the most obvious one—nine times out of ten, a new model year will be worth more than a used Tesla Model 3.
- Mileage: The average person drives about 13,500 miles per year. If you’ve kept yourmonthly mileage low, your car should be worth more when you trade it in.
- Number of owners: As a general rule, the fewer owners, the better. If your Model 3 has has has several owners before you, there’s less guarantee that it’s been properly maintained.
- Maintenance history: Speaking of maintenance—following aregular maintenance scheduleis a fantastic way to ensure that your car is at its best. If you’ve stayed up-to-date withbrake fluid checksandair filter replacements, your Tesla will hang onto more of its value.
MORE: Trade-in vs private sale: What’s the best way to sell your car?
Three factors behind the Tesla Model 3’s slow depreciation
- Durable batteries: Tesla CEO Elon Musk boasts that Tesla Model 3 batteries are designed to last between 300,000 and 500,000 miles. Not to mention, the Model 3 comes with a robust8-year, 100,000-mile battery warranty.
- Fewer moving parts: Unlike gasoline cars, Teslas don’t require oil and filter changes, spark plug replacements, or emissions checks. Even brake pad replacements are rare because the Model 3’s regenerative braking technology is more durable than other cars.
- High demand: Teslas are the best-selling electric car manufacturer in the United States, so there’s plenty of demand for the entry-luxury Model 3. The automaker also struggles to keep up with demand, so many interested buyers have better luck buying a used EV rather than a brand new Tesla.
“Jerryis an amazing app. Thanks to it, I saved a lot of money for my Tesla Model 3’s insurance. I’m so glad I downloaded the app!” —Erza S.
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FAQs
Does the Tesla Model 3 hold its value?
Yes: A new study found that the Model 3 holds 90% of its value after three years, which is better than any other electric car.
Which Tesla is least expensive?
With a starting price of $39,990, the 2023 Tesla Model 3 is the cheapest Tesla you can buy.
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