Used Tesla prices are dropping for the first time

1 week ago by Joshua Fruhlinger in News, Trends

Have you been waiting for a used Tesla? Your time may be arriving, finally.

In the grand scheme of car things, Tesla is a very young brand, and it wasn't until the 2012 Model S that it was producing a car that almost anyone could buy. Given the youth of the brand and Tesla's generous buy-back program, scoring a used Tesla has been pretty rare.

But now that the car has been in production for 6 years, used Tesla Model S's have slowly — but surely — begun showing up at used car dealers like CarMax and Carvana.

And it turns out that, given the slowly increasing inventory and aging nature of the car, used Model S prices are finally creeping down.

In May 2018, used Model S prices peaked at $85,000 but since then, in just four months, the average Model S has dropped by about $20,000.

Entity Name

Model

Entity Name (Count)

Price (Average)

www.carvana.com

Model S

554

55,146.39

www.carmax.com

Model S

462

69,495.84

www.carmax.com

Model X

8

97,498.00

Of the used Teslas, Model S make up the vast majority, with 554 records from Carvana and 462 from Carmax. Prices for the cars have been historically high due to their scarcity, but as you can see, used Teslas have recently become a bit more common.

The Model S's drop in price over time could also be explained by the fact that the cars are simply getting older. A used car's value is determined not just by its make and model, but also the year it was released and its mileage. Used Model S average mileage, however, has been sporadic at best, with a slight rise since July.

In other words, basic supply-and-demand economics appear to be at play here, and as used Teslas continue to show up on used car lots, those who wish to get into one at a discount may soon be in luck.

Joshua Fruhlinger

Joshua has been writing about technology, lifestyle, and business for over 20 years. He's one of the original writers and editors for Engadget, and still writes a...

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