How do Teslas Depreciate Compared to Competitors?

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It’s natural to expect wear and tear when you buy a car, but consumers often overlook the potential for depreciation. There are many other factors to consider, especially short-term features; buyers can end up neglecting long-term issues.

When you think about how important purchasing a car is, it’s essential that you aim to get as much info as possible on depreciation rate. Your car is probably the next most expensive purchase you’ll make, besides a property, so being informed is key.

Let’s take a look at what Tesla owners can expect to see in terms of depreciation rate.

Tesla Model S

The Tesla Model S is one of the most popular Tesla models and because of its luxury, premium features and design, its value retention becomes a significant selling point.

An AutoList survey found that the Tesla Model S outperformed the Audi A8, Mercedes S-Class and BMW 7 Series when comparing depreciation values over time.

EV website, Electrik, was told by AutoList that:

“To put the depreciation in context, whereas a Tesla (Model S) will on average lose 28% of its value after being driven 50k miles, a Mercedes S-Class will lose 38%, a BMW 7-series will lose 40%, and an Audi A8 will lose 41%. As a result, Tesla owners end up with considerably more money in their pocket.”

This makes the Tesla Model S a great option for value retention, especially when looking at other EVs that it outperforms, such as Chevy Volt, the BMW i3 and the Nissan LEAF.

Tesla Model 3

Tesla continues to develop and perfect the new Tesla Model 3 vehicle, with Chief Designer, Franz von Holzhausen, stating that they’ve designed the model to “age gracefully”. This tells us that value for money and depreciation value is clearly at the forefront of new Tesla design.

And AutoList has projected that the Tesla Model 3 will have a best-in-class depreciation curve. They predict that the Model 3 will retain 71% of its value after 50k miles and 50% after 100k miles. Which when you compare this data to other regular vehicles gives you a good idea of how much of a selling point this is. AutoList pulled data from other similarly priced vehicles and found that over 4 years, they should retain approximately 50% of their original price.

AutoList’s, Alex Klein, told Electrik:

“Derived using the Model S, its peer group, and corresponding entry level competitor pricing data, our forecast projects a best-in-class depreciation curve for the Model 3, with the vehicle losing only 29% of its value after 50k miles and 50% of its value after 100k miles”

Final Thoughts

Here at 3F EV, we think it’s clear to see that Tesla is working incredibly hard to dispel some of the myths that prevent buyers from going green and purchasing an EV.

We already know that Tesla concentrates successfully on vehicles with fantastic range and they’re also focusing on preventing depreciation and promoting value for money. This means that Tesla can provide strong competition to other car manufacturers that occupy the same price ranges they’re selling EVs for.

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