Now that Tesla Model 3 production is starting to reach some significant volume over the last few weeks, we are seeing more and more early owners going to the used market, but there doesn’t seem to be many buyers willing to pay the premiums they are asking for.
Shortly after Tesla started production last year, we have seen some insane prices for the Model 3 on the used market.
At the time, only Tesla employees and company insiders could get delivery and Tesla preemptively added language to the Model 3 ordering process for employees in order to try to prevent resale at a profit:
“Because employees are receiving special priority, all Model 3 cars prioritized to employees must be registered to you or your family member and may not be resold for more than the original price. Reservation holders will agree to these terms when their order is placed.”
It wasn’t clear how enforceable that clause would be, but it doesn’t matter anymore with deliveries to regular customers, it’s now free-for-all on the used market.
In recent weeks, we have now seen several dozen Model 3 vehicles showing up for sale on eBay and similar numbers on other platforms like Craiglist.
Most owners seem to be going for a $5,000 to $10,000 premium on the sticker price of a new Model 3 considering the vehicle costs between $49,000 and $59,000 under the configurations currently available.
That’s already a significant premium for used vehicles, albeit they are almost new with very low mileage, but it’s also before accounting the impact of the $7,500 tax credit and the $2,500 California state incentive (depending on income eligibility) since most of those vehicles are in California.
Several auctions ended without reaching the sticker price of the new car.
I think the crazy used Model 3 market is now mostly over.
People often forget about the incentives, but they make a big difference on used cars. When buyers don’t have access to those, used vehicles look less attractive than new ones without some depreciation.
Then Model 3 owners try to get a few thousands more on top of that and there doesn’t seem to be many takers.
At that point, you might as well consider a brand new Model S since you can at least get the tax credit on it and the Model 3 configurations available today are not that far off in price to a base Model S.
We should have a much better idea of the market once the less expensive configurations of the Model 3 become available.
What do you think? Let us know in the comment section below.
Featured Image: Tesla Model 3 attracts large crowds with first display cars – by Krodri