Used Tesla Model Y sales are experiencing a significant increase as prices continue to decline.
"Now is a good time to buy a new or used EV. Inventory is up, sending prices down," stated Rebecca Lindland, Cars Commerce Senior Director of Industry Data and Insights, in an email. As of May 2024, used 2021 Model Ys are listed on Tesla's website starting at approximately $30,000. Models with lower mileage typically range between $32,000 and $36,000. "Overall, Tesla’s used car demand remains robust year over year (+40%) and year to date (+32%), with the highest demand observed for the used Model Y (119% YoY; 65% YTD)," Lindland added, referencing year-over-year and year-to-date metrics. This trend is "likely due to the continued price reductions for new Model Ys," she explained. These price cuts are impacting the used market, resulting in a 32% decrease in the average price for used Model Ys year over year and a 12% decrease year to date.
Market trends influencing price declines: The EV market overall is witnessing a significant rise in both new (+100% YoY) and used (+42% YoY) inventory, according to Lindland. This has created an oversupply situation, leading to a 20% reduction in used EV prices year over year. "This price adjustment, coupled with government incentives for new and used EVs, is aimed at boosting demand in a growing segment—we estimate new EV sales grew 27% YoY in Q1 2024 (excluding Tesla as they don’t report US-specific sales)," she said. Used EV demand has increased by 45% YoY. "The drop in used EV prices is making them more attractive to cost-conscious consumers," Lindland concluded.
Tesla News from FORBES: https://www.forbes.com/sites/brookecrothers/2024/05/19/used-tesla-model-y-demand-surges-as-price-drops/?sh=7ffdd5262272
