Tesla Depreciation Expectations

[HardHitter]

I've always bought my cars used because I did not want to take the large depreciation hit. Assuming a Model 3 Performance is say $65K out the door, what are your guys best estimates on value of the car at say 50K/75K/100K miles vs say picking up a used S Performance who from a buy perspective will likely still be $15-$20K more, but has already had its depreciation hit.

 

[glide]

I've always bought my cars used because I did not want to take the large depreciation hit. Assuming a Model 3 Performance is say $65K out the door, what are your guys best estimates on value of the car at say 50K/75K/100K miles vs say picking up a used S Performance who from a buy perspective will likely still be $15-$20K more, but has already had its depreciation hit.

In 3 years a Performance Model S depreciates by ~50%. So that should be your starting point.

Also keep in mind Tesla is continuously lowering prices of new vehicles. That is going to push the price of used ones down. Depreciation is not generally calculated based on mileage either. Certainly it is a factor but a 2019 Model S with 50K miles is going to be on a different curve than a 2015 Model S with 30K miles.

 

[Ostrichsak]

It's not uncommon for a brand new car, especially an expensive/high-end/luxury car to depreciate 50% in 3-4 years.

That said, stick with buying used that's at least a few years old and has taken the depreciation hit already. Your finances will thank you down the road.

There's lots of posts about this very topic so search the forum for more detailed information on the subject.

 

[ewoodrick]

The secret to not getting a depreciation hit, keep the car for more than 3 years.

 

[Ostrichsak]

The secret to not getting a depreciation hit, keep the car for more than 3 years.

Combining this with buying used is a good approach to a losing proposition.