The second-hand market at Tesla is a shadow market, very little discussed, but of a colossal scale. The second hand, which goes through concessions, garages, or classified ads on the Internet, has grown both in volume and in value: the years go by and rare are the times when the average price drops. The sharp rise of 2022 has reached its climax and prices are falling.
The second-hand prices at Tesla have fallen by 17% in the United States to reach their lowest point in 2022. In any case, this is what Reuters reports, citing figures from the Edmunds platform. The average price for a used Tesla has risen by more from $67,000 in July to $55,000 in December. The total wait time at a dealership for a used Tesla has increased from 38 to 50 days.
The evolution of the prices obtained by Edmunts shows that the bubble started in March 2022 started to shrink in August. Meanwhile, average prices for a Tesla rose from $58,000 to $67,000. It’s hard to know if the fall will overflow into 2023, but until then, let’s take the time to look into the reasons for such a turnaround.
© Reuters / Edmunds
Demand is falling, but why?
There are several reasons for this fall. First, the price of new models. Tesla only increased them in 2022, which created a lot of frustration among potential customers who therefore preferred to turn to the occasion. At high demand rising prices. And of course, second-hand prices also follow new ones.
Then, the delivery times faced with the various shortages ended up creating a parallel second-hand market where the resellers only resold the models at a higher price while giving customers the possibility of not getting rid of the wait. In fact, last August Edmunts data showed that a third of all used Teslas sold were models delivered in 2022.
© Reuters / Edmunds
This year has also led to an increase in overall demand for electric models and dealers have had a blast. Today this growth is slowing down. Some also dropped the second-hand solution to regain interest with the new home market, as a new federal tax credit arrives next month in the United States, to encourage citizens to buy electric (made in America).
At the same time, electricity prices and as the end of the year approaches, consumers have partly turned their backs on electric mobility, waiting for American financial aid to relieve their wallets. Global inflation, rising bank interest rates… all of these trends also factor into the equation.
