Despite a recent decline in new Tesla sales, the Model Y and its siblings remain some of the fastest-selling electric vehicles (EVs) in the used car market, according to iSeeCars data from April 2024. This trend highlights the ongoing demand for these models, which continue to attract buyers with their combination of affordability and advanced features.
In April, the average price of a used Tesla Model Y was approximately $35,000. However, recent listings on Edmunds show numerous Model Y Long Range vehicles priced around $25,000. In contrast, a new Model Y costs between $45,000 and $52,000 as of July 2024. This significant depreciation makes using Model Ys appealing, especially considering that most available models are from 2020, 2021, and 2022, ensuring they remain relevant for several more years.
The used EV market is currently hot due to high depreciation rates, making purchasing a well-equipped used EV easy and affordable. Used Teslas, in particular, are in high demand, often selling within a month. The Model Y was the world’s best-selling car across all categories in 2023, becoming the first electric vehicle to surpass a combustion engine. Despite being on sale for four years with minimal updates, it remains popular due to its reliability and performance.
Most listed Model Ys have an “excellent” battery rating, indicating low degradation. Tesla’s 2023 Impact Report supports this, stating that long-range versions of the Model Y and Model 3 retain 85% of their battery capacity after 200,000 miles. The listed models generally have far fewer miles, enhancing their appeal.
Additionally, the Model Y qualifies for the federal tax credit for new and used EVs, offering buyers up to $4,000 at the point of sale. Depending on income eligibility and personal tax situations, this credit can significantly reduce the effective price.
While many $25,000 listings are in California, there are also options in New York, New Jersey, Pennsylvania, Maryland, Nebraska, Wisconsin, and Texas. Tesla’s robust and rapidly expanding Supercharger network further boosts the Model Y’s appeal. During its Q2 earnings call, Tesla announced that it is on track to deploy more new Supercharging stations in the U.S. this year than the rest of the industry combined.
For those able to overlook the CEO’s controversies and culture wars, owning a technologically advanced 300-mile EV for the price of a Toyota Corolla presents an enticing opportunity.
