Residual value: A ticking time bomb for the Tesla Model Y?

The Tesla Model Y, the best-selling car in Europe in 2023, will soon flood the used car market where its value will plummet.

There is a huge disparity between Tesla and Dacia. In the first case, prices fluctuate wildly and continuously, often dramatically. In the second, the policy is strict: no discounts for customers. Not out of stinginess, but with a very specific reason in mind: the medium-term residual value.

It is generally agreed that a car loses an average of 50% of its new value within 3 years. In the case of Dacia, this figure is limited to 37%, according to a study conducted by our colleagues at L’Argus.

What is the value of a used Tesla?

Tesla owners are attracted by a price considered competitive. Even more so with the reduction of 3000 to 5000 euros for the Model Y on January 17, 2014. But discontent is rising. Those who ordered their Tesla on January 16 were not informed and saw no price adjustment upon request. The price is the price. This represents a double penalty: 3000 euros more expensive at purchase, and 3000 euros less at resale. That’s a lot…

Because at the same time, the entire Tesla Model Y used market has collapsed by the same proportions. This is causing real chaos, but Tesla will get hit by its own boomerang. Customers’ distrust is increasing, as residual value is a well-analyzed aspect in France. Less so in the United States where the logic of leasing is the norm. Few Tesla customers purchase their cars there.

Nevertheless, all these Teslas on the market will raise questions—both for the manufacturer and the customer—about second life very quickly. Managing the shortage is not simple; abundance is even more complex. And the upcoming renewal of the Tesla Model Y, in mid-2024, will not ease this residual value issue. If you want to buy a used one, negotiate aggressively with all these arguments. Supply and demand favor the buyer!

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