![]() Software engineer Greg Profitt bought a new Model Y last year for $49,000 and sold it three months later for $12,000 more. used car market thrived as global vehicle manufacturing hit snags, but it now is facing a “used vehicle recession,” one analyst said, after used car seller CarMax last week reported an 86% drop in third-quarter profit.īut Tesla is leading the retreat: the factors that pushed up prices of its vehicles were exaggerated compared with other brands because Teslas were "basically for a long time really the only viable product when it came to used EVs," said Ivan Drury, director of Insights at .ĮVs such as the Ford F-150 Lightning and the Hyundai Ioniq 5 are coming to market with a lot of buzz, said Liz Najman, content marketing manager at EV researcher Recurrent. Tesla, which has disbanded its media relations department, did not respond to Reuters' emailed questions. On Thursday Musk said that the "radical interest rate changes" have increased the prices of all cars, new and used, and that Tesla potentially could lower pricing to sustain volume growth, which would result in lower profit. "That would reduce demand for new Teslas." "You can't sell your current Tesla for more money than you paid for it, which was true for a lot of the past two years," said Karl Brauer, executive analyst at car sales website. Tesla shares fell 7.3% to a more than two-year low of $114.12 in early trading on Tuesday. ![]() That compares with about 5% of other brands on the used market, research firm Edmunds said. Nearly a third of used Teslas for sale in August were 2022 models up for resale, a sign that original buyers were aiming to flip, analysts said. new-car price cut to $7,500 for Model Ys and Model 3s delivered this year, adding to investor jitters about softening demand. Now fuel prices are easing, interest rates are rising, Tesla output is increasing, and EV competition is growing, leading used Tesla prices to fall faster than the market, and creating a cascading effect on prices of new Teslas. And buyers of some new Teslas took advantage of the booming market to sell their relatively new cars for a profit, then order new ones, driving demand for Tesla's new cars. Tesla Inc (TSLA.O) itself raised prices faster than prices for other cars, building its profit margins. Rising gasoline prices, an effect of the Ukraine war, boosted demand for Teslas, one of few long-range electric vehicles in the market. The used Teslas were in dealer inventory for 50 days on average in November, compared with 38 days for all used cars. The overall used car market posted a 4% drop during that period, according to Edmunds data. The average price for a used Tesla in November was $55,754, down 17% from a July peak of $67,297. Prices of used Teslas are falling faster than those of other carmakers and the clean-energy status symbols are languishing in dealer lots longer, industry data provided to Reuters showed. Customized vehicles (e.g.SAN FRANCISCO, Dec 27 (Reuters) - Tesla buyers who waited months for their new car have had an unusual choice for much of the past two years: keep the new electric vehicle, or sell it at a profit to someone with less patience.īut the days of the Tesla flip are numbered - a potential threat to new car prices that are already getting cut.RVs, motor homes, commercial trucks, tractors or trailers.Please note that, unfortunately, we are not able to provide TMV prices for the following: dealer title/documentation (“doc”) feesįor more details, please see How to Use TMV and What Fees Should You Pay?.manufacturer-to-consumer rebates (i.e.However, TMV prices DO NOT include most incentives and fees that are typically applied after a transaction price has been determined: manufacturer-to-dealer incentives (i.e.Therefore, TMV prices DO take into account any incentives and fees that may affect the transaction price, including: Our TMV pricing system estimates a vehicle’s average transaction price, not its “out the door” cost. Edmunds True Market Value (TMV) pricing system helps you determine the average transaction price, or “what others are paying,” for new or used vehicles in your area so that you can begin your negotiations with a fair price in mind.
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