How Will the Tesla Price Drop Affect the Used Electric Car Market?

Tesla recently sent shockwaves through the electric car-buying market after announcing price reductions of around 15% for two of its most popular models, the Model 3 and Model Y. This article will discuss the impact this price drop might have on the used electric vehicle market for anyone thinking of buying a Tesla in the near future. 

Which Tesla's Had a Price Drop?

The Tesla price reduction includes the Model 3, which has dropped in price from £51,090 to £42,990, a whopping 16% drop. While the Model Y, the most expensive in Tesla's range, has seen a similar reduction. What was £67,990 is now £57,990, a 15% price cut. It's great news for new-car buyers, who will save thousands of pounds when heading to the dealership to buy a new Tesla. 

What Does the Tesla Price Reduction Mean for the Second-Hand Car Market?

This price drop is likely to have a knock-on effect. Previously, you could find newish Tesla Model 3s for £43k. But with new models selling for this much, second-hand vehicles are likely to see a reduction as they adjust to being more reflective of the new and used car market. 

So if you're looking to buy a second-hand Tesla, there's no time like the present. Whether buying outright or with finance, the brand is recognised for its superior range, Tesla cars are about to become more affordable than ever. Expect to see demand increase as a result. 

How Much Will A Second-Hand Tesla Cost?

When looking at second-hand car prices, it isn't easy to give an estimate. Essentially, it depends on the car's age, how many previous owners it has and the mileage, amongst other things. Currently, you can pick a 2021 Model 3 with fewer than 50,000 miles for around £32k. These prices may even drop further in the days, weeks and months ahead. 

Why Has Tesla Cut Its Prices?

Many analysts and experts believe an EV price war is coming, and this is Tesla's way of reacting. Tesla is the leader of the modern electric car market, which it effectively created. As competition between electric vehicle makers increases, customers will have more choices over high-end EV options. 

There is another reason, though. Slowing demand has also pushed Tesla into action, as car sales have stalled for the electric giant. Some have put it down to increased inflation, causing worldwide issues. In contrast, others believe it might have something to do with CEO Elon Musk's increasing Twitter presence after buying the social media platform for $44bn. 

Is Everyone Happy With the New Price Range?

Not everyone is shouting from the rooftops about the new price changes. Those who recently bought a Tesla paid full value, only to see the prices slashed. It's even worse for those with pre-order agreements, as they have yet to receive their vehicle but are committed to paying the higher prices. Buyers who recently bought a Tesla from the second-hand market may also find that prices are about to drop even further. For many existing owners, the price cuts will be a kick in the teeth. 

Anything Else I Should Know?

The cuts will come into effect immediately, meaning you can start benefiting from the reduced Tesla prices, either new or used. And if you need to finance your second-hand Tesla purchase, Carmoola can help. See how much you can borrow in minutes and get a virtual card to pay for your new car if accepted. 

New Year, New Tesla Prices

The recent price changes might tempt you if you're sitting on the fence about buying a Tesla. The used-car market, in particular, should appeal, as prices are likely to drop even further after new models saw 15% of their value wiped off. In other words, what are you waiting for? And don't forget to check out Carmoola to see if we can help you can finance your next Tesla. We have all the information you need on the best electric car finance deals in the UK!  👍🚘