A ‘shocking’ used-car market leads to used Teslas being more expensive than new ones, which is extraordinary when you consider that automobiles are normally among the fastest depreciating assets you can buy.
In Italy, Ali Heniche, 26, aka the Tesla Pimp, who flips cars for a living said that the demand in the used car market is so high he frequently witnesses bidding wars.
Lightly used Telsa Model 3s can sell for $4,500 over the sticker price he told the WSJ.
“I’ve never seen anything like this before,” said the Tesla Pimp who has been active in the used car market for about eight years.
Due to parts shortages and other supply constraints, people are often unable to buy the new car they want. This results in significantly higher prices for used vehicles.
In a recent interview, Jim Farley, the CEO of Ford Motor Co. said about the used-car market that “It is shocking.”
The high prices for lightly used cars do not only apply to used Teslas. Other popular vehicles such as the Toyota RAV4 and the Kia Telluride also sell for more than their sticker price, according to Edmunds.com.
Used Tesla Model 3 sells for more than $7,000 over sticker
The shocking used-car market has resulted in some strange scenarios. Take, for instance, Michael McKee who paid $48,200 for his new Model 3, only to be offered more than $50,000 from a dealer seven months later.
One dealer offered McKee $55,600 for his electric vehicle which at that point had around 21,500 miles on it. He took the offer.
Other people who are trying to buy used Teslas report that even though they were willing to overpay for the car, the second-hand electric vehicles simply move too fast to actually get them.
“A couple of times I found one, I clicked ‘buy now’ and then it was gone,” said Juan Miranda, a 39-year-old mechanical test engineer in San Diego, who spent weeks searching for another Model Y. “I’d call them and they’d be like ‘oh yeah that one got snatched up’ and I was like ‘dammit.’ ”
“This is ridiculous. Can someone just sell me a used Model Y?” he said before settling for a used Tesla Model 3.
Car-shopping website, Edmunds does not foresee the used car market cooling off before much later this year when the supply restrictions are expected to ease.
The reduced wear and tear due to fewer internal moving parts that Teslas experience in combination with the ability to update older vehicles over the air means that Teslas tend to maintain their value better than traditional ICE vehicles.
What is your experience buying or selling a used Tesla? Let us know in the comments below.