Tesla Depreciation Explained in Simple Terms

Tesla depreciation is a common concern for many potential buyers. The good news is that it's not as steep as you might think.

Tesla models, especially the Model S and Model X, hold their value well compared to other luxury cars. In fact, a study found that these models retained up to 70% of their value after three years.

However, the Model 3, being the best-selling Tesla, depreciates faster due to its lower price point and higher production volume. This means that the Model 3's value drops by around 20-30% in the first three years.

In general, Tesla's depreciation rate is influenced by factors like production volume, market demand, and the age of the vehicle.

Car depreciation is a fact of life for car owners, and it's essential to understand how it works. According to the AA, a new car will lose around 60% of its value after three years at a mileage of 10,000 miles a year.

The rate of depreciation can vary, but typically, a car depreciates between 15% and 35% in the first year. This means that a £30,000 car could lose up to £10,500 in value in the first year alone.

The value of a car is also affected by its condition, with interior and exterior cosmetic condition, service history, and battery condition/age all playing a significant role. Electric cars, in particular, have a unique set of factors that contribute to their depreciation, including EV type, battery condition, and government incentives.

Here are some examples of how different electric cars hold their value:

As you can see, some electric cars hold their value much better than others. Premium brands like Mercedes-Benz, BMW, and Tesla tend to retain their value well, thanks to increasing demand and ultra-low emission zones.

The good news is that electric cars are becoming increasingly popular, and their value is likely to remain steady in the coming years. In fact, according to Drive Electric, electric cars are expected to retain around 48% of their original value after three years, which is marginally ahead of combustion engine counterparts.

Tesla depreciation is a topic of interest for many, and the good news is that Tesla cars tend to hold their value well. According to the AA, a new car will lose around 60% of its value after three years, but Tesla models like the Model X and Model 3 are bucking this trend, losing only 43% and a little over 40% of their value respectively after three years.

The Tesla Model X is one of the priciest entries in the brand's catalogue, and after three years, it's thought to lose only 43% of its value. This is due in part to the brand's strong reputation and the increasing demand for electric vehicles.

Here are some Tesla models and their estimated depreciation after three years:

The strong residual values of Tesla cars are great news for anyone looking to buy or lease a Tesla. It's worth noting that these values are estimates and may vary depending on individual circumstances.

The Tesla Model 3 is a great option for those looking for a more affordable electric vehicle with strong resale value. It's one of the most affordable entries in Tesla's catalogue, which helps explain why it can withstand EV depreciation.

After three years, the Model 3 is thought to lose only a little over 40% of its value, making it a smart investment for those in the market for a used electric car.

The brand of your electric car can have a significant impact on its depreciation. This is because in-demand brands tend to retain their value better than others.

Electric cars from premium brands like Tesla and Mercedes can buck the trend when it comes to depreciation, with some models retaining up to 77% of their value after three years. This is due to their high customer appeal and overall offering.

The Porsche Taycan is a prime example, expected to hold on to a massive 77% of its value. This is a significant advantage for those looking to minimize the impact of depreciation.

Tesla's Model 3 is another entry from a premium brand that withstands EV depreciation well, retaining a little over 40% of its value after three years. This is due in part to its affordability and high demand.

In contrast, some brands like Vauxhall are doing well at staving off EV depreciation because they offer affordable, family-friendly options that meet the needs of many UK car buyers.

The increasing number of ultra-low emission zones and rising congestion charges and fuel prices are also contributing to the retention of value in premium electric cars.

Electric cars depreciate just like any other vehicle, but they tend to hold their value better than petrol or diesel cars. Typically, a new car loses around 15% to 35% of its value in the first year.

The AA states that a new car will lose around 60% of its value after three years, based on a mileage of 10,000 miles per annum. This means that a £30,000 car will be worth around £12,000 after three years, a loss of £18,000.

Electric vehicles (EVs) are no exception to this rule, but they have been performing well in recent times due to increasing demand and the introduction of ultra-low emission zones. In fact, some premium brands like Mercedes-Benz and Tesla are retaining up to 65% of their value after three years.

The depreciation of electric vehicles stacks up well compared to petrol cars, which usually depreciate the fastest. Diesel vehicles have also seen higher depreciation in recent years, in part due to the controversy surrounding the diesel emissions scandal.

Here's a rough breakdown of the depreciation of electric vehicles compared to petrol and diesel cars:

It's worth noting that the market for used electric vehicles has exploded in recent years, and they are now retaining their value much better than they used to. This is due to increasing demand and the fact that electric cars are becoming more desirable.

In 2020, more electric cars sold from January to September than in the whole of the previous year, and it was also reported that EVs are becoming the most affordable type of car. Brands like Jaguar, Mercedes-Benz, Fiat, and Volvo all plan to have done away with non-electric cars by 2035.

The Tesla Model X is one of the priciest entries in the brand's catalogue and after three years is thought to lose only 43% of its value. Given current trends, there's good reason to think this car will give even stronger returns depending on each would-be buyer.

Car resale and value is a crucial aspect to consider when buying a new car, especially an electric one. Cars will lose value over time due to age and use, as well as general demand.

Some people are more concerned about the resale value of their car than others, and it's pretty unlikely you'll ever make back what you paid for a new vehicle. However, some cars will make better returns than others.

Electric cars are subject to the same factors of car depreciation as petrol or diesel cars, but with some added extras due to their design. High mileage, age, interior and exterior cosmetic condition, service history, battery condition/age, and EV type are all contributing factors to electric car depreciation.

According to the AA, a new car will lose around 60% of its value after its first three years at a mileage of 10,000 miles a year. This can be a significant loss, with a £30,000 car losing £18,000 in value after three years.

Electric cars, however, have been performing notably well in recent times, with over 20,000 electric car charging points around the UK and general performance improving with better driving ranges per charge and quicker overall charging times.

Some electric car brands that are particularly sought-after will enjoy better value in the long run, including Jaguar, Mercedes-Benz, Fiat, and Volvo. These brands plan to have done away with non-electric cars by 2035.

Typically, how much a car depreciates per year is between 15% and 35% in the first year, with the average new car losing around 60% of its value after three years. The residual value is 40%, meaning the car's value after depreciation.

Here are some of the best electric cars for retaining value, according to cap hpi:

Electric cars can be a neat solution to the difficulties of depreciation, with some models retaining around 48% of their original value after three years, which puts them marginally ahead of combustion engine counterparts.