While Tesla cars were quite expensive when they were first introduced, they’ve come down a long way in price over the years. Today, Tesla cars like the Model 3 and Model S are popular and relatively affordable all-electric vehicle options.
Do Tesla cars hold their value?
While depreciation rates for electric cars can vary greatly, the Tesla Model 3 is estimated to depreciate 41% in value over the course of five years. Meanwhile, pricing for the 2020 Model 3 starts at $37,990 for a base model.
Another popular Tesla car model that we’ll cover in this article is the Model S.
Considering an electric car for your next vehicle purchase? Learn more about the Tesla Model 3 and Model S, including useful information on how well these cars retain their value and what you can expect to get for your hard-earned money.
Do Tesla Cars Hold Their Value?
There’s a common belief that electric cars, by their very nature, depreciate more quickly than gasoline-powered cars. However, it seems that Tesla’s cars are bucking the trend and retaining their value quite well.
A CleanTechnica article hypothesized that Teslas are retaining their value better than other electric vehicles because Teslas utilize over-the-air software updates that allow them to maximize performance and stay relevant.
Meanwhile, the range on Tesla’s electric batteries seem to remain more consistent over time, which can help offset depreciation and keep resale values higher.
Tesla Model 3
Now, let’s look at some specific depreciation numbers for the Tesla Model 3 versus some of its competitors. After five years, a Model 3 that sold new for $46,355 will be worth $27,438; that’s a depreciation of 41% over five years.
Tesla Model S
Meanwhile, the Tesla Model S seems to depreciate more quickly in value, with the average Model S losing around 51% of its value after five years. Assuming a new purchase price of $95,799, this means the resale value falls to $46,999.
Let’s compare that to the competition.
Chevrolet Bolt EV
- MSRP: $41,212
- 5-Year Retail: $17,569
- 5-Year Depreciation: 58%
Nissan Leaf
- MSRP: $33,236
- 5-Year Retail: $12,650
- 5-Year Depreciation: 62%
On the whole, both the Tesla Model 3 and Model S seem to depreciate more slowly than the competition. However, the Model 3 retains its value better than the Model S.
Customer Perception
As of November of 2020, the 2020 Tesla Model 3 has an impressive 4.85/5 stars on its Owner Reviews page, with many owners boasting about the car’s great acceleration, generous standard features, and fun driving experience.
Likewise, the 2020 Tesla Model S has excellent Owner Reviews on VehicleHistory.com, with an average 5-star rating. Owners love this car’s smooth and quiet ride, spacious interior, and advanced technology.
What is the Price of a Tesla Car?
Tesla Model 3
How much can you expect to shell out for a new Tesla Model 3? The starting MSRP on this car is $37,990, though opting for one of the premium interiors like the Long Range ($42,690) or Performance ($50,690) will yield a higher starting price.
While only one official trim configuration is available on the Model 3, some additional add-ons can impact pricing as well. For example, upgrading from the car’s standard 18-inch wheels to 19-inch sport wheels adds another $1,500.
Likewise, opting for the black and white interior instead of the standard black interior will tack on yet another $1,000 to your purchase price.
Perhaps the biggest available upgrade for the Model 3, however, is the option to add auto-steer with full self-driving capabilities for an extra $10,000.
Tesla Model S
What about the indulgent Tesla Model s? WIth a higher starting price of $69,420, this is certainly the more expensive of the two Tesla cars currently available. And with other add-ons, you can expect to spend in excess of $134,490.
Pricing will vary most drastically based on the engine configuration chosen. The base engine starts at just $69,420 with dual-motor all-wheel drive, while the Performance model starts at $91,990.
Upgrading to tri-motor all-wheel drive, on the other hand, results in a much higher starting price of $139,990.
Other add-ons for the Model S include 21-inch wheels ($4,500), a black and white or cream interior upgrade ($,1500), and available full-self driving ($10,000).
Buying a Used Car? Let Us Help!
With so much to consider when shopping for an all-electric vehicle like a Tesla car, it’s always best to have all the information you need at your fingertips before you buy.
With data partnerships with Kelley Blue Book, NHTSA, J.D. Power, and other trusted industry experts, Vehicle History is your one-stop source for everything you need to know about your next car purchase!
