Photo: Tesla
Buying a brand-new Tesla right now is a very attractive proposition. The automaker reverted its pricing policy to levels seen in 2020 and 2021. So, becoming an EV owner might be a great idea if this type of propulsion system suits your lifestyle. But if you’re among those that pulled the trigger on one before the heavy discounts were applied, there’s something you can do to mitigate further depreciation.
Before the fourth quarter of 2022 ended, the automaker tried to push for more deliveries by offering a $3,750 discount. Near Christmas, it got turned into $7,500 and, to make things even more appealing, it added 10,000 miles of free Supercharging, which translates into 400 kWh per 1,000 miles. Canadians and Europeans received the same offer, but Tesla forgot (or did not want) to adjust the measurements. They ended up with 10,000 kilometers of free fast charging. That’s around 6,214 miles, so they got 3,786 less than U.S. customers.
But the discounts did not end in December 2022. Almost a week ago, Tesla decided to dramatically change the prices of its all-electric vehicles. Most notably, the 2023 Model S plaid got $21,000 cheaper, while the Model Y Long Range and Performance each received a $13,000 price cut.
Now, since these price cuts affected Tesla’s entire lineup, the immediate effect was seen in the used car market. Prices dropped by $10,000 for many pre-owned vehicles, and platforms like CarMax did not wait long before embarking on the same journey. Massive discounts started to appear for used Model Ys, for example. A couple of low-mileage Teslas listed on the platform almost mirrored what the manufacturer did in terms of pricing policy and showed more attractive dollar figures.
However, some may have missed the news and we ended up with weird situations like the ones on Carvana we told you about a couple of days ago.
To add even more salt on the wound for those who bought a Tesla in December or November of last year, the EV maker is also getting ready to release a slightly redesigned Model 3, the Autopilot HW4 sensor suite (with a front-facing camera!), and heating for the new 5-megapixel sensors, which will gradually be installed on all its vehicles.
But let’s say you financed a Tesla in the last quarter of 2022 or earlier and you put down less than or around 20%. The best thing you can do now is to upgrade your insurance with Guaranteed Asset Protection (GAP) coverage. Since your slightly used car is now worth around 25% to 30% less, having GAP added to your insurance might just be a great idea.
That’s because this nifty product covers the difference between the amount you owe on the EV and its current worth. Let’s presume you needed $50,000 to finance your Tesla. In the unfortunate situation where the car is totaled or stolen, you may receive only $30,000 from the insurer because that’s your car’s current market price. However, you would be left with no vehicle and still hypothetically owe the financing institution the $20,000 difference. This is just an example. Actual numbers vary for each customer.
GAP coverage does exactly what the acronym suggests – it covers the gap between the financed cost and the current market price. But don’t rush into it. Read all the documents sent to you by the insurer and ask the questions that must be asked. Make sure to get the best offer by doing proper research before signing up.
But the discounts did not end in December 2022. Almost a week ago, Tesla decided to dramatically change the prices of its all-electric vehicles. Most notably, the 2023 Model S plaid got $21,000 cheaper, while the Model Y Long Range and Performance each received a $13,000 price cut.
Now, since these price cuts affected Tesla’s entire lineup, the immediate effect was seen in the used car market. Prices dropped by $10,000 for many pre-owned vehicles, and platforms like CarMax did not wait long before embarking on the same journey. Massive discounts started to appear for used Model Ys, for example. A couple of low-mileage Teslas listed on the platform almost mirrored what the manufacturer did in terms of pricing policy and showed more attractive dollar figures.
However, some may have missed the news and we ended up with weird situations like the ones on Carvana we told you about a couple of days ago.
To add even more salt on the wound for those who bought a Tesla in December or November of last year, the EV maker is also getting ready to release a slightly redesigned Model 3, the Autopilot HW4 sensor suite (with a front-facing camera!), and heating for the new 5-megapixel sensors, which will gradually be installed on all its vehicles.
But let’s say you financed a Tesla in the last quarter of 2022 or earlier and you put down less than or around 20%. The best thing you can do now is to upgrade your insurance with Guaranteed Asset Protection (GAP) coverage. Since your slightly used car is now worth around 25% to 30% less, having GAP added to your insurance might just be a great idea.
That’s because this nifty product covers the difference between the amount you owe on the EV and its current worth. Let’s presume you needed $50,000 to finance your Tesla. In the unfortunate situation where the car is totaled or stolen, you may receive only $30,000 from the insurer because that’s your car’s current market price. However, you would be left with no vehicle and still hypothetically owe the financing institution the $20,000 difference. This is just an example. Actual numbers vary for each customer.
GAP coverage does exactly what the acronym suggests – it covers the gap between the financed cost and the current market price. But don’t rush into it. Read all the documents sent to you by the insurer and ask the questions that must be asked. Make sure to get the best offer by doing proper research before signing up.
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