Photo: Tesla Inc.
Tesla vehicles are known for their very favorable depreciation rates, but that's to be expected from cars that are as exclusive as the Model S and particularly the Model X.
The relatively low volumes and the fact there was always a larger demand than what the company could build meant that used vehicles were extremely desirable. Add the fact that new ones had prohibitive prices for a lot of potential buyers, and you have most of the pieces that explain why Teslas weren't such a bad investment as new cars are usually considered to be.
The Model 3, however, fails at a few of those points. First of all, it has a starting price of $35,000 before incentives, which makes it more affordable than the rest of the cars in its segment. Second - even though this might take a while - it will become the first mass-market Tesla product by having almost half-a-million of them built every year. With these in mind, why should it hold its price so well?
According to Autolist, it will. The website looked at the depreciation curve of the Model S compared to its predecessors, and then imagined what it would look like for the Model 3. If the new electric sedan copies its bigger brother, then Autolist projects it will have a best-in-class depreciation of just 29% after 50,000 miles.
Further down the line, they believe the Model 3 will sell for half its original price when it reaches 100,000 miles. However, this is just a forecast, and depending on what happens in the market, it can change just as quickly.
Besides, the jury is still out on deciding which are the Model 3 competitors. Autolist has chosen the Audi A4, the BMW 3 Series, and the Mercedes-Benz C-Class, but none of these premium models have an all-electric battery-powered model in their range. Then again, it would be cruel to condemn the poor EV to a life of solitude.
The Model 3, however, fails at a few of those points. First of all, it has a starting price of $35,000 before incentives, which makes it more affordable than the rest of the cars in its segment. Second - even though this might take a while - it will become the first mass-market Tesla product by having almost half-a-million of them built every year. With these in mind, why should it hold its price so well?
According to Autolist, it will. The website looked at the depreciation curve of the Model S compared to its predecessors, and then imagined what it would look like for the Model 3. If the new electric sedan copies its bigger brother, then Autolist projects it will have a best-in-class depreciation of just 29% after 50,000 miles.
Further down the line, they believe the Model 3 will sell for half its original price when it reaches 100,000 miles. However, this is just a forecast, and depending on what happens in the market, it can change just as quickly.
Besides, the jury is still out on deciding which are the Model 3 competitors. Autolist has chosen the Audi A4, the BMW 3 Series, and the Mercedes-Benz C-Class, but none of these premium models have an all-electric battery-powered model in their range. Then again, it would be cruel to condemn the poor EV to a life of solitude.
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