Published on February 12th, 2014 | by Christopher DeMorro
The Tesla Model S Costs More Used Than New
It actually costs more to buy a used Tesla Model S than a brand new one, thanks to its enormous popularity…and impatient rich people. After more than a year on the market, Tesla still can’t build enough Model S sedans to meet immediate demand. That’s a very good problem to have, as long as you’re not in the market for a used Model S.
According to a study by iSeeCars of 45 million for sale or sold cars in the U.S., the Tesla Model S was determined to have an averaged used sale price of more than $99,700. That’s about $10,000 more than the top-tier 85 KwH P85+ model sells for new, and doesn’t even factor in the $7,500 Federal tax credit or local incentives. Meanwhile, cars like the Nissan Leaf and Chevy Volt have seen their values plummet on the used car market.
That said, if you go to the Tesla Model S design studio page and click off every high-priced option, you can spend just shy of $128,000 on a brand new Tesla. It’s also important to remember that the number of Teslas actually for sale right now is exceedingly low. Autotrader.com lists just 37 Tesla Model S sedans for sale nationwide right now, with the cheapest one being a 60 kWh variant with over 12,000 miles on it.
The asking price? Over $77,000.
As a refresher, a brand new 60 kWh Model S goes for $69,900, before you factor in the $7,500 tax credit. Some people just don’t have the patience to wait a few months for their own Model S, but they do have enough money where paying a premium for a slightly-used product ain’t no big thang. I’m sure Tesla’s guaranteed buy back program is also helping prices stay inflated, but it’s still very basic supply-and-demand economics at work here.
Tesla is working to expand production rapidly, but it’s clear that pent-up demand for the Model S is going to keep used car prices artificially high. A similar scenario played out in Norway when the Model S launched there, though it’s more understandable given the generous incentives handed out to EV drivers.
But here in America? It’s just another case of “the rich get richer”, while the rest of us look on with envious eyes. So much for the hope of buying a used Tesla Model S someday, eh?