Here's How Much A 1-Year-Old Tesla Model 3 Is Worth Today
Electric vehicle (EVs) resale values have recently come to light for not exactly the nicest of reasons. For one, EV resale values aren’t as good as internal combustion engine (ICE) vehicles and most especially hybrids, and at the same time, some of the vehicles with the steepest one-year depreciation also happen to be EVs. This isn’t helped by the fact that Tesla has been implementing massive price cuts in recent years, and this is one of the major contributors to EV resale values plummeting. It is good for those looking for a used EV, but bad for those who went the brand new route.
However, while EV resale values aren’t as good as ICE cars and hybrids, it also must be noted that some EVs depreciate less than others. Case in point, Tesla’s EVs, which also happen to be EVs with the best resale values. For instance, according to iSeeCars, the Tesla Model 3 lost 42.9 percent of its value in five years, which is the best among EVs.
However, you also have to remember that the bulk of depreciation happens early on during that five-year ownership period. With that said, you might be thinking of opting for a one-year-old Model 3 (classified as slightly used by iSeeCars). Is it a good idea, or should you go towards a brand-new Model 3?
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In order to give you the most up-to-date and accurate information possible, the data used to compile this article was sourced from various manufacturer websites and other authoritative sources, including iSeeCars, FINN, Electrek, and Tesla.
This Is How Much A One-Year-Old Model 3 Costs
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The Model 3 is the entry point for most people into the world of Tesla ownership, but as crossovers and SUVs have dominated the sales charts, the Model Y has now become the best-selling Tesla globally. According to iSeeCars, a one-year-old Model 3 has an average used price of $35,964, while, for reference, a brand-new one starts at $38,990 for a base Rear-Wheel Drive (RWD) with a range of 272 miles.
How It Compares To A New Model 3
However, that $35,964 is the average price and not the price of all one-year-old Model 3s. For the base RWD models, numerous listing in iSeeCars for one-year-old Model 3 RWD models have resale values of between $25,000 to $30,000, depending on their mileage and condition. For the Performance model, its used price is a little under $40,000 based on the iSeeCars listing. If you’re in the market for a base Model 3 RWD, going the slightly used route makes financial sense. In terms of performance and range, the 2023 and the facelifted 2024 model are literally the same in terms of their 272-mile EPA-estimated range and their 5.8-second 0-60 mph times.
However, when it comes to the Model 3 Performance, you may want to consider a brand-new one. The new, facelifted 2024 model has more significant changes, such as a new, fourth-generation electric drivetrain that’s more energy efficient and powerful, a faster 0-60 mph time of just 2.9 seconds, and new adaptive suspension, among other chassis improvements. The new Model 3 Performance is also eligible for the $7,500 tax credit, bringing its price to $46,490 from $53,990, further reducing the price gap between a used and a new Model 3 Performance.
How It Compared To Similar Slightly Used Electric Sedans
With this in mind, you might want to consider other slightly-used EVs, too. As mentioned, not all EVs are created equal, and some EVs depreciate more than others after a year of use. Here are some of the other one-year-old EVs from iSeeCars with comparable prices to a Tesla Model 3. Take note, however, that these are literally just their average prices after a year of ownership. The table does not state how much these models have depreciated within a year of ownership, nor are they ranked in terms of which models suffer the most depreciation.
(Data sourced from iSeeCars)
Front three quarters shot of a black 2024 Tesla Model 3
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You May Consider Leasing A New Model 3
While Teslas have the best resale values among EVs, there are circumstances where opting for a lease may be an option worth considering. Here are the pros and cons of leasing a Tesla Model 3, according to FINN.
You Have Less Financial Risk
Remember the part about EV resale values being the worst compared to ICE cars and hybrids? Well, part of that reason is because of Tesla’s recent price cuts. The Model 3 has a starting price of $48,440 in 2022, but now in 2024, it starts at just $38,990. Those who would’ve opted for a used Model 3 will now go for a brand-new one instead. Taking a lease, which in Tesla’s case, is either 24 or 36 months, will protect you from these price cuts if ever Elon Musk decides once again to implement such measures.
Also, Tesla doesn’t require you to purchase the vehicle after the lease period, which means if you’re just curious to find out if owning an EV works for you, then a lease could financially work for you as well. Finally, Tesla’s leasing terms are compertitive and the same for everyone, because you don’t have to deal with a middleman–basically a third-party dealership since Tesla sells its cars directly to customers.
Pros of leasing:
- Immune to potential price cuts
- Competitive and consistent lease terms
- A good choice for those who are experimenting with EV ownership
But Here’s Why Leasing May Not Be For You
If you plan to use your Tesla for ridesharing programs, well, you’re out of luck. You can’t use a leased Tesla for ridesharing programs, and you may not want to do so anyway, since you are restricted to driving it past 15,000 miles annually at most (other brands offer longer annual mileage limit options). Transferring a lease may be challenging, too. While Tesla approves transfers if you have more than 13 payments left, the transfer fees can be high. Terminating the lease early also isn’t a good idea, because this will affect you financially, as well as your credit score.
While the Model 3 Performance is the only variant to be eligible for the $7,500 tax credit, that savings may not be passed on when going down the lease route for this particular variant. Finally, as mentioned, Tesla doesn’t let you purchase the vehicle after the lease term, so if you’re one of those people who want to purchase the EV at the end of the lease, then you might want to go the brand-new or slightly used route instead.
Cons of leasing:
- Can’t use Model 3 for ridesharing
- Difficult and expensive to transfer a lease
- No option to purchase the vehicle at end of the lease
Gray Tesla Model 3
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What You Get In A One-Year-Old Model 3
So, you’ve decided to splurge on a one-year-old Model 3. That’s great, but what exactly do you get out of your money and is it better than going the brand-new route?
Plenty Of Value, If You Go For The Non-Performance Models
As mentioned a while ago, if going the slightly used route, the non-Performance Model 3s, specifically the base RWD, offers plenty of value. The EPA-estimated range for this variant is 272 miles, which is the same for the facelifted Model 3. This means you aren’t losing much, even if one-year battery degradation (which also isn’t much) is taken into account. The base Model 3 RWD also comes with a 5.8-second 0-60 mph acceleration time, which is also unchanged, so in terms of range and performance, you aren’t losing much when opting for this variant.
The Model 3 also got a revised face and interior, which aren’t exactly life-changing improvements. Though styling is subjective, you’ll miss out on the cleaner aesthetics, the LED interior ambient lighting and the 10-inch screen for the rear passengers. These are nice-to-haves, but not necessarily worth the price difference between a slightly-used and a brand-new Model 3 RWD. Besides, Tesla’s user interface is already one of the best–though having physical controls will always be better than burying everything in the touchscreen.
But You Won’t Benefit From The Improved Road Manners
However, while the pre-facelift Model 3 wasn’t horrible to drive by any means, you will miss out on the improved road manners of the 2024 update. Specifically, these enhancements are the added sound insulation and the thicker acoustic glass on all four doors, which Tesla says further reduces the wind and road noise inside the Model 3.
Finally, the new 2024 Model 3 also benefits from updated front suspension geometry, improved control arms, frequency-dependent damper valves, and a few structural improvements through stiffer subframe bushings. While the Model 3 had a fun-to-drive demeanor, its ride and refinement wasn’t the best in its segment. Not necessarily bad in terms of ride and noise, mind you, but the 2024 update has made the Model 3 an even more plush electric compact sedan for this model year.
(Data sourced from Tesla)
*Note: Tesla does not anymore reveal power figures for its models except for the Performance variant.