The Tesla Model 3 May Retain Resale Value Better Than Any Other Vehicle
The Tesla Inc (NASDAQ: TSLA) Model 3 was first released in 2017, with production ramping up in 2018.
Tesla has been able to sell every Model 3 it produces in recent years, ending each quarter with more orders to fulfill. And due to the vehicle being new and popular, resale prices have been quite high.
A new study by CarEdge that looks at vehicle resale value, says the Model 3 is trending toward being the best resale value car among over 300 vehicles the firm tracks.
While the Model S has a pretty bad resale record, the Model 3 seems to be holding its value incredibly well, with a 2017 Model 3 retaining around 77% of its value, according to CarEdge.
CarEdge is quick to point out that it normally waits for a vehicle to be in production for five years before releasing these results, and that the report represents a preview with all currently available data.
If the trend holds, the Model 3 will be one of the least-depreciating vehicles on the market. This means it is holding its value as well as or better than some pickup trucks, which are notorious for retaining resale value.
Benzinga's Take: So far at least, it seems this is in part to a supply issue. Tesla is still ramping up production and building multiple factories in different parts of the world.
Since all Model 3 orders are filled, some people may look to used vehicles to meet the high demand, thus driving up used prices. Either way, Tesla CEO Elon Musk has said Tesla vehicles are or will be appreciating assets due to the full self-driving hardware built into the vehicles.
Photo courtesy of Tesla.
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