I'm intersted in opinions on which model would retain its value best:
Ignoring Performance for this discussion (BMW M3 should not be compared to BMW 3 series)
I am guessing LR or AWD.
I suspect LR since it has the greatest range, however in snow country it might be LR AWD
Value = price you can sell it for in the future
With a username like yours you should just be able to tell us the answer. No guessing needed!
I'm betting on the LR AWD in northern climates. Great performance numbers, range, and awd makes it a reasonable daily driver where a regular LR is going to be a real pain in poor weather.
Cheapest variants will retain their value best.
Options depreciate the fastest.
I think SR+ will be the winner in both real dollars and percentage depreciation.
Red will always have the best value.
Magic 8 Ball should have said.... " Reply hazy, try again."
Who knows which one will hold value best. Will depend on how many people are selling at the time.
The reality is I wouldn't expect there to be a large percentage difference between all the models.
You never know. The world is changing so fast. Don't worry about it and enjoy driving it.
When I was at the dealer they tried selling a light silver model to me claiming it would retain it's value better due to being a "limited edition". So that started my thinking what are the factors that would affect resale value? Maybe after battery degradation the LR would be more comparable to future EVs as range improve. Maybe in a few years we will look at the current SR and MR like you would look today at the 1st gen Nissan Leafs.
I'm not sweating it, I drive my cars until they are worthless. Just thought it would be an interesting discussion.
Cars are not investments. They all lose value. Unless you are buying a rare Ferrari or like, you're kidding yourself if you think you will somehow get a good return for your money. Like stated above; Buy the car, drive it, enjoy it & don't worry about ROI.
I dont think any of the models will hold their value better than the other, since that number is typically a percentage of the purchase price and would scale with the trim level.
But i think the longer range vehicles will be more desireable by used car purchasers, so if you're looking to get a higher trade-in value, the long range would probably have a higher demand. That being said, you may be able to sell it yourself instead of taking the trade-in value. But that is typically dictated by the KBB valuation, and theres really nothing you can do about your used car value.
Maybe rephrase the question to which version might have the best resale value. There is no good way to guess since the technology is changing pretty quickly. I think it's better to just get the version that suits you the best for now.
@markr7, I agree, and a lot of it gets down to the condition of the car inside and out as well as miles at the time you want to sell it.
On the other hand I had a pristine 69 Roadrunner when I was 16 that I payed $800 for. Today they are selling for $75,000 to $100,000 depending on trim/engine and condition.
I don't put my model 3 in the investment category. And then again when I had my Roadrunner I didn't put it in the investment category either.
What about resale values today for Model S and X as an example of what might be possible in the future for a Model 3?
Seems to me that as they increase the supply, resale value will go down. Probably average depreciation.
I would make the argument used SRs will hold their value just as much as LR. Buyers on budget who want the chance to own a Tesla will be looking for used SRs.
There are plenty of strivers in the $10k - $20k used car market segment.
Used S listings:https://www.tesla.com/inventory/used/ms
Lowest priced S:
S 85 with 60k miles. $35K.
Optioned with air suspension, tech package, and silver color.
Base 85 was $80k. This example is almost $90k with options. Approx 5 years old and it has depreciated about 60%.
I'd think the lowest price variant will retain more value on a percentage basis. It's typical in the industry.
It's also typical that most EVs have experienced tremendous depreciation. While Tesla has bucked the trend thus far, I have to believe that as battery improvements continue to be made, it will render our models obsolete and devalue them.
"A car is not an investment" is very tired. Yes, it is not a good investment, but it is still an asset with a value. If one is the type of person that changes cars every 3 years (yes I realize this is not sound financially) there can still be consideration made to whether car A or car B will be worth more in 3 years time, and thus, more easily facilitate getting into the next new thing.
Good question. I think the cheapest versions might retain a higher proportion of their value for longer due to a floor effect where there will probably exist a certain level of demand that is bid up to that floor price. And of course the higher the price of the vehicle, the fewer people there will be who are willing to pay it, and thus smaller demand, etc.
So having said that, which options will be most likely to add the greatest value on top of that after time has gone by...
Greater range is likely to be degraded due to battery degradation, I believe, so a used LR model might be closer to the equivalent of a new SR model. I haven't looked into how older Tesla models' range has fared over time though. If there is a good deal of reduced range, though, it could compete with the initial hypothesized effect I mentioned above and could mean the SR models won't have much of a market.
AWD improves handling in less than ideal road conditions and isn't likely to degrade, so I suspect that upgrade will hold onto more of its value fairly well. They made a lot of them though: 6458 of the 10,849 VINs I was able to find for sale between 2018 & 2019 were AWD non-performance models.
Performance is probably always going to be sought after by a subset of the market. Only 654 of the 10,849 VINs were Performance models.
Software upgrades that are grandfathered into new, more expensive updates might be particularly well suited to maintain the value of your buying price, but future updates seem more likely to be cheaper than current pricing based on what we've seen from Elon's intentions, so...unsure on this one.
Colors: the black exterior is the most generic but also seems the least sensitive to personal taste differences. But there are bound to be a ton of them and little to differentiate between them except the interior. And after spending too long researching this online, it seems Tesla overall sells colors that tend to depreciate at a similar rate. Having said that, it wasn't clear whether ~1% differences in the articles I saw were statistically significant, but if they were, then red seems to have a bit of an edge here with resale.
For the interior, I think the white interior is likely to help differentiate when reselling IF the white really does hold up to the abuse of time. Assuming it holds up, rarity should keep this upgrade lending an extra touch of exclusivity as only 2172 of the 10,849 VINs had white interiors.
Buy the version you can best afford now, and enjoy the tremendous value it gives you everyday until you sell it.
bumping this up to combat the Chinese spam
Tesla isn't just competing with current and future EVs. It's also competing with hybrid and ICE vehicles and people are still driving then despite having older tech.