The Reality
Tesla Model 3 loses 27.6% ($14,630) in year one and 44.7% by year two. Model Y drops 20% ($11,974) first year, 41.5% by year two. This is steeper than average cars but typical for EVs due to rapid tech changes and frequent price adjustments.
Depreciation by Model
Model 3 ($53,047 new)
Model Y ($59,990 new)
Based on 12,000-13,500 miles per year. Higher mileage increases depreciation.
Real Owner Example
2022 Model Y Long Range
Owner maintained software updates, kept detailed service records, and avoided Supercharger-only charging. Battery health above 90% helped maintain value.
What Affects Your Tesla's Value
Battery Health
Most critical factor. 90%+ health commands premium prices. Each 5% degradation reduces value by 3-5%.
Software Updates
Current software boosts value up to 15%. Buyers want latest features, security patches, and performance improvements.
Mileage
Lower mileage = higher value. EVs depreciate faster with high mileage due to battery wear concerns.
Market Timing
Tesla's frequent price changes affect used values. New price drops can reduce your resale value overnight.
How to Maximize Your Tesla's Resale Value
Maintain Battery Health
Charge to 80% daily, avoid frequent Supercharging, and don't let battery sit at 0% or 100% for extended periods. This single factor has the biggest impact on resale value.
Keep Software Updated
Install updates within 1-2 weeks of release. Buyers pay premium for latest features and security patches. Can boost value by $1,500-$2,000.
Document Everything
Keep service records, charging history, and battery health reports. Detailed documentation builds buyer confidence and justifies higher asking prices.
Avoid Cosmetic Damage
Tesla repair costs are high. Small dents or scratches can reduce value by $500-$2,000. Consider paint protection film and ceramic coating for high-wear areas.
Time Your Sale Strategically
Sell before major Tesla price cuts or new model releases. Monitor Tesla's pricing trends and tax credit changes. Spring and summer typically see higher used EV demand.
Maintain Warranty Coverage
Teslas with remaining warranty (8-year battery, 4-year vehicle) command higher prices. Selling before warranty expires can add $1,000-$3,000 to value.
Choose Popular Options
White, black, and blue exteriors hold value best. Long Range models depreciate slower than Standard Range. Performance models have mixed results due to higher initial cost.
Mistakes That Hurt Resale Value
Excessive Supercharger Use
Frequent DC fast charging accelerates battery degradation. Buyers check charging history. Over 50% Supercharger use can reduce value by $1,000-$2,000.
Ignoring Software Updates
Outdated software signals neglect. Buyers worry about hidden issues. Being multiple versions behind can cost you $1,500-$2,500 in resale value.
No Service Records
Missing documentation raises red flags. Buyers assume worst-case scenarios. Lack of records can reduce offers by $1,000-$3,000 or prevent sale entirely.
Aftermarket Modifications
Non-Tesla parts void warranty and reduce buyer pool. Wheels, suspension, or performance mods can decrease value by $2,000-$5,000. Keep original parts if modifying.
Selling Right After Price Cuts
Tesla's price reductions immediately impact used values. Selling within 1-2 months of new price cuts can cost you $2,000-$5,000. Monitor pricing trends before listing.