Here's The Resale Value Of A Used Tesla Model Y After 3 Years – TopSpeed

The Tesla Model Y has consistently been the highest-selling electric vehicle option in the U.S. for several reasons. You can accredit its popularity to

Tesla’s aggressive pricing strategy
, highly competitive claimed performance, and estimated energy consumption and range figures. It’s also a very practical option that accommodates up to three seating rows and plenty of trunk space thanks to its hatch and crossover body style combination. Thanks to its impressive and attractive proposition, the Tesla Model Y benefits from a fairly impressive value retention rate, making it an ideal choice for those wanting to keep it for a shorter term.

There are some complications regarding used models purchased in the last two to three years, as these were substantially more expensive than the current model year and didn’t benefit from the

Inflation Reduction Act tax breaks and credits
. If you exclude this, the Model Y is one of the best investments you can make in the new mid-size electric crossover segment, which is likely why it’s consistently dominating the global sales charts, even in regions where more established manufacturers have a longstanding reputation.

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How Much A Tesla Model Y Is Worth After Three Years

According to CarEdge‘s intuitive depreciation calculator, you’re likely to see your 2025 Tesla Model Y Launch Series retain 45.5 percent of its value after three years have lapsed. This is if you maintain a 12,000-mile distance per year and keep the car in outstanding condition. CarEdge highlights that only about five percent of cars retain this condition, so those figures are best-case scenarios. A

new Tesla Model Y Launch Series
derivative with no optional extras fitted costs $59,990 MSRP before taxes, fees, and incentives. This will likely be worth $35,082 by 2026, which may seem like a drastic value loss, but is in fact pretty resilient by EV crossover standards.

Tesla Model Y Depreciation Over Five Years

The pre-facelifted top-of-the-range Performance derivative used to cost $51,490 without taxes and incentives applied, reflecting a somewhat considerable price increase. This model’s depreciation calculator reflects a $28,062 value if you decide to sell it in three years’ time. You can apply this same calculation to the mid-tier Long-Range Dual-Motor option. Naturally, your car’s value will vary depending on what optional extras you have fitted,

how much mileage it has covered
, and how good the overall cosmetic and mechanical condition is. The Performance derivative suffers from a much more drastic depreciation rate, which is a common trend for a lot of performance-derived variations.

How Much A Tesla Model Y Depreciates Beyond Three Years

If you plan on keeping your

Tesla Model Y
for about a decade, the car will start to lose more value even faster than five years for several reasons. CarEdge’s calculator indicates that the Model Y will only retain 27.33 percent of its value, meaning the Launch Series trim will only be worth $16,395, provided you continue to maintain a 12,000-mile annual limit and a clean overall condition.

Tesla Model Y Long-Term Depreciation Insights

The Model Y’s long-term viability becomes less viable when looking at these rates, but it’s fairly competitive by electric vehicle standards. The biggest reason for this is because Tesla’s

bumper-to-bumper and battery warranty
will no longer be valid, which means you’ll be responsible for paying for any repairs, regardless of whether they are manufacturer-related or not.

The inevitable battery pack replacement job will likely be the most expensive repair you’ll have to deal with, but this technology may become much cheaper within the next decade. Tesla owners argue that you can get

a good 200,000 miles out of the battery pack
before you need to subject it to a replacement, but it can occur sooner. In this case, you’ll find yourself spending up to $15,000 to have a replacement professionally fitted. Other than this, you shouldn’t encounter any other noteworthy expenses, other than routine maintenance requirements.

Discussion

Do you like the Tesla Model Y Juniper?

Tesla recently refreshed the Tesla Model Y. The “Juniper” update, as it is called, is coming to the U.S. soon, though it was first revealed for China. It has some interesting updates, include light bars in the front and rear, and an upgraded interior. Do you think it was worth the wait? How do you feel about the new lighting?

Buying A Tesla Model Y New Vs. Used

The big question at the moment is whether you should be considering a new or used Tesla Model Y. We can’t offer advice on what route you should take in five years’ time, but as of today, it really does just make more sense to purchase a new model thanks to several factors, with the aggressive tax incentives and price cuts playing major roles in why a new model makes more sense as of today.

The Model Y benefits from a noteworthy $7,500 tax credit thanks to its segment position and pricing. Couple this with the fact that the 2024 model is substantially cheaper than the 2023 and 2022 model years, you’ll find yourself saving a good few thousand dollars by considering the new model. The removal of the standard range model does increase the range’s price, but market trends show that the extended battery pack is a more in-demand configuration.

If you don’t factor these incentives and savings in, you’ll notice that a two-year-old Model Y will only save you around $2,920, and that’s only if you can find a clean example that has covered less than 12,000 miles. Models older than 2022 benefit from the Used Clean Vehicle Tax incentive, which can earn you back up to $4,000, provided the car is worth less than $25,000. These are also only available if you fall under a specific tax bracket. Thankfully, Tesla’s warranty and software are transferable between owners. For reference, Consumer Reports currently values the 2020 Tesla Model Y at between $24,200 and $26,075.

The Tesla Model Y’s Launch Series Configuration

Tesla’s new

Launch Series derivative
for the Model Y is only available with one dual-motor configuration. The brand has yet to announce power outputs, but we know that it will cover 0-60 MPH in 4.1 seconds and hit a limit of 125 MPH top speed. Additionally, it will cover an EPA-estimated 327 miles on a single charge from the 79 kWh net lithium-ion battery pack on the standard 19-inch Crossflow wheels. The 20-inch Helix 2.0 wheels decrease the range to 303 miles.

Tesla Model Y Performance Specifications

Key features include a 15.4-inch central touchscreen infotainment system, front heated, ventilated, and electrically adjustable seats, an 8.0-inch touchscreen system for the rear bench, bespoke Launch Series badging and puddle door lamps, premium textile trimmings, and black vegan suede finishes. You get access to four color options, including Quicksilver, Ultra Red, Pearl White, and Stealth Gray. The 3,500-pound towing package and

Full Self-Driving
are included as standard, while black vegan leather is the only upholstery option. Tesla charges $420 for the home charger, $35 for console trays, $240 for all-weather interior liners, and $500 for a roof rack. Destination adds $1,390 to the price alongside a mandatory $250 order fee.

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Assessing A Used Tesla Model Y’s Viability

Buying a used car for daily use always has noteworthy risks attached to it. Usually, you benefit from much lower initial costs, but as we see with the 2024 Tesla Model Y, a new example is a more financially viable option.

Tesla’s electric cars are typically mechanically sound, but they do suffer from specific software glitches and gremlins, which the brand frequently resolves via over-the-air updates. They are also prone to some nasty cosmetic build quality issues, which are more troublesome to resolve. As with any used car, there’s a much higher risk involved when compared to purchasing a new model.

The Art Of Retaining A Car’s Value

• Keep up with regular maintenance and service to ensure the car runs smoothly and avoid costly repairs later.
• Store your car in a garage or covered area to protect it from weather damage and maintain its exterior condition.
• Use high-quality and OEM parts during repairs and maintenance to keep the car in optimal condition.
• Although challenging, you should try to limit mileage and avoid unnecessary driving to reduce wear and tear on the vehicle.
• Keep the interior clean and free of damage by using seat covers and floor mats.
• Maintain a detailed service history and keep all receipts to provide proof of care to potential buyers.

A used car’s integrity is based on how well the original owner took care of it. That’s why, if you plan on selling your Tesla Model Y after a few years, we strongly recommend filing all relevant servicing and repair invoices. You should also frequently rotate, balance, and align the wheels and replace the tires before they wear beyond the legal limit. You should also be replacing them with the manufacturer-specific brand, rather than slapping on a cheaper set. It’s also just a good habit to ensure that the interior and exterior cosmetics remain in good condition. You can do this by frequently keeping the car clean and keeping it covered from the elements during extreme weather conditions.