Summary: Used Tesla Model 3 and Model X prices are starting to creep back up as their values appear to have bottomed out, according to Derren Martin, Director of Valuations at Cap HPI. Speaking on the latest Car Dealer Podcast, Martin revealed that a quick analysis of early Tesla values in June has shown a four percent increase. Over the past six months, prices of the Model 3 have dropped by 24.8 percent (£8,775), while the Model X has experienced a 30 percent decline (£20,086).

Despite the previous decline, both models are now following an upward trend, resembling the shape of a 'hockey stick.' Martin highlighted the Model 3's appeal, describing it as an "aspirational" choice and currently offering "excellent value" in the used car market, particularly when compared to other electric vehicles that haven't depreciated as significantly.

In January, Tesla reduced the prices of its new vehicles, resulting in a significant drop in their values. This, combined with factors such as waning consumer confidence, soaring household energy bills, and negative reports about EV public charging, led to the devaluation of electric cars. In May, the value of EVs fell by 4.1 percent, while petrol and diesel cars experienced a 1.1 percent decrease. However, the decline seems to be slowing down for Teslas, as Cap HPI increased prices in May, stabilising the models' values by the end of the period.

During the Podcast, Martin revealed that the strengthening of used Tesla prices has continued in June. He noted a four percent rise for 2020 models and newer iterations of the Model 3. The improvements in these models, including features like heated seats, a heated steering wheel, enhanced technology, and interior upgrades, contribute to their increased desirability. Older Model 3s are also becoming more attractive in terms of value.

Martin emphasised the preference of buyers for Teslas in the used car market, as their electric car rivals haven't experienced such rapid and substantial depreciation. He posed the question of whether consumers should opt for an older Model 3 or pay slightly more for a newer one, considering its aspirational appeal. Furthermore, he mentioned the rising prices of Model X, a limited supply of which has contributed to its market dynamics. Martin concluded by stressing the need to evaluate EVs individually, as the market exhibits varying trends and realignments.

In addition to the Tesla discussion, the Car Dealer Podcast covered the latest headlines from a special briefing with Jaguar Land Rover, offering insights into the implications for dealers and the brands. To stay up-to-date with used car values, viewers can watch Derren Martin's monthly updates on Car Dealer Magazine's YouTube channel, and they can listen to the Car Dealer Podcast on various podcast platforms.

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