Should You Buy a Used Tesla or a Brand New Tesla? Let’s Break It Down

Hey everyone, DennisCW here! I’ve been scrolling through your comments lately, and I’ve noticed a ton of questions about whether you should buy a used Tesla or splurge on a brand-new one. More specifically, many of you are curious about which option offers the best deal right now. Well, buckle up because I’ve got some fascinating data and insights to share that might help you make an informed decision.

Tesla Prices Are Dropping Like Crazy

Let’s start with some hard numbers. I came across a graphic chart from Brad Munchin that tracks the average price of new and used Teslas from January 2019 to today. Spoiler alert: the prices are falling off a cliff! Back in 2019, the average price of a new Tesla was around $55,000. During the peak inflation period, it shot up to $68,000. But now? We’re seeing used Tesla prices dip to an astonishing low of $28,997 on the CarGurus index. That’s a massive drop!

Breaking it down by model (year-over-year price drops):

Cybertruck: 50% drop
Model 3: 10% drop
Model S: 5% drop
Model X: 7% drop
Model Y: 13% drop

Compare that to the overall CarGurus index for all vehicles, which is only down by about 1-5%, while Tesla’s average is down a whopping 7%. The trend is clear: Tesla vehicle values are depreciating faster than the average car. So, does this mean used Teslas are the way to go? Well, it depends.

Used vs. New: Financing and Deals

The decision between buying a used Tesla or a new one largely depends on how you’re planning to pay for it. If you’re financing, a new Tesla might actually be the better deal in some cases. Why? Interest rates on used car loans can be brutal—sometimes as high as 8.19%. You’d need to crunch the numbers to see if the savings on a used Tesla’s sticker price outweigh the extra interest you’ll pay over time.

On the flip side, the used market is offering some jaw-dropping deals. I stumbled upon a 2021 Model S refresh listed for under $30,000—way cheaper than a brand-new Model 3. Sure, it’s got 107,000 miles on it, which is on the higher side, but it comes with full self-driving (already paid for) and a battery and drive unit warranty valid until November 4, 2029, or 150,000 miles. Plus, it’s a clean title with one owner. Not bad for the price, right? (Though, full disclosure, the steering wheel is aftermarket, and the condition isn’t perfect.)

Key Considerations for Buying Used

If you’re eyeing a used Tesla—especially a high-mileage one or something super cheap—there are a few things to keep in mind:

Warranty: I strongly recommend getting some sort of warranty. High-mileage vehicles can come with unexpected repair costs, and Tesla repairs aren’t cheap. That’s where options like Amber come in. Amber offers month-to-month warranty plans for Teslas (think of it like Apple Care, but for your car). They’ve got three packages—Basic, Essentials, and Premium—with Basic starting at just $65 a month. Unlike other companies that charge $4,000-$6,000 upfront, Amber’s flexibility is a game-changer. Check them out in the description below for a no-obligation quote. Bonus: They’re currently offering a free complimentary inspection for any Tesla!
Tax Credits: There’s a $4,000 used EV tax credit for vehicles under $25,000, which could apply to some of these budget-friendly Teslas. However, you’ll need to meet certain income qualifications to claim it.
Age and Savings: If the used Tesla is only a year old and you’re saving just 10%, it might not be worth it compared to buying new. But if you’re looking at a vehicle that’s 2-3 years old with a 30-50% discount, and you’re paying cash or financing a small amount, used could be the smarter choice.

Insane Used Tesla Deals

I couldn’t help but highlight a couple of crazy deals I found. There’s a 2020 Tesla Model 3 and a Model S, both listed for just $10,000 each. Yes, you read that right—$10,000! Of course, at that price, you’re likely dealing with high mileage or other quirks, which is why a warranty (like Amber’s) is non-negotiable. But still, these prices are wild to see.

Final Thoughts: It Depends on You

So, should you buy a used Tesla or a new one? There’s no one-size-fits-all answer. If you’re financing and interest rates are high, a new Tesla might save you money in the long run. If you’re paying cash and can snag a heavily discounted used model (especially with remaining warranty or tax credit eligibility), used could be a steal. Just be sure to factor in potential repair costs and protect yourself with a solid warranty.

I’d love to hear your thoughts! Are you team used Tesla or team brand new? Have you come across any insane deals like the ones I mentioned? Drop a comment below and let’s chat. Also, a huge thanks to Amber for partnering with me on this video. Don’t forget to check out their month-to-month Tesla warranty plans and free inspection offer using the link in the description.

Until next time, keep cruising!

-DennisCW

Should You Buy a Used Tesla or a New One? Price Trends and Deals