Have TESLA just stuffed the used EV market?

Have TESLA just stuffed the used EV market?

June 2, 2024

Have Tesla just gone and completely stuffed the used EV market here in Australia?


Hi, I’m Rosco from AmazingEV, and we were just about to throw the switch and launch our brand new, dedicated used EV marketplace, AmazingEV.com.au, where used EV sellers can list their vehicles, and used EV buyers can explore the exciting new world of EVs, in a safe and friendly place.


And then just last week, Tesla goes and does this. They dropped $4,000 off both the Model 3 and the Y, already well below release prices, in a move straight out of Economics 101. To boost demand and try and kill the competition here in Australia.


So how do recent Tesla buyers feel? And what about those that are trying to sell their used EV? Has Tesla, in one foul swoop, just completely stuffed the used EV market here in Australia?


Well, we don’t think so. So, let’s take a closer look.

Big Tesla discounting

Who would have thought when I bought my almost new Model Y a year and a half ago for $74,000 that now it’d be about $20,000 less than brand new?


Not me for sure! And those who bought a Tesla recently for a much higher price, they’ve got even a reason to feel a bit shafted.


And what about those who are selling a used Tesla or thinking of trading from an old three to a new three, only to see 10 grand knocked off the used Tesla price.


For the demand Tesla expected to create with these price reductions, how much damage have they done to existing owners? And indeed, the confidence of future buyers.


But don’t get me wrong, we love our Tesla. And after 45,000 K’s, it hasn’t put a foot wrong. It’s so cheap to run and does everything we wanted to do, plus so much more. But we don’t worship Tesla, we’re not wed to the brand! So, when things like this happen, we’ve got plenty of mixed feelings too.


And how are you supposed to launch and run a used EV marketplace when new car volatility is this high? But maybe, just maybe there are some winners here too.


Surely lower EV prices across the board are a good thing for the EV market overall, often criticised for being beyond the reach of the normal motorists.


And we get it, Tesla has been doing their EV heavy lifting across the world and here in Australia, broadly carrying the whole EV market on its back for the last five years. Responsible for most of its growth and without Tesla, we wouldn’t have an EV market here or around the world, that’s for sure.


In Australia new Tesla sales account for more EVs than every other brand put together. So, it stands to reason there’ll be more used Teslas than anything else for a long time. What they do with new prices is a big deal.


Up until now, they’ve been price makers and perhaps been charging a premium.

They are an excellent product, but now with extra competition, they’ve had to become price takers and compete a little bit more heavily.


But what that means, a Tesla Model 3 and Tesla Model Y is about the same price as a Toyota Rev4 Hybrid in the mid-fifties mark. So that’s a good thing promoting EV ownership and those lower new prices are also gonna carry on and flow through to the used EV market as well.  And you’re going to be able to bag yourself a great used Tesla with all the tech and excellent condition for a great price. 


New Used EV Paradigm

This also might start to see a new paradigm in the new and used car markets. We all know early adopters pay a premium whether it’s any new tech, whether it’s TVs or mobile phones. Six months or a year after you’ve bought it, it’s 50% off in the sales or a new model’s coming out. Perhaps that’s what’s happening or about to happen with the EV market as well.


In the past, we’ve had every reason to expect that used cars would adhere to some sort of depreciation formula and EVs would be no different. And the finance and fleet markets have relied on this fact to run their businesses, but maybe things are changing. And perhaps in launching a new used EV market, we have to acknowledge that things are going to be a little bit different, and we have to adapt to this new world.


Cars are going to be “vehicles” just as much for tech, as people. Updates are going to come every month rather than every three years. So, we now have to take this into account with our new used EV market and provide as much information for customers about what they’re buying, how long it’s gonna last and what they can expect in future.


With so much volatility, big new car discounts and high volatility in the used car market, we understand that selling a used car is not easy and we feel your pain.

So, we built AmazingEV as a dedicated used EV marketplace to help you sell your EV.

If you don't need to sell right now, don't

But perhaps now is not the right time.  We’re just as interested, even from our inception, and helping the broader EV community and the whole market develop. Remember that the new EV market is still new.  It’s still in its infancy and it’s like any infant, it’s got some growing pains.


And the used EV market is only just embryonic at this stage.  Only 15,000 used EVs sold last year out of almost 2 million used EV vehicles sold across Australia.  And because of the price volatility, dealers are reluctant to take on used EV stock.  So, a lot of that trade is going on in the private market so far.  And obviously a large share of that is Tesla’s.


Certainly, in the short term, we think this market will stabilise, as it has in the UK and the US.  And certainly, over time, it will flourish.


So, if you don’t need to sell, please don’t.

Considered car share?

Secondly, perhaps as an alternative to selling right now, if you don’t have to, consider some of the car sharing platforms like Turo.com.


There’s a platform where you can list your car for everyday rental and any other person who’s interested in renting your car on a short-term basis can rent it directly from you.


You don’t have to sell your EV right now, but you can still make some money out of it.

EV Buyers are the winners

And for buyers, you get the benefit of this new EV price war. Not just in competition against ICE vehicles, but against the different brands of new EVs that are cropping up on the market now.


So, the choice is fast becoming not petrol or EV, it’s becoming whether you buy a new EV or a used EV. And not only are there great new EV deals, the lower prices are going to flow onto some incredible pricing in the used EV market as well. But if you really have to sell, be patient. It does take a little bit longer and pricing will settle down.


But in the meantime, enjoy the fact you’re an early adopter and enjoy the technology, have fun with your EV and make the most of it. Wear the early adopter badge with pride, with the knowledge that you were there from the beginning of the EV revolution.

AmazingEV is here to help

So AmazingEV kicks off into a used EV pricing shit storm. But we’re going to be there to help. And this is only a very small blip in a market that’s going to grow from very small beginnings now, to dominate the used car market in Australia.

So, for EV sellers and a Tesla model Y Owner who bought at the top of the market, we do feel your pain.

Our aim is always going to be to provide a safe haven, an EV friendly place for both buyers and sellers of EVs. A place to get help, tips and tricks to help you with your EV journey and EV ownership.

If you need any help buying, or selling a new or used EV we are here to help.

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