Best Time To Buy Used Tesla, Buy Now Or Wait?
Written By: Ryan Hender
If you’ve been outside your front door, you’ve most likely seen a few Teslas. Electric Vehicles have been making a move into the mainstream for a number of years, and Tesla is making a name for itself as the leader of the pack. But why? Like Apple’s iPhone, when it first launched, it was not widely accepted as it was still new and had no reputation as a standalone product. But, with its second iteration, the Model 3, more people jumped on the bandwagon with their preorders to be one of the first to own the much cheaper Tesla sedan.
Tesla’s approach is to offer beautifully deigned, minimalist cars with increased range, and enhanced performance. All of this built from the ground up, and in direct competition to the meager offerings of the big players in the market.
In early 2019 Tesla announced the incoming smaller SUV that would be built on the Model 3 Chassis, but would appeal to even more people. In the United States, the SUV market encompasses roughly 48% of the whole market. Tesla, with a long game strategy, moved their next piece on the board. Throwing its hat into the ring with the Model Y. Garnering what we know to be about 100,000 preorders initially, we expect the Model Y will be a huge hit when it starts hitting driveways later this year. Tesla has been very quiet about preorder numbers of the 2020 Model Y but why? With the release of the Cybertruck Elon was quick to jump on his Twitter and announce more than 140,000 units preordered within just a few days. Now weeks away from the initial launch date, preorders are closer to 300,000 units. So why would Tesla keep the preorder numbers so close to their vest? Is the number so HUGE that they don’t want to lead any competitor to make an adjustment to their own delivery timelines of their Electric SUVs? Or are the numbers so minimal, that it would be embarrassing to brag about it?
The midsize SUV was initially set to be delivered to the first set of customers in late 2020, but with a recent announcement, Tesla was excited to announce that they are a full 6 months ahead of schedule. With the improved timeline, we are really hoping to get our hands on one in the first quarter of 2020.
With all of this in mind, we get to the point of this article. After all, we’re taking about used Teslas right? The question is should you buy NOW, or should you wait?
The interesting thing with Teslas launch and delivery windows, they are garnering so much attention, and so many people are holding off buying a car altogether in favor of buying the car they actually want. Rather than buying that BMW 325i they’re patiently waiting in line for the Model 3 to come in. This sort of thing has really never been seen in the car market, people so willing to wait.
We know that Tesla will be delivering the Model Y in Q1 2020, what does that mean for you? If only 100,000 people preordered the vehicle, how many of those are buying their first Tesla as compared to trading out of their existing Model X or model 3. Model 3 for a lot of people was an affordable way to own their first Tesla, but perhaps they want a larger vehicle. For those who bought the Model X, I imagine a decent number of folks will trade down into a smaller SUV because they don’t need the additional space.
Total storage space of the Model X is 88 cubic feet, but that’s inclusive of the Frunk and the rear cargo hold with the seats folded flat. The storage space in the incoming Model Y is only 22 cubic feet short of the Model X, and comes in at roughly half the price.
I believe with all we know about the current state of the car market as a whole, with 48% of the cars being purchased being SUVs or (crossovers) that a large percentage of people will be switching over to the Model Y.
The Model Y will come in at $48k at base spec with a 5 seat configuration, and the Model X is $84,900 at base spec with a 5 seat configuration.
What this means for someone who has perhaps been on the fence about buying a Tesla at all, you will now be able to find a cheaper Model X and a cheaper Model 3 because there will be more sitting on car lots and driveways waiting for new owners. Lots of additional supply and not as much demand since there is now another player in the club, more people will reduce their prices in order to move the car. The Cybertruck will affect this somewhat as well when it comes out in late 2021, but I don’t think it will be as massive of a disrupter as the Model Y.
Let us know in the comments what YOU think! Do you own a Tesla currently? Are you interested in a Tesla at all? Would a $5,000 savings make enough of a difference for you to make the move? Let us know!