Used Teslas Flooding Market, Making EVs More Affordable!
Good news for electric vehicle (EV) fans! Tesla’s price cuts and Hertz selling thousands of used Teslas are making EVs more accessible than ever. Here’s the scoop:
- Used Tesla prices dropping: You can now find a used Model 3 at Hertz for as low as $20,000! (Though, it might have seen some miles.) Even nicer, used Model Ys start around $33,000.
- More options than just Tesla: Hertz also has other EVs like Chevy Bolt EUVs for around $22,500. These Bolts tend to have lower mileage than the Teslas.
- Tesla’s own used cars: They have used Teslas too, often with similar prices to Hertz. For example, a used 2021 Model Y with 44,000 miles costs around $32,000 on both websites.
- New Teslas still pricey: The brand new 2024 Model 3 Highland starts at almost $39,000, but older Model 3s are dropping to around $35,000.
Why is this happening?
Hertz bought a lot of Teslas for rentals, but maintaining them proved expensive, especially for rideshare use. Plus, some customers found these rental EVs with low battery charge, making them inconvenient. So, Hertz is selling them off.
Bottom line: This is a great time to snag an affordable EV, whether used or new. With more choices and lower prices, the electric future is looking brighter!
Remember, you might still qualify for a $7,500 federal tax credit for buying or leasing a new EV!
Wnat To Know More? Read Our Detail Analysis Below –
In a groundbreaking development for the electric vehicle (EV) market, Tesla’s recent price cuts and Hertz’s decision to sell around 20,000 EVs are making electric cars more accessible for the average consumer. This shift in dynamics is driven by increased affordability and a surge in availability of used Tesla models, including the newly released 2024 Model 3 Highland.
Hertz Offers Affordable EV Options
Hertz Car Sales now boasts a significant inventory of Model 3 and Model Y vehicles, with Model 3s starting at a remarkable $20,000, albeit with higher mileage. Model Y prices on Hertz start at approximately $33,000. Other electric vehicles, such as the Chevy Bolt EUV, are also available on the Hertz website, beginning at around $22,500.
The move by Hertz comes on the heels of their announcement on January 11, revealing plans to sell approximately 20,000 EVs. Despite challenges related to EV rentals, Hertz aims to enhance profitability through initiatives such as expanding EV charging infrastructure and providing more affordable access to parts and labor.
Challenges in EV Rental Maintenance and Charging
Issues related to the maintenance costs of EVs played a role in Hertz’s decision. Joseph Yoon, an analyst from Edmunds, noted that unexpected high costs were associated with rideshare fleets, accounting for half of Hertz’s Tesla vehicles. Additionally, concerns about low state-of-charge and charging infrastructure were raised by Tyson Jominy, VP of Data & Analytics at J.D. Power.
Tesla’s Response and Market Implications
As Tesla concurrently reduces prices and offers its own used cars, the market sees a significant influx of used Model Ys and Model 3s. The Tesla website lists a used 2021 Model Y at $31,900, whereas a similar 2022 Model Y with higher mileage is listed at $34,900 on Hertz.
New inventory pricing for the 2024 Model 3 Highland starts at just under $39,000, pushing down the prices of previous models to around $35,000. Model 3 Performance inventory models even qualify for the $7,500 federal tax credit, adding an extra incentive for potential buyers.
Leasing options for new Model 3 inventory start at an estimated $294 per month, while the Model Y leasing begins at an “estimated” $307 per month, both including a $7,500 EV lease incentive.
This shift in the EV market landscape not only makes electric vehicles more accessible but also prompts a reevaluation of pricing strategies and maintenance considerations for rental fleets. As the EV market continues to evolve, consumers can expect more competitive pricing and a wider range of options, contributing to the ongoing electrification of the automotive industry.