Tesla Motors Inc (TSLA) Used Cars Commanding Premium Over New Ones

Tesla Motors Inc (TSLA) Used Cars Commanding Premium Over New Ones
<a href="https://pixabay.com/users/Blomst/">Blomst</a> / Pixabay

Tesla Motors Inc (NASDAQ:TSLA) Model S is getting so popular that the average price of a used Model S is $30,000 more than the vehicle’s MSRP, claims a report from iSeeCars.com, which helps buyers locate attractive deals on used cars. CEO Phong Ly of iSeeCars.com said that though the vehicle was launched two years ago, “it seems to be in great demand.”

Rivals commanding a lower price

The report claims that buyers of a second hand Tesla Motors Inc (NASDAQ:TSLA) Model S are paying more than $99,000 on average even though a brand new car can be acquired for just $63,570, after a $7,500 federal tax credit. For rival Nissan Leaf or Chevy Volt, the average sale price of the used car is lower than the car’s MSRP.

The premium garnered by Model S in the used car category might be due to the fact that the Model S costs buyers more than the $63,000 mark, speculates Phong Ly. The Model S version with the best battery packs comes with a price tag of $85,900, while a fully loaded Model S costs around $110,000. Another reason cited by Ly for the inflated price of used Model S is the limited number of the Tesla’s electric car on the road. Even, Tesla Motors Inc (NASDAQ:TSLA) CEO Elon Musk admitted “we really are production constrained, not demand constrained.”

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Also, the report claims that the average mileage on used Teslas sold is just 3,700 miles.

Tesla now fifth best auto brand

The premium commanded by Tesla Motors Inc (NASDAQ:TSLA) is certainly not without reasons; the company is now the fifth best-perceived brand among the American car owners. Last year, it was ranked 11th. Established and traditional automakers dominated the list with Toyota regaining the top slot. Ford came at second place followed by Honda and General Motors’ Chevrolet.

Tesla earned 41 points over the last year gaining on performance, styling and technology. Toyota managed to improve its score by five points while Ford witnessed a four point increase. Chevrolet saw an increase of 13 points while Honda’s perception score fell 16 points.

The survey covered 1,700 randomly selected car owners, who were asked to name the leading brand on various aspects namely design and style, performance, quality, safety, technology and innovation, value and, finally, fuel economy.

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