The Hottest EV on the Market is About to Get a Makeover
Tesla is gearing up to launch an updated version of its wildly popular Model Y, and it’s set to shake up the electric vehicle (EV) market in Australia. As we break our annual EV sales record, with over 100,000 electric cars sold so far in 2024, the excitement around the Model Y refresh is palpable.
But Will the Refresh Hurt Current Model Y Owners?
However, the hype around the Juniper update has caused sales for the Elon Musk brand to slow, according to CarExpert.com.au founder Paul Maric. This could lead to price drops on older models, a financial blow for those trying to sell in the second-hand market. Ouch!
The EV Market is Booming, But Tesla’s Sales are Slowing
Despite being the best-selling EV in Australia, Tesla hasn’t recorded year-on-year growth since March. What’s going on? Maric believes people are holding out for the new features coming with the update, which could add pressure on Tesla to clear old stock.
The Depreciation Problem in the EV Market
Depreciation has been a major concern in the EV market, with rapid advancements in technology and battery range leading to regular upgrades. When a brand-new version of the Model Y hits the market, the old version is likely to depreciate more than usual, creating a serious problem for those on novated leases.
Novated Leases: Be Warned!
Maric warns that if Tesla drops prices even further, owners might face a nasty surprise at the end of their five-year lease. The residual value of the car, set at the start of the lease, might be higher than its actual worth, leaving owners with a hefty balloon payment.
The World’s Best-Selling Car is About to Get a Makeover
The Model Y was the world’s best-selling car in 2023, the first time an electric vehicle took out the title. With the refresh on the horizon, it’s essential to understand the implications for Aussie EV buyers and sellers.
How Quickly Do EVs Depreciate?
According to BITRE data, Australians hold onto their vehicles for an average of 11 years and three months. To avoid losing too much money to depreciation, Maric suggests upgrading an EV every two years. But how quickly do EVs lose their value?
The Depreciation Reality Check
Electric cars retained a respectable 82.8% of their original value on resale if moved on within two years, according to the Australian Automotive Dealers Association (AADA) and AutoGrab. However, vehicles aged between two and four years showed a staggering drop, retaining just 57.6% of their value.
What’s Next for Aussie EV Buyers and Sellers?
As the Model Y refresh approaches, it’s crucial for buyers and sellers to be aware of the potential impact on the market. With the EV market booming, it’s essential to stay informed and make smart decisions about when to buy, sell, or upgrade.