A friend bought a new Tesla for $60,000 in 2023. It's now worth $35,000. That's a straight $25,000 Tesla depreciation hit in three years, or about $700 a month lost doing nothing.
The Numbers Don't Lie
This isn't an isolated case. New Model Y prices once sat at $66,000 for Long Range and $70,000 for Performance. Drop the price later and used values crater right behind them. Add financing costs on top and you're looking at real monthly losses before you even drive.
I've seen 2022 Model Ys now listed around $29,000 while new ones sit near $45,000. Hold for four years and the math gets ugly fast. The game is simple: every car loses money. The only question is how much per month.
Tesla Lease vs Buy vs Used
Leasing can cap the pain. A Model 3 at $329 a month sometimes beats straight depreciation if you plan to walk away. Financing new at 0.99% only works if you keep the car 8-10 years. Most people don't.
That's why I keep saying buy used Tesla instead when you're paying cash. One- to two-year-old inventory often delivers 80% of the new-car experience for thousands less. Check current listings and run your own numbers before pulling the trigger on anything new.
Counterarguments and When New Makes Sense
Some will argue that 0.99% financing plus referral free Full Self-Driving months make new cars attractive. They're not wrong on the rate. But that only pencils out if you hold long enough for depreciation to flatten. Hardware 3 cars also face questions about future unsupervised FSD capability compared with newer robotaxi designs.
My Take
Don't buy new Tesla unless you have a 10-year plan and can stomach the upfront hit. Most buyers come out ahead by shopping used or leasing strategically. Run the exact depreciation math on any car you're considering.
If you're selling to fund the next move, Plug Motors — get an instant offer to sell your Tesla or EV has been beating Tesla and Rivian offers by $3,000-$6,000 in recent examples.
For deeper dives on timing the market, see my thoughts on should you buy used Tesla now and used Tesla prices crashing should you wait.
The goal isn't to own the newest badge. It's to minimize the monthly loss while still driving something you enjoy.
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