IT HAPPENS! Why Some USED Tesla Model 3 Cars Are More EXPENSIVE Than Brand New Ones

 Have you folks ever come across any of your  friends saying, "the used Model 3, I looked    for, seems to be more expensive than a brand  new one"?    Well, he ain't lying!    In today's episode, we will be looking into  why these Model 3 cars are much more expensive    than brand new ones.    So why wait?    Let's jump straight into it!    Nowadays, owners of used electric cars and  those who have pre-ordered new EVs are finding    possibilities to make tiny gains as demand  for EVs surges despite a supply shortage that    is causing wait periods for new vehicles to  extend to months, if not years.    With the price of gasoline expected to skyrocket  due to projected gas and oil shortages caused    by Russia's invasion of Ukraine and consequent  sanctions, analysts are seeing greater interest    in EV stocks.    The problem is being worsened by supply chain  challenges and a global semiconductor shortage,    which is causing a rise in demand for electric  vehicles to be met with longer wait periods    as carmakers battle to keep up.    Now you might be getting an idea of today's  episode.    Hey, guys, welcome once again to Tesla Vibes,  where we bring you the fresh and best updates    on Tesla and Elon Musk.    Don't forget to subscribe and hit the notification  bell for the latest updates.    So, let's hop on!    Most of you guys might know that the Tesla  Model 3 is currently the best-selling used    automobile in the United States, and it is  so popular that it occasionally sells for    more than new.    The main cause for this is the previously  stated chip scarcity.    The present chip scarcity impacting the automotive  sector has spread to the used vehicle market.    Due to restricted manufacturing, it might  be difficult to obtain a new car; thus, many    people have turned to the used car market,  where stocks are as low.    Furthermore, due to scarcity, electric vehicles  have always performed well in the used car    market, but they have faced an uphill struggle.    Many studies say that the Tesla Model 3 depreciates  relatively slowly; polls reveal only a 5.5    percent depreciation after a year.    In previous videos, we stated that the Model  3 is so excellent that no one wants to sell    it.    This year, the claim is made that the Model  3 is still a greatly selling car, but that    a lot of people have sold or traded in their  cars, and in some circumstances, they are    a great value.    You could use this same technique to acquire  a Tesla today, but you could also use it to    start with a $6,000 lower-end electric car  like a Nissan Leaf, $12,000 Chevy Bolt, or    another EV.    But that's not the goal of today's video;  instead, we're focusing on Model 3.    The purpose of this video is to demonstrate  the power of time value of money and how saving    a little money now and having a good but not  excellent automobile may save you a lot of    money and make a big impact in your life.    Buying a used vehicle instead of a new one  means the buyer will be able to retire with    a significant bank balance 40 years later.    This technique will be much more effective  if you save a few hundred dollars every month    on gasoline, maintenance, and depreciation.    A $6,000 EV has an extremely low total cost  of ownership.    The issue is that a $6,000 EV will have a  very short range, perhaps by 60 miles, and    would make an excellent second vehicle, with  a range so low that it might not even fulfill    your demands as a second car, but a horrible  first car for many people.    That's one of the major reasons why people  don't buy cheaper electric vehicles with this    technique and opt mainly for the Model 3.    On the other side, if you are an optimist  who intends to start with a smaller electric    car as your first automobile.    If you can wait, instead of buying a used  Tesla, start with a $6,000 Leaf and gradually    work your way up to a Tesla in a few years.    Of course, the risk you are taking is that  if Tesla achieves genuine Full Self Driving    before you do, you may never be able to purchase  a Tesla vehicle because they would be highly    sought after in order to generate cash for  their owners.    Elon claims that they will have FSD operational  and authorized by at least one government    this year.    That's doubtful with the FSD anyways; let's  hope that it comes out.    If you want us to be more specific on the  reasons for buying a used Model 3, let's go    through it.    First and foremost, it is less expensive.    Second, Tesla is providing an additional year  and 10,000 miles of coverage on top of the    basic 4 years or 50,000-mile guarantee that  comes with the Model 3.    For a Model 3 that is a few years old and  has 30,000 miles on it, for example, you will    have three years, which includes two years  of the original warranty and one year extra,    as well as 30,000 miles of bumper to bumper  warranty, which includes 20,000 miles of the    original warranty package and 10,000 miles  extra.    Not only that, but you could buy a 6 year  and 70,000-mile warranty on Standard Range    Plus or a 90,000-mile guarantee on Long-Range  or Performance of powertrain warranty that    includes the pricey battery and the not-so-cheap  motors.    And if the car you're about to look at has  a few scratches, you don't have to be as gentle    with it, pamper it, and avoid using an automated  car wash.    Tesla is currently equipping all old Model  3 vehicles with the $10,000 Full Self Driving    Capability.    They may or may not go on with such a policy  in the future.    This is significant if you were planning on  purchasing the FSD option.    Furthermore, you cannot achieve a price reduction  by requesting Tesla to remove the FSD option    from the car at this time.    For some, that will be a good deal.    Another possibility is that you can acquire  a Model 3 with FSD enabled from a dealer that    doesn't understand what they have and overpriced  the car to compete with old Tesla Model 3    vehicles that don't have Full Self Driving.    The problem with this strategy is that you'll  probably have to spend a lot of time emailing    and calling dealers to get a picture of the  car's software screen because very few dealers    are knowledgeable enough to include that in  their listing, and if they under-priced a    car with FSD, you'll want to confirm that.    When hunting for used EVs, the sweet spot  for used Model 3 vehicles is between two and    a half years old and has 10,000 to 30,000  kilometers on the odometer.    This way, if you buy the car from someone  other than Tesla, you will still have it under    warranty for one and a half years, or two  and a half years if you buy it through Tesla.    You may also acquire the long-range RWD model,  which is a terrific deal that is not available    now.    You won't have to pay a high delivery cost  if you buy it from Tesla and can find one    in your region.    Overall, you may save $16,000 while still  getting a high-quality vehicle that will last    you a long time.    Now, if you want the Standard Range Plus model  and don't care about FSD, you may as well    buy new or save a little money on a demo because  the savings on such models are little when    purchased used.    Another point to consider is that a used automobile  loan will often have a somewhat higher interest    rate than a new car loan from Tesla or anybody  else.    This increased rate, which Tesla charges,  equates to around $1,500 in purchase price    on a $45,000 vehicle.    Furthermore, if you want to sell the automobile  in a few years, the resale value will be substantially    greater than the purchase price.    Because many customers use automobiles for  around ten years, the value of each of these    cars will be almost the same at the end of  that period.    Therefore they would prefer the used Model  3 above to the new Model 3 above.    Anyways, we think this is a great way to save  your money when buying an electric vehicle,    especially during this chip shortage crisis.    Okay, now what do you guys think about this  strategy?    Do you guys plan on buying a used Model 3?    Drop in your views in the comments section  below.    That's about it for today, guys!    Drop a like for the video if you're a huge  fan of what Tesla is doing in the automotive    industry.    Hope you guys enjoyed the video.    We will meet again in the next one.