You're either approaching the time when you need to purchase a brand new vehicle. Maybe you're excited about the lifestyle possibilities offered by electric and hybrid vehicles. For whatever reason, you've thought about buying a Tesla used as an investment.
Is buying a Tesla used a smart idea? It depends on many factors. But, both used and new Teslas have a great design, excellent electric engineering, and a chance to make a positive impact on the environment. The Teslas are reliable and have low-cost maintenance. They also hold their value very well.
Tesla offers its customers the opportunity to be at the forefront of electric vehicle technologies. Tesla insists on having their vehicles maintained, so you can rest assured a used Tesla vehicle will be treated with the same care as a new one. There are costs involved with electric vehicles due to their technology.
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What to Look for in a Used Tesla
Buying a new or second-hand vehicle can be intimidating for some. As a major investment, and one that can affect your ability to commute to work, home, or even social events is right to be a bit intimidating.
Teslas are so strikingly different than their gasoline-powered counterparts that many people hesitate to purchase a used Tesla. If you buy new you can be fairly sure that the car will be in good condition. However, if buying used you must know what to look out for and this could be difficult if you have never driven a Tesla.
Electric vehicles are easier to maintain than gasoline vehicles. Since electric vehicles have no gas engine and oil, they won't require any more maintenance. According to Tesla Website maintenance guidelines, even brake pad maintenance will be reduced.
It means that if you buy a Tesla used, there's less to worry about in terms of parts failure or the condition of the car. Teslas are very simple, and they are reliable. There are fewer moving parts and less complexity in Tesla vehicles, which means that they can be more reliable.
Inspection of a Used Tesla
If you are looking to purchase an older Tesla, then you will likely be looking for the same problems as with a conventional gasoline-powered car:
- External damage affects many vehicles. Dents and paint chips are a great way to assess the overall condition of the car. The paint chipping is not a serious issue because it's common. Road debris can be the cause. Kits are available to cover up the ugly spots.
- Rust can be a serious issue. You should be on the lookout for surface rust in colder areas of the country, where road surfaces are liberally treated with salt. When you notice rust, make sure to inspect the vehicle frame as rust can cause structural issues.
- The tire and wheel should be in good shape, as repairs can be expensive. 21" tires and wheels are known for being prone to wear out quickly. Wheels are important to consider when buying a used car, regardless of the type.
- The interior condition and health of the leather upholstery is a good indicator as to how the vehicle has been maintained.
- Check electronics. Tesla vehicles are highly reliant on the electric system to run smoothly. Get in the car and test out the screen to make sure that it functions properly. It is important to check the windows and the lights while in the vehicle.
- A test drive with any car is a good idea. You can check that it accelerates according to the advertised speed, the brakes work well and the vehicle performs as expected.
- Don’t worry so much about mileage. When driving a gas vehicle or a diesel, mileage can be interpreted as an indication of the health of both the engine and transmission. Both are very expensive to replace and repair. In a Tesla the engine is replaced by motors built into the wheel that can last many thousands of miles.
Tesla motors last so long that battery packs are needed to replace them long before they ever have a problem. Tesla Batteries are covered for 120,000 miles. Tesla has reported that their batteries may still have a 20% charge capacity drop even after 500,000 mile.
- It is very important that you search the history of a vehicle before purchasing it. The history of the vehicle can be determined by obtaining a VIN number, and then running it through Carfax.
After all that, it's easy to see how Tesla's vehicles have a lot less mechanical issues to deal with. Before purchasing one of the vehicles, you will want to be aware of a few additional things.
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Vertical Integration in Tesla
Tesla's vertically integrated company means that the entire manufacturing, selling and maintenance process is handled by them. Tesla does not supply repair manuals and parts for non-authorized dealers or service centers in order to diagnose and complete repairs.
Tesla vertical integration has a few effects:
- Maintenance Costs
- You can also get a warranty
- Insurance Costs
- Repairs available
The increase in maintenance costs and repair costs is one of the biggest issues. The owner of a Tesla car must schedule an appointment to repair the vehicle if there is a problem. Tesla controls all parts for these vehicles, so the cost can be high. Even though the warranty covers them.
When your vehicle is no longer under warranty, it can be very expensive or even impossible to replace damaged parts through a service center that has been certified. Tesla owners are often frustrated when their vehicles have problems.
Before purchasing a Tesla used vehicle, you should make sure the vehicle is still covered by warranty. The original Tesla models had an 8-year motor and battery warranty. Therefore, these vehicles still fall under the original Tesla warranty.
It is important to have a warranty when you are looking at purchasing a Tesla. A Tesla would be a terrible investment if you bought it only to discover that there was a problem with the vehicle. Your entire investment would disappear in minutes. Tesla offers a CPO Warranty Program for those interested in buying a pre-owned Tesla.
The CPO Warranty starts as soon as you buy the vehicle. It can last for up to 4 Years or 50,000 Miles. CPO warranties are available on vehicles that have passed the 70-point inspection. The only concern for a buyer is normal wear and tear.
If you're considering buying a Tesla from an individual or third-party, you should be extremely cautious about what you may be getting into.
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Price for a Used Tesla
Tesla is a relatively young automobile manufacturer compared with other car manufacturers on the current market. Tesla has developed and patented many of the technologies used in their cars. The price of a Tesla new vehicle ranges between $35,000 for a Model 3 to $81,000 for a Model X for the year 2019.
The prices are misleading because the models only have basic options. Model 3 prices can rise to $50,000 if you add upgraded battery packs, and other optional features.
Tesla Model 3s are often found for less than $40,000. These vehicles are able to maintain their value. These prices reflect the quality of these vehicles as well as their market value. Tesla has shown the world that it is possible to have an all-electric vehicle which works perfectly and also proven there is demand for such vehicles.
It has caused a shortage of vehicles, as the demand is higher than the ability of the company to produce them. Tesla cars are so expensive whether new or second-hand. The uniqueness of Tesla's vehicles is another reason. Tesla is a rare company that can boast of producing a practical all-electric vehicle.
Tesla cars are valued at high prices because they insist that all maintenance and repairs be handled by Tesla and its authorized service providers, just as Apple does with their products. For those who are interested in repairing their vehicles themselves, they do not offer manuals or spare parts.
Although this can be frustrating to many Tesla drivers, it ensures that the quality of repair and maintenance for Tesla vehicles is high.
Read More: Tesla Guide: How To Charge A Tesla While On A Road Trip?
Tesla and Right to Repair
Tesla is an electric vehicle company dedicated to bringing about a sustainable transportation era. Tesla was not a company who supported the Right to Repair. They have a long history of keeping all their information regarding repair and manufacture of parts for their cars.
Tesla only has a few Tesla Certified service centers in the United States. Tesla owners must use these to receive the repairs they need for their vehicle. Massachusetts passed a Right to Repair law in 2012 that required automakers to offer independent repair shops and vehicle owners the same diagnostic and repairs information provided by Tesla to their certified service centers.
Tesla has now begun to ease its stranglehold on this crucial information. Owners and repair shops can access parts and diagrams information, as well as repair manuals for a monthly subscription. This information is available through Tesla’s Service Website.
You can start here if you own a Tesla car that is out of warranty. If this is the case, and there's no way to get it fixed by a professional, then this guide will help.
You should know this information if you plan to purchase a Tesla vehicle that is not under warranty. Rebuilds on YouTube is the YouTube Channel of a Massachusetts man who has rebuilt several Tesla vehicles.
Costs of annual maintenance for a used Tesla
How much the yearly upkeep will cost is an important factor when looking to buy a new car. The cost of maintenance can vary from a minimal amount to astronomical depending on the type of vehicle.
For example, I once owned a Chrysler Crossfire which lasted several years. As soon as I started having problems with the vehicle the cost of repair quickly overshadowed its original price. Unsurprisingly, I sold the vehicle in its current condition to purchase something more useful.
Tesla's cars are subjected to the same philosophy. Due to insurance companies taking advantage of Tesla's vertically integrated business model and Tesla’s Right to Repair, it is possible for the price to increase quickly when repairing or maintaining an older Tesla. Owners of Teslas have shared horror stories about repair costs that can reach tens of thousand dollars as well as lengthy wait times at repair centers.
The annual maintenance cost for a Tesla Model 3 is approximately $3,000 as shown on this page. Over the next five years, you should expect to pay between $10,000 and about $15,000 - roughly 30% of the initial cost of an used or new Tesla. It is approximately the amount a person would pay to maintain other luxury vehicles, like BMWs.
It is also affected because the warranty may not cover some damaged parts or repair, resulting to much higher costs of repairs. Here are some of the horrors stories about Tesla. The cost of repairs can go up if a Tesla car part is damaged beyond the warranty.
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Tesla insurance premiums
The cost of insurance for Tesla cars is estimated to be around $375 a year . This is affected both by normal factors and by some caused by Tesla's vehicles.
State Farm charges me only $110 for my personal 2019, Tesla Model 3 Performance, with 50,000-miles on it. Geico charged $275 a monthly fee for the same protection! ).
The following are the typical factors that determine what an average person pays for insurance when purchasing a used Tesla.
- Optional equipment included with the vehicle
- Model of the vehicle
- Driver history
- What kind of coverage do you select?
Tesla's grip over diagnostics and repair information is another factor that drives up insurance rates for their cars. The insurance companies are now taking advantage of it.
Tesla, however, has begun to provide insurance for drivers of their cars. The service will use the computer system of the car to evaluate the performance of the driver. Tesla is able to lower the insurance cost for their customers by as much as 20%.
It's good news for anyone looking to purchase a Tesla car in the near future.
Read More: 2023 Tesla Guide: Is The Tesla Model 3 An Ideal Family Car?
Do you have access to charging?
Electric charging accessibility is another important factor to consider when purchasing an electric car.
Tesla has provided a breakdown on how different voltages affect the charging speed of their vehicles.
Level 1 Charging
The standard home 120v can be used, although at a slower rate. You will get approximately 3-5 mile per hour. To fully charge a Tesla, you could need up to four days with a 120v standard outlet.
Level 2 Charging
A 240v charge will take about 6-30 hrs to fully recharge a Tesla. It can be anywhere between 9-50 mph per hour. If you will be using your Tesla for daily commuting, it is a good idea that you install a 240v inlet or exterior 240v outlet.
This is the rate that most public charging stations will charge.
Level 3 Charging
As tesla started to produce their electric vehicles they had to also build their charging stations to enable the vehicle to be used for long distance travel. Tesla Superchargers refer to the Tesla-owned and Tesla-operated charging stations. These stations with high power and efficiency are being built across the United States.
Tesla vehicles can be charged up to 170 miles every 20 minutes at one of the Tesla Supercharger Stations. This charging rate is incredibly fast for any type of battery, making long distance driving or road trips more possible for these cars.
Tesla has created a map showing the Supercharger Stations they have built. It can be found on their Website. The network is built on popular routes. They continue to increase the network's scope and make it more available and faster.
You can also access this map via the console of your Tesla.
Read More: Tesla Guide: Is It A Good Idea To Buy A Used Tesla?
What is the cost to charge a Tesla annually?
The cost of traveling is also reduced with an electric vehicle compared to gasoline-powered vehicles. Even when gasoline prices are low electricity is still cheaper. Electric vehicles will get more mileage as battery technology and efficiency improves.
Tesla is the leader in the development of these technologies, so Tesla enthusiasts will be amongst the first ones to benefit. Tesla batteries are capable of delivering between 300-620 miles on a full charge. This depends on the model. These batteries are built to last hundreds of thousands miles. Some Tesla customers have claimed that they have more than 500,000 miles on the vehicle.
The cost to charge an electric car is significantly less than the cost to fill a gas-powered vehicle. If you choose the Long-Range Model 3 with a distance of 310miles, the price will be around $13 according the country's average electricity rate. This amounts to approximately $0.20 per kilometer.
Your Tesla's annual charging costs will be about $650 if your driving distance is around 15,000 miles.
You can get this price even lower if you have an existing solar panel array at your home.
What is the value of buying a used Tesla?
If you have the money to purchase a Tesla used vehicle, I would definitely say . Make sure you do some research to find out if there are any charging stations in your area and that the vehicle you plan to buy is covered under warranty.
You can expect your Tesla to have a longer service life if you reside in Massachusetts. As more independent shops gain access to repair and diagnostic information, the quality of repairs will only increase.
Teslas are a reliable vehicle, even if you buy a used one, due to their solid engineering and reliability.
Even if this article scares away your desire to buy a Tesla now, you should be aware of the fact that, as production increases and availability grows, prices will decrease. The company will mature over time and eventually release the repair rights to independent shops.
It is also exciting to note that the technology of electric vehicles is still relatively young. Quality and availability will continue to improve as more money and time is invested into this technology. Tesla is the only electric car manufacturer that currently has any real competition. However, as soon as competition arrives, Tesla will be forced to adjust their business model.
There will be a few effects:
- Tesla Vehicles are more available.
- Reduced insurance prices
- Reduced cost and more availability of repairs.
Tesla's customers will be even more thrilled and satisfied with their new vehicles. This will allow Tesla to maintain its leadership in the electric car market. Tesla has some of the most advanced and well-engineered vehicles in the world. We can be sure that they will do so for many decades.
It's likely that if you don't get a Tesla used today, the investment opportunity will be too good for you to miss in the near future.
