Tesla Model 3 price corrections boost used desirability in June

The high demand for used Tesla Model 3s has contributed to greater bid volumes and higher conversion rates for EVs at auction during May and June, according to Aston Barclay.

It saw the Tesla Model 3 top its June EV desirability index with recent price corrections in both the new and used markets further creating demand for the all-electric saloon.

The June EV desirability index confirms dealers are generally buying the lower value used models with the Renault Zoe and Nissan Leaf achieving the top two places.

Tesla’s Model 3 and the Renault Zoe were also placed one and two in the overall desirability index Aston Barclay publishes each month of over 250 used cars which reinforces their popularity among buyers.

The business said the general rule of thumb, excluding the Model 3, is that dealers are proactively buying used EVs below £20,000 particularly at Aston Barclay’s fortnightly EV auction at Donington.

Aston Barclay has seen EV prices begin to settle down in April and May with prices falling by -4.8% (£1,087) to an average of £21,342 at 30 months and 20,741 miles.

This compares with average used EV prices during Q1 of £22,429 at 30 months and 21,135 miles. However, while prices are now much lower than their peak of £31,378 in Q3 2022 the market fall has slowed down and there is renewed hope they are now finding their ‘new normal’ in the market.

“2023 has certainly seen used EV prices start to stabilise and used car dealers have responded with more bids and higher conversion rates,” explained Nick Thompson, Aston Barclay’s director of sales.

“While the price reductions announced by Tesla haven’t been widely popular in the industry it has made the Model 3 more affordable to second-hand buyers which has fuelled demand. It’s early days and there is still a degree of caution from dealers around EVs, but it has been a positive start to the summer,” he added.

Aston Barclay’s monthly index takes into consideration three key metrics: web views prior to sale, number of physical and online sale bids, and sale price achieved as a percentage of CAP average.